Think of the supply chain disruptions if BASF has to shut down its German plant, which it has to do if gas supplies are reduced by 50%.
If gas is seriously cut, Germany will have to choose between its people and its chemical industries, mainly BASF.
Toothpaste, ammonia, fabrics, this, that and hundreds of other products.
And Biden and America continue on ESG kick. Zealous dullards.
The way to defeat Putin is to rob him of energy revenue, not provide him with an increase due to price inelasticity. This means lower oil prices. Counterintuitively, it might even mean lifting sanctions.
I wonder if Biden took Economics 101 wherever the idiot got his education.
I know he doesn’t have a clue concerning the meaning of price inelasticity.
From a Doomberg piece:
Energy is life, standards of living are dictated by access to energy, and these two facts are the undeniable conclusions of the laws of physics. Since all humans everywhere strive for a higher standard of living, energy is the real money. In that context, the purpose of a currency is to organize our energy transactions in a way that efficiently and (hopefully) equitably shares our collective energy bounty. During times of primary energy abundance, countries geared more towards value-added work tend to see their currencies appreciate. During times of energy scarcity, countries that produce excess primary energy have the advantage. We are experiencing a period of energy scarcity today. |
