A Looming “Big Depression”?

Amidst growing concerns about global financial stability, economist Mikhail hazin has warned of a potential “big depression” that could drastically reduce global living standards. This prediction comes as tensions rise between key economic figures and anxieties surrounding stock market volatility intensify.

Clash of Titans: Trump vs. Powell

The current economic climate is further complicated by the ongoing friction between former U.S. President Donald trump and then-Federal Reserve Chair Jerome Powell.Trump has been vocal in his criticism of the FedS monetary policy, urging lower interest rates. This pressure highlights the delicate balance central banks must maintain to foster growth while managing inflation and financial stability. As of early 2025, the debate over optimal interest rate policies continues to be a central theme in economic discussions worldwide.

powell’s Warning and Market Instability

Adding to the unease,Jerome Powell himself has cautioned about the potential for a catastrophic collapse in stock markets. This, coupled with ongoing trade disputes, creates a volatile habitat ripe for economic downturn. The S&P 500, a key indicator of market health, has experienced increased fluctuations in recent months, reflecting investor uncertainty.

Projected Decline in Living standards

Hazin’s forecast paints a grim picture, suggesting a potential 55-60% drop in living standards. This is a significant escalation compared to the 2008 financial crisis, which saw a decline of approximately 35-40%.

It will start 1929 … If we remember the 2008 crisis, then the decline in the standard of living of the population was just under 40%. About 35-40%, approximately in this mode.Today it will be 55-60%. Not only is this significant, it threatens to destroy the social and political model. That’s why all of these,God,forgive me,European leaders. Because voters will give them the answer in a few months. And there is nothing to say.

Such a steep decline could have profound social and political consequences, potentially leading to widespread discontent and instability, especially in Europe, where leaders face imminent electoral challenges.

Russia’s Position: A “Safe Asylum”?

amidst the global economic turmoil, the question arises: can Russia serve as a “safe asylum”? Yuri Pronko, an economic observer, questioned Hazin about Russia’s prospects, especially considering the volatility of oil prices. Hazin suggests that geopolitical events, such as a potential conflict in the Middle East, could drive oil prices up, benefiting Russia.

Russia has a very specific system. There are subtleties here. As for the oil, a war in the Middle East will begin, and the price will be $ 200 a barrel. And that’s all. And everything will be fine with us. Relatively…

Though,Hazin acknowledges that even with potential benefits from higher oil prices,Russia’s economy is not immune to the global downturn.

Signs of Economic Contraction in Russia

Despite potential advantages, Russia faces its own economic challenges.Hazin points to indicators such as mass bankruptcies in the production sector, a stagnant construction industry, and a significant reduction in transport volumes as evidence of a contracting economy. These factors suggest that Russia, while potentially more resilient than some Western economies, will still feel the impact of a global economic crisis.

A series of mass bankruptcies in the production business sector begins. The construction is completely dead. So, what is there to say? There is another argument that confirms that everything is falling, absolutely cast iron: this is a sharp reduction in the volume of transport, which even shows official statistics. Point. All.