Ghost of Truth

EU’s Fiat Gambit: Leveraging Geopolitical…

Ghost of Truth — Mon, 10 Mar 2025 09:53:19 GMT

EU’s Fiat Gambit: Leveraging Geopolitical Chaos to Mask Economic Decay

The political shift in the White House reveals that the world is moving toward a radical economic bifurcation. One side, led by the United States, is relying more and more on free market forces while cutting government spending (think of Argentina), while the other side is falling back on old-fashioned recipes of socialism, state interventionism and the rotten recipe book of Keynesian magic which will only lead them deeper into the unavoidable debt trap as it is an illusion to be able to control interest rates without consequences like massive inflation and currency debasement.

A glance at the history books of the 20th century already tells us the outcome of this test of strength: decentralized systems that entrust decision-making powers to the individual will always carry off the laurels of the victor. They are simply channelling scarce ressources like energy better than other systems. Without anticipating the point I would like to make: it will not be the Europeans who rely more than ever on centralization and the consolidation of power in Brussels who will be receiving economic laurel.

The European Union is betting big these days, hijacking the U.S. pullback from the Ukrainian battle field and monetizing Russia-stoked fears politically to roll out a mammoth €800 billion fiat credit blitz, this time as the South has been sucked dry over the years led by german debt issue, to dodge its spiraling growth crisis and keep rolling the debt over space and time. We all know the keynesian logic: all economic misery has its roots in a lack of demand which certainly the all-knowing government will fill up with hyper intelligent government spending programs.

What we are witnessing here is a reckless dive into the Keynesian debt pit. Meanwhile recession signals scream loud: February 2025’s composite PMI sits at a dismal 48.9, stuck below the neutral measurment of 50 for months. Industry and the construction sector in particular are at rock bottom and show hardly any signs of revitalization, even if the business cycle is picking up a little speed globally. Industrial output is tanking with a 0.6% monthly slide in January,now with a PMI at 47.6 deep in recessionary territory hammered by high energy prices and supply woes. Deficits are swelling to 4% of GDP in 2025, with debt-to-GDP nearing 90% by 2026 (point of no return usually can be find at around 80%), per the European Commission. Productivity’s a ghost and it stays flat for the time being.

Once again, it was the bond market that reacted quickly to the geopolitical impact of Germany's gigantic debt program, which is now trying to close the gap with the other European debtor countries. Bond markets pounced on Germany’s debt reveal: 10-year yields leapt 40 basis points within two days after the announcement of the new german debt fiesta - Germany’s from 2.4% to 2.8%, Italy’s from 3.6% to 4.0%, France’s from 3.1% to 3.5%- defying the ECB’s 0.25-point rate cut.

That €800 billion tab that follows step by step the debt structure proposed by ex ECB president Mario Draghi last year to give the dead Eurozone a last stroke. The program follows Draghi's proposal like a little dog follows its drunken owner. It comes with €22.4 billion in annual interest, a chokehold on a wobbly economy. Worse, it’s a catalyst for centralization. Subsidies soared 15% last year, per EU data, propping up dying industries, while regulations - like new green and digital mandates - pile on €22 billion in yearly costs, per the European Chamber of Commerce, suffocating innovation.

What we are experiencing here in Europe is the path to common debt, the suspension of the last Maastricht rules which, looking back today, we can say was probably the plan of the fiat centralists from the very beginning, since cheap credit is the drug they are all addicted to since cheap credit is the drug they are all addicted to and with which they are getting the population drunk. Every election cycle is always a gift-giving contest, the presentation of false hopes and simulation games, the creation of false security and prosperity, in the forge of the central banks' printing presses, brought into the world by politicians whose distance from economic reality has become maximum.

But if there is one thing the Europeans understand, it is how to turn self-created crises into an advantage for the centralized body of power in brussels. In their understanding of economics, prosperity comes from well-organized central planning, which implies communal debt, or more simply, using Germany's creditworthiness to force more credit on others. We can therefore expect the imminent introduction of Eurobonds to further expand the nonsensical credit programs of the past decades and accelerate the massive capital shortfall, which will further inhibit productivity, especially in the eurozone. In this way, Europe will not be able to translate technological progress into active production and prosperity.

Debt slaves nations to bond markets, demanding risk premiums as trust fades and puts the onus on taxpayers to divert ever larger portions of productive capital into channels into which it seeps away without bringing further progress. Germany’s debt brake is toast (it has always been an illusion, since political actions, even when written into constitutions, are reversible at any time) and the CDU’s cynical push through a defunct Bundestag reeks of desperation.

Remember: the CDU is the party that was still pretending to have Christian-conservative values during the Merkel era, while executing the green-socialist agenda of decomposition in a way that even the heirs of the GDR SED and their green socialist brothers and sisters in the West did not dare to dream of.

