EU solution to energy crisis: print more money and ensure economic crisis!

[savetheFORUM]

This is not some ancient history we're talking about, it's all recent. They recently went on a money printing spree during the pandemic and the consequences of it are being felt today in form of economic crisis. Euro, Dollar, Pound, etc all got dumped because of it and yet to solve the energy crisis they decided to print even more money and inject it into the industry to artificially lower the price for a short time; the reduction is not even that significant and we already know the consequences of market manipulation like this!

Yeah true; those who don't learn from history are doomed to repeat it. The recent monetary policies adopted by central banks in response to the COVID-19 pandemic have led to concerns about inflation and currency devaluation. The injection of large amounts of money into the economy through quantitative easing measures can lead to artificially low interest rates and market manipulation.

The impact of these policies on currency values and energy prices is complex and multifaceted. It's important for policymakers to consider the long-term consequences of their actions and strive to find sustainable solutions that address the root causes of economic challenges, rather than relying on short-term, artificially induced fixes.

Yeah usually economic issues are interconnected and cannot be solved by addressing one problem alone. To solve the energy crisis, policymakers need to address not only the monetary aspects, but also the technological and environmental aspects. In general, it's important for individuals to stay informed about economic policies and developments, and to consider the potential long-term consequences of these policies on their own financial well-being.

[pooya87]

European countries are getting deeper in debt as the energy crisis worsens. For example Germany is going to set a record high debt of $539 billion according to bloomberg

Since you don't live in Europe, you can chill and relax.

Despite some other users insisting on changing the subject, I'm trying to analyze The Big Shuffle that is taking place on a global scale affecting everyone who is living on earth! Such big changes have always affected everyone in history, specially when the World Order is being replaced.

In my opinion what happens to Europe in the next couple of years is the defining factor in the New World Order, hence the focus on Europe.

By the way I want to remind you that Germany had an unbeliveable hyperinflation. It was so severe in 1920 that a waiter would stand up on a table every 30 minutes to call out the new prices. And imagine, in one century Germany, after the ww1 and ww2, managed to become forth largest economy in the world. Don't underestimate Germany and German people.

That's true but you need to expand your view instead of focusing on one country; everywhere you look in the history you see the same rise and falls repeated over and over again. Empires rise and rise until some day they fall and then from those ashes they rise again.

[Synchronice]

Germany, following the results of the Second World War, was totally destroyed. Industry, infrastructure, major cities were destroyed ... Plus, the USSR alone took out (one can say that it unilaterally awarded itself reparations) took thousands of industrial enterprises to the territory of the USSR.
Also, the USSR took out a huge amount of material and cultural values (from banks, vaults, museums, private collections and other sources), both at the state level and by soldiers of the USSR army.

I assume you are from Russia, welcome, I have spent around two years in your country.
I want to remind you that those facts only strengthen what I say. USSR alone took all of that as you say, okay, right but still why is the quality of life in your country so low? Why are there so many alcoholics, why is the life outside of Moscow and Saint Petersburg absolutely terrible? You have all the resources + took the resources from Germany and still life is shit.
If you have such a good state, why is there high demand from students in your country to study abroad in Germany, USA, UK?
Do you really like the look of your soviet architecture when you go outside? Do you really find joy when you go outside and see these buildings?

By the way I want to remind you that Germany had an unbeliveable hyperinflation. It was so severe in 1920 that a waiter would stand up on a table every 30 minutes to call out the new prices. And imagine, in one century Germany, after the ww1 and ww2, managed to become forth largest economy in the world. Don't underestimate Germany and German people.

That's true but you need to expand your view instead of focusing on one country; everywhere you look in the history you see the same rise and falls repeated over and over again. Empires rise and rise until some day they fall and then from those ashes they rise again.

That's absolutely right.

[Cryptodebjoe]

The relationship between the EU conglomerate is quite commendable because considering the current hike in gas prices it would have only been natural for the Euros to colapse to the dollar but its still maintaining parity. this is partly because between 2015 to march 2016 about 700 million euros was printed and circulated. this had and has helped member states to be cocooned from the the pressure of energy and other economic crisis and also debts of all member states will be reduced because they will buy back the bonds

[pooya87]

this is partly because between 2015 to march 2016 about 700 million euros was printed and circulated.

That is too long ago. Try the recent past like from 2019 till today (during COVID19 pandemic and the Russian conflict with NATO) and try trillions printed not millions. For example UK national debt alone grew from about 1.8£ trillion to 3.7£ trillion over past 3 years. This is while between 2016 and 2019 it only went from 1.65£ trillion to 1.8£ trillion.

[Argoo]

In contrast, Russia is steadily reducing oil and gas exports against the West. Germany is one of the most economically powerful countries in the European Union. Germany is known as a leading country in terms of environmental friendly regulations. In Germany, the rate of energy production from solar, wind or hydropower has steadily increased. Germany once used massive amounts of fuel from coal and nuclear reactors, and Europe must now consider alternative energy systems.

