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‘Inflation came from nowhere’ – Lagarde

Samizdat | October 31, 2022

The European Central Bank (ECB) has doubled its key interest rate to the highest level in more than a decade in an attempt to combat soaring inflation, ECB President Christine Lagarde has explained.

In October, the inflation rate in the Eurozone reached 10.7%, according to official preliminary data, released on Monday.

In an interview with Irish state broadcaster RTE on Friday, Lagarde said: “We do it because we are fighting inflation” that had “pretty much come about from nowhere.” She pointed to a speedier-than-expected economic rebound from the pandemic as a cause alongside “the energy crisis caused by Mr. Putin who has decided in an unjustifiable way to invade another country.”

The ECB chief added: “That’s what he [Putin] is trying to do, cause chaos and destroy as much of Europe as he can. This energy crisis is causing massive inflation which we have to defeat.”

She went on to say that “Anybody who is behaving in that way has to be driven by evil forces,” and that the “sick” Russian president is a “terrifying person.”

Discussing her previous meetings with the Russian leader, Lagarde described him as an “unbelievably super-briefed person” with “flashing, freezing eyes.”

After expressing her view, Lagarde however stressed that she’s “just a central banker,” and “shouldn’t be saying all these things.”

On Thursday, the ECB announced another interest rate hike, taking Eurozone rates to the highest level since 2009. According to Lagarde, they are aimed at bringing inflation back to “reasonable levels so the cost of living isn’t as high as it is for people.” In October, inflation across the euro area hit 10.7%, according to preliminary data from Eurostat.

The EU has blamed Russia for the spiraling energy crisis across the continent. However, many economists point to the bloc’s fiscal policy responses as a major reason behind the crisis. Moscow has also criticized the “illogical and often absurd” moves by Western nations, saying that the sanctions imposed by the US, EU, and other countries on Russia have backfired and resulted in a sweeping energy crisis as well as record inflation across the West.

October 31, 2022 Posted by | Economics, Russophobia | | Leave a comment

Fossil Fuel Investment Has Dropped By A Third Since 2015

By Paul Homewood | Not A Lot Of People Know That | October 30, 2022

There was one chart I forgot to show from the IEA’s World Energy Outlook yesterday:

https://www.iea.org/reports/world-energy-outlook-2022

As we can see, investment in fossil fuels has fallen by a third since 2015 in terms of GDP. Part of this was due to the collapse in oil and gas prices in 2014, but undoubtedly the anti-fossil fuel agenda pursued across the West for climate reasons has had a major impact as well.

Either way, this is the real reason why prices have rocketed, not the invasion of Ukraine.

Further evidence can be found in Fig 1.3, which shows that investment has remained steady in countries without a Net Zero pledge:

The real concern is that we are only seeing the early signs of much worse to come. When the cuts in fossil fuel investment really start to bite and existing oil fields begin to dry up, there will be a catastrophic energy crisis. Shortages will be very real and prices will rise well above today’s levels, as demand stays high and we find that renewable energy simply cannot keep up with demand.

The IEA’s naively oversimplistic projections simply assume that building wind and solar farms will do the trick. But the world is a complex place and does not work like that.

The Russian invasion of Ukraine has given us a warning. We had better not ignore it.

October 30, 2022 Posted by | Economics, Malthusian Ideology, Phony Scarcity | Leave a comment

Massive Protest By Czechs Targets Russia Sanctions, High Prices

By Tyler Durden | Zero Hedge | October 29, 2022

Fed up with soaring food, energy and housing costs, tens of thousands of Czech protestors railed against their government on Friday, demanding the resignation of conservative Prime Minister Petr Fiala’s government, withdrawal from NATO and the negotiation of gas purchases from Russia.

“This is a new national revival and its goal is for the Czech Republic to be independent,” said organizer Ladislav Vrabel. “When I see a full square, no one can stop this.”

The protests occurred both in the capital city of Prague as well as the second-largest Czech city of Brno. Organized under the slogan of “Czech Republic First,” the demonstrations drew their strength from both the left and right wings of Czech politics.

“Russia’s not our enemy, the government of warmongers is the enemy,” one speaker said, according to the Associated Press. Czechia has donated tanks and other heavy weapons to Ukraine, and provided nearly a half million visas to Ukrainian refugees, along with benefits. Protest organizers are also demanding that the refugees not be granted permanent residency.

https://www.bitchute.com/video/BWh1rYqHPGcl/

The protest was the third in a series organized by a group demanding Czechia’s withdrawal from NATO and better relations with Russia. As observed in the United States, the Czech government has attempted to marginalize them by calling them “pro-Kremlin propagandist narratives.”

