Someone asked me what I think about the stability of the eurozone and where Europe is headed. Here is my answer:
I think we are entering a very chaotic decade overall. Global power structures are changing rapidly towards a more multipolar world. The US is losing some relevance, OPEC+ is gaining power, China is in a massive housing bubble, Russia is cut off from the West. The problem with Europe is that we’re not just losing a little relevance, we seem to be losing almost all of our relevance. The EU and Germany are vassals of the United States. We have no pride, we have no self-confident foreign policy, we have no independent defense policy or defense capabilities.
Germany’s deindustrialization will threaten the eurozone, since the euro is largely dependent on Germany’s economic performance and rating. If Germany doesn’t wake up to reality sooner rather than later, I don’t see how the euro can survive.
Waking up means that Germany makes rigorous policy changes, from drastically reducing energy costs, to mediating peace in Ukraine, to massively reducing taxes and duties for individuals and businesses, to massively reducing red tape, to choosing the free market over a centrally planned green economy, and so on. If this does not happen, companies and their top performers will leave Germany for the United States and some for Central Asia.
The ultimate problem is to get out of this terrible socialist situation that we have gotten ourselves into – especially Germany. Politicians now have to make decisions that are unpopular with many voters. Just as an example, I recently read that in Germany a regular full-time worker earns only 300€ more than if he were unemployed (of which he has to buy gas, lunch, etc.). The German Fleiß (diligence) that made Germany and the EU strong is actively discouraged by attractive unemployment benefits, high taxes, high tariffs, high energy costs, high inflation. There’s basically no environment for Fleiß anymore, rather we’ve created an encouragement to shut down your business and not work – or leave the country (and ultimately the continent).
I’ve seen all of this coming since COVID-19 hit. It’s just shocking how everything is intensifying and nothing is happening to stop the downfall. I think we’re going to see very chaotic times in Europe, but out of chaos comes order. It might be wise to leave the EU for a while until everything collapses and then rebuild – economically and politically. With the collapse of the Euro, we may see strong independent currencies again, we may eventually see an adaptation of crypto, we may also see the Euro split into a North and South Euro. Competitiveness will probably improve to compete with the US and China. All of this will create opportunities for us as entrepreneurs. But right now we are seeing the fall, not the rise.
By the way, as I’m looking for companies to buy, I’ve talked to many dozens of entrepreneurs lately. Now, I often start the first meeting by asking if he plans to leave Germany after successfully selling his business. With increasing regularity, the answer is yes. We’re not alone. Something has to be done.
Overall, out of chaos comes order, and we as man must now be masculine, stand up, and (re)build.
