Financial crisis in 2021?

Question: Is Saint Germain willing to give a prediction for what will happen to the economy in 2021? Is a crisis such as in 2008 with a credit crisis unavoidable? Up until now, both the real and the financial economy seems to survive the COVID pandemic without any structural and long term damage.


Answer from the Ascended Master Saint Germain through Kim Michaels. This answer was given during the 2021 Webinar – Ending the Era of Ideology.

Well, what will happen to the economy not only in 2021 but also beyond, depends very much on what the governments, of especially the modern democracies, the more well-to-do nations, are going to do. Are they going to make a conscious and deliberate evaluation of neoliberalism, realize that it has failed, that it is not a functioning economic ideology, and swing towards a new model where the government needs to be more involved with the economy, instead of letting the “market lift all boats”, which it clearly does not do?

It also depends on their willingness to continue with certain stimulus. You will see a situation where many companies, especially smaller companies have been surviving because of the stimulus. Many people expect that there will be a wave of bankruptcies when the stimulus packages stop, but this depends on when these are stopped and how much the real economy has gotten started, which depends on the speed of vaccinations, and so on.

It is clear that if certain governments may insist on holding on to neoliberalism, even though they obviously have not followed it during the pandemic, but if they think they can go right back to it after the stimulus package is stopped, then those countries will experience a financial and economic crisis.

What you have seen so far is that the stock markets and the real estate markets have done very well during the pandemic. This is what we have talked about before of the gambling economy, or the perception-based economy, where there is a perception that governments will continue with the stimulus. If that is not fulfilled, then there will be a certain downturn because of that.

The question really is, as we have talked about before, whether countries are willing to step up to a more long-term approach to the economy, that does away with neoliberalism and realizes that, in the modern world, the government simply must play a role in the economy, because if not, they are allowing the small elite that has gained a monopoly on the money system and the financial system, to exploit the population and suppress economic growth.

We have talked about income inequality, which is a problem that simply must be addressed in practically all nations but especially in the United States. And if it is not addressed, then it will gradually precipitate a crisis, because how can there be enough consumption to keep these small businesses from going under? The bigger businesses can weather a storm better than the smaller ones, but they will still not be able to prevent an economic downturn.

This all depends on whether the income inequality is addressed as part of the larger picture. And if certain nations are not willing to do that, then I predict that there will be a financial crisis in those nations, not necessarily in 2021, it may be pushed out to 2022.

 

Copyright © 2021 Kim Michaels