The Czech government has tried to battle the rising prices with aid to businesses and household electricity price caps.

Friday’s protests were part of a rising wave of discontent throughout Europe. On Thursday, thousands protested in France, demanding higher wages to offset the rising cost of living — among them, striking teachers, healthcare providers and railway workers. Recent weeks have seen similar protests in Germany, Austria and Belgium too.

“This is merely the silence before the storm—the discontent is great, and people do not have any sense that the government has a plausible strategy to master the crisis,” German pollster Manfred Güllner tells The Wall Street Journal.

At a time when three quarters of German households are cutting back on energy consumption, just 9% say Chancellor Olaf Scholz has a sound strategy for surmounting the energy crisis. While the French protests didn’t target the Western sanctions regime against Russia, German protestors have called for an end to them.

The discontent is certain to rise all over the world, as more people connect the dots between Western sanctions and their personal misery… all for the latest proxy war over strategically irrelevant territory.

October 29, 2022 Posted by | Economics, Solidarity and Activism | , , , | Leave a comment

US Pretends to be ‘Open to Talks’ With North Korea While Boosting Sanctions

Samizdat – 28.10.2022

Russia and China will continue to jointly address the North Korea issue. The main cause of tensions on the Korean Peninsula is the pressure exerted on the DPRK and the show of force by South Korea and the United States.

Russia remains committed to a joint plan with China for a Korean settlement.

“We will adhere to the agreed position on this issue”, Russian President Vladimir Putin said on Thursday at a plenary session of the Valdai Discussion Club.

The Russia-China action plan is based on the principle of reciprocal steps by the United States and the DPRK. These steps could be taken by the United States without damaging its reputation, and on the same basis by DPRK leaders. Moscow and Beijing believe that success in the settlement can only be achieved on the basis of reciprocal movement: action after action, step by step, gradually, and consistently.

At the same time, Moscow and Beijing have repeatedly warned that the formula, according to which North Korea must first completely get rid of its nuclear missile program and only then it will be possible to think about lifting sanctions on the DPRK and ensuring its economic development, is absolutely unsustainable.

“Our roadmap, which we proposed together with China, was that first we should build confidence through mutual meetings, and then we should take some tangible measures, including the suspension of military exercises, tests, and missile launches, and then proceed to negotiations,” Russian Foreign Minister Sergei Lavrov said earlier, presenting a joint Russia-China plan for a Korean settlement.

The plan was put forward to the two Koreas, the United States, and Japan in the fall of 2019 after three meetings between the US and DPRK leaders in Singapore, Hanoi, and the demilitarized zone in Panmunjom ended inconclusively. These meetings were held on June 12, 2018, February 27-28, 2019, and June 30, 2019, respectively.

When answering experts’ questions at the Valdai Discussion Club related to the Korea issue, Vladimir Putin said that the unwillingness to talk and the absolutely boorish attitude to North Korea’s interests, including in the sphere of security, has led to the DPRK nuclear issue. In an interview with Sputnik, Alexander Zhebin, director of the Center for Korean Studies and member of the Russian Political Science Association, commented on the Russian president’s statements as follows:

“Vladimir Putin was referring to the boorish behavior of the United States, because the US and the DPRK had an agreement at Trump’s meeting with Kim Jong-un in Singapore that Pyongyang would not launch long-range missiles that could reach American territory, and would not test nuclear weapons. The Americans would respond to this, as recorded in the Singapore declaration, by building a new relationship. Instead, the Americans continued to impose more and more sanctions against the DPRK, which means that they have not fulfilled their part of the commitments.”

According to Alexander Zhebin, the US behaves arrogantly towards the DPRK in the UN Security Council as well:

“Each UN Security Council resolution that imposed sanctions on the DPRK stipulated that positive steps by the DPRK to reduce nuclear missile activity must be accompanied by reciprocal steps by those who imposed sanctions and lead to their partial lifting. This has not happened. On the contrary, no matter what the DPRK has done, the US has kept imposing new sanctions, both by Trump and then by Biden.”

Today, instead of negotiations, the US and South Korea are working on scenarios for destroying the top political leadership of the DPRK and the country’s control centers.

