It is interesting to remember the recent comments from Christine Lagarde, the president of the European Central Bank, who outlined the EU energy crisis as the heart of the current inflation rate in the eurozone. Lagarde discussed inflation in Europe while drawing a distinction in COVID-19 spending between the EU and U.S.
Essentially, according to Legarde, the EU subsidized businesses to maintain employment; the EU covered payroll expenses during lockdowns, while the U.S. sent direct payments to the American people who were impacted by the lack of work (basically everyone).
Lagarde outlined this difference in spending approach to explain why the Eurozone inflation was less than U.S. inflation.
How long did that EU Central Bank explanation hold up? Approximately two months.
The U.S. inflation rate is currently estimated at 8.6%, and today the eurozone inflation rate just reached,…. wait for it,… Yep, an exact match at 8.6%.
LONDON (AP) — Inflation in countries using the euro set another eye-watering record, pushed higher by a huge increase in energy costs fueled partly by Russia’s war in Ukraine.
Annual inflation in the eurozone’s 19 countries hit 8.6% in June, surging past the 8.1% recorded in May, according to the latest numbers published Friday by the European Union statistics agency, Eurostat. Inflation is at its highest level since recordkeeping for the euro began in 1997.
Energy prices rocketed 41.9%, and prices for food, alcohol and tobacco were up 8.9%, both faster than the increases recorded the previous month.
Demand for energy has risen as the global economy bounced back from the depths of the COVID-19 pandemic and Russia’s invasion of Ukraine made things worse.
European Union leaders agreed to ban most Russian oil imports by the year’s end, driving a price spike. The 27-nation bloc wants to punish Moscow and reduce its reliance on Russian energy, but it’s also adding to financial pain for people and businesses as utility bills and prices at the pump soar. (read more)
Keep in mind, the EU and the U.S. are both chasing the climate change energy shift as dictated by the World Economic Forum in the Build Back Better program.
If you factor in the dramatic impact in both the EU and the U.S. from energy policy; and then if you calculate the COVID-19 spending as a percentage of the GDP from both economies; what you will discover is the direct similarity that creates the 8.6% inflation match.
The EU spent less on their COVID-19 programs. However, as a percentage of their economy they spent about the same as the U.S.
Joe Biden spent more, but the U.S. economy is bigger than the combined eurozone.
The inflation hitting the EU is almost identical to the inflation hitting the U.S. because the Russian energy sanctions are almost identical in impact to the EU energy sector as Joe Biden’s energy policy (a blockage on energy development) is to the United States.
The current similarity in the inflation rate between the U.S. and EU is specifically because politicians in both regions followed the exact same instructions from the World Economic Forum.
The outcome is ironically a global synergy as the economies of the EU and USA start to collapse.
None of this is accidental. All of this economic turmoil is running on an identical track -on a global basis- because the entire western plan was coordinated and followed. What we are seeing right now is the outcome of the “Build Back Better” roadmap. The “global inflation” is the outcome.