If you ask me, Germany did not think about the consequences of their dependence on Russian energy.
Sure they had planned to move towards green energy or alternative energies, but not as fast as they should have to avoid the backlash from the Ukraine war.

Also, I am not sure how to feel on Germany being afraid of nuclear energy, look at France for example, they have managed to turn nuclear energy into a reliable part of their power generation.

If Germany had not thought to use oil and gas in large quantities from Russia, then it would not have supported the construction of the Nord Stream almost until very recently. In Europe, they planned to switch to alternative energy sources, but gradually, stretching this pleasure for more than a dozen years. Russia's attack on Ukraine has confused all plans, and not only Europe.
As for nuclear energy, nuclear power plants are very sensitive to natural disasters. How would Turkey feel now during the current earthquakes, if there were many nuclear power plants on its territory? Therefore, the energy of both the sun and wind is much safer.

[Hispo]

In contrast, Russia is steadily reducing oil and gas exports against the West. Germany is one of the most economically powerful countries in the European Union. Germany is known as a leading country in terms of environmental friendly regulations. In Germany, the rate of energy production from solar, wind or hydropower has steadily increased. Germany once used massive amounts of fuel from coal and nuclear reactors, and Europe must now consider alternative energy systems.

If you ask me, Germany did not think about the consequences of their dependence on Russian energy.
Sure they had planned to move towards green energy or alternative energies, but not as fast as they should have to avoid the backlash from the Ukraine war.

Also, I am not sure how to feel on Germany being afraid of nuclear energy, look at France for example, they have managed to turn nuclear energy into a reliable part of their power generation.

If Germany had not thought to use oil and gas in large quantities from Russia, then it would not have supported the construction of the Nord Stream almost until very recently. In Europe, they planned to switch to alternative energy sources, but gradually, stretching this pleasure for more than a dozen years. Russia's attack on Ukraine has confused all plans, and not only Europe.
As for nuclear energy, nuclear power plants are very sensitive to natural disasters. How would Turkey feel now during the current earthquakes, if there were many nuclear power plants on its territory? Therefore, the energy of both the sun and wind is much safer.

Germany is indeed in an acceleration process of the transition plans towards clean energy after all these attacks on Ukraine soil. Ironically, despite of this Germany has one of the biggest reserves of mineral coal of Europe and the world, they have been counting on them in case things go out of control for a short period of time, actually they have been mining coal, just in case.

Also, Fusion energy (if commercially available) could be a safe replacement to fission facilities.

[jaberwock]

If Germany had not thought to use oil and gas in large quantities from Russia, then it would not have supported the construction of the Nord Stream almost until very recently. In Europe, they planned to switch to alternative energy sources, but gradually, stretching this pleasure for more than a dozen years. Russia's attack on Ukraine has confused all plans, and not only Europe.
As for nuclear energy, nuclear power plants are very sensitive to natural disasters. How would Turkey feel now during the current earthquakes, if there were many nuclear power plants on its territory? Therefore, the energy of both the sun and wind is much safer.

EU learning to use alternative energy is much better solution than printing more money. Do they really think that an economic crisis could lessen the problem in energy? I think it will only make it worse. There's even a saying that making another problem, won't solve the previous problem. Nuclear power plants on the other hand are actually safe. Surprising isn't?

And then each nuclear power plants are located to an isolated area, very far away from the people or in the city so don't worry in case there are earthquakes and other natural calamities but no doubt that natural energies which came from the sun, wind water, heat, and alike are still much safer and more better to use.

[DrBeer]

Germany, following the results of the Second World War, was totally destroyed. Industry, infrastructure, major cities were destroyed ... Plus, the USSR alone took out (one can say that it unilaterally awarded itself reparations) took thousands of industrial enterprises to the territory of the USSR.
Also, the USSR took out a huge amount of material and cultural values (from banks, vaults, museums, private collections and other sources), both at the state level and by soldiers of the USSR army.

I assume you are from Russia, welcome, I have spent around two years in your country.
....

It's close, but not exact
I was born on the territory of the USSR, on the territory of the republic of the RSFSR (now this fragment of the USSR is called the Russian Federation). I was lucky, as a child I left this dull place for a while, lived for 4 years in Europe, although it was part of the Warsaw Pact, and returned to the USSR, but not to the RSFSR, but to the Ukrainian SSR (today's Ukraine).
At the same time, I still have relatives in the RSFSR / RF. And until 2014, I visited the Russian Federation and they came to Ukraine. This is such an introduction to make it clear that I know well what the USSR is, what the modern Russian Federation is and what Ukraine is

I will say right away - Ukraine is certainly not the most ideal country, but a country that has turned its back on the "Soviet ideology" and has chosen the path of development along the European / Western path. Whether we are changing our lives for good or bad is a matter for discussion. But at least we began to move away from the obviously negative vector - an alliance with Russia, and "the Soviet Union number 2."

