(DCNF)—Germany fully bought into the green energy transition, but its economy is now showing serious signs of weakness as a prolonged energy crisis runs its course.
The country is aiming to have its energy supply and demand reach “net-zero” emissions by 2050, relying on sources like wind, solar and hydrogen fuels after former Prime Minister Angela Merkel decided in 2011 to eventually shutter the country’s nuclear power plant fleet. Despite the German government’s regulatory and spending blitz to usher in the green transition, the country is not on track to meet its climate goals, but its decision to rely on intermittent green energy generation has contributed to an ongoing energy crisis that is crippling its economy.
“Hollowing out the economy is not benefiting the German people, nor is it helping climate change,” Diana Furtchtgott-Roth, Director of the Center for Energy, Climate and Environment at the Heritage Foundation, told the Daily Caller News Foundation. “It is not reducing emissions, because manufacturing is being shifted to other nations, like China and India, that use dirtier energy. The German economy is going down, and their people do not have the jobs and economic opportunities that they used to.”
Germany Rules Out Keeping Nuclear Power On Despite Energy Crisis https://t.co/dYUfJrJhQK
— Daily Caller (@DailyCaller) September 8, 2022
Germany ultimately closed the last of its nuclear power plants in April 2023. Several months later, the German government announced that it would activate coal-fired power plants to ensure adequate supply through this winter.
The signs of Germany’s economic withering are numerous, perhaps most visible in the fact that it shrank in 2023 after growing by less than 2% in 2022, according to Euronews. The country is facing the high borrowing costs and inflationary pressures that are dogging many of the West’s economies, but sticky energy inflation remains the key factor in the country’s economic malaise, both for consumers and corporations, according to Reuters.
In the third quarter of 2023, the German electricity sector generated 20% less power than it did in the same period in 2022, according to the GMK Center. On the demand side, Germany’s 2023 energy consumption was about 8% lower than 2022’s levels, and about 25% lower than energy consumption in 1990, according to Clean Energy Wire.
The country’s consumer price index for electricity is nearly 50% higher in December 2023 than it was in January 2021, according to data from Eurostat. Executives of industrial companies are warning that high energy costs are making their continued presence in Germany potentially untenable, while many firms are beginning to move their operations out of Germany, according to Politico.
Germany’s November 2023 manufacturing Purchasing Managers’ Index (PMI), which is “a gauge of overall business conditions based on measures of new orders, output, employment, supplier delivery times and stocks of purchases,” indicate that executives across the entire sector are decidedly pessimistic about their future prospects and the vitality of the sector, according to S&P Global. It is difficult to understate the potential ramifications of the decline of German manufacturing given that the country earned its reputation as Europe’s economic powerhouse primarily on the strength of its manufacturing sector, which has typically provided about 20% of the country’s annual gross domestic product since 1991, according to World Bank data analyzed by Macrotrends.
Germany’s manufacturers are not the only ones feeling the pinch. German farmers recently engaged in a weeklong wave of protest across the country, voicing their anger about the government’s proposal to plug a massive budget gap by eliminating subsidies that allow them to stay in business.
The budget gap especially threatens climate-related initiatives, many of which still require government subsidies to have a chance at succeeding even after the government has already spent hundreds of billions of euros on the green agenda, according to The New York Times.
Meanwhile, the country’s residential real estate prices have fallen precipitously over the past year or so, according to Reuters. The third quarter of 2023 saw residential real estate prices dropped by 10% year over year, a development which Reuters describes as a “grim sign” for the German economy.
While Germany’s energy crisis was many years in the making, Russia’s ongoing war with Ukraine kicked it into overdrive. Before the war started, Germany had become reliant on cheap Russian natural gas, even amid warnings — including one from former U.S. President Donald Trump — that depending on Russian exports would afford Russian President Vladimir Putin significant geopolitical leverage over Europe.
The conflict is still raging, and it remains unclear when it will end or what the terms of concluding the war will look like. One such sticking point is whether or not Russia and Ukraine will be able to renegotiate a natural gas transit deal to replace the current agreement, which expires in 2024, according to Bloomberg News.
