European Economics Thread
- Thread starter PiSigma
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Its just so sad that western media are always pushing this disconnection of cause and effect. If they connect cause and effect its usually the wrong cause or effect being connected. Then they wonder why people start losing faith in western mainstream media.
These people are totally dumb. They think Russia needs them paying euros or dollars. No, Russia needs some imports, the currency is used so they can get these imports. They used to get their imports from mostly Europe. In a lot of cases Russia still bought from Europe due to inertia, today South Korea or China have better or more cost effective products. Also Europe and the main population cores of Russia are closer geographically. That was part of the reason of them having more trade. So the Russians wanted euros as payment for their exports to do those imports. But if Europe does not want to sell Russia anything of consequence, there is little Europe makes that cannot be purchased from China instead. In which case the Russians just need to pay China with something they want. Since Russia has a positive trade balance with China there simply is no problem at all. It is just a matter of setting up proper payment channels.
Russia's oil, gas, and coal are also basically the same distance to China as they are to Europe. See where the Yamal peninsula or the Kuzbass regions are. Draw lines to Berlin and Beijing. So switching to a different destination of sale will cost about the same for exports once the trade routes adjust and more transport capacity is built. Russia's main issue then is those imports from China which have to traverse longer distances to reach Russia's population cores. Costs will increase due to distance. But Chinese goods are typically cheaper than European ones so it will probably be a wash or maybe even cheaper.
In the meantime Europe lost not just imports of Russian energy, minerals, and other natural resources, they also lost exports to Russia. Before 2014 Russia imported most of its food from Europe. Today they either produce it themselves or import it from Central Asia. And they bought high value added products like airplanes and cars. Which they could have made themselves albeit with lower quality. They also bought medicine, which now has to come from India and China. I bet some leaders in Europe looked at trade between Russia and the EU plus the EU and the US and thought it was no big deal cutting Russia out. Well now the US wants Europe not just to cut Russian trade, but also Chinese trade. Good luck with that. It is no wonder their economy is imploding.
Russia's oil, gas, and coal are also basically the same distance to China as they are to Europe. See where the Yamal peninsula or the Kuzbass regions are. Draw lines to Berlin and Beijing. So switching to a different destination of sale will cost about the same for exports once the trade routes adjust and more transport capacity is built. Russia's main issue then is those imports from China which have to traverse longer distances to reach Russia's population cores. Costs will increase due to distance. But Chinese goods are typically cheaper than European ones so it will probably be a wash or maybe even cheaper.
In the meantime Europe lost not just imports of Russian energy, minerals, and other natural resources, they also lost exports to Russia. Before 2014 Russia imported most of its food from Europe. Today they either produce it themselves or import it from Central Asia. And they bought high value added products like airplanes and cars. Which they could have made themselves albeit with lower quality. They also bought medicine, which now has to come from India and China. I bet some leaders in Europe looked at trade between Russia and the EU plus the EU and the US and thought it was no big deal cutting Russia out. Well now the US wants Europe not just to cut Russian trade, but also Chinese trade. Good luck with that. It is no wonder their economy is imploding.
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This is what allowing free access to American tech companies look like.
More like the result of European market being overregulated. American tech giants have the money and staff to comply with these regulations because they stored enough "fat" from the home market, but small companies and startups are going to get suffocated, which is what we are seeing in Europe. Plus, tech sector as a whole is not as alluring to Europeans as to Americans, Chinese, Indians or Russians because IT salaries in Europe are only above median average but are significantly above the curve in the latter three. Therefore, you simply have less people aiming for these roles. For example, a senior developer in Russia can make ~$4-5k a month, while the average salary is like ~$700-800.
Google, Facebook, etc. had full access to Russia yet the latter still has reasonably large (for Russian economic size) competitors like Yandex, VK, etc. which were able to take market share there from American tech companies. Same was true for China before Facebook & Google tried to play politics and got banned for not complying with laws. So, putting the failure of European tech companies only on "free access" seems to be a significant oversimplification.
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Just retarded. This nuclear power plant was 34 years old when they shut it down. For reference LWRs in the US and Russia built around the same time are having life extensions up to 60 years of age. Most of the cost with nuclear electricity is building the power plant. The cost of fuel and personnel is minor in comparison.
Massive destruction of capital.
Massive destruction of capital.
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this is great. More German dependence on LNGs. And at a point down the road, Chinese green hydrogen fuel
What more can you expect from the German bureaucracy?
Europe is becoming more dependent on China while China is becoming less dependent on Europe.