The ECB’s new monetary policy leaves one important question unanswered: Will a normalization of Target balances also follow, that is, will the problem of debt within the eurozone be solved as well? If not, a normalization of monetary policy will be impossible.
Inflation is profoundly socially unjust. Its causes lie above all in an expansionary monetary policy, and this must be stopped. If policymakers want to prevent the inevitable recession that will follow, they will only make the problems worse.
In principle, it is the task of central banks to anticipate and combat inflationary risks. But since central banks failed to recognize inflationary pressures for a long time and then downplayed them as temporary, they can no longer contain inflation in a hurry. What solutions are feasible?
The rise in inflation does not fall from the sky. Inflation means general devaluation of money, not an increase in individual prices. It is the result of the money glut of the last several decades. Avoiding the dramatic consequences could make things uncomfortable.
Private currencies are currently making central banks sweat. The flood of paper money is making alternative private currencies increasingly attractive. They are based on a technology that is almost unassailable, and the central banks are reacting as you would expect.
Unbelievable national debts and deficits, direct access of politicians to the printing press and unconditional payments to citizens in the USA. The EU, for its part, is embarking on the path of massive new national debt. Can this possibly end well?
Central banks have become prisoners of their own policies with their perpetual monetary glut. Everyone knows this, and everyone knows that everyone knows it. But proclaiming a different message, they shirk responsibility. The party must go on at all costs.
