In addition to Germany, the Netherlands is now also in a #recession. The eurozone is in dangerous waters, while inflation is also on the rise again. It can therefore be assumed that the ECB will soon loosen its monetary policy in a panic in order to save what can still be saved.
In view of the rapidly rising national debt in the individual countries, we can assume that the ECB will be the institution that, as in previous years, takes this debt onto its balance sheet. This is bad news for the European consumer, as the debasement of money is now likely to accelerate very quickly. The decade of zero or negative interest rate policy has also destroyed the productivity of the economy, leaving bank balance sheets in tatters now that interest rates have risen slightly, meaning that the continent will not grow its way out of this misery.
The decade of zero or negative interest rate policy has also destroyed the productivity of the economy, leaving bank balance sheets in tatters now that interest rates have risen slightly, meaning that the continent will not grow its way out of this misery, meaning that it was impossible to economically tolerate even a slight rise in real interest rates is a very bad sign. It's a sign that central planners in the eurozone believed they could steer an economy, which has failed miserably.
42 sats \ 1 reply \ @siggy47 24 Jun
Maybe you can answer this question for me. Since central banks have acted in unison in the past, and since the US and EU are supposed allies, shouldn't there be growing anger at the US for keeping rates high and exporting inflation? This applies even more so with Japan, another ally?
reply
I believe that for two years now we have been able to say that the Fed has definitely moved away from climate policy and net zero and the ECB's zero interest rate policy. From my point of view, however, the Bank of Japan and its banking system remain an ally of the Fed.
reply
It works until it fails, and then no one takes responsibility for it. The name of the game, pass the buck on to the next generation.
reply
Of course.
But those few who takes responsibility building the new in local communities will far very well!
Or even the brave who'll get into the brawl & play it big :-)
reply
Get out of there in time, bail to somewhere sane on the planet, would be happy to help out anyone wanna go East :-)
Just do it today!
reply
Wait and see when these madmen introduce capital controls, price controls and exit taxes. Then it will be really funny
reply
When? I had to fucking withdraw my own, already taxed, dirty fiat via ATMs in 2020 since I didn't have a slave card! Paycheck, that is, in their twisted lingo...
Oh, and I also nuked my cards getting Bitcoin hehe
Hidden capital controls have been around for a long time back in Europistan...
reply
These were the good ol' days... it's not getting better
reply
42 sats \ 3 replies \ @duvel 25 Jun
That's insane. When you're emigrating that you can't take all your money with you and you have to pay taxes for leaving. What are your thoughts on staying/leaving in the EU?
reply
i assume that, in addition to capital controls, even higher exit taxes will of course be implemented in all countries during the coming debt crisis in the eurozone. this is how they are protecting themselves against a direct crash. anyone who can should leave the eurozone! there are even opportunities in europe, such as Switzerland or eastern europe.
reply
42 sats \ 1 reply \ @duvel 26 Jun
Switzerland or eastern Europe could be better options, but the EU could force these countries to eventually adopt certain regulations or worst case sanctioning them. Then you have the EU putting everything on going to war and have a war economy and putting together the EU army. Perhaps outside the EU is a more safer option, depending on the country. What do you think?
reply
exactly. we are on the way to a war economy, war bonds, capital controls and all the others around it in europe that are not members of the eurozone are being forced right into it. basically you have to go! or you take the lifeboat that we are all aware of
reply
meaning that the continent will not grow its way out of this misery.
I think we will soon have to decide whether to stay here or migrate, I don't see any light on the horizon.
reply
You can only build outside the failing system. If I had that opportunity in a healthy, rebellious, local community I might have stayed on...
If I'm ever forced to return, doing so is what I'd aim 100% of my efforts on, been scouting a tiny bit already :-)
reply
Have you tried to migrate? If you are a digital nomad it is much easier...
reply
right. these are socialists who will now go on to establish a control society.
reply