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

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

Germany Votes For Europe's Decline…

Ghost of Truth — Mon, 24 Feb 2025 07:57:27 GMT

Germany Votes For Europe's Decline - A Comment

This time the mainstream was right: the forecasts for the German federal elections had already indicated that the only real opposition party, the Alternative for Germany (AfD), which was carefully isolated with a cordon sanitaire by the bloc of green socialist unity parties of the Davos mindset, could not make it to a relevant size in the German Bundestag. They have not even cleared the 25% hurdle that would be necessary to initiate committees of inquiry into the various ethical fault lines of the political power circle.

Four out of five Germans have voted for the continuation of Merkel's policy of open borders, growing Islamization, vulgarization of education policy, the overgrowth of inner cities in Germany, increasing regulation of the economy and thus the creeping but slowly accelerating death of the German economy and culture.

They have also, and now it is becoming European, chosen to continue with the Ukraine policy, i.e. they have supported the push by European politicians to build up their own war economy at a time when the Americans are retreating economically from the battlefield and, generally speaking, are returning to a policy of rationality. They have sorted out the infantile climate narrative as the last of the Mohicans, further fueling the zero interest rate policy of the European Central Bank's monetary policy and keeping the gigantic subsidy machine in Brussels running hot, which makes productivity and the efficient allocation of capital in Europe even more impossible. The Germans have earned their right to continue in this way by turning their backs on reality and refusing to recognize that they are geopolitically, economically and culturally isolated and will no longer play the violin in this orchestra of power in which the USA, China and Russia are now rewriting the score - power is moving from the Old Continent to the Pacific, and Europe is powerless in the face of this.

The new Chancellor of Merkel's CDU party, Friedrich Merz, an economics expert proclaimed by the media and pre-selected by the power machine, will forge a green socialist coalition that will consistently continue Germany's crash course with reality. We can already see the consequences of this catastrophe in the German labor market, which shed 200,000 jobs in January alone, in productivity, which has not changed for a decade, while in America, for example, the business cycle is picking up again, Germany is acting like the sinking lead for the European economy.

We can now expect a further centralization of the energy sector, a consistent policy against the interests of Germany's core industries, such as the automotive industry, with gigantic subsidies for wind turbines in forests, with nonsensical projects that destroy the cultural landscape of wind turbines and solar areas. The psychological warfare of the Davos clique continues, the demoralization through an aesthetic architecture of horror will continue to accelerate.

What could happen now? The Europeans will do everything in their power to completely eliminate the Maastricht criteria, to force Community financing through war bonds and to consolidate further political powers in their global government in Brussels. At the same time, an attempt is being made to consolidate the gigantic national debts of the European states of the EU under the umbrella of the European Central Bank in order to gain time to cover new collateral with new credit and drive forward the centralization of the economy.

The Germans have voted to impose the disaster that they feel and see in their own wallets in their own inner cities, they have now elected a new government that will certainly not survive the next legislative period, no matter what colorful offsets of incompetence and compliance they form their new coalition from. The lost Ukraine war will lead to the next government crisis, then there will be another election, then we will see whether the AFD gains further strength and the Germans may come to the realization that this path is a dead end. For now, however, things will continue to go downhill, with more lost years being written into the balance sheet.

#germany #germanelections #eu #merz #wef #socialism #climatescam #nostr #grownostr #geopolitics #bitcoin #plebchain