US pushes European economy to edge of precipice

March 13, 2023

The European economy is now placed into a scene of utter confusion due to the breakdown in supply chain, price hike and soaring unemployment rate after the outbreak of global health crisis and the Ukrainian crisis. But there is a country which is still feathering its nest from it.

The US Federal Reserve Board, under the pretext of controlling the highest-ever inflation rate in 40 years, stole a march on the European Central Bank in taking a step to raise interest rates drastically. As a result, the value of the US dollar has increased by 12% in less than a year and Euro has weakened by 16% against the former.

The bullish trend of the US dollar has reversed the EU’s balance of trade from the black to the red with the production cost of goods made in Europe already exceeding the competitive price.

Recently, a French research center for economics announced that the reason behind recording the trade deficit in France worth € 164 billion lies in the fact that bearish trend of Euro as opposed to the bullish trend of the US dollar resulted in the deficit in the balance of payments. Prior to this, EUROSTAT also announced that the contributing factor to the EU’s trade deficit worth € 310 billion was the hikes in the import price of natural gas.

Experts are of the opinion that the European Central Bank also has no other choice but to raise its interest rate to cope with the Federal Reserve Board’s increase in its interest rate, which further heightens the risk of a depression.

A high-ranking official of the EU issued a warning that the financial crisis as in 2008 looms up again due to the increase in the value of the US dollar and that many countries will be exposed to dangers similar to the Greek debt crisis, denouncing the Federal Reserve Board as the author of inviting such a situation.

Nevertheless, the US, putting aside the concern of the international society, is sacrificing Europe for the sake of its interests and realization of its wild dream of world hegemony.

It is the US that imposes one-sided trade tax on Europe and makes huge profit by selling liquefied natural gas at the price four times higher than the domestic price. It is also the US which is increasing arms trade, taking advantage of the geopolitical confrontation in the European region and is abducting major European companies by adopting egoistic “Inflation Reduction Act”.

The EU is now transfusing its blood at a “sacrifice price” for the US, hungry vampire. How can the EU’s act be called? Words fail me.

Above facts clearly show that the US is a country that leaves no stone unturned in its bid to seize the hegemony of global economy and that it is also a country which does not want the EU to possess the capability to deal with its own economic issues.

The US is an impudent country which unhesitatingly sells out interests of its allies to realize its wild ambition of world hegemony. It is entirely up to the EU to decide whether to continue to remain a scapegoat for the US or to defend its interests and carve out its future on its own.

Kang Hyon Chol, member of the Association for the Promotion of International Economic and Technical Exchange

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