European Economics Thread
- Thread starter PiSigma
- Start date
Wow, what a beautiful sight, hope inflation rises further and the UK economy goes into free fall
So far this year, the EU has experienced:
-Unprecedented Energy Crisis
-Massive Inflation and accelerating
-1 in 500 year drought
-Oder River Poisoning
-Widespread crop failures
And it's not yet Autumn. Of course we still have Covid lurking around spreading rapidly. Anything else missing from this list?
This kind of crisis has the potential to destroy the European welfare states and rupture the social fabric apart to the point of widespread violence. I won't be surprised if the EU is gone by next year.
-Unprecedented Energy Crisis
-Massive Inflation and accelerating
-1 in 500 year drought
-Oder River Poisoning
-Widespread crop failures
And it's not yet Autumn. Of course we still have Covid lurking around spreading rapidly. Anything else missing from this list?
This kind of crisis has the potential to destroy the European welfare states and rupture the social fabric apart to the point of widespread violence. I won't be surprised if the EU is gone by next year.
The Euro has dramatically dropped against the dollar, falling below parity again, which will reduce the international use of the euro and weaken EU power in the developing world. And the weak euro won't even be useful for exporters because of high energy prices.
The Euro is now down 12.5% since the start of the year against the dollar but nominal GDP growth is only less than 10%, most of which is inflation. So we'll probably see another year of declining nominal GDP. EU GDP has been flat since 2008. I don't believe that this will be enough to make EU leaders realise that they're not powerful in the world anymore. Arrogance is very strong in Brussels.
A weak euro and high inflation may also force the ECB to raise rates, which would force Italy into default. So we might see an energy crisis this winter, followed by an unemployment crisis because of factories shutting down because they can't afford gas, and finally a financial crisis worse than the previous euro crisis.
Sadly, all of these disasters will only push western Europe closer to the US, because they don't realise that being a US colony is the reason for their troubles
FIFA world Cup in winter.
*Searching "A shrewd leader among EU leaders"* in google
*No results found*
It is a mystery what is going to happen, I don't know, but my impression is that on the one hand the bubble of fantasies is powerful and on the other hand among the tired there is acceptance of destiny. I think nothing will happen. According to my calculations in the last 10 years the Prices have perhaps gone up +100% and we continue to dissimulate as if nothing has happened. And so everything.
In the capitals (Berlin, Paris, Madrid ...) A commercial team will be replaced by another, and little else. Where the pink commercial team is, the blue commercial team will enter with renewed love for the "Anglo Amo", and the music of the Titanic will continue to invite us to dance and smile.
In the capitals (Berlin, Paris, Madrid ...) A commercial team will be replaced by another, and little else. Where the pink commercial team is, the blue commercial team will enter with renewed love for the "Anglo Amo", and the music of the Titanic will continue to invite us to dance and smile.
same sentiment here
people have gotten used to the current level of economic mediocrity; things might worsen but at least the ecb is there to soften the fall
not to mention the fact that americans seem to be flocking to europe for tourism
people have gotten used to the current level of economic mediocrity; things might worsen but at least the ecb is there to soften the fall
not to mention the fact that americans seem to be flocking to europe for tourism
Game over for Europe...
Europe faces ‘coldest’ winter as energy crisis deepens, likely to prompt restructuring of global industrial chain
Gas crunch likely to precipitate restructuring of global industrial chain: experts
By Qi Xijia Published: Aug 23, 2022 08:16 PM
A coal-fired power plant operated by German energy supplier RWE is seen in Neurath, western Germany, on July 13, 2022. In response to a squeeze of Russian gas supplies, Germany has reactivated mothballed coal power plants to take the burden off gas. Photo: cnsphoto
A deepening energy crisis in Europe could put many economies on ice in the coming months, which may prompt a possible industrial restructuring, Chinese analysts said on Tuesday.
European natural gas and electricity prices soared on Monday after Russia on Friday announced plans to shut off natural gas supplies to Europe for three days, adding to concerns over a plunge in gas availability.
Benchmark gas prices settled at a record high, while German power bills surged above 700 euros ($696) per megawatt-hour for the first time, Bloomberg reported.
These developments come after Russia said it will stop its key Nord Stream gas pipeline for three days of equipment repairs on August 31, sparking concerns that it won't return to service after the work.
The Nord Stream pipeline was already running at 20 percent of capacity, Reuters reported, stoking fears that Russia could halt gas supplies completely during the winter heating season and lead to an intensified energy crisis in Europe.
"There is a good chance that Russia might cut off supplies to Europe as a result of the Russia-Ukraine conflict, which could further exacerbate Europe's energy crisis," Lin Boqiang, director of the China Center for Energy Economics Research at Xiamen University, told the Global Times on Tuesday.
Although some European countries are rushing to fill storage sites and diversify their sources of energy, such as by importing liquefied natural gas (LNG) from the US, such moves won't ease the crisis in the near future, Lin said.
