Tuomas Malinen is the Chief Executive Officer (CEO) of GnS Economics in Helsinki, Finland. Today, Wednesday, September 7, 2022, he is publicly saying that Europe is heading into a total collapse of business, and its currency, within weeks.
According to its website, GnS Economics is an independent, Helsinki-based macroeconomic consultancy specialized in forecasting and analyzing the risks of the world economy and the financial markets.
CEO Tuomas Malinen, PhD, is CEO and the Chief Economist of GnS Economics. He is also an Associate Professor of Economics at the University of Helsinki. He has studied economics at the University of Helsinki and at New York University. He specializes in economic growth, economic crises, central banks and the business cycle.
In a series of public messages on his Twitter account, Malinen publicly warned today "My (our) monthly forecasts are out, and oh man that they look horrible. Europe is sinking and she is pulling the rest of the world with her..." Accompanying that message is a chart showing the trouble:
He went farther . . . much farther. Malinen warned "I am telling you people that the situation in Europe is much worse than many understand. We are essentially on the brink of another banking crisis, a collapse of our industrial base and households, and thus on the brink of the collapse of our economies."
He went on to tell the public:
" . . . the speed of deterioration is massive now, and it's only a matter of time, when markets catch up. I am betting that we still have few weeks (months at max.) before "mayhem" truly begins. Take precautionary measures. Stock: 1. Cash. 2. Food. 3. Water. 4. Wood (if you have a stove). 5. Other necessities. No harm will come from preparation, if somehow miraculously we can avoid the onset of an outright economic collapse. You just have more cash (no meaningful interest in banks), food, water and wood."
As most readers likely already know, this is heavyweight advice from a guy in his position. Generally, CEO's never go out on a limb like this and say such things publicly. Yet, Malinen is doing exactly that. and it gets worse.
One reader of his public posts asked Malinen "Is euro collapse in the cards do you think?" and he replied bluntly "It is."
Not to put too fine a point on it, but this is coming from a guy who is holds a PhD in economics!
Clearly the EURO is falling in value compared to the U.S. Dollar. Back on August 22, the EURO which in the past was worth about $1.25, fell below parity to about $0.99. This is because investors are rapidly losing confidence in Europe due to the self-inflicted energy woes brought about by Sanctions against Russia over the Ukraine situation. Those Sanctions have completely back-fired and are now harming Europe itself.
Europe cannot produce enough natural gas to run its electric plants, and due to their own economic sanctions, they are refusing to buy from Russia. This means Europe has to go out to other markets to buy natural gas and those markets have skyrocketed as demand reaches all-time highs.
Not only are European businesses seeing higher natural gas costs, they are also now getting hit with electricity bills some ten times higher (or more) than typical because electric generation plants are also now paying so much more for natural gas.
This double-whammy is causing a significant number of businesses in Europe to simply shut down over energy costs, putting many, many, people out of work at a time when their own personal energy bills at home, are also skyrocketing.
Since consumers are having to pay so much more for natural gas and electricity, they are not out at stores buying things; which is causing shutdowns and layoffs at manufacturing companies for lack of sales.
Investors in Europe see things falling apart and are now cashing-out their investments and sending huge chunks of money into the USA for better Interest and better rates of return.
As more and more cash leaves Europe, the EURO is losing its value - fast.
This is going to cause even MORE outflows of cash as Investors realize they need to get OUT of the EURO now, while it still has some value. It becomes a vicious cycle until the EURO falls to worthless.
Apparently CEO Tuomas Malinen sees the writing on the wall, and is now publicly warning Europeans to stock up on food, water and other essentials. Once the hyperinflationary destruction of (consumer) demand takes hold, there simply won't be any products on store shelves to buy.
European Government officials are, by their own Sanctions, committing economic suicide.
Trouble is, what happens in Europe affects other places, including the Untied States. If Europe officially goes into economic collapse, the exact same thing will take place in the United States about two weeks later, by trade disruption.
Americans are advised to pay close attention to what's taking place in Europe because if their public servants in their governments fail to repeal Sanctions, they are then unavoidably committing economic suicide and their economic death will hit America fast and hard.