European Fiat Ponzi Gains Momentum \ stacker news ~econ

240 sats \ 5 comments \ @TomK 16 Oct econ

Across europe, inflation is falling. This opens the way for the key central banks, the ECB, and the BoE to cut rates even faster. The keynesian fiat ponzi is slowly picking up speed. Meanwhile, the real economy is in decay!

Now the window of opportunity for the interventionists and statists is opening. They will create as much cheap money through new debt as possible to fuel their pseudo-growth like the Green Deal. This, of course, crowds out productive investment and squeezes the capital needed to get out of the growth and demographic squeeze.

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10 sats \ 1 reply \ @siggy47 16 Oct

I don't know enough about the situation to guess at how close to the edge the EU is, but I have to believe member states will begin to break away, depending on whether they're giving or taking more. Germany calls the shots, but there will come a time when leaving is the only move.

43 sats \ 0 replies \ @SpaceHodler 16 Oct

This guy posts good analysis tweets of Germany's situation, complete with charts: https://twitter.com/MichaelAArouet

He rightly points out that Germany's growth has relied on cheap energy from Russia, imports from China and cheap labour from Eastern Europe, all of which have now crumbled.

0 sats \ 0 replies \ @Solomonsatoshi 16 Oct

This will horrify Libertarians but Fiat money can make sense IF its issuance is directed toward productive investment purposes. But it mostly no longer is. Since the neoliberals of the 1980s deregulated banking, allowing commercial banks to issuance fiat debt finance toward any purpose- not solely productive investments the banks have increasingly issued fiat debt toward non productive housing and real estate. This is a gross misuse of fiat issuance- if you are going to allow it it must be directed toward projects that will likely deliver a return to all citizens via increased productivity- but issuance to non productive real estate speculation does not achieve that. This is the primary reason why western economies are going down the toilet. In contrast the Chinese poliburo ensures that most fiat issuance is toward infrastructure and other productive projects- yes the real estate bubble could be mentioned here but actually it is western bankers who are taking the biggest hit on that. https://www.ft.com/content/4a3cb4ac-8f75-45d5-ba70-66199baebcc3 https://www.reuters.com/business/finance/bluebay-buyer-evergrande-debt-ashmore-ubs-exposed-morningstar-2021-09-27/ Western democracies have been captured by parasitic rentseeking bankers who own our politicians. In the west rentseeking capital patronage directs governments. In China government directs capital allocation. The decay is within our democracies- the apathy and cynicism of the citizens. China looks likely to be the new global hegemony...much to the disbelief of Libertarians.

0 sats \ 1 reply \ @rebel_nomad 16 Oct

Europistan is 100% done

I plan on returning at least once before it totally collapses, I judge risks like incarceration, medical assault or straight out starving to death as higher in the EU than rough places like Egypt and Nepal...!

Anyone left in that huge, boiling pot should get out ASAP...

47 sats \ 0 replies \ @Solomonsatoshi 16 Oct

Eygypt is a military government supported by the US. There is no true democracy there. Nepal between China and India may be more secure - as long as you have funds to support yourself...but its a buffer state and will never be more than that, nice place though it is! Why don't you fight for Europe, assuming it is your culture of birth? - western democracy and liberty is crumbling due to apathy and cynicism- hiding out in Nepal will not fix it. If the west does not turn around its seemingly terminal decline China will kmost likely be the new global hegemony. All nations are now dependent upon the Chinese economy...and China is building its empire of global infrastructure.