All Smiles As EU Gears Up For War

Massive borrowing to fund rearmament

• Germany to splurge almost €500 billion in debt-funded spending

• Incoming chancellor Merz breaks election promises to limit borrowing

• EU busts the books and abandons rules to find almost €1 trillion

• Military Keynesianism or the enrichment of public private partners...

• Combined with austerity and the draft for the people?

• Will issuing debt to boost war output make European bonds attractive?

• France's Macron says Russia is re-arming and could attack more countries

• The former Rothschild banker reflects the choreographed chorus in Europe

• Ukraine's missiles grounded as U.S. withholds intel — a warning to NATO?

Related:
Ukraine's Swiss Deceit - Is Kyiv about to be duped by the Davos crowd? (May 26, 2024)
Rule By Mind War And Disinformation - AP fires reporter for claiming Russia attacked Poland but he served the system (Nov 22, 2022)
Why Europe Doesn't Want Peace - It forgets that it drew its civilisation from the East (Mar 01, 2025)
Orwellian Clichés & War As Peace - Who has an interest in conflict? (Mar 05, 2025)

(2,500 words or about 12 minutes of your company).

Mar 7, 2025

There's a war to win in Ukraine, and a continent to defend if the U.S. weakens its commitment to NATO

Three decades after re-unifying east and west, Germany is to militarize on a scale not seen since WW2. The Bundeswehr is back in business.

Germany is committing €500 billion to rearmament, and the European Commission is loosening the purse strings for another €850 billion.

There is no money for border security, services are overrun, public healthare is beign prepared for sale, the number of homeless and families using food banks is rising, pensions are unfunded. It's not only the welfare system that's in trouble, European governments are insolvent.

But they can always find money for war.

Spoiler alert.

That's WHY they can find money for war.

The European press is ecstatic. The propaganda is in your face.

"How the return of the German army could help save Europe" writes Britain's Telegraph newspaper, complete with an animated graphic of toy soldiers.

It is, as Reuters writes, a tectonic spending shift to revamp the military and revive growth in Europe's largest economy.

The message from NATO is: brace for a decade of war.

If you wonder why the press is so eager for war, incoming German chancellor Friedrich Merz, and his associate Mathias Döpfner, who owns just under a quarter of media group Axel Springer (Bild, Die Welt, Politico, Insider) attended last year's Bilderberg Conference together.

The Rothschild journal The Economist accuses Trump of economic delusions. Is that a veiled warning that the dollar could come under attack from the City of London?

Who and why

Does this mean troops once again marching across the Europe's fields?

Not necessarily. This is war as a business model.

Unlike the Green foreign minister Annalena Baerbock and economics minister Robert Habeck, Merz is not a fool. He knows exactly what he is doing. He is a BlackRock money man and his friends will profit mightily.

Gone are the promises not to increase borrowing by the state. Before the election Merz and the CDU promised not to release the "debt handbrake," a constitutional limit on creating new debt. The Basic Law may be amended next week, from March 10.

The perma-party welcomed the debt splurge.

Defence Minister Boris Pistorius (SPD) said: “This is a historic day, for the Bundeswehr and for Germany... We are sending a strong signal to the people in our country and to our allies.”

Shares in German defence companies Rheinmetall, Hensoldt, Thyssenkrupp and Renk jumped. The price of German bunds tumbled sending the yield on ten-year up from around 2.5 per cent to 2.8, the biggest move since 1997.

Economist Veronika Grimm told Neue Osnabrücker Zeitung that debt without reform was "a path into the abyss.”

Economics professor Lars Feld said on X on March 4: “Today is the day from which the German debt brake is history. Germany is no longer a safe haven for bond investors… I wish you all good luck with higher interest rates and inflation.”

War centrists

Merz's promises run parallel with those of French president Emmanuel Macron and British prime minister Keir Starmer.

Both have suggested they want to put boots on the ground in Ukraine, if only as peacekeepers. Merz has supported the unleashing of German Taurus cruise missiles. He is more hawkish than his predecessor.

Whether Western Europe can fight a war is a different matter. Reality is quite different to rhetoric.

Yet leaders are most dangerous when they are weak. The European press has drilled people for three years that Putin is about to invade. Macron warned in televised address that Russian aggression "knows no borders."

The lack of national armies does not stop them triggering a border incident or a false flag, as was done again and again in world wars one and two.

Even in the circles of those cheering furiously as to war, the state of European productivity, Green energy rationing and degrowth suggest this is a long term project.

Let us examine the benefit of war, by nation, interest-group by interest-group.

Germany

It’s likely the Green-Socialist-CDU coalition dedicated to de-industrialisation will remain in power, just with change at the top.

Paradoxically, the CDU and Christian union won most votes, but refuse to ally with the Alternative for Deutschland so they will replicate the same coalition.

Germany is heading into a third year of recession. Some of its biggest names are shifting operations abroad, like BASF and Volkswagen, others like Siemens say they see no reason to increase investment in Germany.

As many as 300,000 jobs could be lost in the metal and electrical industry in the next five years, according to Stefan Wolf, the head of the German employers’ association Gesamtmetall.

Automotive supplier Bosch will lay off up to 10,000 workers.

Will a splurge on weaponry reverse this? The question is whether this is truly an attempt to revive the economy, Keynes style, or simply the enrichment of public private partners.