Europe already played its hand, it is now getting disciplined.
Europe can’t do anything at this point. For those who haven’t noticed, Europe has lost its ability to purchase cheap Russian energy with euro, they now have to buy American with dollars. They can only pray that the US continues its wars in Ukraine and Israel, hopefully spends many more billions of $ in foreign aid in Ukraine and Israel, who then import shit from Europe and so they can earn a slice of the foreign aid pie to pay for their imports.
This is simply a two-decade long outcome of the US-Europe inter-imperialist conflict since the EU was formed in the 1990s.
Immediately after the EU and the eurozone were formed, the Balkan conflicts were sparked to force Europe’s spending into military and break their own Maastricht criteria of 3% GDP deficit spending.
Then when Nord Stream 1 was commission in 2011, the Maidan revolution in Ukraine happened in 2013 and led to an ongoing conflict with Russia and sanctioning of Russia’s economy through 2014-2015.
When Nord Stream 2 was built in 2021, the Ukraine war started again.
None of this is new. Europe played its cards to assert economic and political independence from the US empire and is now getting disciplined. The Fed’s recent rate cut also means that the dollar is going to flood Europe even more and displace the euro as the key currency in the region. The eurozone is as good as dead at this point.
The Fed’s recent rate cut also means that the dollar is going to flood Europe even more and displace the euro as the key currency in the region. The eurozone is as good as dead at this point.
The Euro is kind of fucked. Without currency sovereignty, every country in the EU is forced to cut budgets to keep their revenues and expenses balanced. Aside from exceptional circumstances like the 08’ financial crisis, countries aren’t able to just inject liquidity to deal with cooling markets. That means there’s functionally no difference between European countries using euros or dollars, either way member states don’t have control and are subject to the whims of a foreign bank.
This pretty much sums it up, in addition: what we’re seeing now is the harvest of European industry. No more cheap Russian gas at the ready means no more industry for Europe. Many industrial and tech companies across the euro zone, but especially from Germany, are now relocating to the US for the sake of cheaper energy. I should say that a lot are just closing down rather than relocating, but my post is meant to convey that those companies still afloat that can relocate are choosing that opportunity.
It also opens the market up for US companies to step in where they can and make nice fire sale purchases.
In the end, the Ukraine war ramifications will include the deindustrialization of western Europe.
Can’t say I feel sorry for the most racist and violent subcontinent on the planet 🤷🏾♀️
Europe already played its hand, it is now getting disciplined.
Europe can’t do anything at this point. For those who haven’t noticed, Europe has lost its ability to purchase cheap Russian energy with euro, they now have to buy American with dollars. They can only pray that the US continues its wars in Ukraine and Israel, hopefully spends many more billions of $ in foreign aid in Ukraine and Israel, who then import shit from Europe and so they can earn a slice of the foreign aid pie to pay for their imports.
This is simply a two-decade long outcome of the US-Europe inter-imperialist conflict since the EU was formed in the 1990s.
Immediately after the EU and the eurozone were formed, the Balkan conflicts were sparked to force Europe’s spending into military and break their own Maastricht criteria of 3% GDP deficit spending.
Then when Saddam tried to sell oil in euro, the Iraq war happened.
Then when Nord Stream 1 was commission in 2011, the Maidan revolution in Ukraine happened in 2013 and led to an ongoing conflict with Russia and sanctioning of Russia’s economy through 2014-2015.
When Nord Stream 2 was built in 2021, the Ukraine war started again.
None of this is new. Europe played its cards to assert economic and political independence from the US empire and is now getting disciplined. The Fed’s recent rate cut also means that the dollar is going to flood Europe even more and displace the euro as the key currency in the region. The eurozone is as good as dead at this point.
The Euro is kind of fucked. Without currency sovereignty, every country in the EU is forced to cut budgets to keep their revenues and expenses balanced. Aside from exceptional circumstances like the 08’ financial crisis, countries aren’t able to just inject liquidity to deal with cooling markets. That means there’s functionally no difference between European countries using euros or dollars, either way member states don’t have control and are subject to the whims of a foreign bank.
This pretty much sums it up, in addition: what we’re seeing now is the harvest of European industry. No more cheap Russian gas at the ready means no more industry for Europe. Many industrial and tech companies across the euro zone, but especially from Germany, are now relocating to the US for the sake of cheaper energy. I should say that a lot are just closing down rather than relocating, but my post is meant to convey that those companies still afloat that can relocate are choosing that opportunity.
It also opens the market up for US companies to step in where they can and make nice fire sale purchases.
In the end, the Ukraine war ramifications will include the deindustrialization of western Europe.
Can’t say I feel sorry for the most racist and violent subcontinent on the planet 🤷🏾♀️