The trio of the Sanctions War, Green Energy Crusade and the Virus Patrol is a mortal threat to capitalist prosperity. That’s already evident in the Eurozone where these policy diseases are most advanced and where the real GDP growth rate has plunged by 74%from its pre-2008 crisis rate.That’s right. The real growth rate in the E19 countries posted at just 0.67% per annum during the 14-year span between Q1 2008 and Q1 2022, which compares to 2.29%per annum during the equivalent period between 1995 and 2008.
Moreover, the EU hari kari artists are just getting started. Notwithstanding the planned phase-out of Russian seaborne crude oil entirely by the end of 2022 and facing a potential total cut-off of Russian pipeline gas, these birdbrains are now planning a sixth round of sanctions on top of all the madness that has gone before.
Accordingly, Europe is heading for a rip-roaring stagflation, even as the monetary policy dial is still set on ultra-easy. That is, the ECB’s policy rate is still -0.25%, thereby creating a huge gap with the Fed’s policy rate which currently stands at +1.58% and is heading higher at a 75 basis points per meeting clip.
Nor is that the end of Europe’s headwinds. On top of sanctions, green energy roadblocks and monetary paralysis, you can also add fiscal incontinence. Eurozone debt is now pushing 100% of GDP, meaning that the headroom for fiscal stimmies has also been largely exhausted. That’s especially true because when you take Germany out of the equation, much of the rest of Europe led by Club Med has a public debt ratio of well more than 100% of GDP.
So the question recurs. What in the world is wrong with these people? Are they deliberately trying to sabotage society and even a minimum level of prosperity?
Needless to say, these questions are not merely rhetorical. Energy, food and other inflationary pressures are literally making mincemeat of middle class living standards.
Indeed, the case against Europe’s participation in Washington’s ludicrous Sanctions War against Russia is so overwhelming that the underlying truth of the matter is hard to deny. To wit, Europe’s political leaders have descended into acute mental derangement—a form of groupthink that has become totally detached from rationality.
Of course, that’s the same disease that has led to the hook, line and sinker embrace of the Green Energy madness. Europe’s brain-dead bureaucrats have essentially adopted self-destructive energy policies dictated by a petulant Scandinavian teenager and a bunch of far-out, industrial society-hating German “greens”.
No comments:
Post a Comment