This Christmas…
“Oh it’s so cold!”
Every European…
“Mommy I can’t feel my toes”
Becomes a snowman!
“Tory MPs urge Sunak to launch campaign on cutting energy use”
Gasless Gringoes, 21st of December in your freezing living room on Netflix.
Eh, that’s what people said about 2022/23 winter. Did anything actually happen? I didn’t notice
Either you’re too young to pay your heating bill or extremely privileged… Many families had to decide between heating or eating.
Good. There are consequences for
acting likebeing warmongering barbarians who can’t let go of their neocolonial urges.Proles freezing to death while their bourgeoisie overlords laugh and toast in their heated palaces is good?
Interesting. Never heard of it. But it could be that is project will never have been build. Russian gas has been mostly replaced by liquid gas tankers. And the demand of gas is shrinkinhg in Europe.
https://en.wikipedia.org/wiki/Trans-Saharan_gas_pipeline?wprov=sfla1
Thing is that LNG is significantly more expensive and trades on spot markets making prices unpredictable. It’s also not possible to ship LNG in same volumes as pipeline gas. Gas in Europe hasn’t been so much replaced by LNG as the supply having been reduced leading to the recession and deindustrialization we’re now seeing. It’s no longer cost effective to do manufacturing in places like Germany, and industry is now shutting down.
The EU economy prognosis for 2023 is still positive. As far as I am aware only some countries are in a recession, not the EU in total.
And that “industry is shutting down” is also exaggerated.
I think this recession will be for Europe only. The US will canibalize part of EU’s industry while the rest moves to Asia. Living standards will never recover. Maybe this even becomes a depression. As you can see Germany’s PMI is fast approaching major recession levels.
Yeah, the US seems to be better off.
But there still does not seem to be data that the EU will be in a recession very soon, it Still at +0,?%
Pretty much all the major EU economies are in recession, and Germany in particular is doing terribly. If German economy crashes then the rest of EU follows. And no, industry shutting down is not exaggerated. Deindustrialization is now a term that even entered mainstream parlance. It’s simply not possible for EU to be competitive in any sort of manufacturing given the energy prices in Europe.
Germany is in a technical recession, but france, Italy, Spain are not (yet). Don’t get me wrong. I think it is very likely a recession might come, but as far as I can see it is not there yet.
Eurozone PMI is below 50 which is a sign of economic contraction, we can debate whether this constitutes a recession currently, but I see no reason why the current trajectory would change going forward
Yeah, many signs are pointing down and I won’t be surprised if we get a recession here. But until it’s definitely there I will wait.
As for this indicator. Never heard of it, but there seem so many of those that I wouldn’t trust them unconditionally. This one for example points up:
Ultimately this comes down to energy costs. Production in Eurozone is now much more expensive because input costs are now higher. Cheap pipeline gas was what allowed Germany to compete with US and China. There is no viable alternative in the near term. It’s possible that Germany will be able to build out renewable infrastructure that will provide cheap energy at some point in the future, but that’s going to take years to do.
German companies are already starting to rely on Chinese companies
- https://carnewschina.com/2023/08/02/germans-are-waiving-the-white-flag-in-china-as-vw-plans-to-use-ev-platforms-from-leapmotor-saic-and-xpeng/
- https://www.reuters.com/business/autos-transportation/china-be-centre-mercedes-benz-2025-ev-sales-drive-automobilwoche-says-2023-07-23/
- this video is a has a good summary as well https://www.youtube.com/watch?v=lK1TOBc5Txc
I think things will be a lot more clear by next year, but so far all the indicators seem to point towards only one possible trajectory here.
Yeah, many signs are pointing down and I won’t be surprised if we get a recession here. But until it’s definitely there I will wait.
As for this indicator. Never heard of it, but there seem so many of those that I wouldn’t trust them unconditionally. This one for example points up:
