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We all love us some doomporn so let's engage in some, since The Economist today so kindly provided us with some fodder.
Germany is already fucked (#877916), hashtag no energy for y'alls pretty manufacturing plants. The demographics are a disaster everywhere; the regulatory overreach not exactly conducive to growth. You know you're in dire straits when you're putting your hope in "the Med" (#874003).
Also, Europeans, even if you managed to productively and competitively make some stuff... who's gonna buy it?!
External demand is unlikely to come to the rescue either. China is hellbent on exporting its manufacturing surplus to the world, rather than buying more from Europe. America no longer wants to play the role of consumer of last resort, and could push more Chinese goods Europe’s way by raising trade barriers.
It is indeed looking very dark for the (old!) continent:
oh, spend more on defense you say? Because we all know producing bombs and exploding them is great for the economy. Or not.
Germany, one of the bloc’s most miserly members, needs to invest and has the money, which the next government may make use of after a forthcoming election. Greater government spending should therefore offer some support to the European economy, but it is unlikely to provide a large boost. Italy has to cut spending to stabilise its debt; France has to do so to bring down an outsize deficit.
Even the poor Economist writer struggles to find at least some silver lining, and comes up with Europe's "green revolution," as if that shithole of a mistake could fuel economic productivity—ha!
I love the way they opened the piece:
It is hard to avoid the soft bigotry of low expectations. The EU’s statistics bureau titled a recent release—showing **no economic growth in the last quarter of 2024—“GDP stable in the euro area”. **
At least GDP is stable, huh?
Terrific.
Chart says it all.

non-paywalled here: https://archive.md/EBfCd
USAs only significant advantage over Europe is that it still retains control over global protocols and institutions. Even if SWIFT is officially headquartered in Brussels it is controlled by the US. This is a legacy which is fast fading. More and more trade is conducted via channels that US dominated institutions like SWIFT and the IMF have no data for...and no control over. China is reverse engineering the global banking/payments system via Hong Kong. China is building its new empire- one of physical infrastructure and institutional structures while US exceptionalists do not seem to see what has changed since 1989. USA manufacturing cannot compete with China. Chinas development bank already funds far higher net value projects globally than the World Bank. China builds half the worlds shipping. USA less than one percent. China has won the trade war and is building the infrastructure of the post industrial economy as the USA hides behind sanctions, tariffs and Trumpian bluffs and bluster - because its productive economy cannot compete with China. The brilliance of the Chinese approach is that the west cannot even see it is slowly losing its centuries old hegemony. Europe will fall to Chinese control and then USA will be alone in its delusions.
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The worst is yet to come. There's really no hope for Europe until they don't get over with the drama of "green revolution" which has killed their industries.
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The breakout from the zero-interest utopia is out of reach for Europeans, who are fully committed to socialism. Neither mentally nor psychologically - it will cause a great economic awakening.
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