Last month, the Vice President of Germany warned everyone that due to the energy crisis leading to rising government expenditures, if the situation does not improve in the future, the German government may go bankrupt.

Unexpectedly, the latest economic data released by Germany this month indicates that the German people may feel the threat of bankruptcy sooner.

The energy crisis triggered by the United States, but the whole of Europe ends up footing the bill.

So, will the United States ultimately get what it wants?

01, Inflation affects income

According to the latest data released by the Federal Statistical Office of Germany on the 3rd, in 2022, the income of Germans will decrease due to a significant rise in inflation.

Under the impact of high inflation, the real income of residents has seen the highest decline since 2008. In particular, Germany's consumer prices increased by a record 7.9% in 2022.

Although the income of the German people rose by 3.4% during the same period, the prices rose even faster, so the real income decreased, and it decreased by more than 4%.

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After the outbreak of the Russia-Ukraine war, high inflation caused by high oil prices not only affected Germany but also the entire Europe.

Some authoritative economic organizations predict that high inflation in Europe will not be curbed soon, which means that the German people will still face a decline in real income and purchasing power in the next two years.02, European Companies' Relocation

The United States' strategic plans at least include two objectives, one of which is Europe's industry.

In the second half of 2022, the U.S. government introduced a new bill, attempting to transfer Europe's best manufacturing companies to the United States through substantial subsidies.

Nowadays, American companies are very attractive to Europe, one of the reasons being that the United States has a stable energy supply and relatively low prices. With the addition of subsidies, the appeal is even greater.

Currently, many chemical companies in Germany are forced to reduce production, and the German automotive industry will also cut production due to energy issues. They unanimously believe that if they move their production lines to the United States, there would be fewer energy-related problems, and as long as there is sufficient output, the company's revenue can be maintained.

Of course, France and Germany cannot tolerate the United States using such means to steal companies from Europe, so they have repeatedly protested to the United States.

03, U.S. Dollar Suppressing the Euro

The other target is to undermine the Euro.

Since its inception, the Euro has developed over two decades and has gradually become the second-largest currency. Its share of global payments is only lower than that of the U.S. Dollar and is continuously approaching, which poses the greatest threat to the United States.

Therefore, the United States has been using economic and fiscal measures to restrict the development of the Euro.The UK had already withdrawn from the Eurozone, with the shadow of the United States behind it.

Ever since the conflict in Europe, the US has begun to impose economic sanctions on Russia, leading to a global increase in energy prices. In addition to forcing Europe to pay the bill and bear a greater economic cost, the US has also taken the opportunity to export a large amount of liquefied natural gas to Europe, making a substantial profit.

04. US debt could explode

However, the United States may not get what it wants, as its own crisis could ferment at any time. If it cannot be alleviated, it may even trigger a financial nuclear explosion.

The US was in a technical recession in the first and second quarters of last year, but after an astonishing GDP growth of 3.2% and 2.9% in the third and fourth quarters, it seems that the US has emerged from the economic depression.

But in reality, the US is facing a more severe financial crisis. If the US debt crisis erupts, the economic crisis in the United States could be worse than in 1929.

The total amount of US Treasury bonds currently issued is close to 31.4 trillion. If the US Congress raises the limit, the debt will be even more.

However, the continuous issuance of Treasury bonds requires a large number of buyers, and the liquidity of US debt seems to have been exhausted. Now, the force of selling is greater than that of actively buying, and the price of US debt has become very unstable.

Now, the main buyers of US debt are private and institutional investors, and central banks of various countries have already sold out. If the selling tide further expands to institutions, the crisis will erupt instantly.