Western Economic Warfare Backfired, New Depression Likely To Come

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Western Economic Warfare Backfired, New Depression Likely To Come

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What awaits Europe with Nord Stream pipelines possibly gone forever?

Written by Uriel Araujo, researcher with a focus on international and ethnic conflicts

Now that the Nord Stream pipeline might have been sabotaged by Washington, as promised by US President Joe Biden on January 7, and is possibly gone forever (according to German authorities), it is time to consider the possible impacts.

The energy crisis in the EU has always been pushed by American interests. Moreover, the US has been engaging in economic warfare and even weaponizing the dollar for too long, but it has been clear for months now that its current economic and financial war against Russia has backfired – and once again, mostly upon Europe. Such economic wars in fact may dangerously spiral out of control, and are considered to be one of the causes of the 1929 crisis in the post-Versailles world.

Philip Pilkington, an Irish economist who works in investment finance, famous for his contributions on the empirical estimate of general equilibrium and other fields, has made quite interesting observations about the possible deindustrialization of Europe as a consequence of economic warfare. He remarks on how in the post-pandemic world debts in the West have been accumulating and, on top of that, the current conflict in Ukraine has brought extra energy costs.

After the conflict ends – or becomes a “frozen conflict” – or after good diplomacy is reestablished, Russia could start to once again supply gas to Europe as usual – this is how many analysts reasoned. However, now that the pipelines are gone, the price of energy in the continent is to remain tremendously high for years to come. With permanent high energy prices making manufacturing not economically viable anymore (thus decreasing European purchasing power), one should expect to see the bloc shutting out exports to revive an uncompetitive industry while increasing energy investments. These are Pilkington’s main points and it might be worth delving into them.

Pilkington argues that high energy costs will make the European industry largely uncompetitive because manufacturers will have no choice but to also raise the price of goods, which in turn, will not be able to compete with cheaper foreign goods. The economist goes on to argue that, in this scenario, with many manufacturers out of business, the result will be the loss of key jobs, with less employed people spending money and a new economic depression.

Thus, Pilkington reasons, the United States will not be able to “reshore” European manufacturing for too long because there simply won’t be anyone in the continent to buy the products the US ships to European shores. This crisis will thus affect Americans too, because as exports to Europe fall, US workers also lose their jobs. What could EU states do in such a scenario? The Irish economist writes quite convincingly that a tariff solution would be the most obvious one: by raising tariffs, these countries will be able to “render international products as expensive as the domestic products suffering from energy cost inflation.”

The result of that can only be more economic chaos for the West, while Europe “shuts itself off” and becomes a kind of a “black hole”, in a repetition of the 1920 events which resulted in the Great Depression, writes Philip Pilkington.

However, the global situation today has changed much, with the BRICS+ alliance, apparently aimed at “decoupling from the Western economy.” For a while, the rise in commodity prices has been perceived as a result of Western sanction policies, and this has forced the global south to look for parallel mechanisms and alternatives. Therefore, these emerging powers have the potential to build a “separate economic bloc”, which means the West would suffer the most from the economic chaos, as BRICS+ “has a relatively clean bill of economic health”.

All of this is a quite likely scenario and one should also consider the political implications. The economic crisis will in all likelihood bring back protectionism, and it might come accompanied by a 1930-like political climate. This in turn can only strengthen the populist camp in Europe. Populist and so-called “far-right” tendencies have been growing in the continent for years and the time seems to be just right for speeding up this phenomenon.

One remembers defeated French Presidential candidate Marine Le Pen promised to pull France out of NATO during this years’ elections. Meanwhile, in August, Hungary had once again the lowest energy prices in the EU. Over 8,700 sanctions have been imposed on Moscow, and yet they have hurt Europe more than Russia as Hungary’s Prime Minister Viktor Orban has been a strong critic of such sanctions. In fact, whether one likes the man or not, he has oftentimes been the voice of reason in the bloc. Now, the German eurosceptic Alternative für Deutschland (AfD) political party is heavily focusing on attacking European elites and opposing the German government’s sanctions against Russia. This trend is everywhere across the EU.

It is about time Europe assert its sovereignty, however such a political stance is largely marginalized in the continent.  Thus, although a European populist wave should increase skepticism about NATO and the EU itself, it will also increase political instability and turmoil. To sum it up, in the worst post-Nord Stream scenario, one can then expect a deindustrialized and isolated Europe going through a serious political and economic crisis.

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Bobby Stones

Turning to the WORD of GOD will provide a better understanding of events unfolding. If we have to go by this article, the process leading to the end of the gentile dispensation is not far off. The Antichrist through these crises would arise to give false hope to the world. Reading Rev. 13 will give an idea about the US’s role in these happenings. What happening is beyond human control, the Scriptures said God catches the crafty in his craftiness.

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Donnchadh

I have been saying it for years on many websites – the EU /UK are satraps and servants of the USA – nothing has changed – USA to EU -commit economic suicide – starve and freeze your own citizens to Death ! – various Lap-Puppy Poodles — woof- woof – USA– good dogs live on our very expensive bones .

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Last edited 2 months ago by Donnchadh
FHTEX

The U.S. has finally brought to fruition the Morgenthau plan, which after WWII was designed to create a de-industrialized Germany. That plan was rejected by President Truman back then, but NATO was formed in part to keep Germany down and the Morgenthau concept lurked behind the scenes for decades before the Ukraine conflict brought it to life again.

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jens holm

I can always suck cocks for money.

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kansas homo hillbilly

nobody pay moron senile jens—nazi must pay to suck taliban penis

Snagger

Expect the Europeans to do what their blood-soaked history would predict them to do- go to war against each other…

USA#1!

russia is a gas station with nukes… heheheh

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Christopher

The us is a decaying bankrupt country with nukes…heheheh

The Crunge

Europe might go through a depression from this lack of Russian energy, but Denmark never will. Jens says this wind will power them, and if Jens says so………it must be true.

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Fowinforwnowenvstpu

Any European populist movement should be rooted in Christianity.

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