Il March 16, 2023, the European Central Bank (ECB) raised interest rates again, while promising to support further bank bailouts that could result from a further rate hike. In the background cThere are two ongoing dynamics supported by the ECB.
The first dynamic is the ideological effort to change current economic models based on climate change. The Build Back Better (Green New Deal) policy, an effort to control energy production, is supported by the ECB’s effort to shrink the EU economy in order to meet the rate of decline in energy production. Reduce the economy to meet the rate of energy production at a lower level.
The reduction of energy production (oil, coal and natural gas) it drove up energy prices; this is the reason behind the inflation, price hikes on the supply side. Western energy inflation (created by politics) is affecting every aspect of the EU, of the United States and the Western global economy. As a result, the prices of all downstream goods and services have risen sharply. European banks will not stop trying to shrink the economy just because the banks are failing. This brings us to the second question.
The World Economic Forum’s Action Plan for World Government also includes the creation of central bank digital currencies (CBDCs). The collapse of the traditional banking system supports the agenda for creating CBDCs. Rising interest rates put more pressure on already weak banks. This is a feature, not a flaw of intent.
Shifting the economy away from traditional oil, coal and natural gas is a control aspect (climate change). The shift of the banking system from traditional currency to central bank digital currencies is the second aspect of control (total financial control of the government). Banking instability is the crisis that facilitates the CBDC solution. Ergo, keep raising rates and keep making the crisis more useful.
In the bigger picture, this is an ideological quest to fundamentally change the Western economic model. Supporting that change is what we are seeing as EU central banks continue to raise rates. Definitely, government control of the banks is the necessary step to implement the second phase of the larger plan. We are seeing this perfectly in the USA, where not only the FED has intervened to save the companies but also the State Treasury. The state will gradually replace central banks in the new system CBDC. Whether this is good or bad depends on how things develop and opinions differ. What is certain is that the current system of ‘fiat’ money (created out of nothing) will implode more and more and in its place a currency linked to real resources and work will take over.
In this sense, the BRICS are pushing hard. Difficult to see the bottom of all this, but it is possible to recognize the ongoing processes.