Saturday, June 25, 2022

Opinion

OPINION: The big recession is coming

Recession is a part of the business cycle, we have to be ready and face it without fear, writes Mohammed Anwar Al Balushi.

By Mohammed Anwar Al Balushi

info@thearabianstories.com

Monday, June 20, 2022

How does recession happen, technically? I still remember, during the Gulf War (July 1990 – March 1991), when I was a young student at the time, the economic terms I was unfamiliar with at the time, such as recession, inflation, oil price, and unemployment, were difficult to understand and their impact on the world economy.

Gulf War has now become a part of history, so everybody should read up on the subject of history so that they understand what had happened and why? There was a recession during the Gulf War, which negatively affected the economy. The Gulf War had occurred spontaneously or was it planned in advance?

The big recession is coming. My mind was occupied for five minutes trying to determine the topic, and how I felt panicked. The question I have for you is, is it really going to happen? Let’s take some more leading and relevant questions. Why would they know that the next recession is coming? What are the sources of their predictions and how do they make them? Who is behind “bringing such big recessions?” What if it comes? What if it doesn’t come?  

Academically and technically, a recession is a period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in Gross Domestic Product (GDP) in two successive quarters. Recessions are also considered a natural part of the business cycle.

In my opinion, there is always some “gameplay” going on, whether it is political or economic, where some parties gain and others lose, and in some sense, there is a game going on in people’s minds. Such news adversely affects people psychologically.

In 1999, after having completed three years working in banking, I found management gossiping about the “Dot-Com” problem, which was completely new to me that day.
During (March 2001-November 2001), the “Dot-Com” recession came as a result of a bubble in technology stocks caused by the rapid growth of commercial internet use. Here, it was feared that the computers and software would break down because it used two-digit numbers as a symbol for 2000, causing a huge amount of one-time expenses.    

Consider a scenario where the recession will happen one hundred per cent within six months. Are we prepared to face it? In order to protect one’s wealth at an individual level, what strategies should be employed? How do states plan to counter such recessions? A recession is a part of the business cycle, hence someone has to be ready and face it without fear.  

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