20 Mar 2026
Governments will step in as energy prices surge.
But here’s the uncomfortable truth:
👉 Many of these same governments helped create the crisis
👉 By weakening their own energy security
💸 Now comes the real problem:
Most European countries are already running structural deficits.
They don’t have the fiscal room to absorb another shock.
So what happens next?
➡️ Subsidies go up
➡️ Deficits widen
➡️ Policymakers panic
And then the “solution” kicks in:
👉 Higher taxes
🧠 Think about the loop:
• Governments subsidise households
• Then raise taxes to fund it
➡️ Households end up paying for their own “relief”
(with a bit of redistribution in between)
🔁 And this doesn’t stop here.
The same cycle is playing out across:
• Healthcare costs
• Welfare expansion
• Defence spending
⏳ Until the next crisis hits.
And when it does, you’ll hear the same line again:
“We must stabilise the economy.”
💥 Which really means:
• Deficits explode
• Debt issuance surges
• Central banks step in
👉 Printing money
👉 Buying bonds
👉 Repeating the cycle
📌 Once you see the system, you can’t unsee it:
It’s a loop of:
Crisis → Spending → Debt → Money printing → Repeat
⚠️ Now here’s the part most people ignore:
If your wealth is tied to assets that:
• Don’t generate real returns
• Can’t be moved easily
• Are fully exposed to domestic policy
👉 You are far more vulnerable than you think
(Yes, that includes a lot of real estate)
🧠 The uncomfortable conclusion:
This isn’t about one crisis.
It’s about a system.
And if your portfolio isn’t positioned for it…
👉 It’s probably mispriced for reality
Source: Financial Times
