Yanis Varoufakis in Conversation with Jeffrey Sachs on the Six Global Crises Confronting Humanity

Jeffrey Sachs and Yanis Varoufakis, who once collaborated to prevent Europe’s self-inflicted harm on Greece, reunite to discuss the world’s current trajectory. Their previous efforts failed, leading to severe repercussions for Ukraine, Palestine, and Europe’s relationship with China. With Trump’s potential return and the abandonment of Europe’s Green Deal, they analyze the perfect storm of global crises, including trade wars, a mounting Cold War with China, the ongoing war in Ukraine, the humanitarian crisis in Palestine, and the accelerating climate emergency. They aim to propose tangible solutions for these pressing issues.

The European Predicament: A Decade of Decline

Almost ten years ago, the radical pan-European movement DM25 was founded with a stark prediction: Europe, entangled in neoliberal policies, would crumble within a decade. This forecast, made in 2015, seems to be coming true in 2025. Europe is now paralyzed, its industry waning, and its moral compass adrift, particularly concerning Palestine. The continent, once a beacon of hope, is descending into warmongering and political decay.

Key Takeaways:

• Europe’s self-harming policies, rooted in austerity and subservience to the US, have led to its current state of paralysis.
• The continent’s de-industrialization and moral decline are evident in its approach to global conflicts and its diminishing relevance.
• DM25, a movement founded on the prediction of Europe’s collapse, continues to advocate for change despite the grim reality.

The Ukraine War: A Preventable Tragedy

The conflict in Ukraine, a war that should never have happened, is largely attributed to 30 years of US foreign policy. Jeffrey Sachs, having advised leaders in Russia and Ukraine in the early 90s, witnessed the unfolding of events that led to this avoidable war. The US, driven by a desire for global dominance and a disregard for neutrality, pushed NATO eastward despite earlier promises. This aggressive stance, coupled with a deep-seated Russophobia in some European nations, has fueled the conflict.

With Donald Trump’s potential return to power, the US is likely to withdraw its support, leaving Ukraine in a precarious position. Trump views the war as a "loser" and a "Biden war," signaling a shift away from continued engagement. This raises a critical question: what will Europe do? The current European stance, pushing Ukraine to fight on despite overwhelming odds, is seen as mind-boggling and destructive. The idea of Ukraine as a neutral country, a concept consistently rejected by the US, could have prevented this catastrophe.

The Geoeconomics of Trump: A Risky Gamble

Donald Trump’s approach to international trade and the monetary system is a subject of intense debate. His proposed policies, including a 30% devaluation of the dollar and widespread tariffs, aim to shift global competitiveness in favor of American exports. However, critics argue that these measures are short-sighted and lack a long-term strategy for technological advancement and education.

Trump’s focus on tariffs and currency manipulation, rather than addressing underlying fiscal imbalances, is seen as a recipe for economic instability. The US’s massive budget and trade deficits are not being tackled at their root. While Trump might end the Ukraine war, his economic policies are likely to lead to higher inflation and lower living standards. The weaponization of the dollar through sanctions and the rise of alternative currencies like the Renminbi further threaten the dollar’s exorbitant privilege.

The Palestine Crisis: A Moral Catastrophe

The ongoing genocide in Palestine is a profound moral crisis. The international community, with over 180 countries supporting a two-state solution, stands in stark contrast to the actions of Israel and its key ally, the United States. The US’s unwavering support for Israel, often attributed to the powerful Israel lobby, has enabled the continued violence and disregard for international law.

Jeffrey Sachs highlights the shocking influence of pro-Israel groups on American politics, leading to a foreign policy that is not in America’s true interest. The situation is further complicated by the presence of individuals with strong ties to Israel in key US government positions. The international community’s call for a two-state solution, based on the 1967 borders, remains the only viable path to peace, yet it is consistently vetoed by the US in the UN Security Council.

The Climate Emergency: Running Out of Time

The climate crisis has reached a critical point, with global warming already exceeding the 1.5-degree Celsius target set in the Paris Agreement. The dominance of the fossil fuel industry and the political will to address climate change have been severely undermined by recent global events and the policies of leaders like Donald Trump.

However, China stands out as a bright spot, leading the world in zero-carbon energy installations and developing crucial technologies for the energy transition. While the US and parts of Europe falter, China’s commitment to renewable energy and its willingness to invest in global green initiatives offer a glimmer of hope. The urgency of the climate crisis demands a global effort, and despite setbacks, many countries in Asia, Africa, and Latin America remain committed to finding solutions.