“On the one hand, the Americans say they are ready to negotiate with the DPRK at any time, anywhere, and without any conditions. However, at the same time, they have imposed unprecedentedly harsh sanctions on the DPRK and do not intend to lift them. On the contrary, they are obstructing all attempts by China and Russia to reduce the sanctions burden and start a dialog process. In fact, the invitation to negotiations is just talk. Under that guise, the US is implementing a longstanding plan according to which, eventually, the DPRK, under the weight of economic sanctions, will not survive, thus forcing Kim Jong-un to surrender.

They are not hiding the fact that large-scale military exercises carried out by the US and South Korea are used to practice the elimination of the DPRK’s top political leadership and the country’s control centers. The scale of the recent maneuvers is simply off the chart. 240 American and South Korean aircraft, including the latest F-35 stealth fighters, have been deployed off the coast of North Korea. This cannot but cause serious concern to the DPRK leadership, since everything is happening near its borders. The DPRK is very much concerned about its security,” Alexander Zhebin stressed.

The DPRK’s missile launches are a response to US and South Korean military drills, which constantly press Pyongyang to demonstrate its power, Jin Xiangdong, a researcher at Xiamen University’s School of International Relations, said in an interview with Sputnik :

“Since coming to power, the new South Korean government has conducted a series of military exercises near the Korean Peninsula. The DPRK has responded by launching ballistic missiles. The main problem with the situation on the peninsula is that the new South Korean government is constantly putting pressure on North Korea and demonstrating its power. China’s position on the Korean Peninsula issue is consistent and clear. China defends the maintenance of peace and stability on the peninsula, denuclearization on the Korean Peninsula, and the resolution of issues through dialog and consultations. Meanwhile, in general, the solution to the Korean Peninsula problem is still complicated.”

The Joint Chiefs of Staff of the South Korean Armed Forces said that North Korea fired two short-range ballistic missiles toward the Sea of Japan on Friday. The launches took place on the last day of South Korea’s Hoguk military exercises, which began on October 17. These maneuvers featured a large-scale amphibious landing exercise near the city of Pohang on the coast of the Sea of Japan.

On October 31, the Republic of Korea and the United States will launch large-scale joint air exercises. The high intensity and scale of the drills provoke growing tensions in Northeast Asia. The US threatening to give a strong response to a possible nuclear test by the DPRK has aggravated the situation.

October 28, 2022 Posted by | Deception, Economics, Militarism, Progressive Hypocrite | , , , | Leave a comment

US scales back plan for Russian oil price cap – Report

Samizdat | October 27, 2022

President Joe Biden’s administration has reportedly been forced back to the drawing board on its plan to cap international prices for Russian oil, having failed to secure enough commitments to control how much Moscow is paid for the bulk of its crude exports.

The US and the European Union will likely have to settle for a “loosely policed” pricing cap, enforced by fewer buyers and at a higher price than envisioned, Bloomberg News reported on Wednesday, citing unidentified people familiar with the plans. The original goal was to drastically reduce Russia’s oil revenue – the latest effort to punish Moscow for its military offensive in Ukraine – by imposing a strict price lid to which a broad “buyer’s cartel” of nations would adhere.

Instead, only G7 nations and Australia have committed to honoring the price cap, Bloomberg said, attributing failure of the original plan to investor skepticism, volatile financial markets and efforts to tame inflation around the world. The cap level also might need to go higher than a previously targeted range of $40-$60 per barrel.

Biden’s administration has denied that its plan would fall short of throttling Russian oil revenue. “The White House and the administration are staying the course on implementing an effective, strong price cap on Russian oil in coordination with the G7 and other partners,” White House National Security Council spokeswoman Adrienne Watson told Bloomberg in a statement.

Russian officials have said the country won’t sell oil or other commodities under price caps or unprofitable market conditions. Nor will Moscow supply energy to nations that adopt trade policies contradicting the terms of their existing oil and natural gas contracts, Russian Deputy Prime Minister Aleksandr Novak said earlier this month. A cap on crude wouldn’t be viable because prices are driven by the global supply-demand balance, he added.

The G7 price cap is scheduled to go into force on December 5, along with an EU ban on imports of seaborne Russian crude. Reuters reported last week that after December 5, Russia would still be able to ship the vast majority of its oil exports at market prices because it would have ample access to tankers and other services. The outlet cited a US Treasury official as saying that between 80% and 90% of Russian oil would continue to flow to buyers outside the cap mechanism.

Russia would have access not only to its own oil tankers, but also to Chinese and Indian ships, Reuters added. Traders and insurance companies from Russia, Asia and the Middle East would provide the necessary transactional services. Brent crude, a leading international oil benchmark, is currently selling for around $95 per barrel.

