Home › 6a) Gold & Monetary Metals › 6a.) GoldCore › More energy blows are dealt to Europe, causing a cold chill to be even colder
Permanent link to this article: https://snbchf.com/2022/08/flood-more-energy-blows-dealt-europe-causing-colder/
Donate to SNBCHF.com
Donate to SNBCHF.com Via Paypal or Bitcoin To Help Keep the Site Running
Please consider making a small donation to Snbchf.com. Thanks
Bitcoin wallet: bc1qa2h6hgd0xkuh7xh02jm5x25k6x8g7548ffaj3j
Receive a Daily Mail from this Blog
Live Currency Cross Rates
On Swiss National Bank
-
USD/CHF stays above 0.9100 nearing the highs since October
9 days ago -
SNB Sight Deposits: increased by 17.0 billion francs compared to the previous week
9 days ago -
Pound Sterling falls back as upbeat US Retail Sales strengthen US Dollar
10 days ago -
Canadian Dollar remains vulnerable after strong US Retail Sales
10 days ago -
2024-04-09 – Martin Schlegel: Interest rates and foreign exchange interventions: Achieving price stability in challenging times
16 days ago
Main SNB Background Info
-
SNB Sight Deposits: increased by 17.0 billion francs compared to the previous week
9 days ago -
The Secret History Of The Banking Crisis
2017-08-14 -
SNB Balance Sheet Now Over 100 percent GDP
2016-08-29 -
The relationship between CHF and gold
2016-07-23 -
CHF Price Movements: Correlations between CHF and the German Economy
2016-07-22
Featured and recent
-
Understanding Elliott Wave Theory and Investment Strategies – Andy Tanner and Bob Prechter
-
4-20-24 Candid Coffee – Open Season Episode
-
Habecks Geheimakten enthüllt!
-
Diese Aktien sind extrem günstig!
-
Bitcoin Price Prediction and the Future of Crypto – Robert Kiyosaki, Mark Moss
-
The DNA of Success: Habits of Millionaires Unveiled
-
Driver’s Licenses Waive Personal Responsibility and Contribute to Disorder on the Road
-
Chapter 12. When It Comes to National Defense, It’s More than Size that Matters
-
Chapter 10. If California Secedes, What Happens to Locals Who Opposed Secession?
-
Chapter 7. A Brief History of Secession Plebiscites in Europe
More from this category
- Driver’s Licenses Waive Personal Responsibility and Contribute to Disorder on the Road
24 Apr 2024
- Chapter 7. A Brief History of Secession Plebiscites in Europe
24 Apr 2024
- Chapter 15. Democracy Doesn’t Work Unless It’s Done Locally
24 Apr 2024
- Chapter 8. Why the US Supports Secession for Africans, but Not for Americans
24 Apr 2024
- Chapter 16. How Early Americans Decentralized Military Power
24 Apr 2024
- Chapter 17. Before Roe v. Wade, Abortion Policy was a State and Local Matter
24 Apr 2024
- Chapter 18. When Immigration Policy Was Decentralized
24 Apr 2024
- Chapter 19. Why Indian Tribal Sovereignty Is Important
24 Apr 2024
- Preface
24 Apr 2024
- Chapter 20. Sovereignty for Cities and Counties: Decentralizing the American Statesbal Sovereignty Is Important
24 Apr 2024
- Postscript: A Tale of Two Megastates: Why the EU Is Better (In Some Ways) than the US
24 Apr 2024
- Chapter 1. More Choices, More Freedom, Less Monopoly Power
24 Apr 2024
- Chapter 5. Secession as a Path to Self-Determination
24 Apr 2024
- Introduction: Universal Rights, Locally Enforced
24 Apr 2024
- Foreword by Carlo Lottieri
24 Apr 2024
- Chapter 13. If America Splits Up, What Happens to the Nukes?
24 Apr 2024
- Chapter 11. How Small Is Too Small?
