As the prospects for any kind of policy reversal diminish, we are potentially facing the wholesale bankruptcy of the European Union. Although this is just one of the possible outcomes, every passing day takes us closer and closer to the ultimate hard landing.
All economic activity runs on energy; as energy resources become scarce, economic activity too becomes scarce. Private citizens, businesses and, in the end, whole nations, can no longer meet their financial obligations.
This is not, therefore, a gentle downshifting into a green utopia peddled by the docile populations and the delusional oligarchy, but rather a systemic breakup that occurs because our real future would be disconnected from the future we assumed.
Because the reset is systemic, and concerns the whole union, massive defaults cannot and will not be allowed to occur. You should not depict this event as an ordinary bankruptcy.
The regime will first react by…
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