COVID-19 or Governments across the Globe vaporising your savings, making artificial rainfall in rich’s valet.

COVID-19 or Governments across the Globe vaporising your savings, making artificial rainfall in rich’s valet. Lets analyse.

Do you suffer from embarrassing and ugly motives of Governments across the globe? You might be shocked to know that your little savings are under eye of colonial “friends" lurking under your wallet is a warning of something much more sinister. They will take that away from you in this pandemic, so that you can be exploited at your work, they will exploit you with demand supply gap. This is their plan. Right now it’s making its way to your heart, harming your organs and clogging your arteries along the way. It will kill you very slowly and Government. And nothing from the Government will be done from the outside and inside ever which is going to solve the problem for good so that your little savings should not get vaporized and rain in the pocket of “elite” of the world.

In today's edition I will focus on the next phase of the crisis, challenges to monetary policy during a pandemic, economic and recovery updates for the Middle East, Asia, Latin America and Europe, building a sustainable global food system, #COVID-19 and #corruption, and summer reading for economic enthusiasts. On that note, let's dive right in.

A NEW PHASE OF THE CRISIS: When the Group of Twenty industrialized and emerging market economies (G-20) finance ministers and central bank governors last met in April, the world was in the midst of the Great Lockdown forced by the outbreak of COVID-19. As they meet virtually this week, many countries are gradually reopening, even as the pandemic remains with us. Clearly, we have entered a new phase of the crisis—one that will require further policy agility and action to secure a durable and shared recovery.

But we are not out of the woods yet. A second major global wave of the disease could lead to further disruptions in economic activity. AT THE BRINK OF MAJOR SHORTFALL AGAINST UNITED STTES OF AMERICA – China will infuse another virus to world is still a threat conception. So, calculate other risks till now, include stretched asset valuations, volatile commodity prices, rising protectionism, and political instability. On the positive side, medical breakthroughs on vaccines and treatments could lift confidence and economic activity. These alternative scenarios highlight that uncertainty remains exceptionally high.

Emerging from the crisis, we must keep our eyes trained on the larger picture of building a world that is more resilient, more efficient, more inclusive, and more sustainable. One of the ways we can do that is by focusing our efforts on tackling climate change. The Government of India is also under trap of crony colonial system, how come under this crisis, only 18 companies getting investment and getting rich every day. Who are those blind investors, and is there money is as useless as tissue paper? Just give a thought. You will find the answers; it is not as tough as “anatomy of melancholy”.

On the other hand EU Environment Ministers started talked about the need to accelerate green investments, to ensure that high-emitting businesses that benefit from public support undertake efforts to reduce their emissions, and how we must pay attention to supporting job-rich activities that are climate positive—for example sustainable agriculture, reforestation, or reducing energy intensity through building insulation. She also discussed how we must price carbon and learn to price climate risk. They are also thinking how to ensure their savings should not et vaporized in this pandemic.

MONETARY POLICY IN THE TIME OF COVID-19: Chairman of the Governing Board of the Swiss National Bank Thomas Jordan delivered (virtually) the 2020 Michel Camdessus Lecture—on the role of central banks. His speech focused on current monetary policy challenges in the low interest rate environment and the experience of a small, open economy.

Number of key questions come up in my mind after reading and listening so many articles, who will answer, off course Government. The key questions before governments are - How can central banks best support the economy once they have exhausted conventional policy space—and how can they avoid unintended consequences, such as asset markets that may become detached from economic fundamentals? And how will higher debt levels and weaker balance sheets affect demand for credit, the natural rate of interest, and the conduct of monetary policy going forward?

MIDDLE EAST AND CENTRAL ASIA: In an update published this week to the Middle East and Central Asia Regional Economic Outlook, the IMF warned that while several countries in the region are beginning to reopen, rising infection numbers may pose risks. A sharp decline in oil prices together with production cuts among oil exporters, and disruptions in trade and tourism, add further headwinds to recovery efforts. As a result, growth in the region is now projected at –4.7 percent in 2020, 2 percentage points lower than in April 2020.

