It is looking more and more like Europe’s economy is about to collapse and tens of millions of Europeans are going to suffer especially as winter is right around the corner and the continent is experiencing a self-inflicted energy crisis.
For years, one EU nation after another has succumbed to the ‘climate change’ hysteria and have taken their most reliable and affordable energy production capabilities offline because they utilize the dreaded fossil fuels. Worse, the same countries had begun shuttering the only energy production plants that produced no emissions whatsoever — nuclear power plants — because again, the greenies don’t like nuke power, either.
Speaking of Germany, the EU’s largest economy is likely going to be the first to collapse, notes Zero Hedge:
Credit Suisse repo guru Zoltan Poszar published what may have been the most insightful snippet of the entire European energy crisis (to date) when he extended the infamous “Minsky Moment” framework to Europe, and specifically Germany, which he said “can’t cover its payments without Russian gas and the government is asking citizens to conserve energy to leave more for industry.” He then elaborated that “Minsky moments are triggered by excessive financial leverage, and in the context of supply chains, leverage means excessive operating leverage: in Germany, $2 trillion of value added depends on $20 billion of gas from Russia… …that’s 100-times leverage – much more than Lehman’s.”
“Germany, in particular, is in crisis mode and will likely see much worse, as its entire economic model — based on energy-hungry manufacturing, cheap Russian gas, and a self-mutilating shutdown of nuclear energy that Berlin still won’t reverse — is on the verge of collapsing without a plan B. In short, Europe is in a mess of its own creation,” it added.
There is no quick way to get shuttered energy production plants back up and running quickly. That takes careful preparations, lots of maintenance, and more than anything, workers. So the continent is not likely going to have a good winter, and more than one EU member will be lucky if their economies don’t fully collapse in the meantime.
