[Zeihan on Geopolitics]President Biden is getting into the holiday spirit by slapping a bow and some American Flag wrapping paper on a sweet little surprise for Europe...The Inflation Reduction Act. Inside they'll find a wide array of pro-American manufacturing programs that are less than favorable for the Europeans.
Europe has enjoyed 75 years of safe and lucrative trade thanks to the guns and butter deal we know as globalization, but the Americans have outgrown that model. They are ready to bring some of their manufacturing home, and not in a small quantity...we're talking 12 zeros here. This comes at a time when Biden needs some new footing with the organized labor faction and nothing speaks louder than money.
Europe isn't happy about the American's leveling out the playing field and WTO action has been threatened, but at the end of the day, the Biden administration is going to get its way.