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Central planners in the European Union are under massive pressure and the alarm sirens are ringing not only in the Frankfurt ECB Tower, but also in Brussels and London, where the big cribs are being drawn. The fact that ECB President Christine Lagarde, of all people, announced the introduction of digital control money, the euro CBDC, three days ago must be seen in a global context.
The sacking of Vladimir Selensky from the White House was a sign that the Ukrainian credit pump is being shut off, that Americans are no longer prepared to tie their economic and social future to the fate of war-mongering Europeans und EU socialists. They now have to deal with the self-created problem in Ukraine themselves and are plunging into massive orgies of debt, which can be seen in the example of Germany which has just announced a 500 billion euro arms program, financed of course with the credit pump, immediately after the Bundestag elections.
The result is refinancing problems on the bond markets, with liquidity squeezes on the horizon for the eurozone. And it seems that there won't be a second coronavirus to justify freezing the economy and pumping subsidies directly into the system without risking hyperinflation and the collapse of the euro.
So now the CBDC in the eurozone, planned from October, a sign of panic in the capitals of the eurozone in the face of massive debt, deepening recessionary trends and the withdrawal of the Americans from co-financing the bankrupt Europeans. A CBDC is nothing else than capital controls to prevent the flight of capital to the USA, while getting rid of the problem of public debt at the expense of the citizens via inflation. At least that's the plan. It can therefore be assumed that before it is introduced, we will see massive flight movements to the location that treats capital better and more respectfully than the euro-commies do these days.
So let's pay attention to the barometer of this capital flight, the interest rate spreads between US government bonds and those of Germany or France. If the capital flight from the eurozone to the USA begins, this spread will explode (european rares rising rapidly as the bonds will be selling off, US bonds vice versa). And following Kristin Lagarde's logic again, this explosion is expected in the fall. Let's stay vigilant!