The current Russia-Ukraine transit agreement allows for Russian gas to flow through Ukraine and into other European countries in exchange for Russian fee payments to Ukraine, according to Bloomberg. Without a new deal in place, Germany and Western Europe may be at risk of enduring another supply pinch, prompting German Economy and Energy Minister Robert Habeck to warn in June that “there is no secure scenario for how things will turn out” for the German economy if it is unprepared for another round of supply disruption.
The meager economic outlook and energy crisis is also shaking up German politics. The Alternative for Germany (AfD), the country’s leading right-wing populist party, has seen its popularity more than double since the Russian invasion commenced, according to polling data aggregated by Politico. About 80% of the German population is unsatisfied with the performance of the current coalition, and more than half of the country wants elections to occur before 2025, their currently scheduled date, according to Bloomberg News.
The German Federal Ministry for Economic Affairs and Climate Action did not respond immediately to a request for comment.
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Five Things New “Preppers” Forget When Getting Ready for Bad Times Ahead
The preparedness community is growing faster than it has in decades. Even during peak times such as Y2K, the economic downturn of 2008, and Covid, the vast majority of Americans made sure they had plenty of toilet paper but didn’t really stockpile anything else.
Things have changed. There’s a growing anxiety in this presidential election year that has prompted more Americans to get prepared for crazy events in the future. Some of it is being driven by fearmongers, but there are valid concerns with the economy, food supply, pharmaceuticals, the energy grid, and mass rioting that have pushed average Americans into “prepper” mode.
There are degrees of preparedness. One does not have to be a full-blown “doomsday prepper” living off-grid in a secure Montana bunker in order to be ahead of the curve. In many ways, preparedness isn’t about being able to perfectly handle every conceivable situation. It’s about being less dependent on government for as long as possible. Those who have proper “preps” will not be waiting for FEMA to distribute emergency supplies to the desperate masses.
Below are five things people new to preparedness (and sometimes even those with experience) often forget as they get ready. All five are common sense notions that do not rely on doomsday in order to be useful. It may be nice to own a tank during the apocalypse but there’s not much you can do with it until things get really crazy. The recommendations below can have places in the lives of average Americans whether doomsday comes or not.
Note: The information provided by this publication or any related communications is for informational purposes only and should not be considered as financial advice. We do not provide personalized investment, financial, or legal advice.
Secured Wealth
Whether in the bank or held in a retirement account, most Americans feel that their life’s savings is relatively secure. At least they did until the last couple of years when de-banking, geopolitical turmoil, and the threat of Central Bank Digital Currencies reared their ugly heads.
It behooves Americans to diversify their holdings. If there’s a triggering event or series of events that cripple the financial systems or devalue the U.S. Dollar, wealth can evaporate quickly. To hedge against potential turmoil, many Americans are looking in two directions: Crypto and physical precious metals.
There are huge advantages to cryptocurrencies, but there are also inherent risks because “virtual” money can become challenging to spend. Add in the push by central banks and governments to regulate or even replace cryptocurrencies with their own versions they control and the risks amplify. There’s nothing wrong with cryptocurrencies today but things can change rapidly.
As for physical precious metals, many Americans pay cash to keep plenty on hand in their safe. Rolling over or transferring retirement accounts into self-directed IRAs is also a popular option, but there are caveats. It can often take weeks or even months to get the gold and silver shipped if the owner chooses to close their account. This is why Genesis Gold Group stands out. Their relationship with the depositories allows for rapid closure and shipping, often in less than 10 days from the time the account holder makes their move. This can come in handy if things appear to be heading south.
Lots of Potable Water
One of the biggest shocks that hit new preppers is understanding how much potable water they need in order to survive. Experts claim one gallon of water per person per day is necessary. Even the most conservative estimates put it at over half-a-gallon. That means that for a family of four, they’ll need around 120 gallons of water to survive for a month if the taps turn off and the stores empty out.
