Quote from Alex bobby on January 23, 2024, 3:36 AM

Financial expert Bob Lyddon cautions that the EU's financial leaders in the Eurozone have unequivocally violated their agreement with citizens and businesses. Lyddon describes the Eurozone as now resembling an unavoidable "black hole" for its 19 members, a stark contrast to the ambitious vision presented at the launch of the single European currency a quarter of a century ago.

The euro's grand unveiling on January 1, 1999, aimed to establish a vast single market capable of competing with the United States, as recounted by Bob Lyddon in an interview with Express.co.uk. However, according to Lyddon, the reality over the past 25 years has been harsh. In an article published on the Global Britain website, Lyddon expresses his concerns, highlighting that the implementation of the euro was a unilateral decision made by the EU's political-financial elite, without consulting citizens and businesses.

The original theory posited that by relinquishing their "legacy currencies," citizens and businesses would gain access to a dynamic, barrier-free economic zone, fostering innovation and competition. However, Lyddon argues that overspending at various levels, including through member state governments, EU institutions, and shadowy schemes, has derailed these expectations. Money printing by the European System of Central Banks and an inflationary interest rate policy pursued by the European Central Bank have further exacerbated the situation.

According to Lyddon, the EU's financial leaders have not only overspent but have also deviated from the initial contract with citizens and businesses. The current narrative, portraying the euro as primarily focused on reducing the frictional costs of dealing with different currencies, is dismissed by Lyddon as a smokescreen. He asserts that these elements were already under control before the euro's introduction. The central issue, Lyddon contends, is the EU's shift towards bureaucracy, intervention, subsidies, protectionism, and an increasing role of the public sector in directing economic activity.

Meanwhile, concerns about the European Central Bank's rapid increase in borrowing costs were acknowledged by a speaker at a Bloomberg News event during the World Economic Forum's annual meeting in Davos, Switzerland. The speaker emphasized the risks associated with potential overshooting and the importance of avoiding loose inflation, suggesting that central banks, including the ECB and the US Federal Reserve, might consider cutting rates to address these concerns, a move that influenced a surge in stock market indexes in the final weeks of 2023.