October 26, 2022 Posted by | Economics, Russophobia | , , , , | Leave a comment

China Urges US to Stop Spreading Myth About Alleged Chinese Threat: Foreign Ministry

Samizdat – 26.10.2022

BEIJING – China calls on the United States to stop spreading the outdated theory of the Chinese threat and better engage in building a new concept of mutually beneficial cooperation, Chinese Foreign Ministry spokesman Wang Wenbin said on Wednesday.

“China is a partner and an opportunity for the development of all countries, not a challenge or a threat,” Wang told a briefing.

China urges Washington to try to build a new concept of openness, inclusiveness, and mutually beneficial cooperation, and do more to promote world peace and development, Wang added.

Earlier in the day, US President Joe Biden and UK Prime Minister Rishi Sunak agreed during a telephone conversation to jointly respond to challenges from China.

October 26, 2022 Posted by | Economics, Militarism | , | Leave a comment

Norwegian PM for restoration of contacts with Russia: “Nothing good in isolation”

By Ahmed Adel | October 26, 2022

Norwegian Prime Minister Jonas Gahr Store said that Western countries should not isolate Russia and should instead establish direct communication with Moscow to resolve the exceptionally difficult situation in Ukraine. However, Norway, a NATO member, is also one of the leading countries to oppose Russia through sanctions and support for the Ukrainian military.

“There is nothing good in isolating Russia. It is alarming that today we have so few contacts and direct communication with Russia,” Store told the Norwegian parliament on October 25.

This is an especially surprising statement since Norway has donated 4,000 M72 anti-tank weapons to Ukraine, as well as an air defence system, 22 self-propelled artillery vehicles, long-range rocket artillery and armoured vehicles. Norway will also donate the Black Hornet micro-drone system and Hellfire missiles, and will also train Ukrainian soldiers in Britain.

Although Norway is following Washington and Brussels in supporting Ukraine and acting hostile to Moscow, perhaps there is a realization setting in Oslo that the war will not end with the Ukrainian military capturing Donetsk, Kherson, Luhansk and Zaporozhye from Russia. By coming to such a conclusion, the only realistic option left is to call for direct communications with Russia, something the West cut in the false belief that sustained isolation and economic pressure would make Moscow capitulate and end its military operation in Ukraine.

This was of course a naïve belief since the Kremlin has for years attempted to resolve the situation in Donbass through negotiations and discussions, something that Kiev, with the West’s support and backing, never supported. Moscow was forced to take matters into their own hands to protect the Russian-speaking minority from Kiev’s fascistic policies. Although Moscow has taken the military approach, it is still open to honest and open dialogue, but of course with different demands since the situation on the ground has significantly changed.

According to the Norwegian prime minister, the lack of dialogue with Moscow undermines the possibility of reaching a peaceful settlement in Ukraine. He also added that the current political situation was the most difficult since World War II, and it is for this reason as well that communication channels must reopen.

Russian President Vladimir Putin has repeatedly warned the West that Russia could not be isolated, and this is reflected in the fact that several major countries, including China, India and Brazil, have vocally opposed the idea of imposing unilateral sanctions on Moscow and called for the continuation of dialogue in the interest of peaceful world development.

Sanctions against Russia have led to disruptions in logistical and financial operations and to a spike in energy prices worldwide, pushing many European governments to resort to contingency measures. At the same time, Brussels has been looking for alternatives to Russian natural gas as it has pledged to end its dependence on energy supplies from Russia, thus making Norway all the more important to the EU.

The Scandinavian country is now the EU’s leading natural gas supplier, overtaking Russia. It is not forgotten that the Nord Stream pipelines leaks corresponded with the opening of a new pipeline from Norway to Poland. Although Norway is being heralded as a saviour for energy-struggling Europe, it has been criticised for essentially war profiteering.

“There is no question that the fallout from the war is making Norway richer. The state is a major player in the oil and gas industry. All told, Oslo expects to bring in about $109 billion from the petroleum sector this year — $82 billion more than in 2021. Much of that will go to the country’s sovereign wealth fund, a national nest egg worth more than $1 trillion,” The Washington Post reported.

Andreas Bjelland Eriksen, state secretary at the Ministry of Energy and Petroleum, denied that Norway is profiting off the war, stressing that high energy prices “hurt Norway too.” He noted that gas exports to Europe are up 8 percent year over year. “Europe sees that, and it sees that we are a good partner,” Eriksen added.