ASIA, LATIN AMERICA AND EUROPE: Deputy Managing Director Tao Zhang recently spoke to the Greater Bay Area Chief Economist Forum and outlined the latest global economic outlook with a focus on Asia. "The current picture of virus cases differs across the region. Some countries are experiencing rapidly rising cases each week. Others are trying to flatten their curves. And some of them are hiding due to political consequences, where India is number one in data hiding of COVID19 cases excluding China. And it is good to know, that yet others have been relatively successful in getting the virus under control. The main impact of lockdowns on the real economy is in the second quarter of 2020 for most Asian economies excluding China and India will be seen. For the first time in recent memory, Asia’s output is expected to contract by 1.6 percent—a further downgrade from our April projection of zero growth.

Also earlier this week, Chief Economist Gita Gopinath participated in a 60-min presentation and discussion with Marcela Eslava, Dean of the Economics Department at Universidad de los Andes in Colombia about the global recovery with a focus on Latin America.

And Europe, like the rest of the world, faces an extended crisis. An element of social distancing—mandatory or voluntary—will be with us for as long as this pandemic persists. This, coupled with continued supply chain disruptions and other problems, is prolonging an already difficult situation. Based on updated IMF projections released last month, we now expect real GDP in the European Union to contract by 9.3 percent in 2020 and then grow by 5.7 percent in 2021, returning to its 2019 level only in 2022. If an effective treatment or vaccine for COVID-19 is found, the recovery could be faster—but the opposite would hold true if there are large new waves of infection.

REINVENTING JUST-IN-TIME FOOD SUPPLY CHAINS: 2020 will be a year of reckoning for the world’s food systems. In just months, COVID-19 shut down half the globe. Images of panic buying, empty grocery shelves and miles-long queues at food banks have suddenly reminded us how important food systems are in our lives and how imbalanced they have become.

Pandemic-induced runs on food, however, do not merely reflect human behavior during emergencies. They are evidence that the global food supply chain—highly centralized and operating on a just-in-time supply basis—is prone to falter in the face of shocks.

In many countries, for example, it became impossible to harvest or package food as workers were blocked at borders or fell sick. Elsewhere, stocks piled up and avalanches of food went to waste because restaurants and bars were closed. In developing countries, the United Nation’s Food and Agriculture Organization and the World Food Program expect that a “hunger pandemic” and a doubling of people starving may soon eclipse the coronavirus, unless action is taken.

COVID-19 AND CORRUPTION: This week, Legal Counsel and Director of the Legal Department Rhoda Weeks-Brown participated in a 90-min discussion titled "The Business Case for Accountability"—hosted by the Anti-Corruption and Governance Center of CIPE. The discussion focused on a range of measures put into place by the IMF and the World Bank to ensure that COVID-19 emergency financing resources are solely used to protect lives and livelihoods.

When I asked Dr Ajay Kumar Chairman Fox Petroleum Group, he said and I quote "Corruption by elite class in this pandemic is at brutal high, it is more than a robbery. Behind today’s political illiberalism and rejection of globalization is a widespread feeling that economic opportunities are reserved for an elite to which 'normal people' do not belong" , unquote.

Dr Ajay Kumar Chairman Fox Petroleum further stated that - "The real villain is the World health care system and taking deaths lightly by Government. Each death due to COVID19 in India has not killed a person but the family economy too.

The other argue that hospitals, insurance companies, pharmaceutical companies, doctors, and device makers are all wildly overpaid by international standards, often because of the curious Government tolerance for monopoly in recent decades.

IMF AND COVID-19: IMF just updated global policy tracker to help member countries be more aware of the experiences of others in combating COVID-19, and they are regularly updating lending tracker, which visualizes the latest emergency financial assistance and debt relief to member countries approved by the IMF’s Executive Board.

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