Folks, Europe is collapsing. It is heading off a cliff without a parachute. In fact, it's getting so bad that I don't even know if there's going to be a Europe anymore. by the end of next year in France, they're already talking about selling the Eiffel Tower just to pay the energy bill for a couple extra nights in Italy.

they are already starting to discontinue. Pasta and pizza is next, both big energy gobblers. In England, they are thinking of selling the Queen and of course shutting off the power in Buckingham Palace. And don't you even ask what they are about to do in Germany with those damn pretzels.

It uses way too much energy to roll that doe to perfection. And in this video, I want to give you a look at how Europe is collapsing right now. I am going to go line by line through the issues and what you need to know. And to be quite frank with you folks, you need to watch this video to entirely or I'm afraid that you too may collapse just like Europe.

which is to say quite a lot. Quite a lot indeed. We will put all the time stamps down below and this video is brought to you by the up to 13 free stocks that you will get with Moomoo if you sign up and deposit using our link down below. Excellent and powerful trading platform.

Make sure to check them out before the deal expires. So I want to go ahead and start with the obvious energy problems due to the Russian situation and shortages of alternative energy sources. While energy costs in Europe have reached levels so high that European governments literally have to pay consumers and businesses to make up the difference. and even that is far far from enough.

the New York Times reported this morning, European governments from Germany to Greece are burning through billions of Euros a month to subsidize consumers and businesses electricity bills, which are in some cases, five times as high as last year. Five times as high as last year. Five times high is actually one of the lower estimates that I've seen. German front year power contracts are predicting net increases that could exceed 1 000 percent by the end of winter.

This is not a nice chart, folks. nine is good chart. And again, governments are attempting to subsidize in order to soften the blow to the economy. but government help is only helping with a small fraction of the total bill.

And not every European country is subsidizing energy costs. And in fact, it was just reported that European power firms need 1.5 trillion Euros to cover the cost of their exposure to storing gas prices and ward off margin calls 1.5 trillion? How much is 1.5 trillion? That's more than the entire gdp of the country of Spain in 2021.? So they are saying they need Europe to print up about the entire gdp of Spain in order to get the needed security not to collapse and that still won't solve at all. For supply, you still have supply, chain shortages, and if this continues a year from now, you have to print up another trillion plus dollars, if not more. As more and more firms have these problems, Bloomberg reported recently gas prices surged more than 35 on Monday as traders reacted to Russia's decision to keep its main gas pipeline shut down indefinitely.

The Euro slid to its lowest in two decades, and equities fell. If prices of a crucial commodity that is needed in every aspect of an economy can go up 35 in a day, well, there goes your economic stability. Imagine if this continues to go on quarter after quarter after quarter as we head into 2023 and even 2024., it's a hugely unstable situation and it's only going to get worse. The problem is that right now we are in Summer, but we are heading into Fall and then winter.

What happens as the weather gets colder and colder, well, energy prices go up dramatically, and when you have a shortage of energy at the same time, when you're about to have skyrocketing demand, well, that is no pretty picture. Not a picture that I'd line up to look at. The Berg of Bloom ran an article this morning forecasting that things are so bad that Europe's winter gas shortages are set to last until 2025, and that the depletion of European reserves are going to take a long time to even start restacking. And according to France 24, which is slightly better than French 23, analysts at Rystead Energy say Europe could face a serious electricity shortage as soon as this month.

This winter, a worst case of cold weather, low wind generation, and a 15 cut in gas use would prove very challenging for the European power system and could lead to power rationing and blackouts. So here you have them saying, hey, even if you manage to cut gas use down by 15, it's still going to be extremely, extremely challenging. You add in a tough winter and all of a sudden bam, you're almost guaranteed to get what power rationing and rolling blackouts. So if you cannot solve for supply, if there's no way to increase supply, what do you do? Well, you have to solve for demand.

And it was announced today that the Eu is attempting to order mandatory cuts and electricity use during peak hours as part of their new Energy Crisis plan. and as this is one of the earlier plans to address this crisis, we can only imagine that things are going to get worse and we can only imagine that individual countries will have to start taking aggressive action themselves, which will likely be even more far-reaching But if you look at the E-u's plan, you have a revenue cap on certain energy producers and a so-called solidarity contribution tax on fossil fuel corporations. I like how they talk about taxes over in Europe. Yes, this is a solidarity tax.

You're paying this tax. not because we're punishing you, but because you're standing in Solidarity. But the solidarity is well, mandatory. and by gunpoint, all of this is bad.

