The last time they raised rates was 11 years ago: Europe’s central bank will hike rates in July 2022, Writer attempts to blame the Pandemic that started on January 2019 – (June 9, 2022)

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The last time they raised rates was 11 years ago😂: Europe’s central bank will hike rates in July 2022, Writer attempts to blame the Pandemic that started on January 2019 – (June 9, 2022)

I hate to be the bearer of bad news, but the reasoning for ZIRP or near ZERO Percent interest policy was to STIMULATE growth. It often boggles my mind, when I read or listen to so-called experts who imagine that Europe is in better shape than the United States? In terms of what exactly? The only argument I could make for Europe that makes it superior to the United States in terms of economics is their better use of wealth redistribution.

I’m not sure if that’s a good or bad thing, because it’s led to 11 years of interest rates being FLAT. Even the U.S raised interest rates. The U.S raised rates under Obama, Trump, and now Biden. Sure it wasn’t much of a rise in rates, but they raised them, only to have them come back down again. I am a believer that the Federal Reserves’ recent hike in rates will lead to the bond market forcing rates back down again because the prices we’re all experiencing are ARTICIFICALLY created because of all the Western government’s war on fossil fuels.

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The more we learn about battery technology the further away this renewable energy pipe dream gets, but you know how these things are, a lot of people genuinely believe these idiots in charge know what they’re doing. Those of us who follow the Federal Reserve knows the Fed has no clue what it’s doing, but you have to remember that most people don’t even understand what a central bank is, let alone know how stupid most politicians are.

Europe’s Problems Have Always Stemmed from their views of Austerity measures

In most parts of the world, Big Government is the ONLY answer, most people in Western countries do not understand why those silly Americans cherish their second amendment, because most people in Western Europe handed their SECURITY over to the State a long time ago. If you grow up imagining the State as the SAVIOR for the private sector, it’s hard to comprehend the American Conservative, who sees the State as the DESTROYER of wealth, prosperity, liberty, and freedom.

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So as an example, you’ll notice in the article, that they’re attempting to blame the pandemic for CURRENT inflation. The whole Putin narrative isn’t working so well, you’re beginning to see more western news outlets, pivot from blaming Russia for rampant inflation, because, the consistent Conservative argument has been to get rid of these stupid regulations on fossil fuels and not only does the Russia-Ukraine war become far more expensive for Putin, but oil prices come down as will consumer price inflation.

Now, it’s really important to remember that MONEY PRINTING is not the problem, the problem is the inability to EXPAND the money supply for PRODUCTIVE means because Western Nations like Canada, The U.S, Australia, and ECB countries have declared WAR on fossil fuels. What this means is that there’s a lot of risk for a START-UP to look for energy that Western governments have openly said they want to phase out as soon as possible.

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It’s not even about getting capital for these companies it’s about their ability to pay back their investors. If there are bankruptcies in the private sector as we saw with Obama, when the stock market crashed, the government will point the blame at the private sector.

 

Now, if you’re a private sector participant, and the media narrative is that these Oil companies are making record profits, and let’s say some oil companies because of the current regulations are actually on the verge of BANKRUPTCY, losing all of the money they borrowed, you can already see how the media will frame the story.

Most businesses are INDEBT, this is what most people don’t understand, what most people hear about is the NETWORTH of a company, but this means nothing, if let’s imagine the price of Bitcoin drops to zero tomorrow, people who were living their lives borrowing money based on the current market value of their Bitcoin holdings, these people would be BANKRUPT, with no ability to SERVICE their debt payments.

A lot of the billionaires we hear about today, wouldn’t be billionaires in a NORMAL interest rate environment. One of the reasons I believe Donald Trump was so angry that Jerome Powell was raising interest rates, was because of his net worth. Donald Trump is a REAL ESTATE mogul, in order for real estate investors to enjoy government tax perks, they like many other businesses better find a way to be in GOOD debt.

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Being in good debt raises the NETWORTH of your private company which allows you to borrow more money for future projects. Now, once you understand this, you’ll comprehend why ZIRP is a bad idea, because with ZIRP as an example you’re enriching homeowners, many of whom have ZERO comprehension that debt is supposed to be used to enrich yourself not, be spent on consumer goods.

If you look at what most debt is being used to do, you’ll notice a lot of fancy and expensive new cars being bought, luxury homes, and luxury electronic equipment. Consumer spending is being fueled by debt and when luxury spending is exploding, the government can say to itself, this is the right time for us to add more regulations on the economy because the consumer appears to be flush with cash.

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Now, when the government adds regulations to the economy, as an example for the purposes of a greener energy future, the Central banks can use this as an excuse NOT to raise interest rates. The greater good of humanity is at stake and the government has undertaken on an ambitious undertaking to rid the world of fossil fuels, do you follow me here? This is the problem with Central Banks

When it comes to private banks, they’re profit-driven, they could care less what your ambitions are, they just want to know you can pay back the loan. So yes there are people who want electric cars, but how large is this market really? Yes, I get it, that the government and its minions have been promoting an agenda that the world is going to end unless we switch to renewable energies, but how many humans GENUINELY believe this nonsense?

The answer is not very many, however, most people do feel Powerless to stand up to Big government, and the compounding of these dumb ideas have led to massive amounts of MALINVESTMENTS into the economy, which is compounding because Joe Biden as an example openly declared war on Fossil fuels, whereas prior this was more of Germany ECB thing.

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America is a CONSUMPTION-led economy, the European Union is structured to PUNISH consumption. Joe Biden is attempting to make America more like Europe and one of the main reasons there are often SHORTAGES of U.S dollars all over the world is because the U.S market is often the economy that keeps on giving. Well, by Joe Biden declaring war on petroleum the American consumer is starting to behave like the European consumer, which often has little to NO money because financing their governments is EXTREMELY expensive.

Most people ignore what over REGULATIONS do to an economy, it prevents INNOVATION, if I have to go through all sorts of government permits and abide by all sorts of European laws, I’m going to be less productive and any project I’ll do it will have to be MASSIVE. Whereas as we know most of the best innovations come from someone’s basement in the United States.

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Now, imagine the government decided to regulate your basement or create laws that make it impossible for ASSET prices to crash, and then one day, because of a war on fossil fuels, consumer price inflation began running rampant because EVERYTHING became more expensive because U.S energy was more expensive and the U.S consumer had fewer dollars to spend and most of their currency was going to pay for energy price inflation, what happens to Europe?

I even read that Volkswagen wanted to increase its EV production in the U.S? Why? Why not grow in Europe, it’s doing quite well there, even GM, for the most part, abandoned the U.S car market for China, why didn’t GM go into Europe? The answer is Europe PUNISHES success, and if you ask me its welfare state is heavily dependent on a strong U.S consumer. It’s not like the ECB is using a gold standard, the money printing usually comes from the PRIVATE banks.

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If rates in Europe have been stuck at ZERO for 11 years, that should tell you something!

Europe’s Central Bank to Hike Rates in July, 1st in 11 Years | usnews.com

Interesting times ahead!