EUROPEAN BONDS: A SAFE ASSET

For those who want to do charity for Mrs. Ursula, Mr. Zelensky, Mr. Rutte, Mr. Macron, Mrs. Meloni, and all the scum we are surrounded by in Europe.

Imagine you had bought a bond in 2019, when the euro had a certain value — meaning that, in real life, it gave you a certain amount of purchasing power.

At that time, you were lending €100 to the French state, the Italian state, etc. Let’s assume the bond matured in 2027.

What could you do with those €100 today? Much less, I would say.

You lent €100 that were worth a certain amount in terms of purchasing power, and you get back €100 that are worth much, much less.

If you think this trend can reverse from here on, I believe you are heading in the wrong direction.

My theory is that we are going to be the next idiots to pay for the party.

And how will we pay for the party?

Certainly through the destruction of the value of the currency.

If you lent €100 today to the French state, the Italian state, etc., you would certainly get a higher return than you would have received in 2019. Today the dynamics of the currency seem much clearer to me, and they are clearly heading towards the abyss. At least back then you had an excuse: you couldn't have known. Today not!

So, please, go ahead and buy bonds, preferably with long maturities, and finance — with your time — the bandits.