We all feel it: the wallet is getting emptier. “The record inflation was absolutely predictable,” says financial mathematician and investor Larissa Kravitz. The corona pandemic and the war were just accelerants. The cause of the financial evil is the European Central Bank (ECB) with the production of “true money flows”. Now it’s time to take your own responsibility: “There are plenty of ways to improve your financial situation.” But one thing is clear: politicians have no interest in the population being familiar with the financial market…
“When people are financially well-educated, you can no longer tell them nonsense,” Kravitz explains the reticence of politicians in the field of financial education. There are political groups that deliberately spread ‘fake economic news’. There are also state-funded initiatives. Whether they will be implemented accordingly is another question.
The cause of all evil: the ECB’s “cheap money”.
Several factors would have significantly increased inflationary pressures: the corona pandemic and the war are obvious. But one of the main reasons goes back even further: “During the phase of low and negative interest rates, there was a real deluge of money from the ECB,” says the financial mathematician. The “cheap money” then flowed into real estate and the stock markets – driving up inflation sharply. The ECB has greatly expanded its own powers and has thus become “indirect state financing”. “It was never meant to be that way,” says Kravitz.
‘The state has simpler self-enrichment measures’
She is critical of the watering can principle of the anti-inflation measures: “That pushes consumption and thus inflation.” 2022 has shown that she is right. She smiles and dismisses the fact that the one-off payments are ultimately a government self-enrichment measure: “The state has simpler self-enrichment measures.” The central question is more how Austria can reduce its national debt. “Because states can no longer finance themselves with negative interest rates.”
Savings rate of 9.6 percent: “But please, not in the bank account!”
The investment advisor disagrees with many people’s all-encompassing mindset: “There are many ways to improve your financial situation. We have it in our own hands,” Kravitz is convinced. Exception: children, elderly people who have long since retired, “or seriously ill”. The first step is a “financial inventory”, ie an inventory of the last 12 months.
And then it’s time to invest! Austria has a savings rate of 9.6 percent. “The ratio is good – but please not in the bank account!” Because there savings are radically eaten up by inflation. So it’s better to invest – and as soon as possible: “You can’t start investing too early” – your best friend: compound interest.
You can see in the video above which investments the investor recommends and how a jam jar can help you save money immediately! the krone.tv live talk is always from Monday to Friday from 9.30am.
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Source: Krone
I am Ida Scott, a journalist and content author with a passion for uncovering the truth. I have been writing professionally for Today Times Live since 2020 and specialize in political news. My career began when I was just 17; I had already developed a knack for research and an eye for detail which made me stand out from my peers.
