Official inflation in Germany has reached a staggering 4.5%. Germany hasn’t seen such price increases in nearly thirty years. One of the leading causes of the inflation is the increase in energy prices, which are dependent on the price of natural gas. Energy prices have risen 18.6% year over year.
This fall Europe has been surprised by a dramatic increase in gas prices. Prices have doubled, tripled, quadrupled, and simply continued to rise. Commentators struggle to explain this sudden price explosion, and they fail to see the one true cause. The European Union wishes to be ‘green‘. This desire to reduce CO2 emissions is what is driving up gas prices. But how?
Last year wasn’t a good year for most people. Lockdowns ruined businesses, and led many people to lose their jobs. Simultaneously a surprising large portion of the economy kept running, largely due to government support. However, they weren’t able to protect everything. Tourism got destroyed. Southern European economies, like Spain, rely heavily on tourism. No surprise that Spain’s economy, its GDP, shrank with 12.8% in 2020. The number isn’t final yet, but is an estimate from November 2020, meaning that despite a possible correction, it won’t be far off.
The EU has the Eurozone as an internal block, but not the whole EU belongs to the Eurozone. The economic demise of Europe will pull the Eurozone closely together at a rapid pace, while the non-Euro countries are left behind. Europe moves at a different speed, a different pace. It looks in two differenct directions.
On the 16th of July 2019 the European Union selected its new highest functions. We use the word ‘selected’, as opposed to ‘elected’. There is not much democracy involved when a few influential bureaucrats bicker in backrooms until they can find a person nobody is strongly opposed to. Even the pope has a higher claim to democracy, since the entire college of cardinals is allowed to vote.
One of the basic principles of government, is that it is there to protect its citizens. Without that, why does the government even exist? Why would it be allowed to exist and extract resources from the population? Should we not be constantly vigilant to ensure that government serves to benefit the people that it rules over?
Orpheus and Eurydice – Can the EU lead Eastern Europe out of darkness?
The End of Communism – a New Era
Several decades ago, Eastern Europe was covered by communism. Until suddenly, communism ended. Factories, mines and land, formerly owned by the state, were sold to those with the closest ties to power. Of course there was corruption, it was not a smooth transition. It probably never is a smooth transition from communism to a free market.
The point here is that their economies were in shambles. For decades, entrepreneurship did not exist. The institutions supporting a free market did not exist. Nonetheless, in due time the economy will grow and it will change. However…
We discussed in a previous post, how Greece has lost its sovereignty. Whether it succumbs to the rule of the Persian empire, or to the rule of the European Union, does not matter. The fact is, Greece no longer controls its own faith. Now, some of the readers will consider that as far-fetched. After all, the EU is a supposedly democratic organization. The EU, we believe, has the interest of the people in mind.
Yet, actions speak louder than words. From how the EU behaves, can we deduct what values the institution truly holds? How did the EU behave when Greece got into deep troubles after the crash of 2008? Whose interests did they serve? Those of the people of Greece? Or were the people of Greece sacrificed and made to suffer, for a higher purpose? Let’s take a look.