Can't exactly blame them for doing as such. The impact of the pandemic was way too huge and families across the countries really need all the support they can get, not to mention that even now, only a select few businesses are being able to run. Various health guidelines are still being implemented, making the workers of various companies go through a cycle of alternating sequence in work, making the profit they usually get taken, halved (at least, that's the case in few places near me).
For the case of inflation though, I doubt EU would just let it develop like that. Seeing as what @extasie said about negotiations happening, I'm pretty sure they'd address this very problem even before they give out the funds needed for the recovery. Besides, it's a loan so to speak, even if the time frame is big, EU should be plenty of capable of paying it back once the Virus effects subside.
Topic: EU has joined in with 826bn. Globally over 10tn has been printed - page 2. (Read 280 times)
Keep in mind, this proposal first needs to be approved by every EU member nation. Even if it passes, it could take months of negotiations (and changes) first.
There are however signs this has a good chance of approval, much better than previous proposals like coronabonds. Germany (who has long opposed jointly-issued EU debt) took a historic step last week by jointly proposing with France a fund for issuing grants to hard hit countries, to be repaid via the EU budget. That's the model for this EU plan.
https://www.cnbc.com/2020/05/19/coronavirus-french-german-500-billion-euro-fund-a-big-deal-for-europe.html
Even the "Frugal Four" nations (Austria, the Netherlands, Sweden, Denmark) are coming around to the idea of EU loans, even if they are pushing back against the grants approach.
The EU intends to raise its debt ceiling and borrow the money, to be repaid by 2058. ECB money printing is not planned:
https://ec.europa.eu/commission/presscorner/detail/en/ip_20_940
There are however signs this has a good chance of approval, much better than previous proposals like coronabonds. Germany (who has long opposed jointly-issued EU debt) took a historic step last week by jointly proposing with France a fund for issuing grants to hard hit countries, to be repaid via the EU budget. That's the model for this EU plan.
https://www.cnbc.com/2020/05/19/coronavirus-french-german-500-billion-euro-fund-a-big-deal-for-europe.html
Even the "Frugal Four" nations (Austria, the Netherlands, Sweden, Denmark) are coming around to the idea of EU loans, even if they are pushing back against the grants approach.
The EU intends to raise its debt ceiling and borrow the money, to be repaid by 2058. ECB money printing is not planned:
Quote
Next Generation EU will raise money by temporarily lifting the own resources ceiling to 2.00% of EU Gross National Income, allowing the Commission to use its strong credit rating to borrow €750 billion on the financial markets. This additional funding will be channelled through EU programmes and repaid over a long period of time throughout future EU budgets – not before 2028 and not after 2058.
https://ec.europa.eu/commission/presscorner/detail/en/ip_20_940
I expect this great housing bubble to be a well made trap.
People used to buy apartments and houses because they felt like this is the way to save their money from the inflation. Now the inflation is going to increase and even more people will put their savings to work. Next year the EU will increase property taxes and pop the bubble.
People used to buy apartments and houses because they felt like this is the way to save their money from the inflation. Now the inflation is going to increase and even more people will put their savings to work. Next year the EU will increase property taxes and pop the bubble.
Countries need these loans in order to restart the economic recovery process, notwithstanding if it'll lead to inflation or not. Many of this worst hit countries are heading into steep recession, so external aids would help to get their economy back on the right track; it wouldn't happen spontaneously, as it'll take some years, but they must start from somewhere and borrowing/printing more money is one step to take.
I read the article and imo bitcoin is somewhat a different "being", it's not so much associated with the global economy and it's meltdown, so there is no way it can be affected in this crisis(except if an unprecedented number of people sell off their btc)and that also doesn't mean it is going to assume the position of fiat as the major store of value.
Bitcoin price is affected in a different way: For example if people start selling thousands of bitcoin off the network and converting it to fiat, and people also stop buying bitcoins, reducing the demand, then bitcoin price can also enter it's own kind of 'recession'; but this global pandemic doesn't affect it 'directly'.
I read the article and imo bitcoin is somewhat a different "being", it's not so much associated with the global economy and it's meltdown, so there is no way it can be affected in this crisis(except if an unprecedented number of people sell off their btc)and that also doesn't mean it is going to assume the position of fiat as the major store of value.
Bitcoin price is affected in a different way: For example if people start selling thousands of bitcoin off the network and converting it to fiat, and people also stop buying bitcoins, reducing the demand, then bitcoin price can also enter it's own kind of 'recession'; but this global pandemic doesn't affect it 'directly'.