In this way, Norway has essentially become a big winner from the war in Ukraine as it has now become the main supplier of natural gas to Europe despite charging astronomical prices. However, this is not reflected on ordinary citizen life as Norway is not immune from the effects of the self-sabotaging anti-Russia sanctions.

Complementing the higher electricity bills arriving every month, Norwegians are also experiencing higher prices for almost everything else. State statistics bureau SSB (Statistics Norway) recently reported an 11.3 percent rise in transport costs, a 12.1 percent rise in food and non-alcoholic drinks, an 8.7 percent rise in hotel and restaurant bills and a 7.6 percent rise in prices for household items and maintenance. Norway’s biggest bank, DNB, also reported that its customers are now spending much less money on expensive items.

It is for this reason that Norway, despite making record profits in the energy sector, wants dialogue with Moscow to reopen so that there can be an alleviation in the cost-of-living crisis and other sectors of the economy. Nonetheless, Oslo itself makes little contribution to peace efforts as it maintains anti-Russia sanctions and continues to train, fund, and supply the Ukrainian military.

Ahmed Adel is a Cairo-based geopolitics and political economy researcher.

October 26, 2022 Posted by | Economics, Russophobia | , | Leave a comment

Pfizer will Charge Two Billion Dollars per Pound of Covid mRNA Nanoparticles

This is a 12,370% Markup

By Igor Chudov | October 23, 2022

We all know that Pfizer likes to “move at the speed of science”.

Nowhere is the “speed of science” more pronounced, than in raising prices for its products. Pfizer used to charge its only customer in the United States — the Federal Government – $19.50 per dose.

Now Pfizer decided to diversify and sell its Covid vaccine through health insurance companies. It plans to charge $130 per dose. Mind you, each dose costs $1.18 to produce.

The business plan here, of course, is to keep as many vaccine mandates as possible and have health insurers cover the cost of increasingly frequent vaccinations, child vaccinations etc.

For example, right now the CDC recommends getting the bivalent booster two months after a previous booster.

People ages 12 years and older: A 2-dose primary series and 1 bivalent mRNA booster dose (Moderna or Pfizer-BioNTech) is recommended. The primary series doses are separated by 3–8 weeks and the bivalent mRNA booster dose is administered at least 2 months after completion of the primary series (for people who have not received any booster doses), or at least 2 months after the last monovalent booster dose.

If you think that two months is too frequent, consider that CDC’s Rochelle Walensky was bivalent-boosted only a MONTH ago, and is now suffering from Covid — the same variant she was boosted for. Ms. Walensky is, of course, vaxxed to the max and is thankful for all the shots she received:

The Price

Most of each dose of Pfizer’s “Covid vaccine” is cheap stuff like water, polyethylene glycol, and other chemicals. The actual active ingredient is the mRNA nanoparticles, and those are given at 30 micrograms per dose.

Do the math:

Price Per gram = 130/.000030 = $4,333,333

So Pfizer is selling us their gene juice for over $4,333,333 per gram.

A pound (454 grams) of Pfizer’s mRNA nanoparticles would cost TWO BILLION DOLLARS.

The cost of making that two-billion-dollar pound of mRNA juice is under one percent of the price.

A pretty good deal for Pfizer, right?

Thank God I have a free immune system!

October 25, 2022 Posted by | Economics, Science and Pseudo-Science | , | Leave a comment

German Energy Apocalypse Update VII

eugyppius – October 25, 2022

The only published footage of the damage to the Nord Stream pipelines, featured on my Nord Stream Conspiracy Thread, turns out to come from Expressen, a Swedish newspaper. Their reporters hired undersea drone operators and took a boat out to the site of the explosions off the island of Bornholm. There, they found a sizeable crater and 50 metres of missing pipeline. That this is how the images should have made their way to us, rather than through any official path, speaks volumes about the eagerness of Swedish authorities to suppress this story.

Protests against the insane energy policy of the German government are gathering momentum, particularly in the East; sporadic reports are even appearing in major media outlets now. This is surely one reason that the Minister President of Saxony, Michael Kretschmer, continues to stray from official CDU talking points, calling for negotiated peace in Ukraine and likening EU sanctions to a “tsunami” threatening the German economy.

Feared gas shortages are causing chaos as customers rush to change suppliers in search of better prices, or because their current contracts have been cancelled. Several municipal utilities have flatly stopped accepting new customers, but this option is not available to the so-called Grundversorger or “basic suppliers”—the utilities that supply the majority of gas in their region. These are legally bound to take all comers, and many of them are already having difficulty meeting sudden surges in demand.

