Though the situation is actually changing, currently the Russian government has announced an official shutdown of ALL natural gas exports to Europe through the Nord Flow 1 pipeline and programs to maintain the shutdown until the EUROPEAN ends its economic sanctions over the war in Ukraine.
This means that around 40% of Europe’s energy resources are now gone, with supply string issues surrounding the other 60% and prices skyrocketing for households and businesses.
Back in March in an article titled ‘ The Biggest Lies (So Far) Surrounding Russia And Ukraine’ I mentioned that:
“ … There’s something different the media does not discuss much, which is Europe’s reliability on Russian oil plus natural gas. If you want to see actual price inflation caused by Russia, let the EU ban Ruskies oil imports, or watch as Putin cuts off the supply. Europe is dependent on Russian oil and gas for about 40% of overall energy manufacturing. They cannot even survive a single year without it. In the event that Russia retaliated and clogged energy exports to Europe, the the EU would have to siphon oil from a number of other countries, reducing global provide dramatically. This would cause gas prices to explode to double or even triple current levels. ”
Back in April of this year in my article ‘ The Media Is definitely Ignoring These Two Events That could Cause Economic Collapse’ I predicted that will:
“ … The Russian economy is not about to fold anytime soon, and now the EU, that is reliant on Russian oil and gas exports for 40% of their energy needs, is about to manage economic doom unless they submit to paying for power in rubles (which they won’t) or find a substitute source for gas plus oil (which is impossible). Furthermore, with Europe in the global market looking for alternative oil sources, a big chunk of the oil market is going to be rerouted.
What does this suggest? Less oil and gas to fulfill the demand in other countries. In other words, costs are about to skyrocket higher yet again. ”
The media disinformation surrounding the economic situation with Russia disarmed millions of people plus fooled them into assuming that it was Russia facing financial disaster rather than Europe or potentially the US. Now, it appears my predictions of a complete spectrum crisis are coming true. The question is, what happens next?
For now, all talk in the mainstream mass media will revolve around 2 things – What will be performed to prevent disaster, and how bad Russia is for cutting off the European population from temperature in wintertime. I’m not going to get into the weeds at the morality of Russia’s actions vs European sanctions (After all, the EU wanted to economically destroy Russia. And, as I have created in the past, BOTH sides are now being played by globalists to produce a worldwide crash). But I do want to cover the inevitable EU response.
European governments are now racing to implement the only procedures they understand: Stimulus insurance policies.
The UK and the EU are announcing programs to artificially subsidize energy suppliers and pay a percentage associated with electric bills for households and businesses. Of course , one has in order to ask, if it’s that easy for governments to simply print money and feed it to energy providers, then why don’t they just pay for everyone’s electric bills all the time?
Because price controls never ever work, that’s why.
What the EU is preparing is essentially a form of price handles using inflated fiat as a way to placate energy suppliers for as long as they can. Most oil and gas on the global market is usually purchased using the US dollar, not the Euro, therefore it is unclear if Europe will be printing euros to buy bucks or attempting to buy essential oil, gas, and coal straight. In any case, this will greatly reduce the Euro’s value on the power market and prices may continue to rise for the EU anyway.
The EU and UK would like to cap prices plus pay the remainder, but if prices keep climbing, how much could they be willing to subsidize and how much are they willing to devalue the Euro (or the Pound) in the process? Are they willing to go into complete currency implosion plus hyperinflation to pay for energy?
All of the debate over government stimulus and the effects will be meaningless, though, when the issue of supply is not taken into account. The EU may print as much money as they want, but this doesn’t assist them if they can’t acquire enough energy resources to give the heating and strength the public needs. There is ABSOLUTELY NO chance that they will be able to fill the void left behind by Russian gas and oil, so a certain percentage from the European population is going to experience regardless.
Listed here are the developments Europe will discover in the near term:
Rolling Power shutdowns
Further Price Inflation In Energy
Business Shutdowns Because of Operating Costs
Energy Fascism – Informants And Government Monitoring Of Usage
Further Price Inflation In General Goods Including Food
More Government Cost Controls
Governments Pushing The thought of Universal Basic Income
Rationing Of All Necessities
Severe Financial Decline And Job Deficits
Large Numbers Of People Freezing In The Winter
I could continue on with this particular list but I think you receive the idea. It’s not going to be quite. For those of us in the US this seems like a scenario well hidden and out of mind, but this will not be the case. Europe is going to be scouring markets to get energy supplies, anywhere they could find them. Keep in mind, the US is ALREADY sending 75% of its water natural gas exports to Europe. There is very little resource backstop for the EU to dip into.
What this means is less oil, less gasoline, less coal, less of everything for purchase in America. Sure, we could be producing most of these resources in-house and cut exports to the EU, but the Biden Administration will never allow that to happen.
At the very least, prices are going to rise everywhere on the majority of goods. I actually continue to predict that US gas prices at the push will climb to around $7 a gallon on average. Propane and other heating commodities will rocket beyond previous heights.
Supply stores will be weakened. European production will take a massive hit and several of these businesses will not be capable to operate at normal capability. Most of them will have to reduce production and institute layoffs. This means that European goods will be exported less frequently and prices on the remaining goods will certainly spike in the US.
European agriculture will also be hit hard. Food production may fall as energy products and fertilizer supplies fail. This means they will be buying up more grains and food items from other nations, causing costs to jump for everyone else including the US.
Civil unrest in Europe is assured. Similar problems are already brewing in the states, yet it’s hard to say in the event that Europe’s problems will cause public anger here. A lot more price inflation might be the straw that breaks the particular camel’s back, but this really is unlikely until mass layoffs start later this year plus into 2023. It takes time for the public to realize things are not going to return to normal.
Overall, the US economy will continue its route towards destabilization, though it would appear that Europe will see the worst of the global crisis within the next several months. Unfortunately, the interdependency created by globalism has left every country in the world overly reliant on the others. If any one link in the chain breaks, the entire system breaks. This is why decentralization is so essential – It creates redundancies plus protects each individual nation from a potentially disastrous domino impact.