Christine LaGarde & Pals are Killing Europe
"This is a very dangerous moment now, ….[a] third world war is knocking on our door."
Hungarian Prime Minister Viktor Orbán on Europe
Contents
- This is About Gold
- Viktor Orban and Tucker Carlson
- Hate The Fed, Despise The ECB
- Europe Rates are Way Behind the Curve
- A Third World War Hits the EU Monetarily
- Supranational Sock Puppets
- ***BOA Gold Volatility Data
This is about Gold
Authored by GoldFix ZH Edit
There is no mention of Gold or Silver in this post other than here and at very bottom. But make no mistake about it. This post is about those assets.
Countries like Hungary are the ones correctly seeing the limitations of Pollyanna promises, unsustainable spending, and ideological biases that cause the problems experienced right now— and they are buying Gold.
Hungary's Gold Reserves through July 2023…
As such it is important when an Eastern EU block country’s leader talks candidly. Hungary, which has defied the West’s monetary policies yet remains a part of the West’s united front is one example.
The question that keeps coming up here: Why are these nations buying Gold if they are with the West? The obvious reason is their geographic locales demand they have a safe neutral money if needed. But it is fascinating how these nations can be morally similar to the west, yet draw the line at Western monetary policy decisions being forced on their own.
The conclusion? Europe’s G7 Central Banks are run by ideological idiots. Gold is a hedge for idiocy. And that is why this post is about Gold.
Viktor Orban and Tucker Carlson
After watching the Tucker interview with Hungary’s Viktor Orban looking for explanations as to his own countries policies we asked ourselves, what in our neck of the woods, Geopolitical/Finance, does this remind us of?
Full interview HERE
The problems Orban cites have certainly infested EU finance as well. The answer to the question is:central banking policies.
Hate The Fed, Despise The ECB
Hate the US Fed if you must. But know this. They are much better at their job than the ECB. Here is the proof.
ECB Real rates are way behind US real rates. Right now, this the key metric CBs are focused on to determine the end of this hike cycle. Central banks need both spot and deferred real rates to be positive now.
ECB Real Rates are lagging way Behind US Real Rates…
Europe Rates are Way Behind the Curve
Solid positive real rates all along the yield curve will signal inflation is under control, after which they can finally back off hiking. The data we all see may currently be disinflationary, but how the market digests it is what matters. The markets as reflected in Bond prices in the EU are not taking it well enough yet
If monetary policy has any say in how the EU fares these next few years, Then Viktor Orbán quoted above is being kind. This Bond Chart implies the ECB will stop hiking before inflation is killed. Which means, debasement and financial repression are their fallback. They may have no choice.
For example, the UK Bond market is not receiving disinflationary data kindly enough yet. That may simply be a function of sticky inflation, a big enough of a problem on its own. It may also be partly a straight up manifestation of the UK’s debt burden being so high and its prospects for future growth being so low that they can neither grow nor print their way out of it. I.E. default or debase may be the only paths forward as hinted at when they tried their mini-budget crisis in September 2022
You can’t decrease your fiscal tax base while increasing spending without killing your Money…
Their bond market would not tolerate smaller tax revenues and their currency would not survive non-stop printing.
A Third World War Hits the EU Monetarily
We fear as far as the ECB, SNB, and BOE policies go, the third world war door has been left wide open, already entered and set up camp. And that is all due to the complete incompetence of those running the banks.
No, the CBs of Europe didn’t open that door to the fast growing economic crisis enveloping the Continent. But the CBs encouraged it by being derelict in their monetary duties for too long in deference to their ideological overlords.
In all fairness to the ECB, The USD is global reserve currency. It is much easier for the US Fed to get our monetary house in order. But still: The EU is economically a lamprey on the port side of the Fed. And it is disgusting. That is not a comment on the Continent or even the CB institutions. It is about the ideological infestation in those institutions. Which brings us to Ms. LaGarde
— VBL’s Ghost (@Sorenthek) July 10, 2023
Continues here ...
