Germany is traveling at warp speed toward a complete spiral into an economic collapse reminiscent of the 1930’s. The US intelligentsia has declared that the sanctions imposed on Russia, and in particular Russian oil, have had zero impact on Germany’s economy – and they just can’t get it together. Yet, these barnyard hens and rooster clucks fail to mention that as of December 31, the fuel subsidies will end. Germany has been subsidizing electricity and fuel costs for its citizens thru price limits. Price fixing was the brainchild of FDR – and failed stupendously!
Price fixing is wholly illegal unless you are the government. Under the socialist, FDR New Deal plan, involving several federal agencies in addition to the OPA, he called for heavier taxes, price control, stable wages, stable farm prices, war bond buying, rationing, and less consumer credit. What FDR got was poverty, bread lines, and death.
Germany’s PM Scholz appears to be following this New Deal Protocol and is about to untether the previously instituted price controls in the middle of winter. Since 2019, Germany has been forced to borrow to meet its budget which is in violation of its Constitution mandate, ‘Schuldenbremse, or debt brake’. Unlike other EU countries, Germany has yet to revitalize its economy and has been operating within a recession for the most part of 2023.
Facing an $85 billion deficit for 2023, Germany’s skid marks on the autobahn are due to irresponsible spending on a worthless military, Ukraine, and subsidies to counter the lack of cheap Russian Oil. With hopes to reduce its oil imports from Russia to zero by 2024, Germany is ramping up imports from Kazakhstan. Kazakhstan imports its oil from – Russia. As such, Germany will pay a higher middle man fee to get the same oil it could get directly from Russia – and German citizens will suffer the consequences.
In the midst of Germany’s failure to balance their budget, and manage fuel subsidies for its populations, Scholz has declared that they will spend $8 billion on Ukraine in 2024 which should maintain their entire economy for one year… Apparently, Schulz is unaware that the Ukraine War has virtually ended! As in CRASH landing.
According to Deutsche Welle, Germany committed 17.1 billion Euro for Ukraine since the war’s inception in January 2022. According to their source, Kiel Institute, the US committed 42 billion Euro military aid and another 24 billion in financial aid… = $72 billion US Total. Interesting.
According to The Pentagon White House Media Spin – the US allocation from all departments is closer to $200+ billion… According to a report issued by US Congress, the figures are even more compelling: Total Presidential Drawdowns = $24.5 billion on committed funds of $46.7 billion: $25.93 went directly to the DoD to buy new equipment from Boeing, Northrup and Lockheed for their profit margin. $18 billion for Ukraine’s Security Assistance Initiative. $4.73 billion for Ukraine and any countries impacted by Ukraine for Foreign Military Financing. And $300 million per year for good measure.
The Formal Dictum: “The United States has committed more than $46.7 billion in security assistance “to help Ukraine preserve its territorial integrity, secure its borders, and improve interoperability with NATO”.
Ukraine also has received assistance pursuant to DOD’s security cooperation authorities, notably Building Partner Capacity (10 U.S.C. §333) and Defense Institution Building (10 U.S.C. §332), as well as International Military Education and Training, which has provided professional military education at U.S. defense institutions for Ukrainian military officers. Other State Department- and DOD-funded security assistance has supported conventional weapons destruction, border security, law enforcement training, and counter-weapons of mass destruction capabilities.”
Translation: $26 billion went to the Pentagon to buy new military equipment while they sent Ukraine all the outdated weapons that are useless during Russia’s Winter. And the rest was siphoned via the black book accounting method.
According to CSIS, the US drawdown has been $113 billion which includes such interesting campaigns as; disinformation, energy, and refugee assistance. That’s a heady amount spent by the CIA to create BOTS. Of that, $61.8 billion was given to the DoD. But they can account for less than 10% of the funding. SURPRISE! USAID got $34 billion of which 2/5’s went to Europe, Eurasia, and Central Asia (including – Moldova – find Moldova on a map).
Funny Money. Funny Numbers.
Germany states that their contribution of $8 billion will fund Ukraine for one entire year. ODD. In 2019, Ukraine’s supposed GDP was $153 billion. But the World Bank would have us believe Ukraine’s GDP rose to $200 billion during the Pandemic – an increase of 30%, whereupon by the end of 2022 its GDP tanked the exact same percentage – 30% – leaving Ukraine completely flush despite the WAR and a Pandemic that destroyed the Global economy!
In addition, despite the War – the population of Ukraine has decreased by just 7 million to 36 million despite 5 million refugees in Russia and 3 million in Poland, Germany and Czech Republic and another 2-3 million diaspora in the US and elsewhere. But hey! Ukraine’s GDP PP is now significantly higher since they have 10 million fewer people …
Just in time – The Economist has pronounced that GDP is not really a good indicator of a nation’s economy and we shouldn’t put stock in growth rates. Which is gob speak to reveal that US, German and global growth will be far less than anticipated. Germany’s 2023 growth is -.05% and the US is unknown given every published number is an estimate that must be revised twice before a real number can be modified for public consumption, and an election year approaches. But bombed out destroyed Ukraine is expected to have GDP growth of 5% in 2023…
Go Figure –
