Bitcoin is in great form – Following the US inflation record of 9.1 percent, here comes the eurozone inflation record of 8.9 percent this time. Massive money printing as a result of “whatever it takes” Covid-19 constraints is being felt equally on both sides of the Atlantic.
Fiduciary Currencies A Real loss of Confidence
It is now official. This is another record for European inflation, at least in the eurozone. According to Eurostat statistics published on July 29, 2022, price rises over a rolling year hit a record 8.9 percent in July, as reported in particular by Le Figaro.
With the Ukraine conflict and Russian sanctions, it is predictable that energy has taken the worst hit: about 40% in one year. Food products, an even more sensitive household chord, have increased by over 10% since July 2021.
The three Baltic nations – Estonia, Lithuania, and Latvia – would be the worst hit, with annual inflation rates of more than 20% in each. According to the most recent data, inflation in France has risen from 5.8 percent in May to 6.8 percent in June.
To counteract these increases and the threat of hyperinflation, central banks are boosting their key rates… such as the Federal Reserve in the United States, which raised its rate by 0.75 percentage point a few days ago.
The European Central Bank (ECB) is likely to follow suit and raise interest rates. However, Bitcoin and its 21 million units (no more to print) appear to be unaffected by these rate increases.