Their day-to-day solvency may also soon be a problem:

[I]t is not only the procurement prices that have risen sharply, but also the interim financing costs—that is, the sum with which the municipal utilities must bridge the time from the purchase of gas to the onward sale to the customer, and to the increase in customers’ instalment payments, [an Association of Municipal Enterprises] spokesman explained. “Both together increase the liquidity needs of the municipal utilities, and this in turn affects their ability to supply customers with electricity and gas.”

Who knows how all this will play out, and what effect (if any) proposed price limits on electricity and gas will have on the markets, but I have a crazy vision of a near-future dystopia, where a minority of wealthy customers who have maintained wildly expensive contracts with alternate providers can still heat their homes, while everyone else deals with constant outages and ad-hoc rationing schemes.

Zelensky’s economic advisor has announced that he expects the Federal Republic to contribute 500 million dollars every month to Ukraine’s defence. That sounds like a lot, but we must remember that Germany’s antigen testing program, at its height, cost around a billion Euros a month. The government has pissing away money on crazy things for a long time now.

A survey of German companies, the majority of them small businesses, shows that 25% (up from 14% four months ago) are considering whether to lay off employees, and that 90% are planning to raise prices further than they already have. Almost six in ten are delaying planned investments.

“We have been seeing a creeping shift in industrial production for some time now,” says Rainer Kirchdörfer, Chairman of the Family Business Foundation [which conducted the survey]. “We will only recognise the deindustrialisation and loss of prosperity years from now, and by then it will be irreversible.”

The economic chaos has hit the chemical industry especially hard, and among the early shortages are iron and aluminium salts, crucial precipitating agents used in wastewater treatment. Four federal states have already relaxed their rules on water purification. Chemicals necessary for the treatment of drinking water are also increasingly scarce.

Can’t we just increase our production of biogas to end our dependence on Russia and save the climate at the same time, asks the drooling knuckle-dragging morons at Westdeutscher Rundfunk ?

Overall, the share of biomethane in the German gas market could triple, according to a study by the German Biomass Research Centre in Leipzig. The Capital Bioenergy Office says in a statement that biogas plants could offset about 4 percent of Russian natural gas imports in the short term. It also says it is possible for biogas to provide 46% of the electricity from gas-fired power plants.

So, if we put all of our grain into power production, we have the prospect not only of freezing to death, but of starving to death too. I’m glad state media are investigating this promising angle.

Finally, Business Insider has discovered that the real victims of the gas crisis won’t be young children in fragile health or elderly pensioners on fixed incomes, but female professionals. Ordinances requiring offices to set thermostats at 19C, according to some garbage study, will cognitively disadvantage women, while (even worse) advantaging men, who bizarrely are alleged to perform their best at this precise temperature. Happily, though, Tagesschau has consulted Dr. Georg Ertl from University Hospital at Würzburg, who believes this unfortunate sexism, brought upon us by the furtherance of liberal democracy, can be countered by … caps and stockings.

October 25, 2022 Posted by | Economics, Malthusian Ideology, Phony Scarcity, Russophobia | | Leave a comment

The EU’s energy security now rests in Turkey’s hands

Europe has sought to bypass Russian gas with disastrous results. Turkey is set to reap the benefits.

By Karin Kneissl | The Cradle | October 24 2022

“Geography is the constant of history,” is a quote attributed to the German statesman Otto von Bismarck. Today, those words ring true as we witness geography altering global politics, finance, and alliances.

The geostrategic importance of Turkey has rarely been as clear to European politicians as it has been in recent months, as the continent grapples with a burgeoning energy crisis this coming winter.

Whether it is grain exports from the Black Sea region or the flow of energy supplies from the eastern producing countries, the Bosphorus and the links to Eurasia are once again playing a decisive geopolitical role, as they so often have throughout history. The fact is, Turkey is now crucial for the security of Europe.

Pipeline politics

On the occasion of Turkish President Recep Tayyip Erdogan’s meeting with his Russian counterpart Vladimir Putin in Sochi at the beginning of August 2022, the focus was mainly on bilateral cooperation in energy matters.

Putin told journalists after the tete-a-tete that Europeans should be grateful to Ankara for its gas supplies due to the reliability of the TurkStream pipeline.

Last year, Russian natural gas accounted for around 45 percent of European gas imports. But that share has fallen to less than 10 percent after supplies were halted via the eastbound Yamal-Europe pipeline and suspected US-backed operatives blew up Nord Stream, which also curtailed exports via Ukraine.

