{"id":520,"date":"2022-07-30T16:40:06","date_gmt":"2022-07-30T14:40:06","guid":{"rendered":"https:\/\/www.anwarbenihissa.com\/?p=520"},"modified":"2023-04-24T00:24:39","modified_gmt":"2023-04-23T22:24:39","slug":"record-inflation-in-the-euro-zone","status":"publish","type":"post","link":"https:\/\/www.anwarbenihissa.com\/index.php\/2022\/07\/30\/record-inflation-in-the-euro-zone\/","title":{"rendered":"Record inflation in the euro zone"},"content":{"rendered":"\n<p>The same blabla again&#8230;<\/p>\n\n\n\n<p><strong><span class=\"has-inline-color has-white-color\">NO INVESTMENT ADVICE<\/span><\/strong><\/p>\n\n\n\n<p><span class=\"has-inline-color has-white-color\">\u00ab&nbsp;Investment involves<strong>&nbsp;risk<\/strong>. As a general rule, you should only trade in financial products that you are familiar with and understand the&nbsp;<strong>risk<\/strong>&nbsp;associated with them. The&nbsp;<strong>risk<\/strong>&nbsp;warning described in each financial product below is not exhaustive, you should carefully consider your investment experience, financial situation, investment objective,&nbsp;and <strong>risk<\/strong>&nbsp;tolerance level and consult your independent financial adviser as to the suitability of your situation prior to making any investment.&nbsp;\u00bb<\/span><\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Introduction<\/h4>\n\n\n\n<figure class=\"wp-block-embed aligncenter is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"fr\" dir=\"ltr\">Christine Lagarde, Pr\u00e9sidente de la Banque Centrale Europ\u00e9enne (BCE), sur l\u2019inflation : &quot;Nous consid\u00e9rons que sur l\u2019ann\u00e9e 2022, \u00e7a va se stabiliser et baisser graduellement au cours de l\u2019ann\u00e9e.&quot; <a href=\"https:\/\/t.co\/lVkFp2wvRA\">pic.twitter.com\/lVkFp2wvRA<\/a><\/p>&mdash; France Inter (@franceinter) <a href=\"https:\/\/twitter.com\/franceinter\/status\/1484065824285593601?ref_src=twsrc%5Etfw\">January 20, 2022<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>Date: <span class=\"has-inline-color has-white-color\"><strong>20 January 2022<\/strong><\/span><\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>We consider that over the year 2022, it will stabilize and gradually decline over the year.<\/p><cite>Christine Lagarde<\/cite><\/blockquote>\n\n\n\n<h4 class=\"wp-block-heading\">Six months later&#8230;<\/h4>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img decoding=\"async\" src=\"https:\/\/media.giphy.com\/media\/3o85xF2pEK6BEkBh9S\/giphy.gif\" alt=\"\"\/><\/figure><\/div>\n\n\n\n<figure class=\"wp-block-image size-large\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/www.anwarbenihissa.com\/wp-content\/uploads\/2022\/07\/1x-1-1024x576.jpg\" alt=\"\" class=\"wp-image-636\" srcset=\"https:\/\/www.anwarbenihissa.com\/wp-content\/uploads\/2022\/07\/1x-1-1024x576.jpg 1024w, https:\/\/www.anwarbenihissa.com\/wp-content\/uploads\/2022\/07\/1x-1-300x169.jpg 300w, https:\/\/www.anwarbenihissa.com\/wp-content\/uploads\/2022\/07\/1x-1-768x432.jpg 768w, https:\/\/www.anwarbenihissa.com\/wp-content\/uploads\/2022\/07\/1x-1-150x84.jpg 150w, https:\/\/www.anwarbenihissa.com\/wp-content\/uploads\/2022\/07\/1x-1.jpg 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>She said 3.2% &#8230;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Where should I start?<\/h4>\n\n\n\n<p>I wanted to write this article a few months ago, but now we have more data&#8230;<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img decoding=\"async\" src=\"https:\/\/media.giphy.com\/media\/MBfzPHFTuFQnyQFRcc\/giphy.gif\" alt=\"\"\/><\/figure><\/div>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>&#8220;Inflation is the worst thing for a economie, end&#8221; <\/p><\/blockquote>\n\n\n\n<p>Why this is the worst thing that can happen to us, because purchasing power decline, the standard of living decline, and people tends to ask for a raise or demonstrated in the street, and at the end of the road we will face an economic crisis, but the problem is that it&#8217;s happening in Europe&#8230;<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img decoding=\"async\" src=\"https:\/\/www.tradingview.com\/x\/gmODtR41\/\" alt=\"\"\/><\/figure><\/div>\n\n\n\n<p>Euro has collapsed to 1.02\u20ac and this zone is absolutely