Thursday, September 01, 2022

An Energy Crisis In Tandem With A Food Crisis On Top Of An Economic Crisis And A War. This Cannot End Well.

1 September 2022

The most disturbing thing about the current global mess is the interconnectedness of all the concurrent crises, because the way they are feeding into each other is making each individual case, and the whole, worse.

The curtailment of gas supplies to Europe, (with Germany, the European Union's biggest economy, being hardest hit,) has contributed to the energy crisis but we should not forget the role in the energy crisis played by politicians obsession with 'net zero' and the idea that the sophisticated economies of developed nations can get all the electricity they need, twenty four hours a day, 365 days a year from sources that are 'clean' but unreliable and at best intermittent.

Politicians are determined to blame the current war for energy shortages in Europe and soaring energy prices around the world but the foundations of the crisis were in place long before Russia invaded Ukraine. And Russia's weaponization of energy has brought those variables to light over recent months. 

Natural gas is becoming increasingly expensive, with Dutch TTF futures more than 1,000% higher than a year ago, and more pain could come as Russia's Gazprom shuts down Nord Stream 1 this week, allegedly 'for repairs' but more likely to further weaponise its position as the indispensable supplier of energy to EU member states.. 

Electricity costs, too, have soared, mainly because so many nations have abandoned gas and coal as fuel for generators and shut down nuclear installations under pressure from the green lobby they can no longer service the needs of commercial and domestic consumers at times of peak demand. 

"Last week Europe awoke to a bitter truth: the energy crisis is here to stay," a Bank of America analyst wrote Monday. But America is not immune to the problems. Though The USA does not import coal or oil from Russia, the unavailability of these commodities to nations which imposed retaliatory sanctions in support of Ukraine following the Russian invasion has forced up prices on commodity markets in London, New York, Dubai, and Singapore.

Now, EU nations are scrambling to find alternative resources, with coal in particular emerging as a key commodity. A few months ago the UK government extended the life of the coal fired generating plants at West Burton and Radcliffe on Soar and last month also contracted the operator of Drax to extend the life of that coal fired plant until 2024. Plans are also being considered to recommission several more power stations fuelled by coal. Germany is also in the process of reviving coal generated electricity.

These moves mark a reversal for Europe, as it has been EU policy to close down coal plants for years due to climate initiatives. 

"Before the war, Europe had wanted to be a leader in decarbonizing, and that's worked out to a certain extent with wind and solar, but they made a choice to place significant reliance on Russia in order to claim progress towards net zero," industry analyst Rob Thummel noted.

He added that, after years of underinvesting, coal is now harder to access and more expensive. 

Nonetheless, Europe has little choice other than to fire up shuttered plants because that offers a faster solution than trying to build brand new LNG facilities, while nuclear plants take up to a decade to progress from planning to completion. It is likely take the continent of Europe several years to rebuild generating up the infrastructure to get out of the crisis.

Russia is not only a key supplier of energy, it is also the worlds largest supplier of raw materials for commercial fertilizer. As we approach the end of summer 1922 harvest yields are expected to be down significantly because from March this year exports of those raw materials have been banned by Russia in retaliation for sanctions imposed by NATO and EU member states.

Next year however, the fertilizer crisis is likely to send food prices higher, further adding to the already crippling increase in living costs that is driving millions of families into poverty and destitution. And yet the main military powers in the west (USA, UK and France - the FUKUS axis,) by suplying Ukraine with increasingly expensive and sophisticated weaponry seem to be determined to prolong the war rather than working to bring both sides to the negotiating table.

All this plus the aftermath of the COVID pandemic hoax, with its economically disastrous lockdowns and social disruption has combined to create the financial crisis of 1922. Skyrocketing inflation and higher interest rates are setting the stage for a massive global financial crisis. The world’s major economies are staring at a steep recession.

According to the financial data agency, Namoura countries, including the United States, Japan, the United Kingdom, South Korea, Canada, Australia, and the Euro-zone, are heading into a recession by the end of 2022. Several of these countries are already in recession at the beginning of September.

The usual way nations try to control inflation is by raising interest rates, but tightening money supply can only impact growth and growth is the only way out of recession. So is the serpent about to eat its tail?

The financial storm forming over te developed world will be global in its effects and could wreck nations economically and politically. Ski Lanka has already fallen into insolvency and civil unrest. As major countries, both rich and poor alike, continue to amass immense debts, the possibility of a global meltdown looks inevitable.

Spurred by the easy money policy placed post the financial crisis 2008-09, central banks have pumped cheap money into economies and governments have elevated spending. Even before the COVID pandemic, governments were lending and spending far too heavily. For example, before the pandemic, the public debt of the world’s 70 poorest nations had gone up by 18% of the GDP. However, experts believe the level of indebtedness here was vastly understated. Thus experts fear that Sri Lanka’s catastrophic economic collapse is a peek into what may unfold in other nations soon.

