This famous quote from Henry Kissinger is now unfolding in real-time as Germany, Europe’s largest economy, experiencing a severe economic slowdown. Economic Minister of Germany, Robert Habeck, has acknowledged the dire situation, with Germany being the only global economy to experience 0.3% contraction in 2023. Despite hopes for a comeback in 2024, the growth forecast has been slashed to just 0.2%. This is not just a temporary recession, but a deeper structural issue with the German economic model. Two out of three German companies have left or partially relocated due to factors like high energy prices, inflation, overregulation, and political debates. The true cause of this collapse lies in how Germany has been manipulated by the US, leading to devastating consequences for its long-standing economic and industrial prowess.
Germany’s Economic Challenges
Germany’s economy faces three major challenges: declining exports to China, high energy prices and rising military spending. While these issues seem, disparate some argue that the US plays a key role in all these issues. For example, US-China trade war has impacted the German exports, US sanctions on Russia and blowing off Nord Stream Pipelines has increased energy prices in Germany and US’s recent erratic policies towards NATO increased Germany’s military spending.
Germany’s declining Exports to China
Germany was the world’s export powerhouse, with its main exports of motor vehicles, machinery, and chemical products being the lifeblood of its economy. Crucially, China has been Germany’s main trading partner every single year for the past eight years, including being an essential and massive export market for German goods. Simply put, China’s market is indispensable to Germany’s economy. However, this vital relationship is currently under attack by the US. Consider the companies Volkswagen and Badische Anilin-und Sodafabrik (BASF), two of Germany’s largest companies by annual revenue and thus two key contributors to the German economy. Only last month, they were coerced by the US Government into shutting down their factories in China, specifically in the western province of Xinjiang. It’s here that for many years, the US Government and military-industrial complex have pushed the narrative that China has enslaved the local Muslim Uyghurs population and subjected them to ethnic cleansing and forced labor, despite overwhelming evidence that clearly shows this is not true.
How the US Government Forced Germany to Leave China
The US Government used coercion to force German companies like BASF and Volkswagen to leave China. This was done through the Interparliamentary Alliance on China (IPAC), a group funded by the National Endowment for Democracy and George Soros, with a goal of containing China’s growing influence. IPAC threatened BASF, citing alleged involvement in human rights abuses in Xinjiang, based on questionable reports by anti-China activists like Adrien Zen. When BASF did not comply, IPAC intensified pressure, leading to a halt in their operations. A similar playbook was used against Volkswagen, with accusations of complicity in the same abuses. This tactic of using threats, coercion, and sanctions to align companies and countries against China has become a common strategy for the US Government, with examples of other German automakers being targeted and even impounded. Overall, the US pushes for containment of China, even at the cost of damaging economies and relationships.
Companies like Volkswagen and BASF, forced to exit Xinjiang, have caused significant job losses in the region, impacting Uyghur workers the most. Despite warnings from experts and business leaders that decoupling from China would harm the German economy, Germany’s political elite, mainstream media, and population have followed America’s lead in demonizing China. This blind acceptance of US foreign policy narratives has a long history in Germany, even when it ultimately harms them. The loss of livelihoods for Uyghurs in Xinjiang due to companies pulling out highlights the unintended consequences of blindly following American policy decisions. The emphasis on obeying America’s wishes without considering the repercussions shows a lack of foresight in German political and media circles. The potential destruction of the German economy through decoupling with China serves as a cautionary tale for blindly following external influences.
How the US Bombed the Nord Stream Pipeline
The bombing of the Nord Stream Pipeline, carrying natural gas from Russia to Western Europe, is believed to have been carried out by the US. President Joe Biden stated before the invasion of Ukraine that the project would be ended if Russia took action. Additionally, the US has long sought to reduce Germany’s dependency on Russian energy. Journalist Seymour Hersh detailed how the bombing was planned and executed by the US. Shockingly, German media largely ignored this information and instead focused on discrediting Hersh. Many Germans believe Nord Stream Pipeline Western nations, with their democratic values, would not commit such acts. This incident highlights the common perception that Western countries are always the good guys and would not engage in such actions or war crimes.
