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.
But it seems that like America's Democrats, European liberal leaders are prepared to throw away their citizens' prosperity for the sake of virtue signalling.
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.
De - Dollarisation: China, Brazil Make Deal To Ditch US Dollar For Bilateral Trades
China and Brazil this week concluded a deal to conduct trade between their nations in their own in their own currencies, ditching the established reserve currency for global trade, US dollar as an intermediary, the Brazilian announced said on Wednesday. This is Beijing’s latest strike against the almighty greenback in its currency war aimed at shifting the balance of geopolitical and economic power from west to east.
NATO Rhetoric About Russian Threat is 'Absurd'
The reasons being given for the latest NATO military buildup in Eastern Europe, the idea that the Russian 'Russian threat' to Eastern Europe grows every day is "simply absurd," according to former US diplomat and Senate policy advisor Jim Jatras. Effectively, Jatras says, the buildup is an attempt by the US to keep Germany and France on board with Washington's world domination agenda and ...
Naked Bankers Go For Gold
... That gold sale in 2013 was a naked short. The seller had no gold to sell. COMEX reported having gold only equal to about half of the short sale in its vaults, and not all of that was available for delivery (quite a lot of it belonged to the german government) In effect the naked shorting of gold could only work because really the right hand was selling to the left hand.
The Demise Of Dollar Hegemony: Russia Breaks Wall Streets's Oil-Price Monopoly In a move that went almost completely unreported in mainstream media, Russia has recently opened a market for the trading of physical and 'paper' oil (futures) in Moscow in Roubles. This is the most blatant challenge yet to the domination of the US dollar in world trade.
WMD in Mayfair
Recalling yesterday's Machiavelli Blog which commented on events surrounding the unfortunate death of the alleged former Russian agent Alexander Litvinenko, it seems the murder investigation has now found evidence of many caches (well OK, traces) of radio active toxins in various fashionable establishments in London's West End frequented by former Russian intelligence agents.
China launches global yuan payment system
China’s Central Bank has started a global payment system which provides cross-border transactions in yuan. The China International Payment System (CIPS) intends to internationalize the yuan and challenge the US dollar's dominance.
NATO Rhetoric About Russian Threat is 'Absurd'
The reasons being given for the latest NATO military buildup in Eastern Europe, the idea that the Russian 'Russian threat' to Eastern Europe grows every day is "simply absurd," according to former US diplomat and Senate policy advisor Jim Jatras. Effectively, Jatras says, the buildup is an attempt by the US to keep Germany and France on board with Washington's world domination agenda and ...
Naked Bankers Go For Gold
... That gold sale in 2013 was a naked short. The seller had no gold to sell. COMEX reported having gold only equal to about half of the short sale in its vaults, and not all of that was available for delivery (quite a lot of it belonged to the german government) In effect the naked shorting of gold could only work because really the right hand was selling to the left hand.
The Demise Of Dollar Hegemony: Russia Breaks Wall Streets's Oil-Price Monopoly In a move that went almost completely unreported in mainstream media, Russia has recently opened a market for the trading of physical and 'paper' oil (futures) in Moscow in Roubles. This is the most blatant challenge yet to the domination of the US dollar in world trade.
WMD in Mayfair
Recalling yesterday's Machiavelli Blog which commented on events surrounding the unfortunate death of the alleged former Russian agent Alexander Litvinenko, it seems the murder investigation has now found evidence of many caches (well OK, traces) of radio active toxins in various fashionable establishments in London's West End frequented by former Russian intelligence agents.
China launches global yuan payment system
China’s Central Bank has started a global payment system which provides cross-border transactions in yuan. The China International Payment System (CIPS) intends to internationalize the yuan and challenge the US dollar's dominance.
Refugee Crisis Or Existential Battle With USA for Europe
It has been clear for some years now that the USA, backed by its main NATO and EU military allies the UK and France (the FUKUS axis has been trying to provoke Russian into firing the shot that will be heard around the world and recognised as the startiung signal for World War Three.
Nothing is ever as it seems to be however, and views from middle east and far eastern journals suggest the USA is also working at destabilizing EU nations in order to force their support in its wars.
The European People’s Party (EPP) is the largest political group in the European Parliament, and they are unerringly supportive of America's efforts to start a war with Russia. “The time of talk and persuasion with Russia is over," MEP and Vice-President of the EPP told a meeting on Tuesday, 21 April, “Now it’s time for a tough policy, and concentration on defence and security ...”
The Mediterranean Boat People Crisis - How Does Europe Deal With The Mediterranean Migrant Crisis
The numbers of migrants trying to cross from the Libya on the coast of north Africa to one of the EU's southern nations is increasing. Europe's impoverished southern nations can't cope. And in the better off nations of northern Europe immigration is a toxic issue which is fuelling the rise of anti EU parties from France to Finnland in the north and Hungary in the east. What can be done?
This Is Why The US Just Lost Its Superpower Status According To Larry Summers
As more and more countries flock to join the Chinese led Asian Infrastructure Investment Bank after Britain, France Australia, India and other traditional US allies defied Washington to associate themselves with China's initiative, conservative economic pundit Larry Summers once a contender for the chairmanship of the Federal Reserve delivered a sharp rebuke ...
The True Debt Disaster America Faces - Only A Fraction Of Government Debt Is Known To The Public
Politicians and the media talk about the $17 trillion debt the US Government owes to creditors. They are lying, the $17 trillion is a fraction of what america owes. The real figure is $200 trillon. And Obama's loonytoons economics are driving that up at an accelerating rate.
U.S. versus Russia War: Top Russian Politics Scolar Stephen Cohen Tells The Truth
We have been blogging for four years about the US drive for war, provocation of Russia in Syria, Iraq, Ukraine and elsewhere made it obvious. But I'm just a news junkie with a strong sense of curiosity and have wondered why the US seems set on this course. Good to see experts like Stephen Cohen, a prominent expert on, Russia are coming onside.
Does It matter If The Dollar Is Replaced?
"Without delving too deeply into Austrian economic and capital theory, just let me point out that money printing disrupts the structure of production by fraudulently changing the “price discovery process” of capitalism. Capital is allocated to projects that will never be profitably completed. Bubbles get created and collapse and businesses are suddenly damaged en mass, thus, destroying wealth. (Zero Hedge)"
What the BRICS plus Germany are really up to in the Currency Wars?
The move led by Russia and China to dump the Petrodollar has escalated into a currency war, not the kind of war we assciate Obama with but give him time. Some wars as in Ukraine, by proxy are not going so well. Others, like the one against Islamic State aka ISIS aka ISIL in the middle east are going worse. Disintegration of The American Economic Empire is manifesting itself in moves by wannabe global players towards creating a multipolar world ...
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