Europe's Deindustrialization: Ukraine War's Ripple Effect | David Woo

The fully recovery of the euro exchange rate to pre-Ukraine war level is a testament of the dramatic reduction of Europe's energy dependence on Russia over the past 18 months. Massive fiscal subsidies and transfers have masked the long-term cost of this reduced dependence and allowed the European Central Bank to raise interest rates to a 22-year high. Yet, it would be a mistake to think that Europe's energy crisis is over. The increase in the relative energy costs faced by Europe compared to the Americas and Asia is seriously undercutting the competitiveness of Europe's industries. Companies are leaving Germany and heading for China and the US. Examples include BASF in China, Siemans in Sinapore, and Volkswagen in Canada. The Deindustrialization Europe is happening and could one day undo the Euro. The decision by European politicians like Olaf Scholz to blindly follow the US regarding the Ukraine war is incomprehensible. Who blew up the Nord Stream pipelines? David Woo, a former top-ranked Wall Street global macro strategist ,tells it as it is. You may not agree with everything he says but he will make you reassess everything you thought you knew.

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00:00 Introduction
00:46 Why has the euro been doing well
04:45 Why Europe will pay a big price
08:32 Why Germany will suffer the most
10:55 Why Germany needs Russian energy