But again, at the end of the day, Europe is heading for a much bigger crisis in the upcoming months and especially into winter as energy demand skyrockets. But energy supply continues to dwindle and shortages are expected to be so bad that banks are already taking steps to prepare for blackouts. Banks across Europe are bracing for energy rationing and possible power outages this winter by getting backup generators ready so that they won't leave big transactions and Atms in the dark if energy crisis worsens. and get this.

on top of all the things I just mentioned, there are even more substantial sanctions coming in December and February sanctions that will not be phased in, but will all of a sudden hit all at once. The Eu sanctions package is set to ban all Russian crude oil imports by sea into the block starting December 5th and all refined oil products starting February 2023, which is only going to make supply substantially lower and will shock markets all at once. And while energy may be in short supply, you know what is not in short supply. The free stocks that you're going to get when you sign up with Moomoo using our link down below.

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Next, we need to talk about the European inflation crisis and their own battles with their own central bank in the Eu. The year-over-year inflation rate right now is at about 9.8 percent on average, which is a disaster. However, in some Eu member countries, that number stretches as high as 23.2 percent year-over-year And so the European Central Bank, while it has already been hiking rates, is expected to go much further and do a jumbo rate hike as the economy is already barreling towards a recession and everyday people are already getting hammered by high costs everywhere and getting completely gutted by energy prices and shortages. And why do you do a rate hike? Well, you do a rate hike because you are trying to get money to stop circulating around the economy.

You want to aggressively force the economy to contract so that prices go lower. And why do you do a jumbo rate hike? Because you want to put such a huge and massive sudden burden on the economy that the economy has no choice but to immediately knee jerk into basically colliding and stopping the circulation of capital, immediately causing a cease in much of the economic activity. It's also a indirect way to control energy demand, instead of the Eu trying to get individual member countries to cut back on their citizens' usage of energy, which quite frankly they've had a hard time doing well, the central Bank over there is instead attempting to mug the economy of each individual country to the extent that businesses and consumers can no longer afford to partake in the same level of economic activity and thus overall demand. For moving around, that economic activity drops.

Now, of course, there is always a baseline of energy demand that is needed for survival, and as long as there's a massive supply shortage, there's only so much that you can slow down the economy and still get that needed drop in energy prices. So essentially Europeans are being pushed to an area where they're going to have less and less money at the same time, where their money goes less and less far, which is really the worst of both angles. and this is going to be true until they actually fix the supply issue. Meanwhile, the lack of supply and energy is driving prices of everyday living expenses like food up faster than you can say.

Wow, that's expensive. Next, the debt crisis. So we'll start with private sector lending. This chart measures the three months change in outstanding loans.

Private sector lending is ballooning at a clip that the Eurozone has not seen since before the 2008 crisis. You look at household mortgage lending. It's ballooning at levels that rival pre-2008 Whether you are talking lending to households or lending to corporations, debt is getting out of control. Europe is funding the inflationary spiral with mounds and mounds of debt.

So let me ask you this question: What happens when citizens and corporations can no longer afford to pay the servicing costs on this debt? because the economy is getting gutted by both natural results of an overall supply shortage, and of course, very, very aggressive central banks? Or because, perhaps down the line? There's mandatory shutdowns on businesses during certain hours of the day in order to consume less energy, or just spontaneous blackouts. And what about public debt? Measures to control energy costs are coming at a huge cost themselves. Under the new Uk Prime Minister, Liz Truss, the Uk government has signaled that it will soon announce its own cap on prices at an estimated cost of around 100 billion pounds. money that seemingly will largely be spent subsidizing energy bills for customers that will be larger than the 70 billion pounds they spent on their furlough program that helped 11.7 million workers during the pandemic.

And it will be about a quarter of the overall cost of Covet 19. To the Uk government, and a lot of estimates are putting this program at not a hundred billion pounds, but actually 200 or even 300 billion pounds. Which means that it could actually rival everything they spent on Covet. And this is just one package if country after country follow suit to use aggressive spending measures to basically subsidize the cost of energy without actually doing anything to solve for demand, and without doing anything more importantly to solve for supply.

It's very easy to see how over time many governments may actually end up spending amounts of money that surpassed what they spent during the entire pandemic. It is easy to see European government after European government going and overspending and overspending borrowing as much as possible. This energy crisis is going to put a massive, massive toll on the public sector, and it's still at the same time going to continue to put a massive toll on individuals and corporations, and the longer this drags on, the more exponential the toll is going to be. This has all resulted in European Union consumer confidence now being lower than coveted lows, and lower than during the Great Recession.

Not a good time over there folks heading rapidly towards a collapse. It's a very, very bad picture. Anyways, folks, let us know what you think down below about this European collapse. How will this affect the Us stock market? Let us know your thoughts down below.

If you enjoy content like this, make sure to hit that ravishing like button and also subscribe. If you want to get your 13 free stocks with Moomoo, I will put a link to that down below. If you want to join us for lifetime access to Zip Creator U, I will put a link to that down below as well. Have a good one folks and I will see you in the next video.