Bank of Canada raises key interest rate by 0.75%, says rates likely need to go higher
The European Central Bank (ECB) has raised the key interest rate by 0.75 percentage points to 1.25 percent. It is the largest increase in the bank’s history.
Sadly for them, this is the only tool remaining in their financial toolbox – and it will NOT work.
Prices are rising out of control in Europe due to energy hyperinflation, which the central bank has zero control over.
Usually, central banks raise interest rates to halt inflation. By raising interest rates, consumers have to pay more interest on their personal debts, so they cut spending, and that reduces inflation.
But now, it is government, and NOT consumers, who hold the most debt. And government will continue spending no matter the price of their debt.
Consumers have already cut their debt load after several years of COVID madness, and so the effort of the central bank will be meaningless.
Energy costs will continue to rise because Europe has imposed economic sanctions upon Russia, and as a result, Europe must go to other world markets to buy natural gas and oil. Those other markets are already supplying much of the rest of the world, so in order for Europe to get any energy, they must pay more.
Interest rate increases cannot affect that need for energy or the price of the energy.
As this trend continues, the EURO currency will lose more and more of its value.
Europe appears to be headed directly into a hyperinflationary collapse. They have brought this upon themselves by cutting off their own energy supplies!
The Tribulation is commencing..
Please repent, carry your cross daily and accept the free gift of Jesus Christ’s Death on the Cross for payment for your sins.
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