The European Union came to its conclusion on how to cope with the COVID outbreak. A total of 750 billion of stimulus is announced. The money will jointly be borrowed by the member states. Being another wealth redistribution scheme. Which is the core of the European Union?
The reason it was such a harsh negotiation was due to big differences between Northern and Southern Europe. Cultural, political, and economics. All quite differently.
As always with a crisis are the concerns of the wealthy not taken into consideration. After all the failed attempts to reform the economy, to reduce the burden the government has on the economy and innovate out of the crisis with smart solutions failed. Why should they work right now? The so-called backstop is no real solution. It is a nice political thing.
But there is another big problem with this. It is all financed with unsustainable debt levels. The money printing press goes on. Retirement funds and institutional investors will be forced to pick it up. But how is all going to be repaid?
Then we come to another big problem. When the debt bubble will pop the creditors are not going to be treated the same. It will blow up the retirement system of the north. Bringing the elderly to poverty.