Europeans Should Be Terrified of What’s Coming
DUTCH DISEASE?
From the article:
Veteran anti-Islam populist leader Geert Wilders has won a dramatic victory in the Dutch general election, with almost all votes counted.
After 25 years in parliament, his Freedom party (PVV) is set to win 37 seats, well ahead of his nearest rival, a left-wing alliance.
“The PVV can no longer be ignored,” he said. “We will govern.
Let me be clear. Our job here is to identify and navigate the political and market trends and to profit from them. Wilders (like all others) is simply another wheel in the global cog we need to factor in.
Here’s what I think is going to happen in Europe. The zeitgeist that exists is decidedly anti-establishment, and increasing numbers of people are unhappy with the authoritarian nature of the pointy shoes in Brussels. Consider the election of Meloni in Italy, the election results in Slovakia we have spoken about, and now of course the Dutch elections all point towards the same thing.
Right now both the Dutch as well as the Slovaks are celebrating, but the issue here is that these elections are not enough. The leaders of any EU country are completely and totally hamstrung by their monetary overlords at the ECB.
Consider Meloni, who — despite her clear desire to effect many changes — may as well pop on some frilly lingerie and handcuff herself to the bed for some naughty time with her man, because at least that way when she’s getting screwed she can feel good about it.
Why and how?
Because the moment she (or in fact any leader or leading party in any EU country) tries to do anything that the pointy shoes in Brussels dislike, they simply remind her that they can and will simply cut off liquidity to the Italian banking system. Meloni’s government wouldn’t last two weeks, and she knows it.
The same is going to be true of Wilders in Holland and all the others, too. Until any EU member state actually removes itself from the currency system, they’re screwed. And removal from the monetary system by default would mean sanctions and removal from the European Union and the myriad trade agreements linked to it. So you can see that as the pressure cooker gets ever more pressurised the ultimate answer is going to be a breakup of the entire union.
This is inevitable, if only because of the enormous and completely unpayable debts now accumulated.
Take for example the German 10-year bund.
Yields are rising rapidly now from the lows of 2020, but as rapidly as they’ve been rising you can see that they’ve a long way to go simply to get to 1990 levels.
Keep in mind that the debt burden on the German government back in 1990 was nowhere near as severe as it is today. And back in 1990, Germany had access to cheap reliable Russian gas. Now they don’t. And also, back in 1990, woke absurd “climate change” policies were not in full force. Now they are.
Add to this bonfire the rising inflation due to the destruction brought by the CO(N)VID lockdowns, followed swiftly by the blowing up of Nord Stream, which has cemented European industry in a spiral of higher costs (inflationary). At the same time the bureaucrats attempt to kill demand with completely moronic “climate policies.”
This is why we’re seeing the rush to implement a CBDC. It is critical for all these reasons.
To recap. They need to hold this ball of wax together because it’s all about to come splintering apart and their power base (which is in the EU) is threatening to collapse. The need to repudiate these unpayable debts before it all blows up is why they are rushing to bring on a CBDC. They know that the social upheaval of a repudiation of debt and the consequent outrage needs to be met with brute force. This can be achieved when they control individuals’ access to payment for basics like food and shelter.
Basically, they’re looking at doing to the peasants what they’ve already managed to do to the sovereign states within the EU via the banking system.
I don’t believe it’s going to work, but oh boy, are we in for some tough times. This is one reason why I can’t be bearish on the dollar. Not because the dollar is fantastic. It’s not. But it provides liquidity and a faltering euro leaves few places to quickly park scared capital. Europeans should be terrified of what’s coming.
The smart money has already begun leaving, and this trend doesn’t appear to be one that is likely to change. Sadly, most folks will be captured because capital controls are at this point a given.
When? I don’t know, but does it really matter?
If I was a European (with my assets, banking, etc. all in Europe), I’d definitely be considering having some precious metals offshore and some bitcoin.
On that last point, please, for goodness sake, if you’re going to own bitcoin, then self custody it. That is the ENTIRE point of owning it. Sticking it into your brokerage account via some ETF defeats the purpose. Don’t do that!
