European diesel prices are exploding, approaching $200/barrel... Meanwhile, today's Eurostat report shows eurozone industrial production contracted another 1.1% yoy. Germany's industrial production is already almost 10% below 2021 levels. And now another massive energy shock is hitting Europe's already struggling industrial base. Higher diesel prices mean higher transportation costs, higher production costs and ultimately higher inflation. But companies can't simply pass on these costs indefinitely... Margins get crushed, production gets cut, and more factories become uncompetitive. In other words, Europe is facing another stagflationary shock. The ECB can fight inflation by crushing demand via rate hikes even further worsening the deindustrialization trend and the sovereign debt crisis Europe is fucked...