Germany’s High Energy Prices
Germany’s energy prices have soared due to sanctions against Russia after the invasion of Ukraine in 2022, leading to a significant decline in the country’s economy. As Germany heavily relied on Russian gas imports, the decrease in supply caused a massive spike in energy prices. The market price of natural gas increased over 10-fold, with electricity prices also skyrocketing. This has burdened German citizens and businesses, with many companies relocating abroad. The country’s economic and industrial sectors have been severely impacted, causing a ripple effect throughout Europe. The EU and Germany have been forced to seek more expensive energy sources, such as the US, leading to accusations of profiting from the crisis. The US’s role in Germany’s energy crisis, along with its part in causing the war in Ukraine, has exacerbated the situation. The future looks grim as Germany struggles to cope with the aftermath of soaring energy prices.
How NATO Started Germany’s Energy Crisis
Russia perceives NATO’s Eastward expansion as an existential threat, and the Kremlin has been very clear that expanding all the way to the Russian borders, such as in the case of Ukraine, is a red line that cannot be crossed. Despite this, the US and its allies have always welcomed and even encouraged its expansion in what is commonly referred to as NATO’s Open-door Policy. Former Secretary-General Lord Hastings Isme, who famously said that ‘the purpose of NATO is to keep the Americans in, the Germans down, and the Russians out,’ makes sense now. Russia’s general sentiment towards NATO and its expansion was perhaps best captured by Russian President Vladimir Putin, who last December stated at a news conference, ‘You promised us in the 1990s that NATO would not move an inch to the east; you cheated us shamelessly’ however, once again, Germany shares the blame here. In fact, once again, Germany’s establishment, in virtual lockstep with the US, has been one of the biggest cheerleaders for severing its energy ties with Russia. Even though numerous experts have advised against this, warning it would lead to the utter demise of the German economy and industry, Germany passionately declared it should only do business with countries that are democracies and share our superior democratic values, unlike those evil authoritarian dictators. The German Government then continued to score one goal after another after sanctioning Russia, which led to the loss of its main energy supply. German lawmakers proudly decided to shut down the country’s last three nuclear power plants as well, not because they weren’t working, but rather due to a long-standing hatred of nuclear energy. This, of course, exacerbated the energy crisis even more. In the end, Germany was begging other nations for natural gas and now pays a much higher price for it. It’s simply bizarre that Germany would needlessly sanction and aggravate its main energy supplier, which supplies 55% of its gas, while at the same time clinging to an ideology so unwaveringly that Germany prioritizes doing business with like-minded nations over keeping their own citizens from freezing to death in the winter. It’s unlikely the German Government will change course and come up with real solutions to this tremendous energy crisis. Sigre Rusam, head of the BDI, the umbrella organization of the German industry, said that the German Government argues endlessly and almost dogmatically about problems instead of coming to solutions through factual discourse. This has led to uncertainty among companies and citizens alike.
Germany’s Military Spending
Military expenditures are also hastening Germany’s decline. Over the past decade, Germany has increased its military spending by 42%, as reported by Greenpeace. However, given its current economic dilemma and industrial collapse, Germany cannot afford to persist in funnelling money into its military when it is desperately needed elsewhere. The Greenpeace report underscores that investing funds in other areas would yields superior returns, such as economic growth and job creation. Once again, the blame squarely falls on the US. The escalation of Germany’s military expenditure has been significantly driven by the conflict in Ukraine since 2022, for which the US also bears considerable responsibility. Furthermore, erratic US policies towards NATO have exacerbated this situation. During the Trump Administration, the President repeatedly threatened to withdraw from the treaty, and at NATO’s 2018 Summit in Brussels, he very nearly did so. Trump consistently regarded NATO as a drain on American resources due to European freeloaders. Just last month, he even stated that he would encourage Russia to attack European allies if they failed to meet their military spending targets stipulated by NATO. Germany has persistently fallen short of these targets and has essentially been coerced into increasing its military spending out of fear that the US may no longer provide dependable protection in the long run.
Overall, the US has directly contributed to Germany’s shocking economic and industrial decline. Germany should wake up to this reality and stop letting ideological bias and the supposed moral superiority of the West.