The cat is out of the bag. After months of denial, it is now conventional wisdom that Germany — and Europe more generally — faces deindustrialisation due to the end of cheap Russian piped gas. “Germany’s Days as an Industrial Superpower Are Coming to an End,” reads a headline on Bloomberg.
From London to Berlin, Western governments do not have a serious economic growth plan. Media outlets have started to admit this grim reality because there is no longer any point in denying it.
Privately, Americans shrug their shoulders and hint that this means they will no longer face competition from Europe. But watching the economy of your most dependable ally — not to mention a key trade partner — implode is not cynical Machiavellian statecraft: it is folly. American leaders talk about creating a new economic bloc which only includes “democratic” nations, only to dismiss the destruction of the European economy. It is obvious to everyone except the truest of the true believers: America has no strategy either.
America’s negligence of its core ally will likely lead to electoral tremors across the continent in the coming years. There is every chance that Europe will drift away from American influence and start to build pragmatic relationships with other countries. The big question is where this leaves Britain, which has much closer ties with the United States than the rest of the continent. It is a question that British leaders will have to ask themselves seriously moving forward.
Japan also entered recession. Korea’s semiconductor industry is also facing headwind.
I think united state fundamentally only makes decisions based on domestic politics. This comes at pretty hefty cost for the allies. In the end, I’m not even sure this is good for the US itself.
The US loves fucking over the economies of allies, just ask Japan. It’s all about looking out for #1. Speaking of looking out, while the US is shrieking about foreign countries spying, it loves to spy on its supposed allies: https://www.reuters.com/world/europe/us-security-agency-spied-merkel-other-top-european-officials-through-danish-2021-05-30/
Buy my gas or you’ll be sorry by V. V. Putin
Newsweek, Sept. 2022: Video of Biden Saying He’d ‘End’ Nord Stream Resurfaces After Pipeline Leak
“Now that Nord Stream has been damaged, Germany will probably have to buy more natural gas from the US at 5x the price,” wrote commentator James Melville.
Speaking to reporters on February 7, Biden said: “If Russia invades, that means tanks or troops crossing the border of Ukraine again, there will no longer be a Nord Stream 2.” “We will bring an end to it,” the president said. A journalist asked Biden how he could do that since Germany was in control of the project, the president replied: “I promise you: We will be able to do it.”
“Any deliberate disruption of European energy infrastructure is utterly unacceptable and will be met with a robust and united response,” Borrell said.
Europe’s “robust” response has been to buy LNG from the US (and also still from Russia) at higher prices.
Bloomberg, Jan. 2024: Gas-Addicted Europe Trades One Energy Risk for AnotherInstead of evil Russian fossil fuel producers, you now have very nice very cool very reliable American fossil fuels producers.
Exxon Mobil publicly denied global warming for years but quietly predicted it
They cleaned up BP’s massive oil spill. Now they’re sick – and want justice