Rhenald Kasali Predicts US Recession Triggering Depression, Bankrupting Companies and Rising Poverty
Nino Eka Putra ~ PR of FEB UI
DEPOK – (2/8/2020) BaBe (Baca Berita), the iNews.id channel, Sunday (2/8/2020) issued news from an interview with a Professor of the Faculty of Economics and Business, Universitas Indonesia (FEB UI), Prof. Rhenald Kasali, Ph.D., entitled “Rhenald Kasali Predicts US Recession Triggering Depression, Bankrupting Companies and Rising Poverty.” The following is the news we quoted.
“Rhenald Kasali Predicts US Recession Triggering Depression, Bankrupting Companies and Rising Poverty”
The recession that the United States (US) is experiencing in the second quarter of 2020 is the worst in its history. The US economy recorded a negative 32.9 percent in the April-June period. This contraction was much larger than in the first quarter, which was at a minus 5 percent.
Professor of the Faculty of Economics and Business (FEB), Universitas Indonesia, Rhenald Kasali, predicts that the recession in the US can trigger a depression or great depression. The situation is a major economic setback, almost all companies are bankrupt, have no money, no new investments with massive unemployment so that the only source of income is state money.
“At the time that poverty and crime become rampant, the state has to take action. ” said Rhenald, Sunday (2/8/2020). He explained that this effect could also affect global economic conditions, because the US dollar is a currency that is often used in world trade.
“There is indeed a global impact because the US dollar is the worldâs trading currency. And most of our foreign exchange reserves are in USD and a lot of people hold dollars. The recession in the US is predicted to trigger depression. ” he said.
According to Rhenald, in that situation the Fed or the US central bank would cut interest rates to spur investment, but in fact, the US dollar is now weakening.
“The impact was felt last week here (in Indonesia), the US dollar weakened, people began to release dollars and buy gold. Gold prices have soared.” he said.
As a reference, the term great depression appeared when the US economic crisis continued for a decade, namely in 1929 to 1939. The Great Depression in the USÂ started with lowering stock prices in September 1929. Its peak on October 24, 1929, carried out a massive sale of shares within a day. This has resulted in the stock index falling at an alarming level. (hjtp)
Source: http://share.babe.news/al/QekRhppQvR
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