Posted on 07/05/2022 5:00:49 PM PDT by Mount Athos
On Monday, the country recorded that imports outstripped exports for more than 30 years. Its entire economy has been built around creating an industrial machine that dominates global markets. That machine is now grinding to a halt.
Exports unexpectedly fell, while imports surged as the cost of energy spiked. Until recently it was racking up surpluses of 8 or 9 per cent of GDP, or €20 billion a month, the biggest in the world.
The German economy is based on selling high-end industrial goods to the rest of the world. Unlike many other countries, it doesn’t have huge service industries to take up the slack if that goes into decline, nor does it have a major financial centre to bring in invisible earnings if the container ships start to go elsewhere. Take the big exporters out of the German economy and it is a little hard to figure out what is left.
What follows a fall in exports is a fall in those well-paid manufacturing jobs that are the backbone of the German economy.
Finally, it is going to mean a massive eurozone deficit as well. Of all the countries within the zone, Germany was the only major surplus country. The result? The currency will weaken and weaken.
In truth, the German industrial export machine was fuelled by cheap energy from Russia – and that fuel could soon run dry. For most of the post-war era, Germany has prided itself on very low inflation, a stable currency, and a huge trade surplus. Right now, it has a very Italian or Greek mix of 8 per cent inflation, a crumbling currency, and a rising trade deficit. Many other countries are used to that, but for Germans it will come as a shock.
(Excerpt) Read more at spectator.co.uk ...
Years ago, Merkel made a partnership deal with the Green party in Germany so that she could stay in power.
The Green party demanded in exchange that Germany shut down all of its nuclear power plants.
They had to fire up a great deal of dirty coal plants to replace that energy at first. They hoped to replace that energy with wind and solar, which was totally delusional.
Now everyone is suffering for this old German history.
Germany has turbines for its natural gas pipelines from Russia. They sent these to Canada for regular maintenance. Canada refused to send them back because of the new sanctions on Russia. This cut their natural gas supply by more than 1/3rd. Ukraine refused to service gas facilities for pipelines that went through newly captured territory. This resulted in a big cut in gas supply to Europe. With many countries struggling to fill the gap at once, the price of natural gas is skyrocketing in Europe
Not to worry. They’ll soon be in the dark. No one will notice.
I wonder if the Environmentalists will allow them to use wood to keep warm this winter.
Lignite, one step above peat.
The dirtiest coal there is.
Didn’t anybody think about this and plan for it ahead of time? Or are their politicians that incompetent?
Germany is the most significant manufacturing economy in the EU.
Yes they use high sulphur coal in Germany, burns much dirtier than what we use in the USA
I think the only course of action now is to invade France.
> They sent these [turbines] to Canada for regular maintenance. Canada refused to send them back because of the new sanctions on Russia. <
Looks like Germany might have to declare war on Canada.
I tried to explain some of it in my comment #1
This is what happens when you listen to Greenies or Marxists (same difference). Anyone with a brain knows this, but the adults-in-the-room allow it to happen anyway. Sucks to be them.
Looks like Germany might have to declare war on Canada.
“incompetent?” That’s too kind. What could go wrong when they started killing off their power industry? And It’s happening here.
Some politicians are evil.
Some are stupid.
They really need to wear signs to identify themselves!
Germany runs on natural gas. The pipeline is empty, and physically can’t get refilled until winter. I will be a disaster for the citizens.
“On Monday, the country recorded that imports outstripped exports for more than 30 years.”
Who writes this stuff?
"August futures on the TTF trading hub in the Netherlands jumped as much as 10%, reaching $1,722 per 1,000 cubic meters or $168.80 per megawatt hour in household terms [161.5 euros]."
July 4, 2022: "Natural gas on the Dutch-based TTF trading hub at one point rose more than 10% to change hands above 160 euros a megawatt-hour for August futures. A year ago the product traded for 22.4 euros."
December 24, 2021: The price of Russian gas for European countries under long-term contracts now reaches $250-300 per 1,000 cubic meters, Russian Deputy Prime Minister Alexander Novak said in an interview with Rossiya 24 TV channel.
"Today, the countries that receive [piped Russian natural gas] under long-term contracts, Germany, Serbia, and other countries, they receive it at around $250-300 [per 1,000 cubic meters]," he [Novak] said.
whoops
“imports outstripped exports for more than 30 years”
What? I don’t get it. Are some words missing?
Reminds me of when I used to have to go out on the ranch to choose which Christmas tree I wanted, then cut it down myself.
(Not to mention the cutting of the firewood, usually already dead trees, to clear the area for new trees to be planted.)
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