© UnknownGeorge Soros
The headlines are full of abject terror that Germany's vaunted industrial base can collapse, and with it the banking sector, if Russia pulls all natural gas supplies.
Of course, this is exactly what the EU said they wanted, and the question now is will they get it, to quote H.L. Mencken, "good and hard."
So, finally, after destroying their own economy, the politicians in Europe are considering the right question,
"Did we do this to ourselves?"The Euro's collapse this morning to a new twenty-year low below $1.03 is answering a resounding,
"Yes. Yes you did." I'm sure the board at Uniper, now staring at a
$9+ billion bailout after Vice-Chancellor Robert Haebeck and the rest of his Green/Neocon zealots destroyed their investment in the Nordstream 2 pipeline, would agree with the market.
And so much of this is because now the markets are fully handicapping a global recession based on a spate of terrible economic news, including Germany running a trade deficit in May for the first time in 30 years. So much for that argument that Europe has a positive cash flow statement and can't/won't break down because of it, c.f. my
podcast from February with Peter Boockvar.But to understand why things are accelerating this quickly, beyond the Fed's hawkishness, I think it's high time
we look at what China's role in this is and will be.
Comment: So much for 'Putin's gas crisis.'
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