The Econoclasts Europe's pre-war madness & the reindustrialisation myth
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Sep 29, 2026 Europe’s march toward confrontation with Russia, the limits of diplomacy, and the risks of nuclear escalation take center stage. The discussion also challenges military Keynesianism and the promise of reindustrialisation, exploring automation, China’s civilian industrial strategy, Europe’s innovation gap, and whether skilled infrastructure work can replace the factory jobs of the past.
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Diplomacy Matters Before Breakthroughs
- The Trump-Xi summit mattered because continued contact can create détente despite unresolved disputes.
- Yanis Varoufakis sees repeated meetings as valuable safeguards against escalation over Taiwan and the South China Sea.
US-China Rivalry Still Contains Shared Interests
- China and the United States remain adversaries but share economic incentives to prevent financial and geopolitical breakdown.
- Their common interests include Treasury stability, AI-related market risks, Iranian oil, and ending the Ukraine war.
Keep Talking When Diplomacy Seems Unproductive
- Keep diplomatic channels open even when meetings produce no immediate agreement.
- Wolfgang Munchau describes diplomacy as a process for understanding positions and creating conditions for eventual peace.