Inflation falling, but interest rates too high. An equation for the ECB
Generally every day I follow programs that deal with economics and finance. Just yesterday, while doing a bit of zapping, I listened to various statements from representatives of the industrial and commercial world and this time also from representatives of the cooperatives where everyone continued to complain about the high interest rates practiced by BCE which force companies to pay too high a price.
Obviously we have families who complain about the unexpected and strong increase and are forced to pay installments that are no longer within their reach and to remedy this, in many cases, they agree to renegotiate the mutual (stretching it over the years) or they tighten their belts on consumption. Having said this, the voice of the world of cooperatives was raised with similar words, but with slightly more heated tones and they joined the general complaints.
Now we ask ourselves: why from July 2022 when they started to increase rates with the excuse of inflation and then even though it had already fallen in 2024, the ECB didn’t intervene? Do you want a figure on how much this desire to bring inflation to the dogmatic 2% has cost us so far? The propensity to consume which was 7.5% in 2022 has reduced to 6.3% this year and do you know how much savings Italian families have lost? 118.8 billion euros!
Something else? No comment. The empires of the past disappeared and collapsed due to money, which then changed name and perhaps nation and circulated until the next decline. I don’t want to be pessimistic, but I’m seeing that even the BCE it is taking us, if it continues like this, on this path. A little tip to President Lagarde: remember that currency is exchanged for one word: trust and if that is missing…
So to urge you to be trusted by those who need to have trust, I propose this simple and understandable equation:
ECB : (€%) = Confidence : Consumer = X Result
Controlling a currency is fine, as long as the benefit is aimed at companies, families and states, but if the “interests” of these subjects are not addressed, I can see two paths: the first is to resort to cryptocurrencies existing on the market; the second is that perhaps each nation, being sovereign, issues its own digital currencywhat the idea of. could be for Italy ITALYCOIN. I close with a Latin proverb: Pecunia omnia parent – All things obey money. And this applies to everyone!