“I don’t get history. If I wanted to know what happened in Europe a long time ago, I’d watch Game of Thrones.” – Community
Why do communist governments always fail? They cease the means of production.
(Memes today are mostly as-found.)
The handling of the war in Ukraine will go down as a historic blunder, rivaled by only a few events in history:
- Archduke Franz Ferdinand deciding to go cruising down the road in his ragtop,
- Socrates, who in his last words said, “I drank what??” (thanks, Real Genius), and
- The forming of the band U2®.
The Western World had already been rocked by the response to COVID-19. The economic shenanigans required to keep the economy on life support had been bad enough. The entire debt-based currency system had been lurching back and forth more than Hillary Clinton after quality time with a bottle of gin and her “Madame President” scrapbook.
And bad things are going around in Switzerland, as we’ll see below. And big trouble may lie ahead for Great Britain:
In truth, the recovery from the Great Recession hadn’t created any real structural changes. The primary mechanism for preventing utter economic collapse was printing bucketloads of cash and shoving it into the faces of the banks so that they didn’t fail in a catastrophic and sequential fashion. It isn’t the only time that irresponsible decision-making was rewarded with buckets of greenbacks, but let’s not dwell on Hunter Biden.
Where are we now?
Europe is facing an energy drought – one that (unless Russian gas shipments are resumed fairly quickly) will result in lowered economic output. How bad? Some have said, “Great Depression bad.” The precursors of this can be seen in the cracks we see developing economically:
If the Pope commanded the cash be transferred electronically, would that have been a PayPal® order?
Now, one thing I do know: religions are really, really good about keeping their eye on their cash. I wonder if there was some reason that the Pope was wanting this financial move? Was it because he like making Papal airplanes? Or, was it because someone had tipped him off?
Why can’t the Pope be cremated? He’s still alive.
People are betting that Credit Suisse® to fail. They’re also betting that Deutsche Bank™ will fail. Why? When banks lend money to people that can’t pay it back, well, unless the Federal Reserve© comes around to stuff the banks full of cash, they fail.
So, COVID-19 hits, governments around the world print cash, but nothing is physically broken. We can (sort of) pretend that the world is fine, and whistle through the graveyard and hope that we can squeak out another year of wild naked greased PEZ® parties, elephant rides, and pantyhose for everyone.
Then, Ukraine. As I’ve said before, with a sane president capable of making good decisions, this would have been solved with a few phone calls, some Krispy Kreme doughnuts, and maybe a few coupons for 50%-off shrimp at Red Lobster™. Nope. Biden escalated all of it.
And, again, maybe (probably not, but maybe) in a world with an economy that had underlying actual strength, Biden could have pushed it just like he did and not cratered the entire economy of the West.
But he did. And now the consequences cannot be avoided. Interest rates are shooting up.
How high?
Oh, surely we aren’t in a real estate bubble.
Oops. But at least the international community isn’t panicking.
Oh, they are? Well, at least Biden hasn’t sold off our energy reserves in a naked bid to influence the 2022 election.
Oh, he did? Well, at least Biden has a good understanding of how energy markets work, and how supply and demand sets prices.
Oh. Well, I guess that’s really scary. Thankfully, no one is messing around with the fundamentals of reality.
Huh. I guess my dog just quit.
Well, at least The Mrs. and I had a serious talk about the bedroom.
All foolishness aside, if Europe has an energy drought that lasts three years or more (one of the latest estimates I’ve seen) the results will be as devastating as a war. Economies need jobs to produce wealth so people can have wild naked greased PEZ® parties, elephant rides, and pantyhose for everyone.
And, despite the magical thinking of some people on the Left, free anything (not just healthcare) isn’t free. Someone, somewhere, has to work for it to pay for it, otherwise it’s slavery. Which, I think, is fine for Leftists, because they never imagine themselves the slaves.
But I have faith, faith that the Swiss will save us.
The Swiss have a long and proud history. This history goes back to at least 1307, or so the legend goes, to William Tell (the guy who shot the apple resting on his kid’s head). In fact, William Tell and his son were in a bowling league, but the records of what team they were on are now lost to us. We will never know for whom the Tells bowled.