dangerous, it&#8217;s the lowest level since 2015, this level was never hit since 2002 oulala I feel old now&#8230;<br>What does all this mean exactly this currency could become like a &#8220;sh**t coin&#8221;&nbsp;\ud83d\ude02, I mean secondary currency, like the Mexican peso or the Zimbabwean dollar&#8230;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Consequences<\/h4>\n\n\n\n<p>And why this is a disaster for us (people who use it), is because the value of a currency set the level of inflation, if the euro is strong and we import goods for example (let&#8217;s say <strong><span class=\"has-inline-color has-white-color\"><a href=\"https:\/\/www.anwarbenihissa.com\/index.php\/2023\/02\/06\/winnie-the-pooh-the-china-banking-crisis\/\" data-type=\"URL\" data-id=\"https:\/\/www.anwarbenihissa.com\/index.php\/2023\/02\/06\/winnie-the-pooh-the-china-banking-crisis\/\">CHINA<\/a><\/span><\/strong>)<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img decoding=\"async\" src=\"https:\/\/media.giphy.com\/media\/3o85xxjN91tgdCi2dy\/giphy.gif\" alt=\"\"\/><\/figure><\/div>\n\n\n\n<p>What I was saying&#8230; When the currency is strong, we can import cheaper, easily but when it falls like this\u2026 The more \u20ac decrease the more the price of goods increases, and the more the inflation will rise\u2026 This is really bad.<\/p>\n\n\n\n<p>Guess who is winning in this fu*** situation <\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img decoding=\"async\" src=\"https:\/\/media.giphy.com\/media\/h0MTqLyvgG0Ss\/giphy.gif\" alt=\"\"\/><\/figure><\/div>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.tradingview.com\/x\/Vi3Ua0xE\/\" alt=\"\"\/><\/figure>\n\n\n\n<p>It&#8217;s not over, if the <span class=\"has-inline-color has-white-color\">USD $<\/span> keeps rising <br>let me remind you :<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.tradingview.com\/x\/rAxoZ7w7\/\" alt=\"\"\/><\/figure>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><img decoding=\"async\" src=\"https:\/\/www.tradingview.com\/x\/agupbzwT\/\" alt=\"\">Oil\/USD<\/td><td><img decoding=\"async\" src=\"https:\/\/www.tradingview.com\/x\/cuIcaWKf\/\" alt=\"\">Wheat\/USD<\/td><td><img decoding=\"async\" src=\"https:\/\/www.tradingview.com\/x\/rAxoZ7w7\/\" alt=\"\">Gold\/USD<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>So to conclude <span class=\"has-inline-color has-white-color\">(I&#8217;m joking this is just beginning)<\/span> the lower the currency, the higher the inflation, the higher the oil, the higher the wheat, and the more the crisis will be felt in the European countries, let&#8217;s not forget the debts of the states which will explode with the rise of interest rates by the Europeans central bank.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><meta charset=\"utf-8\">Where does it come from?<\/h4>\n\n\n\n<p>Simply Inflation comes from printing money&#8230;<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">The Federal Reserve Chairman, &quot;We print money digitally. As a central bank, we have the ability to create money.&quot; <a href=\"https:\/\/t.co\/9ArqYa2RDN\">pic.twitter.com\/9ArqYa2RDN<\/a><\/p>&mdash; FTX App (@ftx_app) <a href=\"https:\/\/twitter.com\/ftx_app\/status\/1262175586937720832?ref_src=twsrc%5Etfw\">May 18, 2020<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>Central banks put us in this situation.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">What&#8217;s the solution?<\/h4>\n\n\n\n<p>The only way to fight inflation is suspense&#8230; ECB must increase the interest rate, but this is where it gets complicated and nasty&#8230;<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Watch Christine Lagarde of <a href=\"https:\/\/twitter.com\/ecb?ref_src=twsrc%5Etfw\">@ecb<\/a> being questioned on Dutch TV show \u2018College Tour\u2019 about crypto and the expansion of the ECB balance sheet.<br><br>\u201cHow will you get it back down?\u201d<br><br>\u201cIt will come back down.\u201d<br><br>\u201cBut do you sleep at night when you see this?