Every country that's been badly going through the economic fall because of the COVID19 pandemic has to do these things. Some other countries have already asked the World Bank to loan millions of dollars to their economic recovery. Some countries did already have made their loans through China debt trap. It's very usual to see each big country helping each of its allies sending millions of dollar for the recovery fund. Like US dollar, sent and offered around $100M - $150M to some of its allies but why is it that there's too much loans are still going in for those countries. We, citizens will have to suffer the consequences not just with taxes and as we recover, we have a debt to pay.
I don’t know how it affects us. But already concerns the growth of unemployment. It’s scary to think how long it will take. Both bitcoin and cryptocurrency seem more stable. than the rest of the world.every country has to do it to recover the debt of other country who inflates their money. they'd have to keep this going to show who has more debt between them all and while they keep printing these money. BTC will also keep rising for the value of each fiat currency will keep sinking while they all print more. it has to be done though.
Every country that's been badly going through the economic fall because of the COVID19 pandemic has to do these things. Some other countries have already asked the World Bank to loan millions of dollars to their economic recovery. Some countries did already have made their loans through China debt trap. It's very usual to see each big country helping each of its allies sending millions of dollar for the recovery fund. Like US dollar, sent and offered around $100M - $150M to some of its allies but why is it that there's too much loans are still going in for those countries. We, citizens will have to suffer the consequences not just with taxes and as we recover, we have a debt to pay.
I don’t know how it affects us. But already concerns the growth of unemployment. It’s scary to think how long it will take. Both bitcoin and cryptocurrency seem more stable. than the rest of the world.Every country that's been badly going through the economic fall because of the COVID19 pandemic has to do these things. Some other countries have already asked the World Bank to loan millions of dollars to their economic recovery. Some countries did already have made their loans through China debt trap. It's very usual to see each big country helping each of its allies sending millions of dollar for the recovery fund. Like US dollar, sent and offered around $100M - $150M to some of its allies but why is it that there's too much loans are still going in for those countries. We, citizens will have to suffer the consequences not just with taxes and as we recover, we have a debt to pay.
I don’t know how it affects us. But already concerns the growth of unemployment. It’s scary to think how long it will take. Both bitcoin and cryptocurrency seem more stable. than the rest of the world.
Every country that's been badly going through the economic fall because of the COVID19 pandemic has to do these things. Some other countries have already asked the World Bank to loan millions of dollars to their economic recovery. Some countries did already have made their loans through China debt trap. It's very usual to see each big country helping each of its allies sending millions of dollar for the recovery fund. Like US dollar, sent and offered around $100M - $150M to some of its allies but why is it that there's too much loans are still going in for those countries. We, citizens will have to suffer the consequences not just with taxes and as we recover, we have a debt to pay.
Good article to read.
I was wondering at first how its associated with the Bitcoin but at the end everything was making sense. It's all about the store value of bitcoin and how steady it is. I guess EU's move to release new stimulus package is very obvious and the inflation is sure shot since things have been upside down with the covid situation.
Things will get more costly as businesses has hampered a lot and most of them are shut completely due to unprecedented situation and their overdraft bank accounts.
For bitcoin these things will never matter, since no business drives its value. It's only money influx from the global investors which will drive its price. As of now, it's steady because neither investors have pooled out neither new are added.
I was wondering at first how its associated with the Bitcoin but at the end everything was making sense. It's all about the store value of bitcoin and how steady it is. I guess EU's move to release new stimulus package is very obvious and the inflation is sure shot since things have been upside down with the covid situation.
Things will get more costly as businesses has hampered a lot and most of them are shut completely due to unprecedented situation and their overdraft bank accounts.
For bitcoin these things will never matter, since no business drives its value. It's only money influx from the global investors which will drive its price. As of now, it's steady because neither investors have pooled out neither new are added.
The European Union has revealed its intention to raise up to $ 850 billion to its members to fund their recovery from the economic meltdown.
Before this package, the European Union approved a stimulus package worth 540 billion euros.
The new packages will give the European Union the ability to raise taxes directly, potentially causing inflation in Europe and beyond.
Countries like Japan, which released the $ 2.2 trillion package, and the United States, which passed $ 2.3 trillion, made a refund package.
Buy Bitcoin https://beincrypto.com/eu-unveils-new-750bn-euro-covid-19-recovery-plan/
Before this package, the European Union approved a stimulus package worth 540 billion euros.
The new packages will give the European Union the ability to raise taxes directly, potentially causing inflation in Europe and beyond.
Countries like Japan, which released the $ 2.2 trillion package, and the United States, which passed $ 2.3 trillion, made a refund package.
Buy Bitcoin https://beincrypto.com/eu-unveils-new-750bn-euro-covid-19-recovery-plan/
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