USA AND EU ARE IN ECONOMIC AND FINANCIAL DELIRIUM

A previous article explained what led to the bankruptcy of the Italian life insurance company Eurovita.

The problem of bond losses occurs in all Western countries. In order to solve this problem immediately, the Federal Reserve in the United States announced on March 23, 2023, that all bonds sold by insurance companies and banks will be bought back at their issue value ( which then actually amounts to a unilateral breach of contract in which, moreover, the bond market is simply eliminated ).

On the other hand, it is pragmatic because in this way a cascade of bankruptcies can be avoided while central banks can continue to raise interest rates.

The ECB will have to follow the Fed's example and quickly cancel all bonds bought by governments with negative interest rates as they now threaten the balance of the entire European financial system. In order to do this, the ECB ( and the FR ) will have to print an awful lot of money that does not exist and continue to raise interest rates to fight inflation so that the financial system does not collapse.

We are in a total economic and financial delirium where the monetary authorities are simultaneously putting their foot on the brakes and pressing the gas pedal. Clearly, nothing good can come out of this.

The rise in interest rates also puts EU member states in a precarious situation. They are all drowning in debt on which monthly interest has to be paid. In recent years, the ECB has bought an awful lot of government bonds from the member states so that the countries would have the necessary funds to cover their costs. In this way, the ECB also had full control of all member states that depend on the ECB's goodwill. Canceling these bonds to save the financial system is a ticking time bomb that will pop incredibly hard when it explodes.

The total sum of global debt, derivatives and unfunded liabilities is $2.3 quadrillions ( or $2.3 million billion ).

When all the dominoes begin to fall, and banks and other financial institutions can no longer meet their obligations, this is the sum that all governments will have to finance. They will of course do this through the printing of artificial money but the MMT clowns ( Modern Monetary Theory ) will then figure out that printed and digital money has ZERO value. MMT has never worked throughout history. If fiat money dies, how much gold will it take to repair the damage ?

All gold ever produced is barely 198,000 tons, valued at $11 trillion or 0.2% of total world debt and liabilities.

Besides, who has the most gold reserves ? Right. Russia. Putin has invested heavily in gold over the past 20 years. The ruble is guaranteed by gold while currencies in the West are decoupled from the gold standard.