In nearly every European Union member state, public spending, and in particular spending on welfare and benefits, is accelerating at all levels, from municipalities and social insurance systems all the way up to the European Commission, while the economy of the private sector at best stagnates and its industrial core sectors visibly erode.
The economic imbalance, in which a contracting private sector is unable to finance a continuously expanding state apparatus and the state has to plug the gap by continuous borrowing, is already causing in the bond markets. Yields (real interest rates obtained when governments have to sell their bonds for less than face value, have been rising steadily for years, making the servicing of government debts increasingly expensive. As long as financing the needs of public spending continues to grow under the ruling ideology of an all-encompassing state this financial burden will fuel the need for ever higher taxation and a destructive race among parties of government to squeeze taxpayers at every level. Such an irresponsible approach to financial polit can only result in economic chaos.
Naturally, when it comes to fleecing European taxpayers, the European Commission will be at the front from the starting signal. Brussels is currently preparing its seven-year budget framework, set to exceed €2 trillion beginning in 2028.
Apollo News recently reported that the European Parliament is even demanding a further 10 percent increase in this budget ceiling. Excess, wastefulness, and a complete detachment from economic reality are driving the EU’s relentless search for new sources of tax revenue.
To this end, Commission President Ursula von der Squeeze'em-til-the-pips-squeak commissioned the Center for Social and Economic Research (CASE) last year to produce a study examining the potential of a wealth tax across the entire EU.
There is no point in any attempt at a “redistribution” policy, so long as the central redistribution mechanism which leads to an ever increasing wealth gap remains in place: an above zero inflation target.
THIS is the reverse robin hood, distributing wealth from the lower, middle, and upper middle class all the way to the top.
When “money” (or currency, rather) continually loses value (by design!), and “assets” increase in value, then the defining characteristic is how your wealth is split. The closer to the top of the food chain you are, the faster you get rich. This is by design, and nothing can stop it so long as we don’t have sound money with a zero inflation target.
The fiat money system and bank laws grant financiers like Larry Fink and the banks ways to leverage their wealth into multiples of what the capital investment really is. Obviously, the political machines running Europe are following suit but without oversight. The ability of government to borrow against future revenues allows almost infinite short-term revenues. And, the exceptional power to change laws allows the politicos to think they MAKE the future by over spending revenues.
They starve the golden egg-laying goose to allow more spending and when the health of the golden goose becomes questionable the bond markets apply rising interest rates. The politicos become tone deaf and resort to further starvation of the goose.
Government refuses to take heed and instead resorts increasingly short-changing the food going to the golden-egg-laying goose. The goose lays fewer eggs and the government punishes the goose by reducing the quality of the food (reduction in the value of the currency).
When that causes still fewer eggs, the government resorts to plucking the goose through wealth and inheritance taxes. No surprise, the goose produces even fewer eggs. Just watch what happens not just to cities like NYC but to whole countries around the world (Cuba, Venezuela, Zimbabwe, etc.) Total control over taxation by government ends up as self-indulgence by government that ultimately kills the goose.
Only the USA is somewhat protected by its role as issuer of the dominant reserve currency.
While the BRICS+ bloc have plans to engage in currency wars with the aim of promoting the Chinese Yuan as a reserve currency to rival the dollar such a project would take decades to make any serious impact on the balance of world trade
Because other nations will always need to buy dollars to settle international trades, US government agencies and commercial ventures can dictate prices.
And that is how the European Union and other nations like UK and Japan have thrown themselves into a death spiral. But with the governments of the EU and the rest of the developed world hooked on virtue signalling policies like Open Borders and Net Zero, the will to take those hard decisions that could break a nation out of the death sipn just does not exist.
FROM THE ARCHIVE.
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