Did the Germans learn nothing from the hyperinflation during the Weimar Republic?
In the strange ‘upside down’ world of politicians, Germany is joining an array of other nations that have decided the way to ease the pain of (government intervention-enabled) inflation on their citizens is by throwing more money at it.
In order to limit the impact of soaring energy costs – and avoid the social unrest that is now becoming discussed more loudly in the bureaucratic corridors of power in Brussels – Chancellor Olaf Scholz’s administration is preparing to redeploy funds from its COVID preparedness piggybank (which will be added to in order to reach the €200 billion ($194 billion) sum that the government believes is necessary) to put a lid of soaring gas prices.
“Prices must go down,” Scholz said at a press conference in Berlin.
“To reach this goal, we are opening a big umbrella.”
Lowering prices by decree?
This, of course, will do nothing to reduce consumption as winter is coming and shortages loom.