More Signs Of Economic Deflation: Inflation drops sharply in Europe, Primarily Because of Their Looming Recession, Higher Consumer Prices Fewer Things Being Sold – September 29, 2023

Whenever I read about “Inflation dropping sharply.” I look for RECESSION indicators because, as everyone should know by now, the entire point of a rule by FIAT CURRENCY is to produce inflation and protect incompetent governments.

If, let’s imagine for a moment, we were on a Gold Standard, soft and gradual tyranny would be much more difficult. Under the gold standards, as I like to point out, governments had to be more ruthless, as their bad ideas would be felt by the population almost immediately.

For example, if we were on a gold standard and the Western governments of the world were dumb enough to implement an ESG mandate, most private businesses would shut operations almost immediately because, first and foremost, the BANKS and financial institutions would be under a gold standard and the governments of the world couldn’t PRINT money out of thin air, so MARKET interest rates would shoot up and this silly Environmental, Social, and Governance (ESG) movement would be over before it started.

 

Under a gold standard, even if banks are running a fractional reserve system, there has to be a path to SOLVENCY without growing government deficits indefinitely. Even if the governments issued bonds, those bonds would have to be backed by gold, and if this ESG POLITICAL movement didn’t yield results quickly, defaults by Western governments would happen SWIFTLY.

You also can’t ignore PRIVATE businesses and Private Banks when it comes to ESG because under a gold standard, the banks need to know they’re getting their gold back with INTEREST, and quite frankly, gold discovery would be VERY expensive with ESG, so ESG under an HONEST financial system is bankrupt.

With that said, this corporate welfare monstrosity that is ESG has lasted about three years now; the push to make the entire planet accept homosexuality in all it’s forms is part of the ESG agenda; of course, phasing out fossil fuels is part of the ESG agenda and merging large corporations with governments is part of the ESG agenda.

 

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ESG is indeed corporate welfare, and in order for it to work, the PREFERRED or chosen corporations have to start yielding positive cash flow, which to date hasn’t happened. I have to point out that Europe’s economy was DEFLATING before these ESG mandates, and one of the ways Europe was RAISING prices was via taxation and regulations.

Europe has a lot of existing regressive taxation laws in place, and these laws existed PRIOR to ESG; in most EU countries, as a consumer, you’re PUNISHED for consumption. So if I sell a widget for $10, EU countries will slap all sorts of taxes on that $10, making that $10 item cost about $14 if not more.

These taxes add up and this is why economic growth numbers in Europe are so bad. Government regulations are TAXES; if I have to import instead of make something locally, not only do I lose control over the means of production, but in Europe, that good is usually slapped with a TARIFF(tax). So even widgets and energy Europeans are incapable of producing in their countries get taxed.

Also, to start a business in most European nations is EXTREMELY difficult which you can also consider a tax, in Germany, there are permits for almost everything, and Germany is one of the better countries economically in the EU, and GDP growth in Germany last time I checked was -0.1%

When I write about “LATE STAGE SOCIALISM”, I’m referring to a period of either forced austerity or hyperinflation. The way the EU is currently set up, it’s hard to imagine hyperinflation, as all EU countries have agreed not to allow it to happen, but as I like to point out, if you’re trying to MIRROR a gold standard, governments must NIMBLE, flexible, small, Liberty-oriented, equating to MINIMAL regulations.

ESG is a regulation NIGHTMARE, and even if the idea is to expand the money supply, you run into the IMMEDIATE problem of governments spending more to make ESG work, in case you’re unaware, when the government spends more, it’s actually COMPETING with the private sector, so if lets Environmentalists of the ESG movement DEMAND that fossil fuels be phased out, by a specific date, well, then the government might deem it wise to THROW money at the problem instead of fixing it, which equates to MORE EXPENISVE operational costs indefinitely.

You have to remember when the government throws money at a problem, it takes a while under a fiat monetary system for the DAMAGE to filter through the economy.

As an example in the United States, Ford Motor Company is losing BILLIONS of dollars on Electric Vehicles(EVs); however, it’s also BENEFICIARY of free money from the U.S. government via the U.S. taxpayer, a portion of the ESG equates to making sure how you produce the automobile is ESG friendly, so Ford made a lot of ENVIRONMENTAL upgrades, which are now MORE expensive to do and also took resources away from other NON-ESG friendly businesses.

Because it’s more expensive to replenish resources, those costs get passed onto consumers, which leads to higher consumer prices, which then leads to FORD motor company workers GOING ON STRIKE for higher wages.

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Now, if EVs were better options for consumers than compostable engine cars-Great? But they’re NOT, and infact the batteries in these EVs are degrading faster than most expected currently; there is no way to recycle all of these car batteries, which in about 10 years will be USELESS, if not recycled EFFICIENTLY.

So you can see how one disaster turns into another disaster and how these ESG fiscal policies fuel inflation, I should also point out that while this is happening, a lot of government employees are also getting a pay raise, and with more people retiring, this equates to more money being needing to be printed by the government to service those debt obligations.

Switching back to Europe, the existing welfare state in Europe is quite massive, and because prices aren’t deflating, what’s obviously happening is a slowdown in consumer spending, which might sound like inflation dropping but actually might be another RECESSION indicator.

Interesting times ahead!