European industry is showing the first signs of shutting down as Russia’s invasion of Ukraine boosts energy costs for steelworks, fertilizer plants, and paper mills to unsustainable levels.
The war in Ukraine, combined with sanctions imposed by Western governments, plus counter-threats from Russia, have upended commodities markets, pushing European gas prices to fresh records and triggering one of the biggest oil-supply shocks since World War II.
That is starting to throttle demand from smelters and other energy-intensive plants across the region, which were already struggling before Vladimir Putin unleashed his military machine.
“We are going into unexplored territory,” said Fabian Rønningen, an analyst at Rystad Energy. “The demand destruction could also be on another scale than we have seen previously.”
One casualty of this situation is BASF. you've heard of them, right? Chatter is that BASF will have to shut down their enormous vitamin plant at Ludwigshafen. The site's huge energy requirements are met by a natural gas pipeline fed directly by Russia's State energy company, Gazprom. The plant is a major global provider of vitamins A, E, B2, and B5 for animal feed and human care.
As more and more industry is forced to shut down due to energy costs, more and more people will find themselves out of work. They spend less.
As spending dries up, more and more other types of companies will see sales slumps, forcing THEM to shut down . . . putting even more people out of work.
This cycles repeats itself until everything collapses because NO ONE is able to afford to stay open and without jobs, no one can afford to buy anything.
Once this cycle begins, it spreads very rapidly to EVERY other sector of an economy, and country to country.
It's spreading right now to Romania. Romanian big cities : TOTAL traffic jams.
HUGE LINES at every single petrol station in the cities.
They're expecting a drastic price increase for fuel tonight, from 30% to 50%.
In the UK, one source reports £1.91 a liter today for diesel !
That’s $10.54 a gallon!!!!
Since trucks need diesel to run, everything shipped by trucks will cost more to ship. That means those products will cost YOU more if you need to buy them.
We have entered actual economic destruction right now.
Hal Turner Editorial Opinion
None of this had to be. When the West refused to give Russia iron-clad, legally enforceable, security guarantees after encroaching on the Russian border for decades, Russia made clear back in December and January, if they could not get security through Diplomatic means, they would get it through military and military technical means. They told the whole world. Publicly. Repeatedly. It seems no one listened.
Then, shock . . . Russia actually DID what they said they were going to do. Imagine that!
Now, the world has its knickers in a twist, and is throwing hissy-fits like spoiled brat children.
The West, instead of negotiating with Russia in good faith, or at the very least, mind its own business in the matter between Russia and Ukraine, instead decided it would use "economic sanctions" to "bring Russia to its knees" or as one British Official recently said "to suffocate . . ." the Russian economy.
Lo and behold, WHOSE ECONOMIES ARE SUFFERING?????? Ours.
In the past two weeks, the cost of Gasoline has risen to HISTORIC HIGH LEVELS. The cost of food is rising sharply.
Now we see companies in the West having to shut down and put people out of work.
All because the West would not negotiate iron-clad-legally enforceable security guarantees with the Russians.
It is important to point out that none of this trouble took place under a Republican President and Republican Congress. It is the DEMOCRATS who have done these things. It is the DEMOCRATS wiping out your family food budget. It is the DEMOCRATS making you choose between filling up your gas tank and eating.
The DEMOCRATS are doing these things to you. As you and your kids go hungry, what are YOU going to do about it?