But Russia, indeed, as you say - HAD a chance to become the largest economy in the world. A technologically advanced country with a high standard of living. Yes, there are resources, and it seems like the heritage of science and technology of the USSR ... But totalitarianism and "genetic craving for the king at the head" led to what you are seeing now ... Degradation, corruption, theft, tyranny of the authorities, in fact, a slave-owning system, tyranny and as it turned out - total fakes in everything - from the economy to the army ....
Smart people - they left Russia a long time ago and live beautifully and happily in the EU, the USA, Canada, and in many other countries ... The rest chose "an empire, greatness, and so that the whole world is afraid of this empire" ...
The results you see how it ends. The result will be a loud pop of the bubble, even louder than the bursting of the USSR.

[Argoo]

If Germany had not thought to use oil and gas in large quantities from Russia, then it would not have supported the construction of the Nord Stream almost until very recently. In Europe, they planned to switch to alternative energy sources, but gradually, stretching this pleasure for more than a dozen years. Russia's attack on Ukraine has confused all plans, and not only Europe.
As for nuclear energy, nuclear power plants are very sensitive to natural disasters. How would Turkey feel now during the current earthquakes, if there were many nuclear power plants on its territory? Therefore, the energy of both the sun and wind is much safer.

EU learning to use alternative energy is much better solution than printing more money. Do they really think that an economic crisis could lessen the problem in energy? I think it will only make it worse. There's even a saying that making another problem, won't solve the previous problem. Nuclear power plants on the other hand are actually safe. Surprising isn't?

And then each nuclear power plants are located to an isolated area, very far away from the people or in the city so don't worry in case there are earthquakes and other natural calamities but no doubt that natural energies which came from the sun, wind water, heat, and alike are still much safer and more better to use.

Current nuclear energy, based on nuclear fission, is very dangerous, as demonstrated by the accidents at the Chernobyl Nuclear Power Plant in Ukraine in 1986 and at Fukushima-1 in Japan in 2011. They still make themselves known with their negative consequences.

But there is also a safer nuclear energy, which is based not on the fission of matter nuclei, but on their fusion, synthesis. Such a reaction occurs on our Sun.

Moreover, thermonuclear fusion is capable of generating four times more energy per kilogram of fuel than nuclear fission (used in nuclear power plants) and almost four million times more energy than burning oil or coal.
This type of energy is now the most promising along with the "green" energy of the sun, wind and other renewable sources.

[icalical]

IMHO, it is overly simplistic to say the excessive money printing is the sole reason behind inflation and energy crises. While governments did indeed inject a lot of money to keep industries afloat, especially in Europe, there are other causes that have contributed to rising costs, including the ongoing war in Ukraine and the disruption of energy supply. Take, for example, the energy crisis in Europe which led by the sanctions on Russia, those cut off a fat slice of gas supply and raised prices across the continent. These are far bigger triggers than just monetary policy.
Printing money certainly stokes inflation, but it's about balancing economic stability and relief for governments now. Germany's 200 billion euro energy package is, for example, part of the necessary greater fiscal support to make sure industries do not fold under increased energy costs. Yes, it's temporary, and there are valid fears that inflation will spill well into 2024 as these supports are unwound by governments.

Moreover some protests are absolutely going on, but they are driven by high energy prices, inflation, and falling real wages for a lot of things. It is not just money printing, it is structural energy issues, disruptions of global supply chains that are not going to be fixed overnight.

[fillippone]

IMHO, it is overly simplistic to say the excessive money printing is the sole reason behind inflation and energy crises.

Let me further simplify it.

The ultimate cause of inflation is government deficit.



Do you really believe that the chokes in the supply chain due to COVID caused this shift in the global economies that led to the purchasing power of the median man in the street?
Saving banks and big corporations with money printing actually saved the government's closest businesses (Banks, big industries) while defrauding common people by devaluing the numeraire denomination currency for their assets.

[pooya87]

Printing money certainly stokes inflation, but it's about balancing economic stability and relief for governments now. Germany's 200 billion euro energy package is, for example, part of the necessary greater fiscal support to make sure industries do not fold under increased energy costs. Yes, it's temporary, and there are valid fears that inflation will spill well into 2024 as these supports are unwound by governments.

Well, I started this topic back in 2022, which means it was not temporary. Things might not be as bad as the peak of the energy crisis but they are still very bad and continue on that path simply because of all these crisis (energy, economical, food crisis, armed conflict, ...).

They bigger their budget deficit, the more they'll print money and the more they print, the worse the situation will get. Nowadays they are increasing their expenses (due to the conflicts they support, like the genocide in Gaza) which means more deficit. So nothing has changed...