The whole german economy was built as a charade within a fog of narratives which over the past two decades has essentially been a kind of euro mercantilism: a domestically low-wage sector coupled with a currency that was undervalued by 30 to 40% for the German economy. Massive trade surpluses (the narrative of world export champion Germany) ensured booming foreign credit business and an enormous dependence of the entire eurozone on the creditworthiness of the German economy. At the end of the past few years, the Brussels-Berlin policy, since the attack on the nuclear industry such as the automotive industry and the phasing out of nuclear power, has affected the German economy to such an extent that the spectre of recession in the form of Germany's sinking lead is now haunting the whole of Europe.

In what creative german politicians call “Special funds” (which is officially unconstitutional) they're hiding their reckless spending now, sticking taxpayers with the bill. This is centralized control masquerading as rescue—industry fades, productivity dies, and the crash of the hole economic bubble nears.

#EU #DebtCrisis #Recession #Bitcoin #Nostr #Grownostr #Fiat #IndustrialDecline #FiatPonzi #Eurozone #Euro #StackerNews #Nostr #germany #debtspiral

EU: Debt acceleration ahead!

Ghost of Truth — Wed, 05 Mar 2025 10:42:42 GMT

EU: Debt acceleration ahead!

Eyes on the debt in the eurozone! The withdrawal of the USA from the financing of the Ukraine disaster gives the eurocommies exactly the opportunity they have been waiting for a long time to create panic, stir up fear of war and communitize the sovereign debt of the European Union. For legal reasons, this has not been possible until now, but it should now be easy to get rid of it as the mainstream press once again succeeds in manipulating public opinion.

Since the lockdown policy, the eurozone economy has been in recession only surviving through massive expansion of the state sector and credit-financed artificial demand for dubious projects such as the green transformation. And the sad attempt by German politicians to declare the planned 500 billion euros in new debt for the defense budget as a so-called special fund in order to deceive the public about the state of the state's finances is nothing but a ridiculous camouflage. We know from the history of economies that countries with a government debt ratio of over 80% can no longer escape the debt trap without default! The eurozone has long since crossed this demarcation line. Under the new Chancellor Friedrich Merz, Germany, which in the past has been fiscally very conservative, at least in comparison to its European partners, is now also falling into the well visible debt trap. At least for those of us who still have one or two functioning brain cells, this debt trap cannot be overlooked. But politicians are known to be a special breed of people with the experience and learning horizon of fruit flies.

Especially in fiat economies, war has always been the scapegoat in the past to keep the debt printer running hot. It is the fatal failure of science that throughout the 20th century and to this day it has not succeeded in exposing the Keynesian delusion of the feasible global control of complex economies for what it is: a pseudo-scientific childish belief that played into the hands of socialists and central planners.

This pseudo-academic religion, this offset of crude macroeconomic theories, gives politicians precisely the tools they need to centralize political power and influence the individual economy. The media sector is also to blame for this debacle, as Keynesianism has never had to face real criticism in the public sphere. It seems to have been almost forgotten that the centralization of decision-making processes, to the exclusion of decentralized pricing, is the decisive criterion for the failure of complex systems.

The current debates of the European Union's top politicians, which revolve exclusively around the way in which debt is accelerated and no longer around the consolidation of public finances, also shows wonderfully that the players within this stabilized argumentative matrix are no longer able to change their perspective. In short: Europe is largely incapable of reform and is intellectually blocking itself!

And the market's reaction is not long in coming: interest rates on German government bonds are already rising while inflation rates in Europe are picking up speed again, which will probably soon prompt the powerful central planners at the European Central Bank to introduce some form of yield curve control so as not to abandon the ailing public finances of the eurozone countries which is likely to pose a massive threat to the already ailing euro. Against the backdrop of the severity of the fiscal crisis, all the talk about a moderate interest rate run in the eurozone is completely self-evident. Credit must be made cheaper again in the eurozone in order to prevent the collapse of the zombie economy that has been systematically bred since the days of the last financial crisis and on which many millions of jobs depend, the social foundations of the old continent the last argumentative bastion of the central planners in Brussels and the European capitals.

The Eurozone debt crisis is entering the next round, the attempt to further escalate the war in Ukraine is being morally charged by Russia's panic in the media and over half a billion Europeans are facing an economic fiasco. And we haven't even talked about what will happen if tax revenues implode and Europe's golden calf, the various social insurance schemes, collapse underfunded. At a certain point, we enter the endgame of the Fiatponzi.

