Posted Apr 27, 2020 by Martin Armstrong
The head of the Institute for the World Economy believes that sooner or later tax increases must be considered in order to cope with the corona crisis. There is absolutely no question that this coronavirus will be used to raise taxes dramatically to cover the revenue losses that those in power created with their draconian measures. Many banks in Europe, suffering from bad loans dating back to the 2008 crisis, are now unwilling to provide emergency loans to small businesses. The economic devastation of the European economy is just totally insane. The self-employed are facing financial ruin and the economic activity will collapse to the Great Depression-era level if not worse.
The decision of the leaders in the European Union just defies common sense. One must ponder whether they are really this stupid, or is this deliberately being used to force their long-awaited dream of justifying the generalization of Europe.
Our computer picked up this crash in indices and individual stocks. Yet, we have to wonder if the reluctance to reopen and the pronouncement that social distancing will remain for a while, killing the usual tourism which is the key to Southern Europe’s economic survival, will merely be repeated for the next flu season. It simply does not appear that there are any qualified politicians in charge or they are deliberately sacrificing the livelihood of the people to justify the generalization of Europe.