In spite of the imminent threat of deep and long lasting recession threat, the binge-borrowing by governments of both rich and poor countries continues unabated.

Today, Japan’s debt is proportionately over twice that of the United States which is itself a crippling burden on American taxpayers. However, the Bank of Japan still sticks with its virtual zero interest rate policies. Moreover, the scale of money printing will almost certainly send the already wobbly Yen into a tailspin before the end of the year.

Currency and bond traders fear that this might trigger a financial contagion that will hit the currencies of other deeply indebted Asian economies. However, the crisis can also mushroom in Europe, given the European Central Bank (ECB) continues to buy a massive amount of bonds and a third of EU member states are already economic basket cases.

Furthermore, the US economy is slowing, which will be a drag for the rest of the world. Unfortunately, though, the IMF, the  for financially tlender of last resort for sinking nations, is imposing counter-productive prescriptions, including:

  • Currency Devaluation might worsen the spiking inflation
  • Higher Taxes that will cripple recovery

Today’s world lacks leaders who grasp the simple principle that stable money and low tax rates are fundamental for fast recoveries. In contrast, the Biden Administration is still trying to raise taxes. Even the already imploding global food crisis is worsening due to the Russia-Ukraine War.

Rising borrowing costs, inflation, and debt are all contributing towards economic collapse. According to European sources Belarus is on the verge of defaulting on its debt, as are at least a dozen additional countries—including Russia, Suriname, Zambia, Pakistan, and Lebanon.

Sources:
Institute for Economic AffairsA
MZEMO
Bloomberg
Business Insider

 

 


MORE Net Zero posts:
Net Zero omnibus

Do We Have A Winter Of Civil Disobedience Ahead?
As many people in Britain slap on the apres sun gloop in the wake of what passes for a heatwave in these cool cloudy climes, our inept politicians caught with their pants down by unusual weather as usual have heard that that winter is coming and are making plans for a coldwave. We are in the grip of an energy crisis at the height of summer. Last week, it was reported that the UK government is laying down plans for a “reasonable worst-case scenario” including blackouts for industry and even households. And this is as energy prices spiral out of control to new records every day.

New Figures Show Brexit Has Failed To Take Back Control Of Immigration
Just over six years ago the nation's attention was focused on immigration, and particularly the 'Brexit' campaign's promise to 'Take Back Control' of our borders. Today the immigration issue is as predominant in many people's minds as news this morning revealed record numbers of migrants entered the country last year, while yesterday a record number of people were trying to make the hazardous crossing from France in small boats to enter the country illegally.

Boris and Biden Can't Blame Ukraine War For Energy Crisis
With typical arrogance and condescension towards the people who elected them Boris Johnson, Joe Biden and their respectiive presstitutes are trying to spin the energy crisis Europe and North America are currently facing as somehow being linked to the conflict in Ukraine and therfore blame is being attactched to Russia and Vladimir Putin. Do they really think we are stupid enough to believe such unmitigated bollocks? ...

Dont Dictate To Us On Human Rights, Justice Secretary Raab Tells EU
Justice Secretary Dominic Raab told the Conservative Party Conference last month Boris Johnson had given him the task of rewriting the The Human Righrs Act when he moved him from the Foreign Office in September’s reshuffle. This week Raab revealed details on how he plans to block interference from Strasbourg in British matters as part of his remit.

Soros Is Responsible for Europe's Immigration Crisis Says Hungary's Viktor Orban
With Britain's Conservative Government pressing ahead with a 'hard Brexit agenda, and the Trump administration setting abou demolishing the expressway to socialism Barac Obama had spent eight years contruction, there is a lot of speculation and precious little hard evidence to indicate where the globalist elite, having seen their ambition for a world government thwarted will go next.

Post Trump and Brexit, Predicting The Globalists Next Move
Hungary's Prime Minister Viktor Orbán has made the American billionaire and philanthropist George Soros for the current refugee movements in Europe with responsibility. "This invasion (of migrants) on the one hand steered from the tractor business, on the other hand of those (human) activists who support everything that the nation-states weakens,

Goodbye Freedom, Hello Global Governance.
If at any time during the chaos the past eighteen months you have wondered what kind of idiots are running the world and have gleefully trashed economies, disrupted social and commercial life and stripped citizens of their rights and liberties only to bring us, in late October 2021, right back to where we were in late February 2020 when the words pandemic and COVID crept into our consciousness ...

We need a referendum on net zero to save Britain from the green blob

from The Daily Telegraph
As with membership of the EU, the political elite is imposing a revolution on the public without consent. Does the blob never learn? Voters don’t like being treated like naughty children

The True Cost Of The Green Energy Boom Is Now Being Realized
For four decades we have been fed a constant stream of propaganda assuring us that green energy was the only way forward if we wanted to secure supplies of the energy essential to a modern society while preventing the environmental catastrophes that would be the inevitable consequence of climate change caused by the Carbon Dioxide (CO2) emitted by human industrial, commercial and social activity. ... Continue reading >>>

Do We Have A Winter Of Civil Disobedience Ahead?
As many people in Britain slap on the apres sun gloop in the wake of what passes for a heatwave in these cool cloudy climes, our inept politicians caught with their pants down by unusual weather as usual have heard that that winter is coming and are making plans for a coldwave. We are in the grip of an energy crisis at the height of summer. Last week, it was reported that the UK government is laying down plans for a “reasonable worst-case scenario” including blackouts for industry and even households. And this is as energy prices spiral out of control to new records every day.

The Truth About Coal And The Lies Of The Elite
So much for all the COP 26 banter late last year. Let me remind you. The elites all flew in on their private jets and promptly told us we’re all (royal we) getting off fossil fuels and killing coal.So how’s that turning out? The usage of coal is now at record highs:

Britain is Breaking Down; The Economy Is Struggling, Living Standards Are Falling, Institutions Are Failing
Successive governments have brought Britain to its knees.This article will focus on Britain as representative of the general malaise that is afflicting almost all the developed world. Our current crop of politicians have discarded the resources that brought the country out of the post war decline ... In spite of being rich in energy resources Britain is now in an energy crisis, our leaders have sacrificed prosperity on the altar of Net Zero, committing the nation to our reducing our 1% contribution to harmful emissions still further ...

Official Advice - Prepare For Blackouts This Winter
The UK government is putting plans together for days of organised blackouts this winter, in what they call a "reasonable worst-case scenario" for energy shortages, according to reports in manstream media. Naturally they are blaming this on the embargo on importing gas from Russia but in reality Britain has never imported any more than a small amout of its gas from Russia. The real reason politicians and energy company CEOs are panicking is entirely due to their obession with obtaining all our energy from intermittent sources like wind and sunshine ...

"Revolution Has Begun": 75,000 Brits Plan To Stop Paying Power Bills In Protest At Energy Rip Off
Resistance is growing to spiralling domestic energy costs in Britain as more than 75,000 irritated people in the UK have pledged not to pay their electricity bill this fall when prices jump again. 

If the government & energy companies refuse to act then ordinary people will! Together we can enforce a fair price and affordable energy for all," tweeted "Don't Pay UK," an anonymous group spearheading the effort to have more than one million Brits boycott paying their power bill by Oct. 1.

Is Russia Selling Its Oil To The World Through An Obscure Egyptian Port?
As this blog predicted when NATO and EU member states shot themselves in the foot by reacting to Russia's invasion of Ukraine with sanctions that prevented Russia from selling oil, gas and vital raw materials to the countries that needed them most, the NATO and EU member states, the Russians have had no problems finding alternative customers for their gas and oil and no problem getting oil into the world's commodity markets through the back door.

UK Households Are Paying Wind Turbine Owners To Not Generate Electricity
On another near windless day here in the United Kingdom, Boggart Blog came across a very interesting piece if news. According to figures published by the business and management consultancy LCP, british taxpayers have been paying operators of wind turbines farms for the time their windmills were NOT generating electricity increased to record levels last year ...

"Our Country Is Facing The Biggest Crisis The Crisis We Ever Had": German Employers' Association Warns Over Russian Gas Cut
With the Nord Stream 1 pipeline closed for maintenance, with the possibility that President Putin will not allow it to reopen at the end of the scheduled 10 days downtime in retaliation for the EU's continued support or Ukraine in their conflict with Russia, Germany is facing an unprecedented crisis that could erase the prosperity Germans have grown accustomed to, warned Rainer Dulger, head of the Confederation of German Employers’ Associations.

Net Zero Is A Dangerous Fantasy, But Scientists Believe In Fairies It Seems
With oil and gas prices rocketing and the highly propted sustainable energy sources performing way befow expectations the energy crisis currently gripping Europe (with worse to come as food shortages start to bite, polticians still seem more intent on pandering to the green lobby and chasing the dream of a fossil fuel free world rather securing the energy and food supplies needed by the people they serve.

A Mostly Wind- & Solar-Powered US Economy Is A Dangerous Fantasy
When President Biden and other advocates of wind and solar generation speak, they appear to believe that the challenge posed is just a matter of currently having too much fossil fuel generation and not enough wind and solar; and therefore, accomplishing the transition to "net zero" will be a simple matter of building sufficient wind and solar facilities and having those facilities replace the current ones that use the fossil fuels.

Europe's biggest economy would suffer a 6.5pc contraction if Russian energy is suspended, experts warn 
Even though the sanctions already imposed on Russia in respondse to the invasion of Ukraine are hitting the nations that imposed then harder that their intended target, the EU is preparing to committ economic suicide in an orgy of virtue signalling ...

EXPLORE:
[Daily Stirrer] ... [ Our Page on on Substack ]... [Boggart Aboad] ... [ Ian Thorpe at Quora ] ... [ Greenteeth Home ] ... [ Greenteeth on Minds.com ] ... [ Here Come The Russians ] ... [ Latest Posts ]

No comments: