Be careful with the dosage of the drug. Inaki Ortega’s opinion
All Spaniards know that the economy is not doing well. They are still unable to correctly read the indicator that measures the rate of inflation or economic growth, but whether it is black is an open secret. Another very different thing is that knowing that the crisis is near, we pretend that nothing is happening. It is difficult to explain otherwise whether the tourism and hospitality industries are breaking records or whether, according to the polls, the populist measures of the Pedro Sánchez government against banking and energy have been greeted with a roar. The psychology of economic behavior has called this “the titanic effect”. We believe everything will always be fine, but sometimes, as is the case with the famous cruise, this does not happen. The ship sank and some of the passengers, instead of defending themselves, chose to pretend nothing had happened and continued to raise their glasses to toast the orchestra.
I don’t want to make the heat bitter for anyone, but last week the European Central Bank (ECB) announced the biggest interest rate hike in 22 years, a pretty clear sign that something very important is happening on our continent. Used to be. A fifty basis point increase in the value of money is a very high dose of the medicine with which we seek to cure the disease of inflation which has attacked us with great force. monetary agent rates are going up so we don’t spend, They raise the rates so we don’t apply for loans. Rates rise so that companies do not invest. The rate hike aims, in short, to cool the economy and at the same time contain the rise in prices which has been in a double-digit environment throughout the year.
This is a very high dose of the drug with which you want to correct the inflation
But the ECB’s decision will create a desire not only to withdraw, but also to increase the mortgage of the Spaniards, which many companies do not have credit refinancing and will have to close. Moreover, our government, which has been riding the Titanic for four years, with runaway debt that didn’t care because the interest rates were laughable, will see how things turn out. Now it won’t be so cheap the finances we owe as a state And we have to pay more and more to cover our deficit. In other words, public spending cannot be spent on hospitals, roads or education, but on paying interest, compensating those who financed those years when the government appointed economic authorities. We spent beyond our means ignoring it. We.
This coincides with the monetary policy decision taken in Frankfurt last Thursday. 0.5 high dose of anti-bloating medicine I hope it doesn’t cause diarrhea But fix us. Just in case, we need to focus on the possibility and practice normal living without any excess.