"If the EU wants to import lots of LNG from the US, it needs the corresponding infrastructure, which cannot be achieved shortly," Lin said.
A major cause of the European energy crisis is the sweeping economic sanctions launched by the US and its allies against Russia, experts said.
While the US is self-sufficient in energy, it has dragged Europe into a new cold war. Europe is being forced to cut itself off from its main energy supplier and it is now suffering from soaring energy prices, Chen Jia, an independent research fellow on international strategy, told the Global Times on Tuesday.
Europe has lost about half of its zinc and aluminum smelting capacity within the past year, and a further surge in power prices could knock more plants offline during the coming winter, Bloomberg reported in July.
It is feared that the situation will put European energy-intensive industries under pressure, affect the commitment of Europe to energy conservation and greenhouse gas emission reduction, and further aggravate divisions in European society, Zhou Rong, a senior researcher at the Chongyang Institute for Financial Studies of Renmin University of China, told the Global Times on Tuesday.
Europe's aluminum smelters have cut output significantly and imports have surged since producers began cutting their output, raising European consumers' carbon footprint by as much as 12 million tons per year, according to Bloomberg.
As it is difficult to reverse the energy crisis in the EU, which is expected to deepen in the coming winter, some EU enterprises are considering a shift in some production capacity, and China is an ideal destination, Chen said.
"China has the advantage of owning a complete global industry chain. If the top segment of the EU's industry chain decides to relocate to China, it will have China's full advantages of technology, manufacturing capacity and market as needed," Chen said.
Amid the conflict between Russia and Ukraine, German companies have accelerated the pace of investment and factory establishment in China.
In July, German chemical giant BASF gave final approval for the construction of the Zhanjiang Verbund site, according to an announcement on its official website. BASF will invest up to 10 billion euros by 2030 to build the new Verbund site, which will be BASF's third-largest Verbund site worldwide after Ludwigshafen, Germany, and Antwerp, Belgium, the announcement said.
Europe faces ‘coldest’ winter as energy crisis deepens, likely to prompt restructuring of global industrial chain
Gas crunch likely to precipitate restructuring of global industrial chain: experts
By Qi Xijia Published: Aug 23, 2022 08:16 PM
A coal-fired power plant operated by German energy supplier RWE is seen in Neurath, western Germany, on July 13, 2022. In response to a squeeze of Russian gas supplies, Germany has reactivated mothballed coal power plants to take the burden off gas. Photo: cnsphoto
A deepening energy crisis in Europe could put many economies on ice in the coming months, which may prompt a possible industrial restructuring, Chinese analysts said on Tuesday.
European natural gas and electricity prices soared on Monday after Russia on Friday announced plans to shut off natural gas supplies to Europe for three days, adding to concerns over a plunge in gas availability.
Benchmark gas prices settled at a record high, while German power bills surged above 700 euros ($696) per megawatt-hour for the first time, Bloomberg reported.
These developments come after Russia said it will stop its key Nord Stream gas pipeline for three days of equipment repairs on August 31, sparking concerns that it won't return to service after the work.
The Nord Stream pipeline was already running at 20 percent of capacity, Reuters reported, stoking fears that Russia could halt gas supplies completely during the winter heating season and lead to an intensified energy crisis in Europe.
"There is a good chance that Russia might cut off supplies to Europe as a result of the Russia-Ukraine conflict, which could further exacerbate Europe's energy crisis," Lin Boqiang, director of the China Center for Energy Economics Research at Xiamen University, told the Global Times on Tuesday.
Although some European countries are rushing to fill storage sites and diversify their sources of energy, such as by importing liquefied natural gas (LNG) from the US, such moves won't ease the crisis in the near future, Lin said.
"If the EU wants to import lots of LNG from the US, it needs the corresponding infrastructure, which cannot be achieved shortly," Lin said.
A major cause of the European energy crisis is the sweeping economic sanctions launched by the US and its allies against Russia, experts said.
While the US is self-sufficient in energy, it has dragged Europe into a new cold war. Europe is being forced to cut itself off from its main energy supplier and it is now suffering from soaring energy prices, Chen Jia, an independent research fellow on international strategy, told the Global Times on Tuesday.
Europe has lost about half of its zinc and aluminum smelting capacity within the past year, and a further surge in power prices could knock more plants offline during the coming winter, Bloomberg reported in July.
It is feared that the situation will put European energy-intensive industries under pressure, affect the commitment of Europe to energy conservation and greenhouse gas emission reduction, and further aggravate divisions in European society, Zhou Rong, a senior researcher at the Chongyang Institute for Financial Studies of Renmin University of China, told the Global Times on Tuesday.
Europe's aluminum smelters have cut output significantly and imports have surged since producers began cutting their output, raising European consumers' carbon footprint by as much as 12 million tons per year, according to Bloomberg.
As it is difficult to reverse the energy crisis in the EU, which is expected to deepen in the coming winter, some EU enterprises are considering a shift in some production capacity, and China is an ideal destination, Chen said.
