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Eurozone's Economic Crisis Deepens: ECB Faces Pressure for Dramatic Policy Shift 🚨

In a remarkable turn of events, sources close to the European Central Bank reveal mounting internal pressure for aggressive monetary easing as the Eurozone sinks deeper into recession (surprise, surprise). The economic bloc faces a perfect storm of mounting sovereign debt, persistent inflation, and stagnating growth.

Multiple insiders at the ECB, speaking on condition of anonymity to Reuters, disclosed that a growing faction within the central bank is pushing for unprecedented policy changes. "The ECB has fallen behind the curve," one senior official stated, highlighting the urgent need for more dramatic interest rate cuts than previously anticipated.

The bombshell revelation suggests a potential abandonment of the bank's meeting-by-meeting approach to monetary policy, marking a seismic shift in the ECB's strategic framework. This will trigger another cycle of resource misallocation and artificial stimulus, further destabilizing the already fragile Eurozone economy.

The fiat machine will be spiraling the problem that it creates out of control. That's why we see these attacks on Bitcoin. Good luck, Chrissie, do Your destructive 'work'.

#Euro #bitcoin #ECB #EurozoneCrisis #CentralBanking #EuropeanUnion

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𝙰𝚂𝙲𝙾𝚃 ↯ 1y ago

# Constants

MAX_BITCOIN_SUPPLY = 21_000_000

# Function to calculate the total supply of Bitcoin

def total_bitcoin_supply():

return MAX_BITCOIN_SUPPLY

# Print the total supply of Bitcoin

print("The maximum total supply of Bitcoin is:", total_bitcoin_supply(), "BTC.")

Cykros 1y ago

Should get really interesting to watch what the longer end of the yield curve does amid this chaos. Falling rates on the one hand, haircuts on the repo collateral on the other. Maybe with a little QE and deferred assets to further deepen central bank insolvency in response to it all.

Has anyone figured out a design to make a bitcoin mining rig into a dual purpose air-popper for popcorn yet?

Cykros 1y ago

And I know that in prior cycles, bull curve steepening usually leads to recession, while bull curve steepening is usually the preferred way out of inversion.

What happens when we get both at the same time?

Ghost of Truth 1y ago

Boooom

Cykros 1y ago

Maybe. Or, we get what LOOKS 'strong and resilient' in nominal terms all amid accelerating debasement.

What may be curious is figuring out at what tenor we cross from negative to positive real yields, because at some point with falling short rates we should absolutely anticipate a return to negative real rates on the short end, as we had for years.

Turns currency today into a hot potato everyone tries to throw further and further into the future.

Ghost of Truth 1y ago

If You would measure inflation correctly (maybe by credit growth or a broader M) real rates along the YC in most european countries never went positive or only for a few weeks at the top. In the US it's different, the economy is by far more robust. Do You share this view?

Cykros 1y ago

I do -- though I do have to wonder what measuring inflation correctly could ever truly be given that we don't really have a way to measure money supply, and no basket of goods and services is ever truly complete enough to be a representative sample. Never mind that over time general consumption habits change -- shall we still weight the price of cigarettes with the same weight that we did in 1995?

Though I'm not sure I'd say it's that the US economy is so robust, so much as that the US financial sector reaps the rewards of the Cantillon effect, by which it is able to buy from all of the various prosperous economies of the world, in a somewhat neo-colonial arrangement. Arguably this serves to impoverish many in the US, much the same as how the Bank of England's hegemony in the 18th and 19th century didn't mean everything was rosey for working class brits. Just rosey enough to keep the army and police interested in keeping the populace from rising up.

Ghost of Truth 1y ago

GM. Very good points. We can only approximate, because even with the best calculation, every household has its own consumption preferences. Do you know the organization 'truflation'? They have developed a very good way of calculating inflation. You can find it under this name on X

Cykros 1y ago

Yea, I've seem 'em around. It's better than CPI. Nothing's really perfect since gold has been demonetized, and that was only ever really as good as could be hoped for.

As BTC grows its base of economic activity its price relative to USD will approach a good measure but its far too small as of yet.

Ghost of Truth 1y ago

Good idea. I literally can see Chrissie's Adam's Apple jumping around while trying YCC in a bond market that begins each and every day with a 'FU' just to end it with another 'GFU'