#eu #europe #ukraine #russia #debtcrisis #news #geopolitics #bitcoin #nostr #grownostr #fiatponzi

New Fiscal Fiasco In Germany: Could…

Ghost of Truth — Tue, 04 Mar 2025 08:28:22 GMT

New Fiscal Fiasco In Germany: Could Political Incompetence Finally Force Peace?

It didn't take long for the ripples caused by Vladimir Selenski's bizarre appearance in the White House to reach the old continent again. In a hectic emergency meeting in London, the leaders of European politics tried to demonstrate their unity and their will to continue the Ukraine project, whatever the cost. At times, it was like watching half-strength men playing with their muscles - somewhat bizarre and ridiculous, but not unfunny if it weren't a matter of life and death.

It was just over a week ago that the Germans re-elected the Bundestag after the collapse of the government a few months ago, and it quickly became clear that a coalition of familiar forces would be needed to keep the German globalists' mortal enemy, the AFD, out of business. And so the new Chancellor of the CDU, Friedrich Merz, will forge a coalition with the Social Democrats, as quickly as possible, and continue what they had started: the joint action against Putin's Russia.

It only took a few hours for Merz to announce immense new borrowing to expand the country's defense budget to possibly up to 600 billion euros in the coming years. Money that the eurozone's largest economy does not have, after having shot itself in the head several times economically. Just think of the war against the automotive industry and the phase-out of nuclear power, as well as the sanctions packages against Russia, which have left the German economy lagging behind.

Germany’s prospective black-red coalition is staring down this self-inflicted financial abyss. Sources close to the negotiations between the Union (CDU/CSU) and SPD reveal a staggering budget shortfall—between €130 billion and €150 billion—projected through 2028. Federal Finance Minister Jörg Kukies (SPD) dropped this bombshell during Friday’s exploratory talks, according to insider accounts confirmed by multiple outlets. The figure paints a grim picture of a nation teetering on the edge of economic ruin. Friedrich Merz, who campaigned on a promise to audit the federal books, must now wish he’d never peeked under the hood. What he found was worse than anyone dared predict: a fiscal mess so severe it’s rattling the foundations of Germany’s economic reputation. The numbers don’t lie, and they’re screaming a warning—Berlin’s balance sheet is bleeding red, and the coalition’s ambitions may drown in it. This isn’t just a hiccup; it’s a structural collapse years in the making. Analysts point to unchecked spending and systemic strains, though the talks remain tight-lipped on specifics. For now, the coalition hopefuls are scrambling to plug a gap that threatens to swallow their agenda whole.

This brings us to the Punch and Judy show and the team photo of the mimetically embarrassing group meeting in London. There, the two new strong men of Europe, Emmanuel Macron and host Keir Starmer, unceremoniously relegated the German Chancellor Olaf Scholz to last place, just to say: if you can't pay for anything, then you won't take part in the future big-man games!

Everyone knows that, with the possible exception of Poland, no other European state has any military power worth mentioning. They are all small shadows of their former selves, rotten economies with weak fiscal chests that have saved their shadow armies from the Cold War under the protective umbrella of the Americans, who are now withdrawing. But obviously no one in Europe has read this memo properly, otherwise how could this meaningless talk of boots on the ground in Ukraine and massive support for the country be understood? The Europeans will soon have to deal with completely different problems, migration policy, economic and security problems, and the Ukraine project will very quickly fade into the background. But to this day, no effort at diplomacy with Russia can be seen. It is a complete denial of reality among the so-called political elite of the old continent.

Let’s call it what it is: Germany’s fiscal implosion is a twisted stroke of good fortune for a continent on edge. For years, Berlin’s shot itself in the foot—wild spending sprees, an open-door rush into social welfare, and an economic self-sabotage that historians will marvel at in disbelief. This €150 billion chasm isn’t a glitch; it’s the bill coming due for a nation that’s been running on fumes. This economic seppuku might just douse the war drums thumping across Europe. With Germany’s credit rating poised to tank—hello, France’s shaky tier—the markets won’t stomach funding big kinetic wars or military gambits via the money printer. Hyperinflation would shred the euro before the first tank rolls. So, while Germany’s elites scramble to salvage their coalition, the rest of us might dodge a bullet. Economic chaos? Sure. But a quieter continent...

On a meta-level, a kind of war-weariness is taking place, which has demographic reasons and is based on the general decomposition of every form of patriotism. For decades, the radical left has successfully rooted out any form of traditional patriotic thinking from the minds and souls of the people and it will not be possible to activate them once again for a proxy war of the globalists from London and Brussels. No one in their right mind will fight for 15 minute cities, cbdc control money or forced vaccinations and total media control. The game is over!

#economy #eu #germany #debtcrisis #ecb #bitcoin #nostr #grownostr #plebchain