I’ve read lots of books covering our monetary system, what money is, the European Union’s intention and articles about what people with insight think about the current system in Europe.
I have to say I was pro the EU when it all started in 2001/02. I welcomed the EURO as a young person, what it stands for, or thought what it was standing for. Now, 16 years later, my view has changed.
Most of the facts I will point out are not expressed by me; people with more knowledge about the topic voiced them. However, after reading a lot about it and going on my judgment, I’m thinking on the same line. 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 its cause.
Now the facts, I believe, as Dr Markus Krall, 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 becomes obsolete. For example, nobody is using a phone booth anymore; they all disappeared. The same rule applies to all companies. However, with a socialist 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 current statistic shows that just 0.2 % of businesses fail and go out of business. 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. Besides, 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 expenses like staff, regulations etc.? The only way is to use its capital.
Dr Markus Krall calculated that in 2020 the banks would 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 crashing down.
I just wanted to mention it.