The economic outlook in the West continues to deteriorate.

By Romegas.

The Italian newspaper Corriere della Sera has published a pessimistic forecast of what the country’s rejection of Russian gas and oil would mean for the labour market in Italy. According to a study cited by the publication, the cessation of fuel imports will result in the loss of over half a million jobs in the country by the end of next year.

And this would only be the tip of the iceberg  as the economic depression and consequent the labour begins to spread across the entire Italian economic spectrum.

The publication warns that:

“The position of the most energy-intensive enterprises will worsen: foundries, glass, ceramics and paper, which are threatened with closure due to excessively high prices that will be have to be paid for gas and electricity,”

Earlier it became known that in the event that the sixth and subsequent EU sanctions packages will include an embargo on the imports of Russian oil Germany stated it would lead to a loss of 180 billion euros in its GDP by the end of this year alone.

Furthermore adding to Germany’s headache, German exports to Russia plummeted to about €860 million in March “because of the sanctions imposed,” as well as “further measures to restrict exports, and unsanctioned behavior of market participants,” Germany’s federal statistical office said on Wednesday. That is the lowest level of exports in almost two decades.

“Looking ahead, despite richly filled order books, the short-term outlook for German exports doesn’t look encouraging,” said ING analyst Carsten Brzeski, as quoted by Bloomberg.

“The war in Ukraine is very likely to disrupt other supply chains for good,” he said. “More generally, with a high risk that the war accelerates the trend of de-globalization and high energy and commodity prices for longer, the German export sector is facing more headwinds ahead.”

Russia accounted for 2.3% of total German foreign trade and was the fourth most important country for German goods outside of the European Union in 2021. The main goods that Germany exported to Russia included vehicles, machinery, trailers and chemical products. Russia’s main exports to Germany were crude oil, natural gas, metals and coal. Germans are now being told to stock up on blankets and other essential commodities as they cannot be guaranteed of energy next winter. Of course all this is all blamed on Russia rather than one’s own incompetency.

Meanwhile the head of the Ministry of Energy of Slovakia said that the ban on Russian oil will destroy the economy of Europe and will affect not only his country, but also Austria, the Czech Republic and Ukraine. Hungary has of course no intention of destroying itself and has already stated that it would veto any such ban. Thank God for small mercies – we might after all keep our head above water thanks to the sense of progressive Europe’s bête noire.

Elsewhere Latvians after proudly brushing aside Russian gas, now need to resort to the old-fashioned way to keep warm and decided to stock up on firewood (whatever happened to the worries of one’s carbon footprint?). However, according to the Latvian edition of Apollo, firewood prices in the country are growing rapidly – compared to last year, when two cubic meters of firewood cost 120 euros, their price this year has increased at least two to three times. Closer to the heating season, Latvian experts say they will cost even more.  

Many residents of Latvia stand in line for firewood three weeks in advance. And those who cannot afford this luxury are planning, like the Germans to stock up on extra blankets to survive the winter.

Even the Poles, the US terrier in Europe is finding out what it means to stop the import of Russian fuel. The Polish zloty has depreciated by more than 12% in less than a  year. This is the highest inflation rate in the last 24 year and well informed rumour has it they are still buying Russian gas – only not directly, but through Germany at a highl inflated Price. Oh well.

Speaking about Poland, it seems that the average Pole’s solidarity with the Ukraine is running short fast:

“the flags of Ukraine have disappeared from city buses and trams in Warsaw.”

“This decision was made by the mayor’s office of the Polish capital. The official website of the city administration explained that earlier the yellow-blue flag of Ukraine was placed on public transport along with the flag of Warsaw as a sign of solidarity with Ukraine after the start of the Russian special operation. However, due to numerous requests from disgruntled citizens, this will no longer be the case.”

Oh well.

Weaning Europe’s dependency on Russian fuels is proving to be much easier said then done (not that anyone with an IQ higher than the room temperature ever had any illusions), and Europe’s great hope that it can somehow transition to alternative sources of energy (assuming that these would suffice) in any feasible time-frame is also proving to be an illusion. There is slight problem with the plan, Europe does not have the materials to produce them, and guess what it imports the bulk of these materials – yes you have guessed: Russia.

Here we see the pernicious effect of Green ideology – Thanks to it we now have largely shorne ourselves of nuclear energy, of mining and anything else that could have made Europe truly resilient and now we pay the price for our fantasies and delusions.

All of this of course would be music to America’s leaders – after all – removing Europe as a global competitor is in their interests – and as Victoria Nuland famously stated – you know: “Fuck the EU” – but there is a slight problem there too – the dollar continues to plunge against the ruble, inflation is hitting America hard too – Biden’s popularity is as a consequence plummeting and the Democrats face retribution in the mid-term elections.

God – even the notorious, hawkish and imperialist The Hill is suddenly realising that these sanctions imposed on Russia can (and will as I have always stated) backfire spectacularly.

Never in the history of humanity – has humanity committed hara-kiri on such a scale or to paraphrase Winston Churchill:

“Never in the field of human endeavour, was so much been lost by so many by so few”

There will be a reckoning – there is already – the world has moved on, whatever happens in the Ukraine which was always a side-show – the battle is at a higher plane – and one can already state that globalisation is dead – increasingly we will also witness the death of supra-national institutions such as the EU and the end of American hegemony.

And you know what – maybe this isn’t such a bad thing.

Leave a Reply

Your email address will not be published.