{"id":7173,"date":"2022-09-09T00:30:00","date_gmt":"2022-09-09T00:30:00","guid":{"rendered":"http:\/\/ci02aaca5fa00024ec"},"modified":"2025-01-28T14:53:49","modified_gmt":"2025-01-28T14:53:49","slug":"europe-debt-bubble-and-hyperbitcoinization","status":"publish","type":"post","link":"https:\/\/bitcoinmagazine.com\/markets\/europe-debt-bubble-and-hyperbitcoinization","title":{"rendered":"Europe’s Sovereign Debt Bubble Is A Domino In Hyperbitcoinization"},"content":{"rendered":"
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The below is an excerpt from a recent edition of Bitcoin Magazine Pro, Bitcoin Magazine’s premium markets newsletter. To be among the first to receive these insights and other on-chain bitcoin market analysis straight to your inbox, subscribe now<\/a>.<\/em><\/strong><\/p>\n

European Energy Crisis Progressing<\/h2>\n

In last Thursday\u2019s dispatch, we covered the dynamic of this inflationary bear market, where the conditions of the global macro landscape are rapidly repricing global interest rates higher. Similarly in our \u201cEnergy, Currency & Deglobalization\u201d series,<\/p>\n

\u201cEnergy, Currency & Deglobalization, Part 1<\/a>\u201d<\/p>\n

\u201cEnergy, Currency & Deglobalization, Part 2<\/a>\u201d<\/p>\n

Since our latest release, the response from European governments to \u201ccombat\u201d surging energy costs have been astounding. <\/p>\n

In the United Kingdom, newly appointed Prime Minister Liz Truss has already unleashed a draft plan as a response to rising consumer energy bills. The policy plan could cost \u00a3130 billion over the next 18 months<\/a>. The plan details the government stepping in to set new prices while also guaranteeing financing to cover the price differences to private sector energy suppliers. Using 2021 annual numbers, the plan would be roughly 5.9% of Gross Domestic Product. The U.K.\u2019s stimulus at 5% of GDP would roughly be the equivalent of a $1 trillion stimulus package in the United States. <\/p>\n

There\u2019s also a seperate plan costing \u00a340 billion for U.K. businesses<\/a>. Counting both, they represent roughly 7.7% of GDP for what\u2019s likely to be a conservative first pass of stimulus and spending to offset a longer, sustained period of much higher energy bills across all of Europe the next 18-24 months. The initial policy scope doesn\u2019t seem to have a cap on its spending so it\u2019s essentially an open short position on energy prices. <\/p>\n

Ursula von der Leyen<\/a>, president of the European Commision, tweeted the following:<\/p>\n

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Putin is using energy as a weapon by cutting supply and manipulating our energy markets. <\/p>\n

He will fail. <\/p>\n

Europe will prevail.<\/p>\n

The @EU_Commission<\/a> is preparing proposals to help vulnerable households and businesses to cope with high energy prices.<\/p>\n

— Ursula von der Leyen (@vonderleyen) September 5, 2022<\/a><\/p><\/blockquote>\n