Lower interest rates have saved the Austrian government alone 52 billion euros, it has emerged.
The head of the federal agency for public financing, Markus Stix, said that the Austrian government has saved 52 billion euros due to lower interest rates since the financial crisis. Austria is a relatively rich but very small country with just 8 million people.
The average interest rate in the period after Austria joined the eurozone was an average of 4.2 per cent, but fell to 1.8% after the financial crisis, that is by 2.2%.
The figures underline the tax burden of having to pay private banks for their monopoly on the creation of money and the importance of low interest rates. Even a tiny rise in interest rates, especially, at this end debt phase in the boom and bust cycle can wipe out an economy.
Stix warned that interest rates could rise after the election of Donald Trump. Markets expect Wilbur Ross’s trillion dollar infrastructure plan to cause inflation leading to higher interest rates, which will burden the federal government, the states as well as private households and consumers and have a recessionary effect.
Trump would be advised to stop Ross’ infrastructure plan and block higher interest rates. He can achieve real prosperity by a variety of means like a new House Bank law, issuing government money through the Treasury like the Bradbury Pound in the UK.