The European Union has effectively dismantled the prohibition against collective state debt financing. The introduction Eurobonds marks a significant shift as the European Union is expected to be classified similarly to a sovereign state by prominent index providers ICE and MSCI. These new debt instruments will be for sure absorbed by the European Central Bank, as private investors are unlikely to retain them long-term.
53 sats \ 0 replies \ @Undisciplined 27 May
Is this the start of the “suddenly” stage?
This seems like a recipe for ruinous inflation.
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75 sats \ 2 replies \ @om 27 May
I don't see anything outside of the paywall.
Did EU really do something as stupid as Eurobonds?
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109 sats \ 1 reply \ @TomK OP 27 May
yes, they have gotten the MSCI and other authorities to look at euro online as government bonds. i have been writing for several months that this was coming either via war bonds or even direct euro issues and now it is happening.
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42 sats \ 0 replies \ @om 27 May
Wow. The union of bees and flies selling a mixture of 50% honey, 50% shit. What could possibly go wrong... Thanks for the heads up.
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42 sats \ 0 replies \ @didiplaywell 27 May
What little people seem to ask when it comes to state debt is: if every single country on earth is under extreme debt, who is lending? Some will say "private investors!", ok, with what money?? If the country they are in is asking for debt, and is the responsible for minting currency, where are they getting enough money to lend to another country?
The truth is that all of this schemes of mutual debt are solely a facade to hide emission in the form of debt, forced to be paid by people in the form of inflation and ever rising taxes, without the use of force nor even political justification. It's perfect. Until it collapses.
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0 sats \ 0 replies \ @Kontext 27 May
Tom Luongo wrote a great piece about them back in Feb:
https://tomluongo.me/2024/02/20/why-war-bonds-are-making-their-return-in-europe/
Of course, the announcement itself was made by a person who I have to reluctantly call a compatriot, Kaja Kallas:
“We are in a place where we need to invest more and [explore] what we can do together, because the bonds that would be issued by separate countries individually are too small to scale up,” she said. “Eurobonds could have a much bigger impact.”
I haven't lived in Estonia full time for like 4,5 years. My friends/family don't get it. It gets more and more and more communist / authoritarian every fucking day. And these people think they are free...
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0 sats \ 0 replies \ @Satosora 27 May
Wow, eurobonds.
Seems similar to treasury bonds the usa issues.
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