"China has the advantage of owning a complete global industry chain. If the top segment of the EU's industry chain decides to relocate to China, it will have China's full advantages of technology, manufacturing capacity and market as needed," Chen said.
Amid the conflict between Russia and Ukraine, German companies have accelerated the pace of investment and factory establishment in China.
In July, German chemical giant BASF gave final approval for the construction of the Zhanjiang Verbund site, according to an announcement on its official website. BASF will invest up to 10 billion euros by 2030 to build the new Verbund site, which will be BASF's third-largest Verbund site worldwide after Ludwigshafen, Germany, and Antwerp, Belgium, the announcement said.
At the start of covid according to then US Sec Commerce Wilber Ross, the biovirus was supposed to pull the rug from out underneath China and restructure global supply chains ..Game over for Europe...
Europe faces ‘coldest’ winter as energy crisis deepens, likely to prompt restructuring of global industrial chain
Gas crunch likely to precipitate restructuring of global industrial chain: experts
By Qi Xijia Published: Aug 23, 2022 08:16 PM
A coal-fired power plant operated by German energy supplier RWE is seen in Neurath, western Germany, on July 13, 2022. In response to a squeeze of Russian gas supplies, Germany has reactivated mothballed coal power plants to take the burden off gas. Photo: cnsphoto
A deepening energy crisis in Europe could put many economies on ice in the coming months, which may prompt a possible industrial restructuring, Chinese analysts said on Tuesday.
European natural gas and electricity prices soared on Monday after Russia on Friday announced plans to shut off natural gas supplies to Europe for three days, adding to concerns over a plunge in gas availability.
Benchmark gas prices settled at a record high, while German power bills surged above 700 euros ($696) per megawatt-hour for the first time, Bloomberg reported.
These developments come after Russia said it will stop its key Nord Stream gas pipeline for three days of equipment repairs on August 31, sparking concerns that it won't return to service after the work.
The Nord Stream pipeline was already running at 20 percent of capacity, Reuters reported, stoking fears that Russia could halt gas supplies completely during the winter heating season and lead to an intensified energy crisis in Europe.
"There is a good chance that Russia might cut off supplies to Europe as a result of the Russia-Ukraine conflict, which could further exacerbate Europe's energy crisis," Lin Boqiang, director of the China Center for Energy Economics Research at Xiamen University, told the Global Times on Tuesday.
Although some European countries are rushing to fill storage sites and diversify their sources of energy, such as by importing liquefied natural gas (LNG) from the US, such moves won't ease the crisis in the near future, Lin said.
"If the EU wants to import lots of LNG from the US, it needs the corresponding infrastructure, which cannot be achieved shortly," Lin said.
A major cause of the European energy crisis is the sweeping economic sanctions launched by the US and its allies against Russia, experts said.
While the US is self-sufficient in energy, it has dragged Europe into a new cold war. Europe is being forced to cut itself off from its main energy supplier and it is now suffering from soaring energy prices, Chen Jia, an independent research fellow on international strategy, told the Global Times on Tuesday.
Europe has lost about half of its zinc and aluminum smelting capacity within the past year, and a further surge in power prices could knock more plants offline during the coming winter, Bloomberg reported in July.
It is feared that the situation will put European energy-intensive industries under pressure, affect the commitment of Europe to energy conservation and greenhouse gas emission reduction, and further aggravate divisions in European society, Zhou Rong, a senior researcher at the Chongyang Institute for Financial Studies of Renmin University of China, told the Global Times on Tuesday.
Europe's aluminum smelters have cut output significantly and imports have surged since producers began cutting their output, raising European consumers' carbon footprint by as much as 12 million tons per year, according to Bloomberg.
As it is difficult to reverse the energy crisis in the EU, which is expected to deepen in the coming winter, some EU enterprises are considering a shift in some production capacity, and China is an ideal destination, Chen said.
"China has the advantage of owning a complete global industry chain. If the top segment of the EU's industry chain decides to relocate to China, it will have China's full advantages of technology, manufacturing capacity and market as needed," Chen said.
Amid the conflict between Russia and Ukraine, German companies have accelerated the pace of investment and factory establishment in China.
In July, German chemical giant BASF gave final approval for the construction of the Zhanjiang Verbund site, according to an announcement on its official website. BASF will invest up to 10 billion euros by 2030 to build the new Verbund site, which will be BASF's third-largest Verbund site worldwide after Ludwigshafen, Germany, and Antwerp, Belgium, the announcement said.
Now if the EU is to survive it has no choice but to rely on China even more. And of course US benefits from this push that it engineered since in this negative sum game someone had to get cut, sacrificed, canabalized and thrown under the bus, and US shoved EU into the fray....
The son has sacrifced the father to save itself .. but Im not surprised...
This also provens Jevons paradox as well as the fact that the West including Europe have no ability to climb out of the Energy Trap and in fact is on course for the fate of Easter Island....despite lip service to Paris Accords, the moment rubber meets the road they fire up the coal plants and start burning firewood... How dare they lecture China
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