The Russian-Turkish TurkStream gas pipeline project was announced in December 2014 after Moscow realized that the long-planned SouthStream project – meant to deliver Russian natural gas via the Black Sea directly to European Union (EU) member state Bulgaria – was not feasible.

Russian energy giant Gazprom and the Italian energy company ENI were the main partners in the consortium. However, following the Crimean crisis in March 2014, the EU Commission blocked this major infrastructure project, citing competition rules.

As far as Moscow was concerned, this arrangement had already been completed in the form of terminals and pipeline routes. Thousands of work contracts had been issued between Bulgaria and Hungary at the time.

Construction was scheduled to begin in June 2014, but Brussels alluded to apparent violations of competition rules in the awarding of contracts by the Bulgarian authorities and brought everything to a halt.

Turkey as a Russian energy hub

Nine months later, during a joint press conference with Erdogan in Ankara, Putin remarked that “If Europe does not want to carry it out, then it will not be carried out.” Putin then announced the TurkStream project, which was formally launched in early 2020.

One pandemic and a war later, the world has experienced and continues to experience rising natural gas prices, while Russian-Turkish energy cooperation is intensifying. On 19 October, Erdogan said he had agreed with Putin to set up a comprehensive hub for Russian natural gas built in Turkey from where Europe could meet its energy needs.

“If Turkey and our potential buyers are interested, we could consider building another gas pipeline and creating a gas hub in Turkey for sale to third countries, especially in Europe,” Putin proposed. In addition, a gas exchange could also be created in Turkey to determine prices, he added.

Neither the EU nor the US have welcomed these developments or, in some cases, faits accomplis. Turkey makes no secret of the fact that it wants to expand its status in the China-led Shanghai Cooperation Organisation (SCO) and will probably soon become the tenth member of this important regional organization.

It should be noted that the SCO’s statutes stipulate energy and security – especially the fight against terrorism – as its essential agenda. The EU, it must be said, is only just discovering the importance of these issues.

Attempts to bypass Russian gas

In the recent past, governments and energy companies have looked to Turkey as an alternative to the existing transit routes for oil and gas between the east and west. In 2005, the 1750 km long Baku-Tbilisi-Ceyhan (BTC) pipeline was opened, transporting Caspian oil across the Caucasus to the Turkish Mediterranean port.

Crucially, this route had the backing of Washington, reinforcing the close connection between politics and the oil business. As per an apt saying from the early 20th century US oil industry: “The oil business is too important to leave it to the oil people.”

The Nabucco pipeline project, intended to reduce Europe’s reliance on Russia’s gas, consisted of a consortium of six corporations based on the initiative of the Austrian partly state-owned OMV. The project was supported politically and financially by the European Commission, with the premise being that natural gas would be supplied from the Caspian region via Turkey to Central Europe to the Baumgarten hub in Austria.

Billions were spent on marketing this project between 2002 and 2014. However contractual agreements surrounding the deal never materialized. Though inconceivable now, Iran was also initially planned as an alternative supplier, yet these efforts failed from 2005 onwards due to UN Security Council sanctions on Iran from 2008 until the present.

Additionally, supply contracts with Iraq and Turkmenistan were targeted in vain, although these arguably had a lot to do with complete mismanagement. In the case of Turkmenistan, countless advisory opinions were commissioned on the status of the Caspian Sea under international law, sea, or lake, and the possible transit pipelines for landlocked Turkmenistan.

A failed strategy

After many years of mere marketing and a lot of hot air between Brussels and Vienna around the Nabucco project, OMV’s partners finally backed out in 2014. It was clear that there was no natural gas available.

In my book “Der Energiepoker” (The Energy Poker) I wrote in 2006: “If the managers had not gone to the State Opera to see Verdi’s Nabucco, but had seen the operetta by Johann Strauss “Wiener Blut” (Viennese Blood), then this natural gas pipeline would have been given a more appropriate name.

Now, in view of the Nord Stream 2 pipeline boycotted by the EU, OMV is facing further setbacks, as the contracts with take-or-pay clauses were drafted in such a way that payment would have to be made for the Russian natural gas, even if there was no physical delivery. These conditions apparently apply until 2040.

EU will buy Russian energy indirectly

While the EU wants to bypass Russian energy sources for political reasons, Turkey, India, and China, among others, will gladly fill in the consumer void. As described, Turkey already benefited in 2014 from the SouthStream project, which became TurkStream. The EU ultimately lost out, while Ankara stood to gain, with the EU presently buying Russian natural gas via Turkey.