Being near a fresh water source, whether it’s a river, lake, or well, is a best practice among experienced preppers. It’s necessary to have a water filter as well, even if the taps are still working. Many refuse to drink tap water even when there is no emergency. Berkey was our previous favorite but they’re under attack from regulators so the Alexapure systems are solid replacements.
For those in the city or away from fresh water sources, storage is the best option. This can be challenging because proper water storage containers take up a lot of room and are difficult to move if the need arises. For “bug in” situations, having a larger container that stores hundreds or even thousands of gallons is better than stacking 1-5 gallon containers. Unfortunately, they won’t be easily transportable and they can cost a lot to install.
Water is critical. If chaos erupts and water infrastructure is compromised, having a large backup supply can be lifesaving.
Pharmaceuticals and Medical Supplies
There are multiple threats specific to the medical supply chain. With Chinese and Indian imports accounting for over 90% of pharmaceutical ingredients in the United States, deteriorating relations could make it impossible to get the medicines and antibiotics many of us need.
Stocking up many prescription medications can be hard. Doctors generally do not like to prescribe large batches of drugs even if they are shelf-stable for extended periods of time. It is a best practice to ask your doctor if they can prescribe a larger amount. Today, some are sympathetic to concerns about pharmacies running out or becoming inaccessible. Tell them your concerns. It’s worth a shot. The worst they can do is say no.
If your doctor is unwilling to help you stock up on medicines, then Jase Medical is a good alternative. Through telehealth, they can prescribe daily meds or antibiotics that are shipped to your door. As proponents of medical freedom, they empathize with those who want to have enough medical supplies on hand in case things go wrong.
Energy Sources
The vast majority of Americans are locked into the grid. This has proven to be a massive liability when the grid goes down. Unfortunately, there are no inexpensive remedies.
Those living off-grid had to either spend a lot of money or effort (or both) to get their alternative energy sources like solar set up. For those who do not want to go so far, it’s still a best practice to have backup power sources. Diesel generators and portable solar panels are the two most popular, and while they’re not inexpensive they are not out of reach of most Americans who are concerned about being without power for extended periods of time.
Natural gas is another necessity for many, but that’s far more challenging to replace. Having alternatives for heating and cooking that can be powered if gas and electric grids go down is important. Have a backup for items that require power such as manual can openers. If you’re stuck eating canned foods for a while and all you have is an electric opener, you’ll have problems.
Don’t Forget the Protein
When most think about “prepping,” they think about their food supply. More Americans are turning to gardening and homesteading as ways to produce their own food. Others are working with local farmers and ranchers to purchase directly from the sources. This is a good idea whether doomsday comes or not, but it’s particularly important if the food supply chain is broken.
Most grocery stores have about one to two weeks worth of food, as do most American households. Grocers rely heavily on truckers to receive their ongoing shipments. In a crisis, the current process can fail. It behooves Americans for multiple reasons to localize their food purchases as much as possible.
Long-term storage is another popular option. Canned foods, MREs, and freeze dried meals are selling out quickly even as prices rise. But one component that is conspicuously absent in shelf-stable food is high-quality protein. Most survival food companies offer low quality “protein buckets” or cans of meat, but they are often barely edible.
Prepper All-Naturals offers premium cuts of steak that have been cooked sous vide and freeze dried to give them a 25-year shelf life. They offer Ribeye, NY Strip, and Tenderloin among others.
Having buckets of beans and rice is a good start, but keeping a solid supply of high-quality protein isn’t just healthier. It can help a family maintain normalcy through crises.
Prepare Without Fear
With all the challenges we face as Americans today, it can be emotionally draining. Citizens are scared and there’s nothing irrational about their concerns. Being prepared and making lifestyle changes to secure necessities can go a long way toward overcoming the fears that plague us. We should hope and pray for the best but prepare for the worst. And if the worst does come, then knowing we did what we could to be ready for it will help us face those challenges with confidence.
