Europe's Political Energy Policy
Europe's fiat energy policies have left the continent with very real-world problems
The Political narrative in the West, especially in Western Europe, is that green and renewable energy is a limitless source of low-cost, externality-free energy that can power the developed Western economies. In addition, renewables are said to act as a Climate-change elixir that will absolve humans of the guilt associated with the damaging impact of their mere presence on Earth.
We are told usage of fossil fuels is an unsustainable path that is endlessly damaging to the planet and an existential threat to life as we know it. Political prognostications are regularly made that if renewable energy sources are not embraced immediately, the human race may have only a handful of years left.
As a result, Europe and much of the West has spent significant resources and Political effort cultivating renewable energy sources and funding what increasingly looks like fantasy.
The Political fantasy says that by shunning fossil fuels, nations will enhance their own sovereignty and reduce dependency on rival nations. Furthermore, the fantasy claims green adoption is all benefit and no risk.
As the Commenter below notes, this Political delusion has had an abrupt run-in with Objective Truth.
The recent conflict between NATO and Russia (ostensibly concerning Ukraine) has left Europe in a difficult position.
NATO imposed sanctions on Russia, the single largest provider of natural gas to the European continent. Naturally, Russia responded by withholding flows of much-needed natural gas to Europe.
By imposing this Objective externality on the European continent, Putin is teaching his customer-turned-adversary some of the harsh realities their energy policy fantasies ignored.
Despite the Political assertions of the green-fanatic Europeans that renewables are an externality-free solution, those same Europeans could see themselves freezing in the dark this Winter without enough Russian gas. That’s one hell of an externality!
Germany, the largest export economy in Europe, has been neutered without cheap energy flows from Russia. Electricity costs have increased 10x and German factories are being forced to idle. In essence, Europe’s economy has already frozen… a prelude to what awaits its citizenry come Winter.
The juxtaposition between Europe’s Political and Russia’s Objective energy policies is a perfect encapsulation of the ideas we like to discuss in this publication.
On the one hand, European nations have staked their energy policy on solutions that simply masquerade as adequate while being supported in the background by an Objective solution. On the other hand, Russia is pointing out the obvious and forcing Europeans to confront their folly.
In other words, we have a real-world example of Political Truth colliding with Objective Truth.
Moreover, the weapons of this conflict are equally well juxtaposed. NATO has engaged in financial warfare via sanctions, frozen foreign exchange reserves and threats of price caps - fiat weaponry. Russia has withheld the physical commodities needed to power the economies of the West - energy weaponry. One of these is a Political weapon, the other an Objective weapon.
Underpinning much of this conflict is a broader attack on the overly financialized, fiat, Political economies of the West by the real-world, real-work developing economies. It is likely we see much more of this kind of struggle in the coming years.
As always, let’s consult with the Commenters who make mincemeat of the Political narrative:
This will be coming to the USA soon. Cracks are already showing, i.e. Colorado electricity shutoffs and CA blackout threats.
This was incredibly satisfying - thank you!