The latest indicators published by Eurostat show that Europe is stumbling headlong towards stagflation.
In its report regarding declarations of bankruptcies and new registrations, it states that bankruptcies have increased again for the fourth quarter in a row. The increase started in the third quarter of 2021, following a noticeable 11% drop in the second quarter of 2021 compared with the first quarter of 2021. The most recent data show that in the second quarter of 2022, declarations of bankruptcies increased by 2.2% compared with the first quarter of 2022.
As for new registrations of new businesses in the EU, the report states that these have decreased by 1.2% in the second quarter of 2022 compared with the previous quarter. Since the beginning of the year, new registrations have been dropping, with the first quarter registering a 2.3% decrease, compared with the fourth quarter of 2021.
When these findings are combined with those just published today in another report on inflation in the Eurozone and the European Union which states that the euro area annual inflation rate was 8.9% in July 2022 compared to 2.2% a year earlier and that the European Union annual inflation was 9.8% in July 2022, compared to 2.5% the year before, there can be no doubt that all indications are that the already heavily indebted EU economies are on the verge of stagflation.
The overall trend was already noticeable before February of this year, which was largely due to the draconian handling of the Covid crisis where the European printing presses injected no less than 2.5 trillion euros into circulation.
The already fragile situation has been made infinitely worse thanks to the suicidal sanctions on Russian energy provision, which fueled European industry and kept it competitive.
As a result of these sanctions, gas prices have risen exponentially to over 2,500 Euros per 1000 cubic meters and experts predict that these may exceed even 4,000 Euros by the onset of the coming winter.
Thanks to the geniuses, who it seems have vowed to impoverish us without our consent, the future in the EU looks increasingly bleak, with political turmoil if not outright riots and mass insurrection now seemingly inevitable.