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Prepare for the coming structural recession

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Prepare for the coming structural recession

"The message I want to give is people should be prepared for a number of tough and insecure years," he says. "In business, we can deal with risk, but we have problems dealing with insecurity. But we're coming to a period of insecurity."
 
Speaking at a World Newspaper Congress session on the financial outlook for the news business, Prince Michael gives a grim prediction of coming recession, which he says is a structural problem, not merely a cyclical one, partly due to public deficit spending on consumption, mostly related to big government and welfare.
 
"In reality, there isn't a Euro crisis but a crisis of public finances, and the real problem could become the resulting collapse of the financial system," he says. A lack of faith in government bonds if sovereign debt is restructured – which he sees as likely – might destroy the financial system, he says.
 
"A control by government of parts of the banking industry might become unavoidable, if undesirable," he says. "Governments will have to support the financial system."
 
"Our political parties and governments hardly know how to handle the situation," he says. "And I see very little honesty in how it is handled and explained to the public. There is a loss of trust. And the financial systems and political systems live off trust. If we come into a recession – I believe it will happen – we will have unemployment and also – it is not popular to say it – but it will also result in social unrest."
 
Prince Michael has these suggestions:
 
– Politicians should differentiate between long-term objectives – investment in infrastructure – and political expediency.
 
– Governments should be liberal in policies that allow business and new technology growth.
 
"For business, we have to be prepared for a number of difficult years ahead," he says. "The financial industry will shrink, there will be less money around. We will see less consumption in industrial countries. So businesses should try to have deep pockets. "

Wnc finance michael-von_liechtenstein
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2011-10-14 10:40

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The 71st World News Media Congress, the 26th World Editors Forum and the 3rd Women in News Summit took place from 1 - 3 June 2019 in Glasgow, Scotland.

In this blog, WAN-IFRA provides previews, interviews, summaries of the presentations and other useful information about the Congress.

Participants were also very active on Twitter throughout the event under the hashtag #wnmc19.

In 2011 the newspaper world gathered in Vienna, Austria for IFRA Expo 2011, 63rd World Newspaper Congress and 18th World Editors Forum.

This is the event's live blog.


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