**25 years of euro doubts**
Our favourite central bankster @lagarde strikes again. And guess what? She shows again that she is most detached from reality of all central banksters!
The occasion was the 25th anniversary of the @ecb. Check out these gems from her blog post:
“Could the common currency really work? Today, as we celebrate the 25th anniversary of this institution, we know that it works and that the euro has brought Europe closer together.”
This is a very premature conclusion after only 25 years (which is a drop in the ocean of monetary history). Not to mention, it's a quarter-century marked by recurring crises:
Dot-com bubble (1999-2001)
Global Financial Crisis (2007-2008)
Eurozone Sovereign Debt Crisis (2009-2014)
Cyprus financial crisis (2012-2013)
Greek Government-debt crisis (2009-2018)
Brexit (2016-2021)
COVID-19 pandemic (2020-2021)
Russo-Ukrainian war (2022 - ?)
Notice the pattern? The increasing frequency is scary.
“…work tirelessly to achieve our mandate of maintaining price stability. That work is critical for the prosperity of European citizens.”
In 25 years, the M2 money supply has quadrupled while inflation hits record highs. Europeans are struggling. Young people can't buy houses or start families. For the first time in a century and a half, we see a reversal of progress as the upcoming generation will be worse off than their parents. This is happening under the watch of @lagarde and her predecessors.
“Today the euro is the second most important currency in the international monetary system, after the US dollar.”
This is true, but the EU's share of world manufacturing output has been declining fast in the last 25 years (accelerated by sanctions on Russia). It is a matter of time until the Euro will make a similar nose-dive.
“the ECB has always focused on building a stronger foundation for Europe’s future through delivering on our mandate.”
She means more centralisation of power in the hands of EU bureaucrats like herself. This is not a strong foundation, but makes the EU fragile. Every next crisis can be the one in which it all comes tumbling down. Europe needs decentralisation & competition. Just like when it became a great civilisation.
“In a world of uncertainty, the ECB has been, and will continue to be, a reliable anchor of stability.”
This is literally insane. How can she claim the ECB to be an anchor of stability if it doesn’t even know next quarter’s policy? A stable economy requires long-term planning, not just reacting to the last crisis.
“We have shown that we can act and adapt quickly in the face of even the most serious challenges.”
Her response to the pandemic was to increase the money supply by 50%, triggering the cost of living crisis that Europe faces today. Instead of solving anything she blew the bubble and kicked the can down the road.
“That is why we have raised interest rates at a record pace…”
First, they cause inflation through zero interest rates and QE, now they aim to suppress it by destroying demand and creating unemployment. It seems Ms Lagarde only cares about the numbers on her spreadsheet, not the lives of you and me.
“Our monetary union has been tested many times in the past quarter century. We have been confronted with crises that could have torn us apart “
The pace of crises has increased since the birth of the @ecb. Coincidence? I don’t think so. The @ecb is a major cause of instability on the European continent and crises will only intensify.
Until the one that will bring the whole thing down. Make sure you you own some #Bitcoin by then.
https://www.ecb.europa.eu/press/blog/date/2023/html/ecb.blog.230524~ed0f2638c1.en.html