European Central Bank is completely adrift
Thursday D-day
The European Central Bank should be what the Federal Reserve is for the USA, but then for the European Union. But that is totally not what it is, it looks like it, smells like it, but the taste of it is even more bitter and sour than what the FED tastes like. The FED is an evil invention, of that I think we are all on the same page. But the ECB isn't only evil, it is evil combined with incompetence.
On Thursday, the European Central Bank will take a rate hike decision, with inflation of 9.1 % in the complete Eurozone, the market expects a hike of at least 75 basispoints. But their action come to late. As governments of major countries in the Eurozone are already trying to take fiscal measures, to keep the people's spending power in check. These actions will countereffect the actions of the ECB. That is a fact. At least the FED is consequent with their actions, and they take them in time. The stalling by the ECB will have a profound effect on interest rates throughout 2023 too. Because of their late action, they will probably have to keep on raising rates in 2023 too, which wasn't on the planning.
The European Union is a complete mess
In theory the ECB and the European Union are seperate instances, the EU takes political decisions, and the ECB the monetary ones. But we all know that in practice things are completely different. And politics and monetary decisions are woven into each other. Now this lack of action, is completely in line with the policy of the European Union. They talk a lot, but very little action is taken. And amid this crisis, most countries are obliged to take important monetary and fiscal decisions on their own, because the big countries like Germany are blocking a "team" decision. This is a big example of how messy things are in Europe right now. The measures taken against Russia are back firing completely, and are felt in Europe instead of in Russia. But a solution for this is not for any time soon.
Perfect storm
The European Union is a small step away from having dug its own hole. If things don't get better anytime soon, I fear social unrest will start to escalate pretty quickly. Right now, already 1 in 3 families are unable to pay their bills, because of the outrageous energy prices. These are situations that can't keep on going. In fact, with the reaction to the invasion in Ukraïne, the EU has created the perfect storm and it has no clue how to get out of it...
Things could get very ugly over here!
Sincerely,
Pele23
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I can't wait for that to happen. Somehow humanity needed a catalyst to wake the fuck up and so we have a "great awakening" instead of the great reset ;).
Yep, I give two more weeks before the manifestations begin!
Yay! 🤗
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