Here's why capital is fleeing Europe… And why the climate scam is to blame
By newseditors // 2025-02-18
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We did promise it after Putin blew up his own pipeline supplying cheap energy to Europe, but the implosion of European auto companies is really something to behold. (Article by Chris MacIntosh republished from InternationalMan.com) Consider this: VW’s profits dropped by 64%. Audi’s profits dropped by 91%. BMW’s profits dropped by 84%. And Mercedes-Benz’s profits dropped by 54%. German carmakers are in trouble. Their business model was based on two things: cheap Russian energy powering the German engineering coupled with sales in China subsidizing antiquated, overblown unions protecting their cost structure at home. The first pillar collapsed and the second is now under severe pressure. China now builds its own decent cars. There’s no need for the Chinese to buy anything other than Chinese cars. Now, let me show you something else. The flow of trade, of course, is seen in the currency markets. What you’re looking at above isn’t so much the dollar gaining as much as it is the euro losing. Capital is fleeing Euroland — exactly as we’ve been promising you it would. Wanna see something else cool? Now, you may look at this and think, “Aha, Chris… look, it’s the cheapest it’s been in over 30 years.” But I think Europe is a value trap. Unfortunately, this is not purely business cycle cyclical. This is terminal. I loved Europe. I lived there for years and traveled around it extensively, so believe me I find no pleasure in my diagnosis, but Europe is completely and totally au-pha-cdup, and I don’t see it getting much better anytime soon. The other component of this is the US markets, because western capital has always played largely between Europe and North America. So if it’s not Europe, well… And it’s fueling this. There are many reasons for the US stock market to outperform. Certainly, the collapse of Europe is a major factor in this. It is one reason I’d be very reluctant to short US stocks, despite their relative and absolute overvaluation. As Energy Goes, So Goes the Economy Solar Firm Collapse Shakes Denmark’s Financial System
The collapse of Denmark’s Better Energy A/S, a once-hyped solar park developer, is sending repercussions through the Nordic country’s financial system and bringing eerie reminders of the recent problems for another green energy champion, Northvolt AB, in neighboring Sweden.
It was inevitable that the renewable energy scam would finally be exposed. What is worth looking at, though, is the extent of carnage left in the wake of the woke virtue signaling crowd. I have long taken aim at the cowards running large pools of capital. They take home their big paychecks and kowtow to the rainbow people with diversity hires and pronoun nonsense while taking the hard-earned and entrusted capital from average folks and ploughing it into isht that never made any sense. And they did it because they’re professional weasels!
Among those burnt are Sydbank A/S, Denmark’s third-largest listed lender, which cut its 2024 financial outlook on Thursday and said Better Energy’s collapse could lead to 450 million kroner ($63 million) in impairment charges. Sydbank shares tanked as much as 8% in Copenhagen, the biggest one-day drop since March. Denmark’s biggest pension fund, ATP, which owns about 15% of Better Energy, will lose a three digit million-krone amount, a company spokesperson told Bloomberg. ATP invested 696 million kroner in 2022, Better Energy’s earnings report for that year shows. ATP said earlier this week it’s taking a major hit on its 2.3 billion-krone stake in troubled battery maker Northvolt, in which the Danish pension fund was one of the largest owners with a stake of about 5%.
It is one thing losing your own money and risking it in some new fad. These muppets running the pension fund should be immediately fired and ridiculed. But you know what? They won’t! They will keep their cushy jobs and pensioners will simply get hosed.
It’s a very disappointing situation,” ATP’s head of Danish equities, Claus Wiinblad, said in emailed comments. “Better Energy has found itself in a situation where the shareholders’ money can’t be saved.
No, it’s not “disappointing,” you moron. It is and always was entirely predictable. If you’d pulled your rainbow coloured head out of your ass, spent more time on the business and financials and less on your absurd ESG ratings, you wouldn’t be in this situation and — more importantly — your clients wouldn’t be facing steep losses. NY at the Pointy End of the Climate Catastrophists The pointy shoes are getting more and more desperate.
New York state will fine fossil fuel companies a total of $75 billion over the next 25 years to pay for damage caused to the climate under a bill Governor Kathy Hochul signed into law on Thursday.
You know what’s going to happen, right? Capital will simply leave New York, and the local government will seek to fill the collapsing revenue gap with higher taxes, which itself will see more folks with the ability to leave and the already dangerous and dirty New York will get worse. Imposing Ideology Brings Conflict Case in point…
Qatar has threatened to stop vital gas shipments to the EU if member states strictly enforce new legislation that will penalise companies which fail to meet set criteria on carbon emissions, human and labour rights. Qatari energy minister Saad al-Kaabi told the Financial Times that if any EU state imposed non-compliance penalties on a scale referenced in the corporate due diligence directive Doha would stop exporting its liquefied natural gas to the bloc.
This legislature is bad for the EU, but they’re already screwed… which is why they now import most of their energy (because it is impossible to do business within the EU). What this legislature basically does is it says that all EU-based companies (already a given) and ALL foreign (non-EU based) companies (such as Qatar) doing business with the EU must adhere to EU rules in all global operations or they will be fined up to 5% of their total global revenues.
Companies must adopt and put into effect a transition plan for climate change mitigation aligned with the Paris Agreement and the 2050 climate neutrality objective, including intermediate targets under the European Climate Law.
Qatar will simply prioritise doing business with the global south, and Europe will be left without energy. Editor’s Note: The Western system is undergoing substantial changes, and the signs of moral decay, corruption, and increasing debt are impossible to ignore. With the Great Reset in motion, the United Nations, World Economic Forum, IMF, WHO, World Bank, and Davos man are all promoting a unified agenda that will affect us all. To get ahead of the chaos, download our free PDF report “Clash of the Systems: Thoughts on Investing at a Unique Point in Time” by clicking here. Read more at: InternationalMan.com
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