In the last years I’ve read a lot of books covering our monetary system, what money is, what the European Union is doing, what people with insight think about the current system in Europe.
First up, I have to say I was pro the EU when it all started in 2001/02. I welcomed the EURO as young person and what it stand for or I thought what it was standing for. Now, 16 years later, my view has changed, totally.
Most of the facts I will point out are not expressed by me, people with more knowledge about the topic voiced them. However, I’m thinking on the same line after reading a lot about it and going on my own judgement. It all makes sense, because even the current politic cannot bend one important science: mathematics.
Furthermore, I’m writing this blog entry to show, that I saw it coming and knew the cause of it.
Now the facts, I believe, as Dr. Markus Krall is, that in 2020 or shortly after the banking system in Europe with the EURO will fail. The reason for that is the ZERO interest policy of the European Central Bank [ECB]. On average 1 – 2 % of all businesses fail each year. That is quite normal, because not every idea is good enough to stay in the market or the business comes obsolete. For example nobody is using a phone booth anymore, they all disappeared. The same rule applies to all businesses. However, with a socialism monetary policy by the ECB, the interest rate is set to an artificial value of ZERO. That means unsuccessful businesses can borrow money for ZERO cost, which allows them to continue to operate. This goes on since the Financial Crisis in 2008, over ten years now. The statistic of businesses going out of business is under 0.2 %. That in conclusion means an accumulation of almost 20% of insolvent businesses in Europe.
That factor is already disturbing. On top of that banks cannot operate with a ZERO interest rate. How can they achieve a profit? They even have to pay a fee on money they hold. In addition they have 10 – 15 % higher costs to fulfil the regulation coming out of Brussel. How can a business survive without making any money? How can it pay for costs like staff, regulations etc? Only way is to use it’s own capital.
Dr Markus Krall calculated that in 2020 the banks will run out of their own capital to pay running costs. With all the debt, nobody will be able to rescue any banks in Europe. The whole house of cards will come crushing down.
I just wanted to write it down.