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Covid Rise And Economy Fall , Again ?

As of today, many countries in Europe such as Austria, Hungary, Dutch, and Germany are witnessing the highest covid cases since the pandemic started. Europe is the only region where deaths have increased recently and the USA is already at elevated levels in terms of cases and deaths.

So, the question is do we revisit the 2020 scenario as the spread in the current situation has been the most widely since the start of the pandemic. But maybe not before the festival season ends as the governments have already achieved the goal of high vaccinations rates.

Till now it might be confusing you that what is the theme of this article. Let me clearly state that the theme is of the present being the Present of growth and the near future being the Grinch of covid.

Welcome, Present of Present, the real world where central banks are removing special measures that supported the financial market and also where the government has started removing all special measures related to covid aid as they have achieved targeted vaccinated rates bringing economy and life to aa "normal". This version is what is called the Present of growth and is getting the MSM( Main Stream Media) attention.

But post-Christmas you might see the Grinch of covid along with higher inflation being caused due to more than one reason. As of today covid cases are already rising as immunity of vaccines is lower and other preventive measures are not followed. To put further fuel to chaos many countries are now seeing protests over new restrictions that need to be imposed to reduce the burden on healthcare infrastructure that saw no additional capacity since the last eighteen months even after trillions of dollars worth of stimulus. Do not worry this version will be only shown post-festival when it is the most appropriate to impact the demand and result in relief of inflation in short term.

This mostly will result in all asset classes crashing in and for a quick period except precious metals as the new Stimulus will be introduced soon after it.


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