F Dominicus Blog

A politically incorrect blog about matters of money, government, bureaucracy, freedom and sometimes something else.

Does reality hit back?

One may start wondering. Is it time that reality hits back? That money printing is a problem and not a cure?

At least it seems so. In Germany the economy encounters troubles, the export oriented firms (we do have a lot of them) see that the other countries can not buy that much any more. That can't be a surprise, if you are in economic troubles you MUST cut back you wishes. This is obvious for firms and citizens, it has been ignored and is ignored by deledefs in nearly every country since at least 50 years.

Still if the demand goes down usually the prices follow, but no. In Germany there's now over 2 % of the price inflation. Could it be that the money printing of the ECB now shows?

We Austrians know it must be so, but we are the killjoys of the economics. The base idea there is, ANYTHING can be solved by clever people. Well no. What the "clever" economics do is the mountain to be climbed not the abyss in which to tumble. All Austrians have warned since ages, don't mess with markets and especially don't play with our money. Do they have heard? No, it seems there were other streams which could counteract this dumbness, but with trillions of debts (out of thin air)? Well it seems money printing matters in the end. Do we can expect a return to sound economic action? Well I guess it will have to get much worse. But we'll see.