Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
CATHY WOOD ARK GARBAGE ARK Funds Heading for 90% STOCK CRASH! - 22nd Jan 22
Gold Is the Belle of the Ball. Will Its Dance Turn Bearish? - 22nd Jan 22
Best Neighborhoods to Buy Real Estate in San Diego - 22nd Jan 22
Stock Market January PANIC AI Tech Stocks Buying Opp - Trend Forecast 2022 - 21st Jan 21
How to Get Rich in the MetaVerse - 20th Jan 21
Should you Buy Payment Disruptor Stocks in 2022? - 20th Jan 21
2022 the Year of Smart devices, Electric Vehicles, and AI Startups - 20th Jan 21
Oil Markets More Animated by Geopolitics, Supply, and Demand - 20th Jan 21
Fake It Till You Make It: Will Silver’s Motto Work on Gold? - 19th Jan 22
Crude Oil Smashing Stocks - 19th Jan 22
US Stagflation: The Global Risk of 2022 - 19th Jan 22
Stock Market Trend Forecast Early 2022 - Tech Growth Value Stocks Rotation - 18th Jan 22
Stock Market Sentiment Speaks: Are We Setting Up For A 'Mini-Crash'? - 18th Jan 22
Mobile Sports Betting is on a rise: Here’s why - 18th Jan 22
Exponential AI Stocks Mega-trend - 17th Jan 22
THE NEXT BITCOIN - 17th Jan 22
Gold Price Predictions for 2022 - 17th Jan 22
How Do Debt Relief Services Work To Reduce The Amount You Owe? - 17th Jan 22
RIVIAN IPO Illustrates We are in the Mother of all Stock Market Bubbles - 16th Jan 22
All Market Eyes on Copper - 16th Jan 22
The US Dollar Had a Slip-Up, but Gold Turned a Blind Eye to It - 16th Jan 22
A Stock Market Top for the Ages - 16th Jan 22
FREETRADE - Stock Investing Platform, the Good, Bad and Ugly Review, Free Shares, Cancelled Orders - 15th Jan 22
WD 14tb My Book External Drive Unboxing, Testing and Benchmark Performance Amazon Buy Review - 15th Jan 22
Toyland Ferris Wheel Birthday Fun at Gulliver's Rother Valley UK Theme Park 2022 - 15th Jan 22
What You Should Know About a TailoredPay High Risk Merchant Account - 15th Jan 22
Best Metaverse Tech Stocks Investing for 2022 and Beyond - 14th Jan 22
Gold Price Lagging Inflation - 14th Jan 22
Get Your Startup Idea Up And Running With These 7 Tips - 14th Jan 22
What Happens When Your Flight Gets Cancelled in the UK? - 14th Jan 22
How to Profit from 2022’s Biggest Trend Reversal - 11th Jan 22
Stock Market Sentiment Speaks: Are We Ready To Drop To 4400SPX? - 11th Jan 22
What's the Role of an Affiliate Marketer? - 11th Jan 22
Essential Things To Know Before You Set Up A Limited Liability Company - 11th Jan 22
Fiscal and Monetary Cliffs Have Arrived - 10th Jan 22
The Meteoric Rise of Investing in Trading Cards - 10th Jan 22
IBM The REAL Quantum Metaverse STOCK! - 9th Jan 22
WARNING Failing NVME2 M2 SSD Drives Can Prevent Systems From Booting - Corsair MP600 - 9th Jan 22
The Fed’s inflated cake and a ‘quant’ of history - 9th Jan 22
NVME M2 SSD FAILURE WARNING Signs - Corsair MP600 1tb Drive - 9th Jan 22
Meadowhall Sheffield Christmas Lights 2021 Shopping - Before the Switch on - 9th Jan 22
How Does Insurance Work In Europe? Find Out Here - 9th Jan 22
Effect of Deflation On The Gold Price - 7th Jan 22
Stock Market 2022 Requires Different Strategies For Traders/Investors - 7th Jan 22
Old Man Winter Will Stimulate Natural Gas and Heating Oil Demand - 7th Jan 22
Is The Lazy Stock Market Bull Strategy Worth Considering? - 7th Jan 22
What Elliott Waves Show for Asia Pacific Stock and Financial Markets 2022 - 6th Jan 2022
Why You Should Register Your Company - 6th Jan 2022
4 Ways to Invest in Silver for 2022 - 6th Jan 2022
UNITY (U) - Metaverse Stock Analysis Investing for 2022 and Beyond - 5th Jan 2022
Stock Market Staving Off Risk-Off - 5th Jan 2022
Gold and Silver Still Hungover After New Year’s Eve - 5th Jan 2022
S&P 500 In an Uncharted Territory, But Is Sky the Limit? - 5th Jan 2022

