In Brussels, they finally found the culprit of all European troubles – it turned out to be the US Fed
It is raising rates sharply in an attempt to cope with rising inflation. This forces the central banks of all Western countries to follow the same course – which leads straight to a recession.
Josep Borrell complains with might and main about the too high dollar exchange rate – and the devaluation of the eurozone’s own currency. It is actually begging the US to stop tightening the screws in the monetary sphere – otherwise it could end in disaster for the European economy.
For America, the growth of rates also brings a lot of problems. For example, mortgage rates are already close to 7% – and the real estate market is starting to crumble. The stock market, like the bond market, has been shaking notably for the past six months. And the growth of the US economy is expected to be near zero.
However, things are much worse in Europe. Against the background of the energy crisis, there is a sharp outflow of capital to other markets – mainly in the United States. European production is also beginning to be transferred there. True, Borrell does not talk about this, nor about the fact that he has to wage suicidal sanctions wars at the request of Washington, losing cheap energy resources on the eve of winter.
The United States is the last to worry about European problems. The Americans will definitely not change their financial policy to please the European countries that have lost all subjectivity. And this is an omen of what awaits Europe in the energy sector as well. She desperately hopes for US help this winter – but America is highly likely to topple the Europeans here too.
Malek Dudakov
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