If you want to build and maintain a modern economy for your country, you are going to need a lot of energy in the form of electricity. As we all know, this electricity is fed to all the various machines from virtual machining centers to molding machines to assemble robots.
But of course, before this electricity can be used, it first needs to be created.
The fuel that is used to create electricity in Germany has traditionally been nuclear and coal with a splash of wind energy. But starting back in 2011, Germany pledged to start shutting down their Nuclear power plants as a part of their green initiative.
Unfortunately, green energy is not yet efficient or consistent enough to power Germany's needs, so they selected natural gas as a transitional slash base load fuel. And this all worked pretty well. The green party was able to make good on their campaign promises and industry was able to continue for only a minor increase to production costs. Yes, things were going pretty well for germany.
That was until February of 2022. This is when Russia, the primary provider of natural gas, to Germany, decided to invade Ukraine.
As a result, Germany was forced into a really awkward political situation. You see, Germany was getting 55% of their natural gas from Russia, they did not have any options they could quickly replace that fuel with. Meanwhile, Nato and a bunch of other world powers started slapping sanctions on Russia and accusing them of War Crimes.
Germany really wanted to play hardball, but they really couldn’t do much. They needed that natural gas from Russia for heating houses and for their industry. For several months the rest of the world worried what Germany might do about this situation. They truly were at the mercy of Russia. Germany and Russia would fight over this situation for months. Russia was giving Germany ultimatums threatening to shut-off their fuel. A move that would send their cost of energy skyrocketing, and destroy them as an industrial power for decades to come.
But Germany did something that was truly unexpected and downright unheard of... They opted to stop buying Russian gas and suffer the consequences. Despite the damage this would surely do to their economy, and their people Germany chose to Deindustrialize rather than bend a knee to Russa.
But in late September 2022 there were a series of explosions which took the option of Russian natural gas off the table completely for Germany. You see, Russia was providing the bulk of their natural gas to Germany via the Nord Stream pipeline and it had been destroyed. With the destruction of the Nord Stream, Germanys was made permanent.
This is all a really interesting recent history lesson, but you may be wondering what it has to do with you. Well I have said before that Americains will be bringing their production back to the US. but what we have not yet talked about is the fact that other countries will be bringing their production to the US as well. And with German production off the table for a long time, Germany can not only help relieve the pressure, but they are in fact joining the rush to manufacture things here in the US.
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