Banks

The situation is clear.

Life on every planet depends on balance.

There are limited supplies of resources (be it fossil fuels or lithium (which hopefully is not needed anymore in the batteries of tomorrow) on this planet.

Instead of fighting over scarce resources, it would be wise, to support citizens building up renewable de-centralized power systems and infrastructure (power companies hate the world de-centralized)

by:

  • funding
    • 5000 for every heat pump installed
    • 10,000 for every roof covered in solar
    • 5000 for every battery pack that stores the sun’s energy
    • 15,000 for every newly sold eCar
    • 10,000 for every eCar charger made available to the public
  • reduction in bureaucracy / easy approvals

such as:

  • heatpumps
  • small wind mills
  • solar panels
  • batteries
  • chargers
  • converters
  • hydrogen generating facilities and storage
  • eCars
  • other storage systems: compressed CO2

Fossil fuel companies “out of tradition” do not want to invest into renewables (unless they are forced by law? (like invest 10% of all income into solar + wind + storage))

The technology is there and is getting better by the day:

The question is:

Will leaders deliver? Or will they rather “safe on paper money”?

That’s the big question of 2023.

Plus: If US really re-elects a Republican nutcase, it might mean major blow to US cooperation with other countries (as Republicans constantly work on egoism and destroying relationships with other countries, cutting funding to Ukraine, funding fossil fuel companies etc.).

No more fossil fuels from Russia: ever – please avoid the China vs Europe energy competition!

The situation in Europe is like this: 2022: everything still “okayish”.

2023 not so much: “global LPG (offloading) capacities will not be sufficient to fill this gap.”

“In addition, it must be assumed that there will be a high demand for LPG if the economy in Asia picks up again.”

“Energy demand in China is currently relatively low, as the economy suffers as a result of a strict zero-covid strategy”

https://www.wz.de/wirtschaft/von-der-leyen-sieht-fuer-2023-probleme-bei-erdgasnachschub_aid-79675783

bug the leaders day and night to deliver on funding renewables:

Energy shortage – renewables – can EU and other leaders ramp up investments and incentives? (Joe Biden (US), Jerome Powell (FED), Christine Lagarde (ECB), Macron (France), Kishida (Japan), Han Duck-soo (South Korea), Anthony Albanese (Australia), Jacinda Ardern (New Zealand), Ismail Sabri Yaakob (Malaysia), Bongbong Marcos (Philippines), Lee Hsien Loong (Singapore), Tsai Ing-wen (Taiwan), Prayut Chan-o-cha (Thailand), Phạm Minh Chính, (Vietnam), Erdoğan (Turkey), Alexander De Croo (Belgium), Andrej Plenković (Croatia), Karl Nehammer (Austria), Von der Leyen (Germany), Scholz (Chancellor Germany) Habeck (Ministry of Economics and Energy, Germany)), Petr Fiala (Czech Republic), Mette Frederiksen (Denmark), Kaja Kallas (Estonia), Sanna Marin (Finland), Kyriakos Mitsotakis (Greece), Katrín Jakobsdóttir (Iceland), Micheál Martin (Ireland), Draghi & Meloni (Italy), Krišjānis Kariņš (Latvia), Daniel Risch (Liechtenstein), Ingrida Šimonytė (Lithuania), Xavier Bettel (Luxembourg), Mark Rutte (Netherlands), Faiz Sucuoğlu (Cyprus), Jonas Gahr Støre (Norway), Mateusz Morawiecki (Poland), António Costa (Portugal), Eduard Heger (Slovakia), Robert Golob (Slovenia), Pedro Sánchez (Spain), Ulf Kristersson (Sweden), Ignazio Cassis (Switzerland), Rishi Sunak (UK), Justin Trudeau (Canada), Rodrigo Chaves Robles (Costa Rica), Nayib Bukele (Salvador), Andrés Manuel López Obrador (Mexico), Alberto Fernández (Argentina), Luis Lacalle Pou (Uruguay), Luis Arce (Bolivia), Lula (Brazil), Gabriel Boric (Chile), Gustavo Petro (Colombia), Guillermo Lasso (Ecuador), Mario Abdo Benítez (Paraguay), Mirtha Vásquez (Peru), Shehbaz Sharif (Pakistan)https://en.wikipedia.org/wiki/List_of_state_leaders_in_2022

no matter how fancy it is named

money printing is #1 cause of inflation

everyone knows that.

  • u can blame Putin
  • u can blame Climate Change

but in the end, it’s (mostly) caused by post 2008 central banks printing loads of loads of money, that then even get’s multiplied by private banks with a factor of 1:10 (possibly even more)

  • would that money have been invested into innovation, factories that create jobs (Mainstreet) inflation would not be so bad

who creates value? (trading paper for paper does not create value (stockmarket))

The ONLY “thing” that gives money it’s value are hard working, innovative people that produce innovative, high quality and affordable products.

