The West’s economies: autumn storms now, then winter is coming

 

It doesn’t need saying, really, that he government has been utterly incapable of dealing with inflation and exorbitant energy prices. This was thanks to the PM now leaving and the ensuing ‘election’ theatre produced by the wannabe PMs Sunak and Truss. Meanwhile, as the saying has it, ’time and tide wait for no man’ and thus the latest news from the ‘energy sector’ should be more worrying for the MSM than speculating about Truss going for a snap election.

The disastrous green ideology of Net Zero has already destroyed any chance of this country’s surviving the winter without unimaginable damage. The MSM seem to try to lull us into a false sense of security by hiding news relating to the further destruction of our economy, from agriculture, pubs and breweries to the disruption of supply chains.

However, they know full well whom to blame – I don’t need to use the “R” and “P” words – while still indulging in their blind support for that war regime in Kiev. As far as they’re concerned, any new sanctions imposed by supranational entities like the G7 are simply unavoidable and need to be accepted without grumbling. Thus news on yesterday’s  G7’s decision regarding an ‘oil price cap’ are buried well inside the online editions. After using a search engine, I found this report in The Times:

“Finance ministers from the G7 group of advanced economies have backed a price cap on Russian oil in an attempt to curb the country’s revenue from crude exports. The agreement, confirmed after a virtual meeting yesterday, is designed to challenge a key stream of funding for Moscow’s war in Ukraine. While ministers from the G7 nations announced their “joint political intention” to introduce the measure, key practical details around how it would be implemented have yet to be finalised. The price cap’s level per barrel has yet to be determined, according to a statement, and will be based upon “a range of technical inputs” to be agreed by the countries implementing it.” (link, paywalled)

I spare you the puerile summary produced in the DT (paywalled link, if you must). The FT has some details of how the G7 aim to achieve this cap:

“The initiative will hinge on an incentive system whereby importers seeking insurance cover and shipping services from companies based in G7 and EU countries to transport Russian oil would need to observe the price ceiling, […]. “The price cap is specifically designed to reduce Russian revenues and Russia’s ability to fund its war of aggression whilst limiting the impact of Russia’s war on global energy prices,” the G7 ministers said in a joint statement. They added: “The initial price cap will be set at a level based on a range of technical inputs and will be decided by the full coalition in advance of implementation in each jurisdiction.” (link, paywalled)

Yes, this is ‘free trade’, one of those Western values “we” defend in the Ukraine: G7 finance ministers decide how international insurance companies must work, never mind the ludicrous situation of this entity deciding what they would like to pay for a resource. It’s not inconceivable that this mechanism could be used for other resources such as fertilisers or indeed grain. There’s more, and this is the important point (my emphasis):

“The agreement is a political victory for the US, which first privately floated the proposal of a price cap in April as a means to punish Russia for the war in Ukraine. But it has had to overcome scepticism from some EU countries as to its feasibility.” (link, paywalled)

Instead of trying to work for peace the USA has been working full out to ‘punish Russia’, come what may. Prices for oil imports for G7 countries who don’t happen to sit on some own oil fields will remain stratospheric because, as is already happening, Russia will sell oil to e.g. India or China who will then re-sell it to the West, with a surcharge. TASS has details which seem to have slipped between the cracks of reports in the Westminster MSM:

“Finance ministers of the G7 group […] announced the intention of introduce the price cap on Russian oil in their statement on Friday. For doing this they “seek to establish a broad coalition” and “urge all countries that still seek to import Russian oil and petroleum products to commit to doing so only at prices at or below the price cap.” (link)

They, or rather: the USA want non-G7 countries to join this ‘coalition’. Expect some more and severe arm-twisting by the USA going on en coulisse. I wonder if these countries will do so in the face of this statement:

“Russia would halt oil and petroleum products supplies to countries deciding to cap the Russian oil price, Deputy Prime Minister Alexander Novak said on Thursday.” (link)

I wonder moreover if the G7 countries will be happy to forego buying ‘oil and petroleum products’ as well. I wonder if they still think that Russia will creep away, tail between their legs, and accept yon punishment which the USA is so keen on.

In contrast, our MSM present us with ‘outrage’ articles this morning, on Gazprom stopping supplies through Nordstream1 ‘indefinitely’. The DM’s headlines, as always, provide the summary of the news:

“Nord Stream gas supply pipeline from Russia will be closed INDEFINITELY after ‘oil leak was found’… just hours after G7 nations decided to cap payments in bid to defund Kremlin war machine – Russian energy giant Gazprom cuts off all Nord Stream supplies to Europe following three day maintenance” (link)

This seems to have come as a huge surprise to our MSM’s political correspondents. Here is The Times’ headline for the record: “Putin hits West with fresh gas shutdown – Indefinite closure threatens to push up prices” (link, paywalled). Oh really, gas prices will rise even more? Who’da thunk! Similarly, the DT writes:

“Vladimir Putin has imposed an indefinite shutdown of the Nord Stream pipeline supplying gas to Europe, as a proxy energy war between the Kremlin and the West escalates.” (paywalled link)

Note the coy expression: ‘market data earlier suggesting’. It was Gazprom who announced this maintenance would last for two days, not ‘market data’. But then again, any statement coming out of Russia is not to be believed. Note also that none of our MSM write “Biden has imposed [fill in your economic data of choice]”, as if to hide the USA’s political aims scubas ‘punishing Putin’.

The elected leaders of the G7, our Chancellor included, are following the US Playbook slavishly even unto the destruction of our economies. With a ‘new PM’ installed on Monday, we’ll keep on this path because she has already declared that “we” will ‘fight’ Russia come what may.

Since it’s Saturday, I leave you with a ‘must-read’. It’s the latest interview given by Jacques Baud who again explains why this war is unwinnable for the Ukraine, peppered with outstanding criticism of the Western MSM and ‘experts’. It is a very long piece, but extremely worthwhile spending time and effort on reading it. Enjoy the weekend as best you can.