Germany has long led the “green” parade, touting its alleged transition to wind and solar energy and encouraging other nations to follow in its footsteps. The “green” pretense has always been exaggerated if not downright fraudulent, as Germany has never managed to meet more than a small percentage of its energy needs with wind and solar.
But now, the chickens are coming home to roost, as German manufacturers are seeing their costs explode:
German producer prices rose in August at their strongest rate since records began both in annual and monthly terms, driven mainly by soaring energy prices, raising the chances that headline inflation will surge even higher.
Producer prices of industrial products increased by 45.8% on the same month last year, the Federal Statistical Office reported on Tuesday.
45.8%! It is hard to see how German manufacturers can remain competitive in world markets.
The cause of the problem is not a mystery:
Energy prices in August on average were over double the same period last year, up 139%, and 20.4% higher than the previous month, the office reported.
Producer prices for electricity rose 174.9% compared with August 2021 and by 26.4% compared with the previous month.
Despite the investment of billions of dollars and years devoted to an alleged transition, wind and solar energy are utterly unable to power a modern economy, as the Europeans are learning the hard way. Let’s hope we can learn from their example.