24 Apr 2024
- Chapter 3. Why Regimes Prefer Big States and Centralized Power
24 Apr 2024
- Chapter 2. Political Anarchy Is How the West Got Rich
24 Apr 2024
- Chapter 6. Nationalism as National Liberation: Lessons from the End of the Cold War
24 Apr 2024
More energy blows are dealt to Europe, causing a cold chill to be even colder
Published on August 13, 2022
Stephen Flood
My articles My videosMy books
Follow on:
These are all ways of insuring ourselves against major changes that we all face. But how are you insuring your savings and portfolio against the impact of inflation, war in Europe (or elsewhere) and other unforeseen events? This is where gold bars or silver bullion comes in. As today’s blog outlines, the energy crisis appears to just be in its infancy, and gas prices might not be the only thing that is beginning to cause problems, giving us even more reason to insure our portfolios.
Europe was dealt another blow in the energy crisis at hand this week as oil supply from Russia was cut off for three European countries over a payment issue that resulted from sanctions.
However, they received the money back because it was not authorized under sanction rules which prohibit European bank involvement with any transactions from Russia.
Only with explicit authorization from European regulators to conduct settlements could Russia’s money be sent. The authorization did not come.
Moreover, the payment dispute has resulted in the southern section of the Druzhba pipeline being turned off.
The three countries, Hungary, Slovakia, and the Czech Republic are all very reliant on oil from Russia to fuel their economies (estimated at about 250,000 barrels a day in 2022).
Also, if the dispute over payment doesn’t resolve in the coming weeks a dire situation will ensue.
Moreover, oil flow through the northern end of the Druzhba pipeline through Poland and Germany was not halted.
Europe is also heavily reliant on supplies from Russia for diesel, natural gas, and coal. Supply problems which started in December 2021 (see our January 20 post European Energy Crisis: 4 Things You MUST Know!) have only escalated as the Russia/Ukraine war continues.
The flow of natural gas in the Nord Stream 1 pipeline has been reduced to around 20% of normal capacity. This is making it very difficult for Europe to increase its reserves for winter.
Druzhba Dependents
Major Energy Crisis: The Worst Nightmare
Germany is the bloc’s largest consumer of Russian natural gas, followed by Italy which gets approximately 40% of its supply from Russia.
Additionally, concern has grown that Russia could cut its supply of natural gas completely.
Although countries are running “save energy” campaigns and looking into alternative sources of energy this crisis is far from over.
Additionally, Europe is not the only region affected. Fatih Birol, IEA Executive Director, warned in mid-July that
Also, Birol went on to say that
European Gas Prices Chart
Part of the money is earmarked for the power sector and electric vehicles with another section awarding tax credits, grants, and loans totaling US$260 billion to companies in the clean energy sectors.
These clean energy incentives include mature sectors such as solar, wind, and nuclear along with innovative technologies such as hydrogen and carbon capture and storage.
The Chinese Dominance
With the shift away from Russian energy comes also a shift away from China’s manufacturing advantages.
Chinese companies currently control around 80% of the global supply chains for solar power.
Its current pacing is set to reach 95% by 2025 according to the IEA.
China also currently dominates much of the lithium-ion battery sector. It also is a key producer of wind turbines. Also seeking to quickly build capacity in clean hydrogen technology (Bloomberg.com).
Although, this major shift is going to take time, money, and security of resources. New resources and new supply chains must be found and built which means more government spending. This will lead to central banks buying that debt.
The short of it is that the economic environment is shifting again as governments continue to scramble to speed up spending for new initiatives.
Gold and silver will benefit from higher prices because more printing and borrowing push the metals higher.
If you’re enjoying our market commentary, why not tune into our podcast or our YouTube Channel?
Check out our interview with Steve St. Angelo for more on how energy dynamics are evolving and how this will increase the need to own gold and silver. Or, see the latest The M3 Report with silver guru David Morgan and technical analysis from Gareth Soloway, as well as insights from our own team.
Follow on:
No related photos.
Tags: Commentary,commodities,Economics,Energy,Featured,Gold,gold price,gold price news,gold price prediction,gold price today,Gold prices,inflation,News,newsletter,Precious Metals