But Wallstreet did not care, the (false) ideology was: “as long as the freshly printed billions do not trickle down to mainstreet… there will be no inflation”

really?

With all those TERRIBLE TERRIBLE side effects of grand mums with little rent in the UK freezing to death, because they can’t afford oil- and gas-heating anymore.

2019/2020: “There were 25,260 excess winter deaths across all ages in Great Britain

This +10% “inflation” event, shows mankind what money really is: just paper.

Don’t let urself be blinded, central banks will HASTE to a digital currency, because they lost control of the paper currency, they have been printing in the trillions, giving it to private banks, doing gambling for maximum profit (not investment, just gambling).

That is THE major cause for the push to digital currency, which will in fact be a complete new currency, that might be traded with an -50% purchasing power discount:

2x paper Dollars for 1x electronic Dollar (why? because for fake reasons: “electronic is sooo much better”, real reason “because banksters printed too much paper dollars destroying the dollars purchasing power” (aka inflation) and want to re-start the “printing” game with e-Dollars)

https://www.bloomberg.com/news/articles/2020-09-15/bahamas-plans-nationwide-rollout-of-sand-dollar-e-currency

All hackers around the globe surely welcome such a move.

Also it does NOTHING to prevent money laundering and tax evasion, because 99% of all tax avoidance IS ALREADY DONE ELECTRONICALLY!

Rather ironic Bahamas is amongst the Top#10 tax heaven,  cheating citizens all over the world in the billions, every year.

Quantitative easing (QE) is a monetary policy action whereby a central bank purchases government bonds or other financial assets” (such as stocks from private companies) “in order to inject monetary reserves into the economy to stimulate economic activity.[1]”

Most western central banks adopted similar policies in the aftermath of the great financial crisis of 2008.”

“In modern times, it is widely referred to as printing money.[18][19]

https://en.wikipedia.org/wiki/Quantitative_easing

“France’s Richest Man Gets a Free Lunch From the ECB”

“LVMH’s bond issue to pay for Tiffany was cheaper than Bernard Arnault’s wildest hopes.”

“The luxury giant raised 7.5 billion euros ($8.3 billion) and 1.55 billion pounds ($2 billion), over a range of maturities from two to 11 years, to help finance its $16 billion purchase of Tiffany & Co.”

https://www.bloomberg.com/opinion/articles/2020-02-07/louis-vuitton-gets-help-from-the-ecb-for-16-billion-tiffany-deal

first of: “economics” is where “believe” and “science” meet.

Often it is not clear, what parts of economics is “real science” and what is “make believe”.

What is for sure: all “modern” monetary systems are FIAT systems,

this means, some entity (state or bank, usually “independent” bank of banks)

  • prints an undefined amount of money (cash)
    • as much as it deems to achieve it’s goals
      • goals could be:
        • 0% unemployment
        • 2% inflation
        • reversal of climate change
        • peace & prosperity for all or just for the top 0.1%
        • what have you
  • it loans/lends that cash to private banks
    • the private banks are (supposed) to lend to productive citizens, that actually give the money it’s value, by adding value to society
      • by designing, building, creating, (mass) production of clever, innovative products & services that help people
        • stay alive & healthy
          • clean water & food
          • healthcare
        • get to work or to visit someone
          • transport
        • communicate
          • phones, computers, wires that connect computers…

So ask yourself: What gives money it’s value?

As it has no intrinsic value (it is not gold and since the 70s the US-$ is (thanks to Nixon and the Vietnam war) not linked to gold anymore).

The German Mark after ww2 was one of the first FIAT systems, economists predicted it will never work.

But it worked, because Germans worked hard for that paper money, even if it can not be converted to Gold or Silver or “guaranteed amount of bushels of grain” or this or that product of scarcity (that in the terms of grain, actually provide some purpose).

So does printing more money cause inflation?

Sure it does.

Ask yourself: What does a bank produce?

Actually a bank produces only one thing: loans.

If it does not produce loans, it’s like a factory with no output (lost it’s purpose).

The question is: If the banks fail at their core task, can the state step in, and lend money to citizens that want to create those innovative products = jobs?

Also What is the best way to battle inflation?

Imho it would be:

  • a actually working banking system that actually produces loans into the hands of innovative (entrepreneurship) citizens that want to add value
    • if the state does not want to take over that role, it needs to force banks to do their job properly

second best fix:

  • increase the price for money
  • aka increase the price for borrowing money (if something costs nothing it’s not worth anything?) aka increase central bank interest rates on that central bank money (Russia currently has 15.90% Inflation and a central bank interest rate of 9.50% (https://tradingeconomics.com/matrix)

Thatcher did that it was not pretty.

Buying and selling stocks or real estate, is not investment, it’s speculation (not adding value to society in any sense).