Joe Biden the illegitimate vegetable who was installed by Jews as the President of the United States, has praised Germany and its doofus leader Olaf Scholz for using less Russian energy.

RT:

President Joe Biden hosted a White House visit from German Chancellor Olaf Scholz on Friday, using the occasion to reiterate vows of inexhaustible military support to Ukraine for “as long as it takes.” However, besides the usual rhetoric and exchange of pleasantries, the leaders shared few details of their talks and took no questions from reporters.

“I want to thank you, Olaf, for your strong and steady leadership,” Biden told the chancellor in the Oval Office. “I mean that sincerely. It’s made a world of difference. You stepped up to provide critical military support. And I would argue that beyond the military support, the moral support you’ve given Ukrainians has been profound.”

Biden also hailed increases in German defense spending, and praised Scholz for “diversifying away from Russian energy sources.”

Germany’s entire economy was based around cheap Russian energy and they have destroyed their economy by not using Russian energy.

When Germany appeared to be waffling on the issue, the United States blew up the Nord Stream pipes which effectively made the decision for them.

Germany and Scholz was forced into not using cheap Russian energy because they have been an occupied vassal state of the United States since World War II.

Scholz is just a puppet of the interests of Washington DC. Any true leader of the German people would not have ever entertained visiting the United States after what happened. They committed an act of war against the German people. A real German leader would be demanding an end to their association with NATO and an end to American military bases inside their country.

This man was the last real leader Germany had.

German Deindustrialization Is Still Looming

DALIA MARIN

Germany’s economic model, which relied on cheap Russian gas imports and high-quality industrial exports, has collapsed in the wake of the war in Ukraine and the rise of China. While Germany avoided the recession that many had predicted this winter, restoring long-term competitiveness will be a far bigger challenge.

MUNICH – A few months ago, Germany was bracing for a harsh winter. After Russia cut off Europe’s natural-gas supply and prices more than doubled, German officials warned of power outages and rolling blackouts. Some cities reportedly planned to convert sports facilities into “warming halls” for the poor and the elderly, and the media speculated about energy rationing. But those predictions did not materialize. In the face of a historic challenge, Germany proved to be more resilient than many had believed.

Yet Germany is still panicking. Instead of fretting about gas heaters, however, Germans are now haunted by the specter of deindustrialization. Not a single day goes by without some media outlet or research institute predicting that factory closures and the rise of China will lead to the country’s downfall. The state-owned bank Kreditanstalt für Wiederaufbau recently warned that Germany faces “an era of declining prosperity.” And Yasmin Fahimi, the head of the German Trade Union Confederation (DGB), warned that the energy crisis would lead to deindustrialization and massive layoffs.

Meanwhile, the Center for European Economic Research (ZEW) in Mannheim called Germany the “big loser” of today’s global economy, placing it 18th out of 21 industrial countries in its competitiveness ranking. Other experts have warned that rising energy costs will force manufacturers to move their operations to Eastern Europe and the United States in response to US protectionism.

To continue reading, register now.

Subscribe now for unlimited access to everything PS has to offer.

SUBSCRIBE

As a registered user, you can enjoy more PS content every month – for free.

REGISTER

The Economic Impacts on Germany of a Potential Russian Gas Shutoff

Author/Editor:

Ting Lan ; Galen Sher ; Jing Zhou

Publication Date:

July 19, 2022

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary:

We analyze the potential impacts on the German economy of a complete and permanent shutoff of the remaining Russian natural gas supplies to Europe, accounting for the curtailment of flows through Nord Stream 1 that has already taken place. We find that such a scenario could lead to gas shortages of 9 percent of national consumption in the second half of 2022, 10 percent in 2023 and 4 percent in 2024, which would be worse in the winter months, and would likely fall on firms, given legal protections on households. We combine the effects of less gas on production with the consequent effects of reduced supply of intermediate goods and services to downstream firms, and with reduced economic activity due to rising uncertainty. Together, these three channels reduce German GDP relative to baseline levels by about 1.5 percent in 2022, 2.7 percent in 2023 and 0.4 percent in 2024, with no gains in subsequent years from deferred economic activity. The associated rise in wholesale gas prices could increase inflation by about 2 percentage points on average in 2022 and 2023. Our simulations suggest that the economic impacts can be reduced significantly by having households voluntarily share a small part of the burden, and by rationing gas supplies more to more gas-intensive and downstream firms. We also suggest other ways to enhance German energy security.

Series:

Working Paper No. 2022/144