This site has been highlighting recent inflation figures in the European Union.  I just noticed that despite the incredibly high inflation that Europe is experiencing, the overnight rate set by the ECB was still zero up to the middle of last month.  On July 21st, the ECB raised that rate to 0.5% (where is stands at this point of time)– with inflation being in double digits across many parts of the EU.  Not only that, the ECB is still engaged in buying EU member’s government bonds — it is still engaged in quantitative easing.  This is monetary madness and yet the financial media remains deathly quiet on this subject.

Lagarde, the head of the ECB, is a lawyer by training.  She is not an economist, and I can only assume she was appointed to her position as she will basically do what she is told — she does not have the expertise to make independent decisions when it comes to monetary policy.

Inflation is raging across Europe, and it is just the beginning.  The “experts” were wrong when they said inflation was ‘transitory’.  They were wrong when they said it was due to ‘supply bottle necks’.  And they are wrong again, by making unsupported assertions that inflation is ‘peaking’ — especially when central bank determined interest rates remain so incredibly low in the face of such high inflation.

The first order effect of inflation is to reduce the buying power of those who must work for a living.  The poor become homeless.  The struggling will go hungry and cold.  The middle class will fall into poverty.  This is just the first round of effects.

The second round effect will come when companies can no longer produce goods and services profitably, due to the fact that the cost to deliver those goods and services are beyond the ability of consumers to pay.  Companies will struggle, eventually going bankrupt.  The government will step in and take over the production of essential services and products — socialism, Venezuela/Argentina style, will come into full force.  Interest rates will remain too low, government deficit spending will explode higher, and the national economies will fall to ruin.  In this scenario, we can see the maximum manifestation of the opening of the Third Seal.  This site has been arguing that the opening of the Third Seal (Revelation 6:5-6) will eventually usher in a price rise in the cost of living, that will be of apocalyptic proportions.  The policies currently being pursued by the ECB and the EU governments will bring about apocalyptic inflation for Europe.  It is mind boggling that literally nobody is highlighting this massive policy fail by the ECB.

I suppose Europe is screwed anyway, should the Ukraine conflict escalate into a broader European war.  What is a bout of hyperinflation compared to Russian nukes.  Needless to say, perhaps now is not the best time to take that vacation to Europe….

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