Corona Virus Effects On The Fashion Businesses
How Will Corona Virus Affect Fashion Brands In 2020 ?
Recently fashion businesses all over the world, along with all other businesses, have been brought to a halt due to political reactions to the Corona virus. Although millions of people are sitting at home on an extended holiday, picking up “free money” the effects of this shutdown are going to be massive.
My view is not a standard view of what is happening, but I will be happy to defend them against alternatives.
What we are seeing is a political war being fought out over which financial system will replace the current one when it combusts. With interest rates at zero, and even below, it is a very clear sign that the present system has reached the end of the road and must be replaced.
Whoever wins this war, there will be colossal repercussions, that will affect every single person on the planet. For our clients it should prove to be a relatively positive outcome in the long run, as it is the more established brands that will be mostly affected. Many thousands of established businesses will go bust, leaving a gap for new brands with no debt and few outgoings to take their place.
Without trying to be too political, the fight is between those who support big corporate business on the one hand, and those that want small startups to flourish in a free market economy on the other. Either way, you could argue that our clients will come out relatively unscathed.
Small startup businesses are not a threat to the big corporates, so would probably be tolerated under the corporate system. Under the free market system, those small businesses would be encouraged to flourish, and eventually to compete against the corporates.
I believe that there will be a completely new financial system in place within a few years. – A total financial reset. This could be a version of the old gold standard if one side wins, or it could be a revised digital version of the present SDR ( Special Drawing Rights ) – Something like the Bancor that J.M. Keynes originally argued for.
The present system is built on debt, and relies on exponential debt in order to continue. What will happen to all the debt in the system ? Will it be deliberately inflated away ? Or will there be a “Debt Jubilee ” ?