• 31. 3. 2025 • H. T. •
With defense spending already projected to rise to €500 billion annually in 2025, EU has unveiled an ambitious plan to borrow additional €800 billion for defense over the next four years.
The plan includes:
- Loans worth €150 billion for defense investments across member states (new currency created out of thin air)
- Fiscal flexibility to allow breaking EU budget rules (no more constraints on how much of currency created out of nothing members can borrow).
The financing will be provided by European Commission, similarly as with pandemic’s €1.85 trillion indirectly borrowed from the European Central Bank (ECB), that creates this currency out of nothing.
There are big inflation risks associated with large-scale borrowing and spending initiatives like the EU’s proposed ‘investments’, similar to what we saw after the pandemic.
When substantial amounts of money flow into the economy, it can increase demand for goods and services, driving up prices—especially if supply cannot keep pace. Additionally, the borrowing itself could influence interest rates, which can have indirect inflationary effects.
How does this coincide with Stages of Empire we discussed last week?
Would this be possible if we had sound, honest money?
