Folks, it ain’t Russia who is going bankrupt!
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Folks, it ain’t Russia who is going bankrupt!
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Wow, that’s a substantial investment in sheer determination to tank their own economy. It’s like shooting oneself in the foot, then complaining about walking difficulties.
The early winter numbers are bound to be more interesting. Be a terrible thing if RUB and gold rises while temps drop. Pretty hard to say they didn’t see this coming with a straight face.
“a substantial investment in sheer determination to tank their own economy.»
The details matter, not all NATO countries are impacted in the same way.
https://wellsfargo.bluematrix.com/links2/html/01203364-be32-49c4-a63c-bc88ff4f4e39>
“With much of the world shunning Russia, countries have turned to the United States for the supply of key commodities. In this short special report we detail how Russia-related supply issues are helping propel export growth and are contributing to the normalization of the U.S. trade balance. U.S. export growth has started to turn a corner, with real goods exports outpacing imports amid a sizable lift in exports of industrial supplies & materials specifically. […] the U.S. became the world’s largest liquefied natural gas (LNG) exporter during the first half of the year and data suggests the U.S. is supplying more to Europe specifically.”
Even among the EU vassals there are differences: Norway has immense hydroelectric capacity, most of french electricity is generated by nuclear power, UK gas needs can be 40% supplied by scottish fields. the biggest losers probably will be Italy, Germany, Poland.
It was written in an earlier article at The Saker that Russian crude, with it’s particular formula, was not as easily replaced as first thought in EU.
And that extensive re-configuring of the facilities and refinement process would be required to process other oil. This “retooling” of the process for differing chemistry could be expected to take 10 years to complete.
After cutting off it’s own supply, US was down to it’s strategic reserves recently. For US to suddenly become an “exporter” of real goods sounds like skewed data.
> “Europe is spending more and more money on Energy from Russia”
but, what exactly is Russia receiving in exchange for the valuable, useful, material energy resource?
exactly! Previously Russian oligarchs took their acquired by impossibly hard labor oil/gas dollars/euros to the “west” and gladly gave them back to the issuers in exchange for property, yachts, jets, football clubs and other garbage. But now .. even various software junk which Russians could have easily produced themselves but had no reason to, is under sanctions, not even to mention the barely usable, inefficient and expensive “western” technology, which Russia had no stimulus to produce itself in the past – or partially lost, as it happened with the unique & very competitive civil aviation industry, under extortion & pressure from the always ready to help themselves americans .. So, what are they getting now in exchange? A stink of the american “democracy” & European gay /lesbian propaganda? Or only weapons for the Ukraine? :)
Money. Lots of it. Probably more in the 2nd half of 2022.
Looking good…
https://www.rt.com/business/561180-russia-energy-export-revenues-rise/
much needed money to finance not only the import substitution program, but to fund the SMO and the further development of the Russian economy.
You raise a good point, and the devil is in the details.
As I understand it, under the post-sanctions regime, European entities that buy Russian energy must buy Rubles with Euros from a non-sanctioned Russian Bank, who gets the extra Rubles needed from the Russian Central Bank.
The surplus Euros must then be soon spent or converted to another currency to avoid the ravages of inflation. Presumably, other BRICS nations will accept these in exchange for goods (or money) that Russia needs and in turn the BRICS buy finished products from Europe, closing the loop.
I expect massive fortunes are being made in both currency arbitrage and energy futures as we type ;-)
Is digital fiat currency money? Or are we reaching peak lunacy?
I think you did, congrats!
I am confused. I thought Europe was facing a crisis now and especially this winter due to having less access to Russian energy. What am I missing?
The Ruble is rising in value relative to the currencies of the West, and supply constraint is inflating the cost of energy. The West is paying more for less.
Gas Rationing?
https://pbs.twimg.com/media/FaUH7mSWIAMSnDU?format=jpg&name=900×900
Um gráfico retratando as quantidades será o inverso deste….UE paga mais por menos produtos. Governantes inteligentes esses os europeus !! 😁
A graphic depicting the quantities will be this winter….WHICH pays more for less products. Smart rulers these Europeans!! 😁
Russia has more to sell than energy. An article from a Russian source that has the same ideas that I argue for all the time:
Why cars will become cheaper, or excellent prospects for the Russian auto industry
https://cont.ws/@Fritzmorgen/2356207
Ruble increasing, USD/Euro sinking. General Winter coming. No alternatives for the roten EU neoliberal vassals. All this makes me laughing.
The west steals $330 Billion in Russian national assets under the pretext of “sanctions.”
In 2022 alone, the west is projected to send well over $330 Billion for Russian energy, at stratospherically inflated rates driven by these same clueless “sanctions.”
And in the interim, U.S. banks prove to the world that “your money is never safe with us,” and the global bank run commences. SWIFT prompts the creation of its own superior, inclusive competitor. The hype-standard U.S. dollar begins dramatic its exit in international trade. The marginalized 85% build out vast cooperative infrastructures – physical, economic, diplomatic – based on mutual respect and the exchange of real goods and energy rather than bubble-credit. And NATO proves that, besides massacring impoverished civilians and losing 20-year wars to cavemen, it also shows tremendous promise as a suicide pact.
The Law of Unintended Consequences is draconian.
Europe will never be a friend because its leadership has been totally co-opted and corrupted. The economic crisis in Europe barely affects the oligarchs and their minions that are commanding the Ukraine regime to continue this insane debacle, nor does it stymie the ongoing conflict because the West continues to pour in weapons and other military aid while preparing for external troop deployment. Cost means nothing to these elites because they assume they can just pile up more debt to foist onto taxpayers and future generations. “Bankrupt” is an irrelevant concept to them. Human losses and suffering are blatantly ignored. I suggest Russia needs to get tougher and use its capabilities more intensively: cut energy supply to Europe and knock out the central Kiev regime, then issue an ultimatum to remove neighboring NATO bases that are an ongoing threat – “or else …”