This energy route is set to expand even further once the Russian natural gas hub in Turkey is established. Turkey thus becomes the safeguard of the EU’s energy security. While this was the case a few years ago with non-Russian natural gas and oil, it now looks as if Russia is merely adapting its role for the European market on a regional basis.

For some years, Ankara aligned its prospective role as a hub for BTC and the Nabucco project with its EU accession ambitions. Now it seems that Turkey will become a member of the SCO much faster, and despite its NATO membership, part of the security cooperation with Russia and China.

The EU is more dependent than ever on the goodwill of those it once created obstacles for, and Turkey and Russia are no exception. The coming months will show with all their force just how irresponsibly the EU governments handled the continent’s energy security needs.

October 24, 2022 Posted by | Economics, Malthusian Ideology, Phony Scarcity, Timeless or most popular | , , , | Leave a comment

Nord Stream repair time frame assessed

Samizdat – October 24, 2022

Russia’s Nord Stream gas pipelines, which were damaged and made inoperable by underwater explosions in late September, can be repaired within a few months.

That’s according to the state-backed Danish Broadcasting Corporation (DR) which was citing Sten Ussing, Chief Engineer with consultant group COWI.

Ussing assessed from underwater video-footage that the pipes will not be damaged by rust for some time as there is little oxygen at a depth of 80 meters, where they are located. He noted that the fracture surfaces look “very clean and almost shiny,” which suggests that “the pipe will not rust in a few weeks, as one would expect in a more oxygenated environment.”

“We can expect corrosion inside the pipe to be limited as well,” he added.

The engineer, however, explained that the explosion caused a pressure surge, and that could have damaged sections of the pipeline some distance from the site, adding that they can be repaired by elevating the pipes slightly above the seabed, which would allow underwater welders to remove the damaged sections and replace them with new ones.

“It is standard procedure to weld such a piece of pipe under water. It has been done many times before, and the technologies – vessels, pipes and specialists – that need to be used already exist,” Ussing explained.

“Finally, the pipeline would have to be emptied, the strings cleaned of dirt and grime, blown and dried – and that’s it, you can have gas flowing again,” the engineer concluded, saying the process will likely take several months. He warned, however, that even with little oxygen, the fractured pipes can accumulate rust over time, and advised to carry out the repairs within a year.

The footage of the pipeline fractures which Ussing inspected was taken by Swedish media outlet Expressen, which sent a camera down one of the pipes.

The cause of the explosions which damaged three out of four strings of Russia’s 1,200-kilometer Nord Stream 1 and 2 gas pipelines is still being investigated. Sabotage is suspected to be the likely cause. President Vladimir Putin branded it “an act of international terrorism.”

October 24, 2022 Posted by | Economics, False Flag Terrorism | , , | Leave a comment

Germany forced to slash rearmament plans

Berlin loudly announced the scheme earlier this year, after years of pressure from the US

Samizdat | October 23, 2022

Germany is “massively” reducing its rearmament plans as high inflation and a strong dollar have made the equipment too expensive to buy for the country, unnamed political and defense industry representatives have told Handelsblatt newspaper.

Many projects, especially those for the navy and airforce, would likely have to be canceled, the outlet reported on Friday.

The fate of a third batch of K130 corvettes is now hanging in the balance, along with new Eurofighter jets for electronic warfare, frigates, and self-propelled howitzers, which were to be ordered to replace equipment sent by Berlin to Ukraine, the sources claimed.

The number of units in a second batch of Puma infantry fighting vehicles, the cost of which was estimated at €304 million ($299.8 million) earlier this year, is also being reduced on a weekly basis, an unnamed politician from the ruling ‘traffic light’ coalition told the paper.

“Since many projects run for five to seven years, inflation in this dimension creates a serious financial problem,” one of the sources explained. The economic situation has been fraught in Europe as the burden of the Covid-19 pandemic was further aggravated by the fallout from sanctions imposed by the EU on Moscow over its military operation in Ukraine, and the subsequent reduction in the supply of Russian energy to the bloc.

Arms manufacturers have reportedly been unhappy with the size of a special €100 billion ($98.6 billion) fund allocated by the German government for rearmament purposes. “In order to fulfill the wishes of the Bundeswehr, €200 billion is needed,” a defense firm manager told Handelsblatt.

When announcing the investment in June, Chancellor Olaf Scholz promised that it would help turn the German military into the “biggest conventional army” among European NATO member states. The Bundeswehr would be able to “defend every square meter” of the US-led military bloc’s territory, he insisted.

October 23, 2022 Posted by | Economics | , | Leave a comment

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