Sep 30, 2022
Summary:
An election took place in Italy that could change things, and the
Euro has been sinking like a stone…What’s in store for Europe? I
sit down and chat with John Rubino to discuss the European economy.
Their energy system has taken a turn for the worse, and their
currency problems cannot be fixed with with monetary policy. They
will inevitably have to tighten, as inflation and broken supply
chains cannot be fixed with easy money. Tune in for more insight on
what’s to come for Europe.
Highlights:
-The dollar is strong—which is the flip-side of this situation
-Europe has screwed up their energy system and is trying to run a
modern economy on ancient energy resources
-There was a major drop in Pound Sterling
-There’s not obvious end to this. They have to borrow money to cut
taxes, as well—which means creating more currency
-The Euro is below the dollar now
-Europe’s mistakes cannot be fixed with monetary policy, but
they’re going to have to tighten
-Inflation and broken supply chains cannot be fixed with easy
money, so the central banks are stuck
-With alternative energy (especially electric cars) there are many
considerations that come with transitioning to these sources
-Houses were very inexpensive 2 years ago, and now they’re
unaffordable. If nobody can afford houses, nobody can buy houses.
We will probably see a big crash in home sales
-Tightening is going to have to go on longer, but most places you
look, inflation has dissolved
-Many effects of inflation are going to be with us for years
-Tens of trillions of dollars are evaporating from the portfolios
of the billionaire class
-In the end, the system works for the people with the money
-The federal reserve wasn’t just set up by the banks; it is owned
by the banks
Useful Links:
Financial Survival Network
Dollar Collapse