For the past few weeks, we’ve been reading everywhere that China is in the midst of an economic decline, with accelerating debt levels and a nearly 15% drop in exports. In reality, we should not just look at the sidelines but rather at the facts, which reveal the economic, cultural, and intellectual decline of Europe, driven by an ultra-liberal policy for over a decade. Europe is now artificially propping up the Euro, which in reality is worth very little and might even disappear in the current context.
Europe allowed the majority of its industry to move to China and other countries to reduce production costs, which allowed Europeans to live reasonably well while taxes and fees increased exponentially for decades to cover this failing economy. Furthermore, Europe has struggled to recover from various economic crises. Today, even Germany is feeling the consequences and paying a high price for the Merkel years – a sluggish economy, a brain drain. While Germany may not be sinking into extreme poverty like France and Southern European countries, it’s getting closer and is trying to save itself by taking industrial steps, such as the strong presence of the German automobile industry in the United States.
In a context of expanding European inflation, mainly due to this ultra-liberal Europe that has had a very short-term vision, exacerbated by the war in Ukraine, it is highly likely that there will be no recovery for years unless there is a fundamental change in policy – such as breaking away from the Euro and rethinking a more human-sized Europe, both economically and culturally.
It is primarily this European policy that fuels the Chinese economic engine. If Europe sinks, orders decrease, and China is dragged down with it, which will also have geopolitical consequences in the medium term. The USA has understood this for a long time. Europe, with its excessive pride and limited means, is paying the price, or rather its citizens who are faced with overpriced goods in stores and outrageously high energy costs.
After many years of growth for the Chinese ruling class, it is now a time for more modesty, especially since the Chinese economic system can no longer have grand ambitions. This comes at an unfortunate time as the country was launching into the civil aviation race.
Of course, the war in Ukraine has an economic impact on countries worldwide, but only those with a strong economy will be able to weather the storm.
Thierry De Clemensat
Editor in Chief
Bayou Blue Radio, Bayou Blue News