$10 per gallon in Europe


In Europe a record fuel price marks the offensive of inflation against the savings and salaries of people. The absolute record is in Turkey with €2,24 per liter of unleaded gasoline that means about $10 per gallon. In Germany the price of 1 liter is €1,60 that is almost $8 per gallon. And that is just the beginning. In Germany strong inflationary fears are appearing - for the first time since the end of WW2 and the creation of the famous Deutsche Mark. Bundesbank warned of this and requested a reverse of the ECB printing money policy. In answer the ECB boss Mario Draghi said it is too early to do this. In fact ECB is in break of its own rules to keep under 2% inflation, as the official rate is 2,6%. The real inflation is much higher. In other times there would be a serious reaction immediately. But now we see keeping the record low interest rates of 1% and indirect buy-government-bonds programs by the Central bank. In fact ECB is between a rock and a hard place. It must fight inflation and fight with high interest rates on EU government debt. The ECB is blocked to act by the enormous government's debts in EU that will bankrupt entire countries if interest rates rise. So in fact ECB can not act. The only thing they can do is to speak and to try to scare the inflation by verbal methods. And that is what in fact happens. They are talking against inflation, while creating inflation to keep indebted governments alive. Not much different than in US...


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