EU panics, having bet the house on Ukraine.

 HOPING RUSSIAN ASSETS CAN KEEP THEM ALIVE

DADDY IS NOT ANSWERING THE PHONE

We watch as the EU, due to its own delusions and bad decisions, is now panicking. The EU and most of the major economies are now on a path to collapse. The EU was  officially launched in 1993 and due to its green agenda and thoughtless immigration laws, coupled with an aging population, declining manufacturing base and then the disastrous attempt to damage Russia by cutting off its own energy supplies, is now in real trouble. 

I always believed the Ukraine project was a U.S. project originating with the machinations of Zbigniew Brezinski, Jimi Carters Secretary of state. Now watching the refusal of the EU leaders to accept the realties of the Ukraine war, one must wonder if they actually bet their future on gaining access to Ukrainian and Russian resources and control of the Black Sea. Second question is, did this plan originate with MI6 or other Europeans and convinced the U.S. it was doable and a good idea? With that hope rapidly diminishing it seems they are now desperate to save themselves by insisting that they have the right to confiscate the frozen Russian assets. These assets by the way, are actually assets of many Russians, not assets of the Russian government. 

There is quiet rebellion by many in the EU that this permanent freeze will have severe consequences, like giving the Russians the excuse to confiscate European assets still in Russia. It could also cause a flight from the Euro and other possibilities, none of them good.

Today we hear the talk of war in Europe, the continuous drumbeat that Russia will soon invade all of Europe. This is mostly coming from the UK, France and now Germany. At one time the pressure was on Poland to become an active participant in this war, but Poland after some thought, decided, NO. Now it seems France and the U.K. are  encouraging Germany, to put their manufacturing ability to work rearming, a very dangerous and unpredictable outcome for sure. 

The leadership in Germany is also trash talking Russia and hoping to gain public support for war with Russia. Rekindling all the animosity from WW2, WW1 and Versailles, it is a very dangerous decision in their panic. Many analysist worried about a reunited Germany and hoped to keep them in more of neutral position. A rearmed Germany will open up many internal debates about the past.  They could come to the conclusion that Russia is not the cause of their situation and begin to look west. 

At the same time their hope of insuring U.S. support for war if they get themselves in trouble is becoming increasingly unlikely. The U.S has its own problems economically and is stretched thin in many places. 

We see the EU engage in almost continuous meetings, talking among themselves, calling for a ceasefire, NATO troops in Ukraine and other untenable ideas to the Russians. It seems they believe they can bring about the results they want by agreeing among themselves. Not one has thought to call Moscow, maybe they fear Moscow will not even answer the phone. 

What their greatest fear should be is that Russia is in the process of a permanent divorce from Western Europe. Europe has nothing that Russia needs or wants and is looking to the east and south for its future cooperative business. The future of Europe is bleak indeed, with a unstable population, declining manufacturing and no stable energy to replace Russian energy.

It seems their reaction is to impose censorship at home, currency controls and may actually go to a Central Bank digital currency. These trends are already resulting in  the flight of assets out of the region, much of it to the United States.

Europe needs a change of direction and probably a change of leadership if it is to hope to adjust to the new world realignments underway.