High Inflation is here to stay – Thank the EU for practically all of it.

By Romegas

As you can easily verify on this website, for well over a year now, while the mainstream media had been cheering on the EU imposed sanctions on Russia and while both major political parties were promising heaven on earth in their insane electoral campaigns, I have been constantly warning that we were heading for unprecedented inflation mostly due to EU measures such as its disastrous energy and covid lockdown policies which would prove to be catastrophically suicidal.

It seems rather belated to me that finally both the public and the same media are finally waking up to the bitter reality, that high inflation is here to stay for a very long time, even though the media still insists that the inflation is caused by ‘the war in Ukraine” – this they do either through their inexhaustible incompetence or worse, to cover-up for that of the EU.

The inflation has nothing to do with the war itself per se – Russia has over 400,000 men under arms fighting in Ukraine and yet not only is inflation in Russia predicted to fall to below 4% this year, but it has also registered record low levels of unemployment and its economy is expected to register growth, particularly thanks to increased production, something that is acknowledged by the World Bank and International Monetary Fund.

In China, the inflation rate is even less than in Russia.

In the EU it is a totally different matter – and that is because the high inflation is practically entirely self-inflicted.

As I had explained before at length this inflation rate is mostly due to three things:

A decades-long energy policy borne of a cultish Green ideology bordering on if not outright insane that has been making energy provision an ever more unpredictable and expensive business.

Equally demented Covid-19 related lockdowns and the subsequent need to put the euro printing presses into overdrive – printing over 2 trillion euros in the process to keep the EU economy alive.

The straw that broke the camel’s back for good was the voluntary suicidal sanctions against Russia. Suicidal because it was cheap Russian gas that enabled Europe, particularly its industrial core to remain competitive, and now that the EU has deprived itself of this source, its industry is increasingly losing its competitivity due to the disproportionately higher energy costs and this, while the consumers are likewise increasingly deprived of liquidity to boost consumption – the effect being a vicious circle with no ray of light to be seen anywhere.

Indeed, it is my conviction – that what we have witnessed in 2022, is nothing but the beginning of the end of the EU, certainly as we know it.

Malta joined the EU in the hope of getting wealthier, much wealthier – and while many individuals most certainly did so by being at the receiving end of the bulk of the manna of funds, it has proved disastrous for our country’s long-term viability.

It is not in times of fair weather that a country’s sovereignty makes a difference but in times of turmoil.

Had Malta remained sovereign and neutral, it is highly unlikely that we would suffer as much as we will have to, unnecessarily:

When Malta was sovereign and neutral it would have never entangled itself in a conflict that does not concern it – it would certainly not have embarked on non-UN mandated sanctions. Consequentially we would still be in a position to buy from wherever we wanted, and in circumstances like today’s, we would be potentially buying energy sources and other commodities at an even cheaper rate just as China and India are doing right now.

When Malta was still independent and had its own currency, it consistently had a strong currency – and that enabled it to import things at a relatively cheaper price – while it is true that this would to an extent undermine local produce –  given the fact that we practically import everything including the raw materials necessary for what we produce, it would still tip the balance in our favour. But this is something that is gone now since we no longer have a currency of our own. Your representatives gave it away, along with our gold reserves.

While we still had fiscal autonomy, our central bank had a number of tools at our disposal to fight inflation from complete freedom in setting interest rates to drastic actions such as appreciating or devaluating our currency. We no longer have that possibility, because we no longer have our own currency. Your representatives gave that away.

While we still had our sovereignty including our own currency and monetary policy, our government could play around with customs duties. If things got too expensive from Europe, it would have had the possibility of lowering customs duties from elsewhere to compensate. It no longer has that possibility because your representatives gave that power away. Customs and the respective tariffs are now solely the EU’s prerogative. All customs duty goes to the EU along with a percentage of our VAT – something that is never mentioned by our Europhile media.

In effect, we are now embroiled in a game that has nothing in it for us while caught in a fiscal prison called the Euro over which we have no control.

Given we are no longer sovereign, we now no longer control our currency or any economic tools we could otherwise use to act in our own interest in our time of need. In the coming months, having divested ourselves of our sovereignty we will be also facing increasing pressure to lose our independence in matters of taxation.

Thank the EU for that, and thank your representatives for having emasculated you and your progeny – and thank yourself for being so stupid for trusting them. Now enjoy the levels of inflation that are not only here to stay – but will actually become worse, much worse. The only tool that our government now has at its disposal to keep us somehow competitive is internal devaluation better known as austerity.

The gullible believed the EU would make us better and richer – realists always understood that in time it would prove to be our ruin.

That time has come.