An ongoing debate between central banks now focuses on whether we are entering a period in which inflation will gather. For quite a while, price rises have been almost totally extinguished. This happened after some thirty years, perhaps more, during which economies world-wide were kept under the strain of a vibrant and durable inflation.
When this died out altogether, it was discovered that “some” upward creep in prices is necessary after all. It stimulates investment and sustains interest rates at satisfactory levels. When prices remain stationary (or even when they decline as started to happen) investments shrink. Interest payments evaporate, even on bank deposits held by individual citizens.
So central banks, the ECB included, launched efforts to see how they could trigger “a bit of” inflation.
Then, the Covid 19 pandemic took off. Governments launched a spending (and indebtedness) spree to compensate for the hit being taken by economies. Debts were less of a burden even as they became weightier since the interest payments they carried were rather limited.
This situation would change if inflation again gains ground. Governments would end up having to disburse new loads of interest payments. Once again, inflation is not welcome. Everybody sems to be standing for the slogan: Yes, we do want “some” inflation, but not yet...
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Digital security
Recently, I got much more knowledgeable about an important topic to which I had given practically no attention. With the spread of information communications technology, data, funds, reports of all sorts ... and hundred thousands of other items are being stored in digital formats by almost all organizations.
If agents outside their system manage an internet passage by which to enter the digital files they run, such agents could create disaster – by stealing, destroying, deleting, corrupting all that comes in their way. The danger also is that they could contaminate all the data storages of others from outside those who have come into contact with the data folders they penetrate.
The need has become imperative for a continent wide system that applies strictly to protect all digital data – especially in the financial sector. All units falling under its purview would need to apply the same procedures.
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The Presidents and the vaccine
Unlike Malta, in the US, many people do not wish to be vaccinated against Covid-19. Most of these many back ex-President Trump politically. To explain why they do not want to take the jab, they refer to what Trump used to claim about the pandemic. (Curiously in Malta we then believe we happen to be among the most polarised nations in the world...)
If in Europe, we need to have more momentum in lauching the vaccination process, surely the same holds true for the US. There, vaccine deliveries have arrived in quicker time than in Europe, even as more people are keeping back from being vaccinated.
All US ex-presidents have come out to encourage people to go and get a jab. At first Trump (who got vaccinated in January) kept back from following suit. Then clumsily he issued his warning. I hope his supporters will fall in line.
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