Author Topic: ECB Crossroads  (Read 257 times)

caballero

  • Member
  • *****
  • Posts: 1949
  • Matrix - Noah
    • abre ojos ensamblador
ECB Crossroads
« on: June 15, 2022, 12:41:45 AM »
Quote
The interest rates of the Spanish and Italian public debt already exceed 3% and 4% respectively. They are not the only ones that are rising, the German public debt has gone from -0.5% to 1.6%, also the US public debt is at historical maximums.

Quote
As inflation has increased so much, it is equivalent to the states having notably increased taxes on citizens, since the taxes are applied to the prices of goods, which have risen notably. This implies that the peaks in our debt interest rates that we have currently reached are not currently alarming, since the states are financing themselves through the back door through inflation.

Quote
To avoid the impoverishment of citizens, central banks are forced to raise interest rates, probably more than what has been thought so far. The problem with this action is that it raises the cost of financing the public debt, especially in the countries of southern Europe; but in addition, it slows down the economy and can lead it into a recession. As a consequence, we would probably have a solvency problem for the most indebted countries in Europe, since the interest rates of their public debt are increased and their economy slows down, shortening the income the gov have via taxes.

Quote
Therefore, to avoid a chaotic default on the Spanish and Italian public debt, the ECB should keep buying their debt en masse, which would cause inflation to continue to rise, which implies the impoverishment of all the citizens of Europe, which will not be on the  liking of the least indebted countries without solvency problems. Therefore, the northern part of Europe would predictably put pressure on the ECB not to buy this debt; while on the south side, there would be pressure to continue buying this debt and avoid default, or sovereign bankruptcy.


https://www.youtube.com/watch?v=AhSUwze5cl0
The logic of the error is hidden among the most unexpected lines of the program

hutch--

  • Administrator
  • Member
  • ******
  • Posts: 9558
  • Mnemonic Driven API Grinder
    • The MASM32 SDK
Re: ECB Crossroads
« Reply #1 on: July 01, 2022, 03:06:53 PM »
There is a solution, cut imports and increase productivity, look after your local market first then export whatever you can make competitively. Get your economy going by any means posible THEN invest in doing it cleaner when it can be afforded. Try and do it the other way around and you go bust before the clean target is ever arrived at.

I am much more into Lasseiz Faire productivity than modern corporate buy outs of governments to establish what is very similar to the corporate connections between original Nazi governments and large corporations. Corporate control of government has a dirty old fashioned name, FASCIST.
hutch at movsd dot com
http://www.masm32.com    :biggrin:  :skrewy:

caballero

  • Member
  • *****
  • Posts: 1949
  • Matrix - Noah
    • abre ojos ensamblador
Re: ECB Crossroads
« Reply #2 on: July 01, 2022, 06:40:05 PM »
As it is not a planned economy, but rather a free one, at least supposedly, imports cannot be reduced except when the value of the local currency depreciates, or increasing tariffs, which would increase the value of imported goods and, therefore, higher inflation.

The policies that we have here go exactly in the opposite direction to the idea of ​​​​exporting as much as possible, since nothing is done other than increasing taxes and the minimum wage, which entails an increase in the prices of the goods produced, which makes them less competitive. We can only compete on a quality/price level, since, in general terms, we do not have any Coca Cola that everyone wants to drink. If we increase the production costs, since the quality remains, what is achieved is that the quality/price ratio falls, and the product is less attractive.

The goal is for the entire economy to go through the government, which will be in charge of distributing funds to the people/entities of their choice to kidnap votes/wills and, in this way, ensure their continuity in power. In this way, all real productive activity is eroded because it is more difficult to compete against those who have the benefit of the government, finally, everyone turns towards the governmental orbit, which is not productive. A typically socialist mechanism.

With the levels of deficit, unemployment (read here largely people subsidized by the state) and debt, I believe that there has to come a time of sovereign bankruptcy. The debt will have to be paid in some way with the most desirable assets you have, perhaps privatizing kilometers of beach and selling it, hotels, or God knows what.
The logic of the error is hidden among the most unexpected lines of the program

hutch--

  • Administrator
  • Member
  • ******
  • Posts: 9558
  • Mnemonic Driven API Grinder
    • The MASM32 SDK
Re: ECB Crossroads
« Reply #3 on: July 01, 2022, 08:45:28 PM »
What I am seeing over time is the globalist interdependence falling apart. An ever more unreliable supply chain for a variety of reasons, wars, sanctions, covid 19 lockdowns, shipping limitations and reverse sanctions all play their part in making the globalist agenda fall apart.

Making something in your own country, even at higher prices, at least keeps the money in that country where buying it at a lower price sends money out of the counntry. Protectionism really does have its problems but it solves other problems. The "just in time" supply chain comes unstuck when a supplier fails or just cannot or will not supply the required goods. The US embargo on chips to China is a good example of this.
hutch at movsd dot com
http://www.masm32.com    :biggrin:  :skrewy: