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EU Commission after €10 trillion of EU Citizens’ Savings

The European Commission’s new Savings and Investments Union aims to channel €10 trillion of EU citizens’ savings into “productive investments”.
While the initiative promises economic growth, it raises serious concerns about its potential impact on inflation, energy costs, and living standards.

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EU Plans Historic €800 Billion Debt for Defense Boost

EU has unveiled an ambitious plan to borrow additional €800 billion for defense over the next four years. This currency will most likely be created by ECB out of thin air and loaned to EU member states. There are big inflation risks associated with large-scale borrowing and spending initiatives. Like what we saw after the pandemic.

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Stages of Empire: A Monetary Perspective

Have you ever considered the journey of an empire through the lens of its monetary system? Let’s explore how the rise, peak, and fall of civilizations align with their financial evolution.

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Central Banks’ system is designed to funnel wealth to the elites

Central Banks’ system is designed to funnel wealth to the elites. In 2024 there were approx 2.781 billonaires with a combined wealth estimated to be $14.2 trillion.
The poorest 52.5% of the global population collectively hold just $5.3 trillion.

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Money is a Representation of Products and Services in the Economy

Ever thought about what money really represents? In essence, it’s a way to measure the value of products and services within the economy.

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Why Governments impose Taxes if they can ‘Print’ Currency

According go Moderern Monetary Theroy (MMT), a key reason for imposing taxes is to create demand for that Government’s Currency. By requiring that taxes be paid in Currency they can create out of nothing, the Government ensures people need it.

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FED Balance Sheet Expansion

FED like other Central Banks has the ability to create Currency out of thin air by making purchases from the Government and other Institutions (like Banks). During the 2008 financial crisis and during the “COVID-19 pandemic” the FED balance sheet expanded approx 2,4x. Based on past trends, it’s likely that the Fed would again engage in significant asset purchases in the future crisis.

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Banks’ masive exposure to Derivatives

Derivatives market has blown a galactic speculative bubble. 9 of the largest (to big to fail) banks shown below hold a total of $248 Trillion of notional value > 2x of world economy.

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Value of Derivatives VS Market Value of Underlying Assets

Notional value of Derivatives is estimated over $1.000 trillion while the value of the underlying assets of these “bets” is estimated to be less than $300 trillion. What could go wrong?

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How Central Banks Create Currency – 2. Quantitative Easing

One process how Central Banks create currency out of thin air is called Quantitative Easing (QE). Essentially QE means Central Banks purchase debt from non-govenrnment institutions to stimulate the economy. ‘Printing currency’ for QE comes with big risks, such as market distortions, asset bubbles (dotcom bubble, housing bubble) and inflation.

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