Sweden, who recently joined NATO, is getting an economic punch in the nose as well: The surge in the price of gas and oil is not going to abate in the near term and Russia has tightened the screws on Europe by cutting off the gas supply from Nordstream. All of this a result of “soaring energy prices” that is a direct consequence of idiotic green policies and German hostility towards Russia manifested via sanctions. They don’t have the dough to buy new homes or remodel their kitchens or bathrooms. Those workers no longer have extra cash to spend in restaurants and bars. And that unemployment reverberates to other parts of the German economy. Gas and electricity prices, which have soared in recent months due to sanctions and Russia’s decision to cut gas flows, have left many industrial companies with input costs too high to remain profitable, and many economic experts are forecasting further pain for Germany’s core industrial sector, which would have knock-on effects for the rest of the German economy.ĭid you catch that? ArcelorMittal already has closed two plants in Germany. He is calling for quick political intervention, saying, “We need competitive energy prices for industry.” “Production in Germany is currently no longer competitive,” said Reiner Blaschek, the CEO of ArcelorMittal Germany, which recently shut down two plants in the country.
The energy in crisis in Germany is turning into a manufacturing crisis, with an executive at the ArcelorMittal steel company saying that the German wing of the company can no longer compete due to soaring energy coasts. TRENDING: 2022 Midterm Action List - SEVEN STEPS You Can Take to SAVE OUR ELECTIONS From Fraud Now the chickens are coming home to roost and it is bad news, not for Russia, but for Europe. And Russia pivoted to forging stronger ties with China, whose economy was in trouble, and accelerated the development of an alternative international reserve currency that would enable Russia to trade with other nations outside the NATO club. They did not realize that Russia’s position as a major exporter of oil, gas, fertilizer and other critical metals and rare earth minerals insulated Russia from the pain the west wanted so desperately to inflict. Rather than fold like a cheap tent in a hurricane, the Russian economy continued to chug along with minimal inflation because the smart guys and gals in Washington, London and Berlin failed to do their homework. The west effectively declared a non-shooting war on Russia and sat back waiting for the Russian economy to collapse.īut that backfired and did so in a big, unexpected way. You remember the heady days early in the war when Russian assets outside of Russia were being seized, Russian oligarchs, including those who opposed Putin, had their property confiscated, and artists and athletes were treated like lepers with active Ebola. The economic sanctions were designed to hurt all Russians–not just Putin and his key leaders. But there is a RAND report from January 2022 that suggests something darker, even diabolical.
Putin’s crime? He refused to be the prison bitch of the west. Some believe that the United States and NATO are using Ukraine as a lever to weaken Russia and get rid of Putin. It is not only wreaking havoc in Ukraine, it is causing real damage around the world. Rumbling tanks, screeching rockets and missiles and troops firing automatic weapons are the stuff that Hollywood trots out to entertain the masses that tune in to watch a war flick or, even better, live feeds from the front lines courtesy of intrepid reporters.īut the real damage from Russia’s invasion of Ukraine is economic and will determine the outcome of this war.
War is a guilty, vicarious pleasure as long as you are not hunkered in a basement or trench praying that an artillery shell does not score a direct hit on your position.
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