Friday
Governments are raising interest rates to maintain currency strength in order to be able to continue paying off their debts that are mostly denominated in US$s.
That is destroying even more businesses than the lockdowns managed. Less businesses and less jobs means less income from taxation means even more borrowing. Interest rate must be kept high so that bonds can still be sold.
Simultaneously, governments are having to honour pensions, unemployment benefits and other social commitments. Income is falling while handouts are rising.
The higher interest rates are also killing the property sector, both residential and commercial. Thus the asset side of the banks’ ledgers is an ever-greater problem, not to mention the forthcoming tidal wave of foreclosures.
The banking crisis came and went,
Calm seems to be the norm.
But calm is not the main event,
It’s what precedes the storm.
Meanwhile, transgender privileges and ‘minor attracted persons’ dominate the news. The media are fiddling (no pun intended) while Rome burns.