So we need the ECB to start QE in a big way to buy back government bonds. However the Saudis do not own too many.
We also have to go electric on transportation and that much much faster. Only a third of the EUs oil comes from the US and Norway. The rest comes from mainly dictatorships. Going green means supporting democracy. Staying on fossil fuels means supporting dictatorships.
There are a lot of battery factories being built in the EU right now. Even if they come from China, it is a one time purchase and not a total dependence.
True, but right now, a lot of the resources come from China. Solar is also something that is mainly from China. EU dropped that ball pretty fast.
Glad my money isn’t wrapped up in EUR. QE = inflation.
I’m all for going green, it’s worth mentioning that having trade with dictatorships is a two-way street, we can also use that trade as leverage to hold them slightly accountable.
In this case it gives the Saudis central bank money, which then leads to more money being removed over the coming years. Since the Saudis want to dump it, they have to sell it below market value. Due to that at intresst this means the ECB is moving money out of the monetary system. Hence this is deflationary. We actually saw that in the real world as well. QE meant low intresst rates. The intresst rates shot up as soon as QE was stopped.