We know this from the fiat world: governments buy votes by drawing purchasing power from the future into the present and embezzling massive debts. This works until the credit market is saturated and rejects further debt, then the central banks step in to buy up the junk debt and inflate the mountains of debt. The electorate then receives the special premium of rising inflation. The example of France shows that the media and economists keep the game going, constantly delivering fair-weather forecasts that are obsolete the moment they appear!
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13 sats \ 0 replies \ @oklar 7 Jan
Did the gold standard get us here?
Or was it the end of the gold standard that got us here?
Or, was it Schrödinger cat?
Not to worry, Christine is still telling us all that they'll sort ot out soon.
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21 sats \ 0 replies \ @xz 5 Jan
Wow! I wonder what's wrong with the French government's ability to accurately forcast her own economic situation again and again.
Perhaps the EU needs to allow France to change her government and make her own rules.
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21 sats \ 0 replies \ @Satosora 5 Jan
Wow, does it take a downturn each time the election is over?
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21 sats \ 4 replies \ @stack_harder 5 Jan
thought scenario, do you think in a euro worst-case scenario of something like hyperinflation, all the euro economies at once would have hyperinflation en masse?
maybe not weinmar levels, but something serious.
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21 sats \ 0 replies \ @Bishop 5 Jan
If I was a consultant for the Lizard People (London Division), this would be my dastardly proposal:
Orchestrate / facilitate / exaggerate a climate-related flood in London.
Make sure it's big (a catastrophic failure of the Thames Barrier), visual (well-known landmarks submerged in water) and expensive to recover from (hundreds of billions of pounds).
Instruct the governing party (Labour) and the opposition (Conservatives) to form a temporary emergency government of unity.
Pass an emergency budget to raise funds to rebuild the flooded parts of London. Emphasise that this is justified given the economic importance of London to the national economy.
A key part of the budget is a temporary land tax on all commercial and residential properties located in London e.g. 1% of the market value levied annually. Pass legislation enabling the Land Registry to block transfers of title if there is unpaid land tax against the relevant property.
Observe the level of protest and non-compliance against this new tax. If trivial, the Lizards can rejoice at yet another way to fleece and control the people. If significant, instruct a third political party (Reform) to make a manifesto commitment to repeal the tax if elected to power.
Prior to the election, disband the unity government to encourage electoral complexity and better maintain the illusion that voting makes a big difference.
After the election either make the temporary land tax permanent or repeal the tax but be ready to rinse and repeat this stratagem with suitable enhancements.
mWahahaha!!!!
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14 sats \ 2 replies \ @halalmoney 5 Jan
I don’t think so. Covid showed that you can coup people up in their homes (if there’s a big enough crisis). This slows down monetary velocity which hinders hyperinflation. They also have other tools: capital controls, instructing banks to severely limit transactions and, of course, CBDCs sweetened with the allure of ‘free’ handouts.
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21 sats \ 1 reply \ @stack_harder 5 Jan
im not sure they could get away with it again, although Europeans seen to passively suck down whatever the gov feeds them these days.
still, a pandemic is an easier pill to swallow than 'we fucked up the whole monetary system and now you need to sit home and not spend any money'
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0 sats \ 0 replies \ @TomK OP 5 Jan
They need to push inflation to 5-10% to inflate the debt. But this wont work out
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21 sats \ 2 replies \ @halalmoney 5 Jan
“ The electorate then receives the special premium of rising inflation “
I don’t know whether to laugh or cry at the absurdity of it all!
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0 sats \ 1 reply \ @TomK OP 5 Jan
Buy btc and laugh
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55 sats \ 0 replies \ @halalmoney 5 Jan
My friend thinks Bitcoin is the Emperor’s new clothes.🫠 I may need to downgrade him to an acquaintance….🙁
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