\u201d<br><br>\ud83c\udf7f\ud83d\ude05<br><br>Better video quality. <a href=\"https:\/\/t.co\/qv25BhDwP4\">https:\/\/t.co\/qv25BhDwP4<\/a> <a href=\"https:\/\/t.co\/tBg37KAck8\">pic.twitter.com\/tBg37KAck8<\/a><\/p>&mdash; mutatrum (@mutatrum) <a href=\"https:\/\/twitter.com\/mutatrum\/status\/1529408870967296000?ref_src=twsrc%5Etfw\">May 25, 2022<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p><meta charset=\"utf-8\">For me for instance I don&#8217;t sleep at night&#8230; \u20ac8,404.7 Billion <strong><span class=\"has-inline-color has-white-color\">(do you want me to add the number 0 after?)<\/span><\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"611\" src=\"https:\/\/www.anwarbenihissa.com\/wp-content\/uploads\/2022\/07\/FEY7RvSXMAAzS4L-1024x611.png\" alt=\"\" class=\"wp-image-610\" srcset=\"https:\/\/www.anwarbenihissa.com\/wp-content\/uploads\/2022\/07\/FEY7RvSXMAAzS4L-1024x611.png 1024w, https:\/\/www.anwarbenihissa.com\/wp-content\/uploads\/2022\/07\/FEY7RvSXMAAzS4L-300x179.png 300w, https:\/\/www.anwarbenihissa.com\/wp-content\/uploads\/2022\/07\/FEY7RvSXMAAzS4L-768x459.png 768w, https:\/\/www.anwarbenihissa.com\/wp-content\/uploads\/2022\/07\/FEY7RvSXMAAzS4L-1536x917.png 1536w, https:\/\/www.anwarbenihissa.com\/wp-content\/uploads\/2022\/07\/FEY7RvSXMAAzS4L-2048x1223.png 2048w, https:\/\/www.anwarbenihissa.com\/wp-content\/uploads\/2022\/07\/FEY7RvSXMAAzS4L-150x90.png 150w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>Because someone will have to pay that &#8220;sheet&#8221; \ud83e\udd2d<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">What really will happen?<\/h4>\n\n\n\n<p>We have in the eurozone country like Spain, Italy, and of course France, countries which are very over-indebted, they continue to borrow to support their economy, <span class=\"has-inline-color has-white-color\">(and the covid did not really help&#8230;)<\/span><br>But before the covid, those countries could borrow money for free because at this time the interest rate was close to zero or even negative. <\/p>\n\n\n\n<p>Now&#8230; If the European Central Bank increases the interest rate: <\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>The first big problem will be the <strong><span class=\"has-inline-color has-white-color\">debt<\/span><\/strong> of each state.<\/li><li>The second problem will be that company will be unlikely to <strong><span class=\"has-inline-color has-white-color\">invest<\/span><\/strong>.<\/li><li>The third problem will be that household consumption will <span class=\"has-inline-color has-white-color\">slow down<\/span> too.<\/li><\/ul>\n\n\n\n<p>And finally, when we mixe all those problems together we have what we call a <strong><span class=\"has-inline-color has-white-color\">RECESSION<\/span><\/strong><\/p>\n\n\n\n<p>I think we are already in recession but politicians won&#8217;t tell you&#8230;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Second scenario<\/h4>\n\n\n\n<p>What if the <meta charset=\"utf-8\">European Central Bank doesn&#8217;t increase the interest rate, simply Euro currency will fall, and it&#8217;s exactly what happened, if the euro loses its value, inflation will increase sharply again. <\/p>\n\n\n\n<p>We are trapped.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img decoding=\"async\" src=\"https:\/\/media.giphy.com\/media\/Z1LYiyIPhnG9O\/giphy.gif\" alt=\"\"\/><\/figure><\/div>\n\n\n\n<p>As you can see in this link <a rel=\"noreferrer noopener\" href=\"https:\/\/www.ecb.europa.eu\/press\/pr\/date\/2022\/html\/ecb.mp220721~53e5bdd317.en.html#:~:text=Key%20ECB%20interest%20rates,-The%20Governing%20Council&amp;text=Accordingly%2C%20the%20interest%20rate%20on,effect%20from%2027%20July%202022.\" target=\"_blank\">ecb.europa.eu<\/a>, <strong><span class=\"has-inline-color has-white-color\">(guess what they just did?)<\/span><\/strong> <\/p>\n\n\n\n<p>They have increased the interest rate&#8230; <\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>The Governing Council decided to raise the three key ECB interest rates by 50 basis points. Accordingly, the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will be increased to <span class=\"has-inline-color has-white-color\">0.50%<\/span>, <span class=\"has-inline-color has-white-color\">0.75%<\/span> and 0.00% respectively, with effect from <span class=\"has-inline-color has-white-color\">27 July 2022.<\/span><\/p><\/blockquote>\n\n\n\n<p>In the USA, the U.S. Federal Reserve has already done it several times this year.