– Kang Hyon Chol –
Member of Association for the Promotion of International Economic and Technical Exchange
(mfa.gov.kp, February 28, 2023)
European economy is now placed into a scene of utter confusion due to 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 U.S. Federal Reserve Bank, 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 USD has increased by 12% in less than a year and Euro has weakened by 16% against USD.
The bullish trend of the US dollar has reversed the EU’s balance of trade from the black into 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 of € 164 billion lies in the fact that bearish trend of Euro as opposed to the bullish trend of USD 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 in the hikes of the import price of natural gas.
It is the opinion of the experts that European Central Bank also has no other choice but to raise its interest rate to cope with the Federal Reserve Bank’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 USD and that many countries will be exposed to dangers similar to the Greece debt crisis, and blamed the Federal Reserve Bank for being the author of inviting such a situation.
Nevertheless, the U.S., having put aside the concern of the international society, is sacrificing Europe for the sake of their interests and realization of their wild dream of world hegemony.
It is the U.S. that imposes one-sided trade tax against Europe and makes huge profit by selling liquefied natural gas at the price 4 times high as that of the domestic price. It is also the U.S. which is increasing arms trade, taking advantage of the geo-political confrontation in European region and is abducting major European companies by adopting egoistic “Inflation Reduction Act”.
EU is now transfusing its blood at a “sacrifice price” for the U.S., hungry vampire. How can EU’s act be called? Words fail me.
Above facts clearly show that the U.S. 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 of dealing with its own with economic issues.
The U.S. is an impudent country which unhesitatingly sells out interests of their allies to realize its wild ambition of world hegemony. It is entirely up to the EU to decide whether it will continue to be made a scapegoat for the U.S. or to defend its interests and carve out its future on its own.