“Economic collapse is closer than you think”: Spanish analysts

“It is essential to prepare for the monetary destruction that is coming, which is much greater than what we have experienced in previous years,” warns economist Daniel Lacalle. The Spanish analyst bluntly expresses his concerns about the current state of the economy, based on fiat money, and how people’s quality of life is deteriorating as a result.

“Economic collapse is closer than you think,” warns Lacalle in your YouTube channel. There he warns about the need for citizens to understand, once and for all, that political decisions, the control of money by governments, end up impacting personal finances and that the increase in the deficit and Public debt is leading to a slow process of impoverishmentbut real.

Lacalle also mentions that many sectors have been warning about an uncertain future, and that those who dismiss such warnings as doomsayers are, in fact, ignoring the clear signs of an economic deterioration. “People don’t understand that when the government massively increases the deficit, and then turns to the Central Bank to monetize those debt issues, they are actually impoverishing them,” he adds.

The economist points out that, although growth figures are reported, the truth is that The economy faces serious underlying difficultiessuch as the increase in the unemployment rate and inflation. In his presentation, Lacalle explains the importance of investing in assets that can protect against inflation, such as bitcoin (BTC), and being aware of the volatility that these can imply.

He also stresses that the current model of public spending not only conceals economic stagnation, but also implies a transfer of wealth from the productive sector to a government that consumes more than it produces.

He also stressed that the current model of public spending not only hides economic stagnation, but also implies a transfer of wealth from the productive sector to a government that consumes more than it produces.

Lacalle’s analysis resonates with many current concerns in Europe and the world, where high levels of inflation and debt are wreaking havoc on household finances. In this context, Residents of Europe are facing increasing difficulties to make ends meet, while they are promised growth that, according to Lacalle, is just an illusion, disguised by national accounting.

This is how the economist urges his audience not to be fooled and to be proactive in finding solutions that mitigate the impact of these economic measures, remembering that preparation and knowledge are the best tools to face an uncertain economic future.

«We talk a lot here on my channel about the misery index. Here you can see how the situation is getting worse in the misery index, inflation, more unemployment, cases of Spain with an economy that they say is going like a rocket, but we are much worse than the average of the European Union, much worse than the average of the eurozone. So this is part of that process of getting poorer without you realizing it and at the same time telling yourself that everything is going well.»

Daniel Lacalle, Spanish economist.

What’s coming is more debt and less future: Marc Vidal

In a recent analysis, Spanish economist Marc Vidal has put the economic decisions taken in the European Union under the microscope, highlighting the inefficiency and lack of long-term vision of its leaders. His main concern is about a new plan that will entail an annual cost of 800 billion euros, financed through debt.

Vidal is referring to the plan recently presented by Mario Draghi, former president of the ECB and former Italian prime minister, in which he aims to turn Europe into an industrial power, now adapted to the 21st century. To do so, Draghi’s proposal is to bet on the issuance of public debtto finance joint investment projects.

The Union is lagging behind in relation to Washington and Beijing, and that is why Draghi warns that a “massive increase” in investment is needed to close the gap with respect to the two main competitors in industrial matters, as reported by European media.

In this regard, Vidal points out that this enormous sum not only represents another debt, which will then fall on European citizens, but also joins an already alarming scenario of loss of purchasing power and an increase in prices, inflated by the excess of money in circulation“The same people who have squandered 750 billion since the pandemic are now designing this plan which, in turn, promises more of the same,” he criticises.

Vidal compares the current economic situation with a “tsunami of money” which has followed the soaring price increase. He adds that this phenomenon generates a significant loss in the purchasing power of citizens, a problem that has intensified since the 1980s. In his opinion, the system has largely operated under an “accounting trick”, in which debt is devalued in relation to inflation. This means that, for those who request debts, the higher the inflation, the lower the real cost they assume, although in the long run, it is the citizens who must bear the weight of this burden.

Furthermore, Vidal argues that if Draghi’s plan is approved, Europeans could face an increase of thousands of euros in debt per inhabitant each year. This increase, which would exceed the total cost of the Greek bailout and would be equivalent to the gross domestic product (GDP) of Switzerland or the US defence budget in 2023, raises serious concerns about the economic sustainability of the European continent.

For this reason, Vidal emphasizes that The solutions proposed so far are inadequateas it would leave the population dealing with the negative effects of a situation that seems irremediably complex.

The Spanish economist’s opinion resonates at a crucial moment for the European economy, in which uncertainty and inflationary pressure, coupled with a fragile geopolitical context, lead to questions about the European Union’s ability to adapt to modern times.

Europe decided to impoverish itself in the name of a hypothetical modernity and a hypothetical sustainability. It decided to impoverish itself under ethical and moral principles and it planned to do it quickly so that wealth could be distributed among all. But what we have been distributing lately is poverty, not wealth, something that is much more expensive for all the common people.

Marc Vidal, Spanish economist.

Bitcoin stands out as a refuge from imminent collapse

However, concerns about A possible financial collapse is not only a warning that is spreading throughout Europeas it is also on the minds of other actors in the Bitcoin community such as the president of El Salvador Nayib Bukele, the founder of MicroStrategy Michael Saylor and the CEO of the company Jan3, Sansom Mow.

All of them, including Daniel Lacalle and Marc Vidal, believe that It is best to look at bitcoinThey are optimistic about the digital currency because it is an asset that emerges as a safe haven in times of financial crisis due to its limited monetary policy of 21 million units, which differentiates it from the money policies of States such as the dollar or the euro. With fiat money, central banks can print money to face crises or finance deficits, which causes inflation.

Furthermore, Bitcoin’s decentralization prevents manipulation of its supply or value by central entities, which is especially important in times of political or financial uncertainty. The transparency and security of its technology allows all transactions to be verifiable by participants, unlike traditional monetary systems, where many decisions are made in an opaque manner.