<\/p>\n\n\n\n<p>For now, we should be grateful because we don&#8217;t face the same difficulties as Venezuela, Lebanon, and Sri Lanka.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img decoding=\"async\" src=\"https:\/\/media.giphy.com\/media\/l41lPXEVUeEdbH2WQ\/giphy.gif\" alt=\"\"\/><\/figure><\/div>\n\n\n\n<p>We will have to monitor the situation in Italy and Spain because the next month will be very hard, especially this winter.<\/p>\n\n\n\n<p>We are in an economic crisis and political austerity is coming&#8230; <\/p>\n\n\n\n<h4 class=\"wp-block-heading\">What we can do?<\/h4>\n\n\n\n<p>This is a tricky situation because we can&#8217;t invest our money as I said Economic Growth will slow down and we can not have a saving in the bank because inflation will eat it.<\/p>\n\n\n\n<p>On a positive note to end this&#8230; Look at my bills at Five Guys, I remember a few years ago my sister and I could buy 2 burgers + 2 Cajun fries for 3\u20ac each for less than 20\u20ac.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/www.anwarbenihissa.com\/wp-content\/uploads\/2022\/07\/PXL_20220730_192433661-edited-1024x576.jpg\" alt=\"\" class=\"wp-image-667\" srcset=\"https:\/\/www.anwarbenihissa.com\/wp-content\/uploads\/2022\/07\/PXL_20220730_192433661-edited-1024x576.jpg 1024w, https:\/\/www.anwarbenihissa.com\/wp-content\/uploads\/2022\/07\/PXL_20220730_192433661-edited-300x169.jpg 300w, https:\/\/www.anwarbenihissa.com\/wp-content\/uploads\/2022\/07\/PXL_20220730_192433661-edited-768x432.jpg 768w, https:\/\/www.anwarbenihissa.com\/wp-content\/uploads\/2022\/07\/PXL_20220730_192433661-edited-1536x864.jpg 1536w, https:\/\/www.anwarbenihissa.com\/wp-content\/uploads\/2022\/07\/PXL_20220730_192433661-edited-2048x1152.jpg 2048w, https:\/\/www.anwarbenihissa.com\/wp-content\/uploads\/2022\/07\/PXL_20220730_192433661-edited-1920x1080.jpg 1920w, https:\/\/www.anwarbenihissa.com\/wp-content\/uploads\/2022\/07\/PXL_20220730_192433661-edited-150x84.jpg 150w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure><\/div>\n\n\n\n<h4 class=\"wp-block-heading\"><meta charset=\"utf-8\">Five Guys<\/h4>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe title=\"Karl Urban &amp; John Cho Discover What Five Guys Is | @TheHookOfficial\" width=\"720\" height=\"405\" src=\"https:\/\/www.youtube.com\/embed\/YHbJZlCStsA?start=82&#038;feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>The same blabla again&#8230; NO INVESTMENT ADVICE \u00ab&nbsp;Investment involves&nbsp;risk. As a general rule, you should only trade in financial products that you are familiar with and understand the&nbsp;risk&nbsp;associated with them. The&nbsp;risk&nbsp;warning described in each financial product below is not exhaustive, you should carefully consider your investment experience, financial situation, investment objective,&nbsp;and risk&nbsp;tolerance level and consult your independent financial adviser as [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":529,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21],"tags":[46,45,47],"class_list":["post-520","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finances","tag-euro","tag-finance","tag-inflation"],"_links":{"self":[{"href":"https:\/\/www.anwarbenihissa.com\/index.php\/wp-json\/wp\/v2\/posts\/520"}],"collection":[{"href":"https:\/\/www.anwarbenihissa.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.anwarbenihissa.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.anwarbenihissa.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.anwarbenihissa.com\/index.php\/wp-json\/wp\/v2\/comments?post=520"}],"version-history":[{"count":60,"href":"https:\/\/www.anwarbenihissa.com\/index.php\/wp-json\/wp\/v2\/posts\/520\/revisions"}],"predecessor-version":[{"id":1552,"href":"https:\/\/www.anwarbenihissa.com\/index.php\/wp-json\/wp\/v2\/posts\/520\/revisions\/1552"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.anwarbenihissa.com\/index.php\/wp-json\/wp\/v2\/media\/529"}],"wp:attachment":[{"href":"https:\/\/www.anwarbenihissa.com\/index.php\/wp-json\/wp\/v2\/media?parent=520"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.anwarbenihissa.com\/index.php\/wp-json\/wp\/v2\/categories?post=520"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.anwarbenihissa.com\/index.php\/wp-json\/wp\/v2\/tags?post=520"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}