The biggest problem we have, right now, to deal with as an economy is the feeling of insecurity we have because of the situation. Every day, the media describes in black what has to do with market mobility, the effects of the Ukrainian crisis and Russian sanctions, rising energy costs and the ominous forecasts for inflation and its effects. This phenomenon is not Cypriot, but global and no country has been unaffected. The difference, however, between the countries and of course between Cyprus and the rest of the western and free economies is in the degree of resilience of each. And resilience, in turn, depends on the depth and breadth of each country's economic activity and, of course, its fiscal position. In other words, a country with a dispersed model of wealth production will experience the coming crisis differently and a country with a non-dispersed model will experience otherwise. Otherwise it will handle the rise in the cost of servicing its debt a country that has financially stable and otherwise another with large deficits and debts.
It is not difficult to understand, since according to the countries, and at the individual level, each of us experiences a different economic crisis and the difference lies in his own financial situation. But where things do not differ for any individual or state, is in their “psychology” which in turn is proportional to the duration and intensity of any crisis. Otherwise, for example, a country like the USA will experience the inflationary pressures, where with the axis of “creative disaster” its system is reviewed and reproduced quickly, showing more tolerance (and endurance) to any short-term extensions of a crisis, otherwise Cyprus will experience inflationary pressures and the ensuing crisis.
And the most basic difference between Cyprus and several other countries, and certainly not the US, is the lack of options. And it is this lack of options that largely explains the insecurity in the market and the consequent excessive savings that is observed. In other words, we do not know what to expect and we do not know what to do with our money and & # 8217; we keep this in the bank, with zero interest rate because we do not feel safe enough to channel them anywhere. And, of course, this “anywhere” is the other half of the problem.
But if we knew that there was a bankruptcy framework in Cyprus, to give another example from the US, and if we knew that there could be a quick settlement between creditor and debtor, then maybe we could get bigger, by analogy, risks and try our “luck” more easily, as entrepreneurs and investors. But this does not exist for & # 8217; This is how we “collect” money in our accounts, which is neither enough for many, but also not quite small so as not to create multiple costs in the economy. And, to see, that in the end most of this money will become cars, since there will be nothing else to do, since they are too little to revive our construction industry (which in the minds of most of us is unfortunately the only real investment, even if it does not pay off what we think). It's time to make choices to put our money to work, because otherwise this money that is already in the economy, even if inactive, will affect our financial situation, and otherwise any budget expansion in the form of benefits will have an effect. state to stimulate the market as a whole. Handling the coming crisis requires attention and art.…
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