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

The UK is now a near Communist state run by Conservatives

Politics / UK Politics Apr 20, 2020 - 06:50 PM GMT

By: Submissions


The State and Politics


  • The role of the state will be more invasive
  • Governments have got used to telling everybody what to do and all authorities have new emergency laws in place. In some countries these powers are already misused by the police (France)
  • The freedom of the individual is gone, and it will take a hard fight to get freedom back
  • All this will be combined with the cause to fight Global Warming and the same powers will be used to that end. E.g. whether or not you may use your car.
  • The fact that Governments in many countries are now paying for the livelihood of many businesses and employees strengthens the State’s power further
  • The Covid-19 crisis has shown up cracks in the cohesion of the Global co-operation, between friendly countries, trade blocs and even federal states (USA, EU and Germany)
  • Business and holiday travel will become an exception. Much will be and is done online and digitally
  • Countries will become more nationalistic. They have seen that when such a serious crunch comes, it is only one’s own government that will look after you and even our own government has been slow in their protection of the population
  • Countries will want to become more self-reliant on manufacturing the end products of many goods that were found out lacking at the start of the Covid-19 outbreak. Some PPE is still in short supply and has to be bought of all place in China.
  • Nationalism is expensive and it will drive prices up
  • There will be a policy to strengthen the National Health Service where money is no object. Vast sums will be spent on new staff, training and equipment
  • The UK NHS will be treated like a victorious army and will have everything it needs (eventually) but it will never be enough as so many health treatments have been put on hold. The cancer patients will have to be treated as well.
  • All this NHS expenditure and the keeping the economy going (sort of) will require unbelievable sums of money. As the Tax base has shrunk, owing to companies no longer paying tax and having many tax/rates breaks, the National Debt will explode. It will be so vast that nobody can grasp the amount of zeros or what it means. Unfortunately, it means poverty for generations to come. Just as a reminder, the UK government paid off its last instalment of its WWII Lend Lease loans from the USA in 2006.

How will we get back to normal?

  • To find out how we could get back to normal from our lock-down, we must study the experience of the people of Wuhan after they were told that they could come out (partially) and travel again
  • The reaction was not that enthusiastic. Many do not trust that it is over, not even the government itself. “Outdoors is not safe!”, many feel. There is a suspicion that recovered patients may still carry the virus and they are not welcome everywhere. There is also great sadness and mistrust of the authorities who lied to the people when the virus was first discovered.
  • Only a few shops and businesses have opened again. Many can’t, no money, no staff
  • Some areas which were unlocked and free to go again, have for whatever reason been restricted again (new outbreaks?)
  • It seems that the reality of unlocking a lockdown is not easy. People will have been hurt through losing loved ones or having been ill themselves, they are psychologically affected, nervous and uncertain.
  • One thing seems to become clearer: The economy will not suddenly burst into bloom. Recovery will be very patchy, uncertain and tentative with a possibility of severe setbacks, mistrust and quite a bit of social strife. It certainly will not be a V shape recovery.

The economy

  • There will be a global crash with economic activity falling by numbers never seen before. No-one is buying large ticket items and manufacturing is slow and patchy in recovering. There is a demand and a supply problem that will lead to great instability in many sectors.
  • Unemployment will be at record highs.
  • In the medium term this is not all bad news as firms will come back on stream, often with the help of their governments, to provide goods that are in short supply. Again, the governments will be directing much of the initial recovery. Politicians are not the best managers of industry so we must hope that they will let go soon. This is more difficult because many firms and industries have been financially carried by the State and dependent on orders from the State.

The financial markets

  • We have witnessed one of the largest and steepest falls in the stock markets ever.
  • Certain sectors, have since recovered about half of the initial fall
  • In view of the severity of what is will be the deepest recession for years, there will be more market setbacks.
  • There cannot really be a full market recovery until there is a vaccine available and in quantities that enable billions of people to be immunised.
  • That will be some years from now at the earliest
  • My conclusion for the stock markets is that there will be enormous swings between hope and despair. It will be a trader’s market and they will have to be exceptionally brave and nimble.
  • Just at this moment (19/04/20) I think the recovery has gone far enough and there may be a setback in world markets of 10-15% in the coming week(s)

By Frederik s’Jacob

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in