Using Sanctions, America shoots Europe.

Updated: Mar 18


For past 30 years we have been living in a unipolar world with America being the world's sole superpower which formulates, decides and acts the way the world should function.

And America intends to keep it that way.


Hegemonies cannot tolerate even the smallest possible challenge to their dominance. So they are always in a state of undeclared war against threats, both real and perceived. They have to constantly weaken potential challengers and even allies have to be brought to heel.


Everyone knows that Chinese power seems to be on the ascendant, but one of the biggest potential challengers to American hegemony is the combined power of Russia and Germany.


America has watched with dismay and fear as Europe led by Germany has been cozying up to the Russians. German capital and technology combined with Russia's vast resources of oil and gas, raw materials, and fertile land make it a natural marriage almost heavenly.


Europe does not grow enough food to feed itself, does not produce enough oil and gas to power its economies, and has to also import all this along with many vital metals, and fertilisers.


As long as Europe led by Germany had strong politically experienced and pragmatic, leaders Europe was able to thrive and afford their citizens a high standard of living. The current crop of political leaders are weak, idealistic and severely lacking in experience and capabilities.


European countries have transformed their democracies into a sham, because the political leaders have made themselves subservient to the European Union not directly elected by the citizens, in effect a body controlled by bureaucrats in The European Commission accountable to no one in particular. And we know power without accountability is dictatorship.


Pragmatic relationships are forged on economic realities, needs and necessities not on vague considerations and ideology. Until now, Europe led by Germany has been ambivalent towards Russia, treating it neither as an enemy nor a friend. Now America has compelled Europe and Germany in particular to sever its ties with Russia and in the harshest possible ways as possible. Unfortunately a hysterical, weak, spineless German leadership has fallen into the American trap.


America is a big resourceful country, self sufficient in food, energy, markets, commodities, and almost everything it needs. Europe which depends on Russia for its requirements up to 40% for natural gas, 25% of oil, 40% for its fertiliser and food, up to 50% for base metals, 90% of its requirements for special metals like Nickel, Titanium etc.


By imposing the maximum amount of financial and trade sanctions. Europe has exhausted all the offensive instruments against Russia and yet it stands strong, shaken but unbroken and no possibility of yielding to America nor Europe.


Europe has scored many self goals and has now precipitated a crisis of epic proportions. Energy prices are up 54%, food prices soaring by 100%, engineering and commodity prices doubling and tripling if and when available. Europe has sanctioned itself.


It is predicted that Europe will experience massive Stagflation, meaning high inflation in a period of slow or even negative growth. Europe is likely to witness a three fold or four fold increase in cost of living and production without a commensurate rise in income.


Consider for example the case of diverting Russian gas supplies from Europe to China. Before 2014 there were no pipelines. Now there is one massive pipeline 'The power of Siberia' pipeline from Russia to China, with 2 more to be completed in next 2 years.

All that gas once committed to China instead of Germany and Europe will shift economic power to China at the expense of Germany. German industry will simply become uncompetitive in the world market.


Existing Russia - Europe pipelines


Existing and proposed Russia - China pipeline

The tragedy is that this is all self inflicted by Europe. Even if this madness were to be stopped tomorrow, and sanctions were reversed, it would take the world two to three years to recover to pre-crisis levels provided Russia cooperates.


A few days ago, the Kremlin announced that all those countries that have gone along with the sanctions will now have to settle their requirements in Roubles and not US$. There are not enough roubles in the open market, and countries will have to buy roubles at whatever rate they can so that they can keep their homes warm, their factories running and to feed the population. How American allies and cronies are going to do that is a billion rouble question.


Maybe it's a good time for Europeans to start praying.


 

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