Russia and Germany used to have the trade relationship that Russia has with China now. Russia would sell Germany a lot of cheap fuel and raw materials, and Germany would sell back to Russia a lot of finished goods (like cars) cheaper than normal. Russia was basically financing Germany’s industrialization, while Germany was financing Russia’s standard of living rise.
Just for perspective on how sanctions on Russia have actually hurt Europe: Germany has chronically been the #1 vehicles exporter worldwide by value. China used to be hovering between #5 and #10. Right now, Germany’s lead has dropped almost by half (from 400 billion to 250 billion dollars). It’s still #1, but China is following at #2 at 60% of German export value (150 billion dollars, up from 50 billion a few years prior). China’s primary vehicle import partner is now Russia. Germany’s primary vehicle import partner before sanctions used to be Russia.
And by the way, this is going to be catastrophic for the whole of the Eurozone. The Euro relies on Germany’s strong export economy to stay strong, since every other economy in the Eurozone is an import economy, running at deficit budgets. Germany actually likes this, because that way the Euro doesn’t become overvalued, and their exports don’t become overpriced, and they don’t otherwise have to keep printing money and dealing with inflation fluctuations all the time.
If the only economy that is supposed to keep the Euro viable is now tanking, then the EU is about to get destroyed.
Of course, that’s what the US wants. A weakened Europe that depends 100% on the US economy, instead of independently getting stronger while getting Russia stronger as well. And most importantly, full energy reliance on the US, means the US can have much better control of European politics.
Yeah, it’s all interconnected in the end. German economy was built around manufacturing that was made competitive by cheap energy from Russia. Now that energy prices have shot up, companies are moving production out, with a lot of it going to China. Meanwhile, pulling out of the Russian market created an economic niche that China quickly moved to fill while continuing to enjoy cheap Russian energy. Goods are now far cheaper to produce in China which in turns continues to squeeze German industry further. This is a vicious cycle that Germany can’t break now.
And completely agree that this is precisely what US wanted all along. Europe will be turned into a cheap labor market for US, any social programs Europeans enjoyed will be stripped from them, and mass austerity will ensue. All this happened because Europeans wanted to spite the Russians by cutting their own nose off.
It’s not just energy prices.
Russia and Germany used to have the trade relationship that Russia has with China now. Russia would sell Germany a lot of cheap fuel and raw materials, and Germany would sell back to Russia a lot of finished goods (like cars) cheaper than normal. Russia was basically financing Germany’s industrialization, while Germany was financing Russia’s standard of living rise.
Just for perspective on how sanctions on Russia have actually hurt Europe: Germany has chronically been the #1 vehicles exporter worldwide by value. China used to be hovering between #5 and #10. Right now, Germany’s lead has dropped almost by half (from 400 billion to 250 billion dollars). It’s still #1, but China is following at #2 at 60% of German export value (150 billion dollars, up from 50 billion a few years prior). China’s primary vehicle import partner is now Russia. Germany’s primary vehicle import partner before sanctions used to be Russia.
And by the way, this is going to be catastrophic for the whole of the Eurozone. The Euro relies on Germany’s strong export economy to stay strong, since every other economy in the Eurozone is an import economy, running at deficit budgets. Germany actually likes this, because that way the Euro doesn’t become overvalued, and their exports don’t become overpriced, and they don’t otherwise have to keep printing money and dealing with inflation fluctuations all the time.
If the only economy that is supposed to keep the Euro viable is now tanking, then the EU is about to get destroyed.
Of course, that’s what the US wants. A weakened Europe that depends 100% on the US economy, instead of independently getting stronger while getting Russia stronger as well. And most importantly, full energy reliance on the US, means the US can have much better control of European politics.
Yeah, it’s all interconnected in the end. German economy was built around manufacturing that was made competitive by cheap energy from Russia. Now that energy prices have shot up, companies are moving production out, with a lot of it going to China. Meanwhile, pulling out of the Russian market created an economic niche that China quickly moved to fill while continuing to enjoy cheap Russian energy. Goods are now far cheaper to produce in China which in turns continues to squeeze German industry further. This is a vicious cycle that Germany can’t break now.
And completely agree that this is precisely what US wanted all along. Europe will be turned into a cheap labor market for US, any social programs Europeans enjoyed will be stripped from them, and mass austerity will ensue. All this happened because Europeans wanted to spite the Russians by cutting their own nose off.
Precisely.
I find it curious your comment got downvoted by 3 people, while mine has no downvotes. We basically said the same thing.
lol it looks like I made some libs really mad again, I’ve got 3-4 downvotes as a base now on all my comments 😂
Well here’s some upvotes to offset then :D
:)