NetZero destroys NetZero: Europe can’t make solar panels because green electricity costs too much
By Jo Nova | October 9, 2022
Ironies don’t get better than this: Thanks to the renewable energy transition, Europe can’t afford to make renewable energy.
When will the message get through that renewable energy is not sustainable?
European photovoltaic plants and battery cell factors are temporarily closing or quitting altogether because of obscenely high electricity prices. When the plants were built they expected to pay €50/MWh, but now they are €300 – 400/MWh. And the situation may last another couple of years, so it’s hard to see how these manufacturers can avoid leaving permanently.
So much for all the solar jobs. Europeans are being reduced to being installers while the production of panels shifts to coal fired China because electricity is so much cheaper. Most of the wind turbine industry has already moved to China.
European solar PV manufacturing at risk from soaring power prices – Rystad
Jules Scully, PV Tech
Around 35GW of PV manufacturing projects in Europe are at risk of being mothballed as elevated power prices damage the continent’s efforts to build a solar supply chain, research from Rystad Energy suggests.
The consultancy noted that the energy-intensive nature of both solar PV and battery cell manufacturing processes is leading some operators to temporarily close or abandon production facilities as the cost of doing business escalates.
It’s not the only thing in jeopardy:
“Building a reliable domestic low-carbon supply chain is essential if the continent is going to stick to its goals, including the REPowerEU plan, but as things stand, that is in serious jeopardy,” [said Audun Martinsen, Rystad Energy’s head of energy service research].
Tell us what “affordable means:
The consultancy revealed that while power prices in Europe have retreated significantly since record highs in August, rates remain in the €300 – 400/MWh (US$297 – 396/MWh) range, many multiples above pre-energy crisis norms.
While Europeans have benefitted from reliable and affordable electricity, the research suggested that low-carbon manufacturers have based their build-up of production capacity on stable power prices of around €50/MWh.
And the country with the most fossil fuels wins:
The high costs of European PV manufacturing were revealed in a recent report from the International Energy Agency (IEA), which found China is the most cost-competitive location to manufacture all components of the solar PV supply chain, with costs in the country 35% lower than in Europe.
Eric Worrall | What’s Up With That? | October 9, 2022
… Shortly after the above was published, a French solar module plant was closed;
The obvious question, if renewables are so cheap, why don’t these plants relocate to a large plot of land, disconnect from the grid, and power their manufacturing facilities from their own low cost renewable energy products?
Seems an obvious solution – but for some reason renewable manufacturers seem to be choosing to shutter their plants, rather than switching to consuming their own product.
Is PayPal About to Go Bankrupt?
BY IZABELLA KAMINSKA | THE DAILY SCEPTIC | OCTOBER 9, 2022
With the stock prices of both Credit Suisse and Deutsche Bank under pressure, many in the financial field are becoming concerned the world could be facing a renewed financial crisis. But this time around events could play out very differently. It might not even be banks that pose the greatest financial risk to consumers. It could be payment providers like PayPal.
The really big difference between 2007 and 2022 is that bank runs no longer look like the image above, they look like this:

That’s what I was faced with when I tried to transfer £500 from my PayPal account to a regular bank account. On Sunday morning the same message was still occurring. A quick scan of social media proved I was not alone.
“Boycott PayPal” was also trending on Twitter.
So what might the error message indicate about the business?
Here’s what we know so far.
In the last 48 hours a sneaky amendment to PayPal’s acceptable use policy widely captured the public’s attention. Free speech advocates had spotted that customers agreeing to the update would be allowing a sum of $2,500 to be lifted from their accounts if PayPal ever found them guilty of “sending, posting, or publication of any messages, content, or materials” that “promote misinformation” or “present a risk to user safety or wellbeing”.
When word got out, those already concerned about the company’s draconian turn started shutting their accounts and urging others to do the same on social media.
For some, the action proved the final straw.
On Saturday evening U.K. time, PayPal’s former president David Marcus distanced himself very clearly from the action. Elon Musk, whose pathway to billionairehood started in 2000 when his company X.com was merged with Peter Thiel’s Confinity to create the PayPal of today, later tweeted that he agreed.

Readers of the Daily Sceptic and members of the Free Speech Union (such as myself) will already know that over the past few months PayPal has been on a whirlwind tour of shutting down the accounts of platforms and media sites it has deemed guilty of spreading misinformation. In many instances, those affected, such as the Daily Sceptic, were not even consulted ahead of the fact and had little idea of what specific text, post or media had violated PayPal terms.
So why exactly would PayPal descend to this level of reputational self-harm?
It’s hard to know for sure, but chances are the decision rests on pressures PayPal itself is facing with respect to its legal duty to enforce Know-Your-Customer (KYC) and Anti-Money Laundering (AML) rules. If I was to take an educated bet, it’s the counterterrorism section of the rulebook that is most relevant.
These days it’s hard to imagine that banks weren’t always responsible for screening transactions and making judgements about their legitimacy. But until the Financial Action Task Force (FATF) was formed in 1989 with a view to combatting money laundering, banks only really cared about screening credit risk. It wasn’t until 2001 and the 9/11 attacks on the Twin Towers (and the introduction of the Patriot Act) that the scope of banks’ responsibilities in this field was expanded to include combatting the financing of terrorism too.
Tackling terrorist financing and criminality was easy enough when everyone was on the same page about what constituted terrorism or financial crime. But one man’s freedom fighter is another man’s terrorist. And in an increasingly polarised world, it’s become harder for ordinary bank employees to differentiate free-speech critical of authority from radicalising terrorist content, such as that distributed by Isis on social media to recruit new members.
It wasn’t the job they were hired to do.
Three factors have muddied the waters further.
The first is the scale of penalties directed at banks found in breach of AML/KYC regulation. The fear of being slammed with fines has made banks and payment providers like PayPal hugely risk-averse and inclined to err on the side of caution when facing any ambiguity. If something even whiffs of misinformation, from their point of view it’s better to shut it down than to run the risk of getting a fine.
Second, is a lack of resources. Human arbitration is costly, and screening activities would be unaffordable if they were to be done by living, breathing individuals. This is why banks and payment providers like PayPal have invested huge sums of money in cost-saving screening technology to detect illegal transactions both actively and preemptively. The problem here is that most of these tools, known as suptech or regtech, are algorithmically applied with limited human oversight. That means it’s mostly artificial rather than human intelligence deciding who gets to stay on a platform and who gets frozen out. As yet, robots are not well known for their sense of nuance, empathy or capacity to process ambiguity. How they decide what they decide is a black-box interpretation of the inputs they’ve been programmed with.
The third issue is the structure of the KYC/AML policing system itself. Since the scale of the task is so enormous, it goes beyond the scope and capacity of any existing government agency. Knowing this, governments, very similar to how they managed the enforcement of lockdown policy, realised it would be more cost-efficient to outsource the policing of their own rules to the banks and payment companies directly. But this is a strategically coercive dynamic. If payment companies don’t fall in line, they risk having their licences removed and their businesses shut down. Non-compliance is therefore not an option. PayPal isn’t perfect, but the pressure it is facing is very similar to the pressure pubs, restaurants and supermarkets faced under Covid. The structural problem here, as with the retail sector during Covid, is those payment companies are not legislative specialists. They take for granted that the governments know what they are doing and that the rules they are setting are human rights compatible and in line with the laws of the land. Nor do the payment companies have the capacity to investigate the rights and wrongs of every case. This is a job for the legal system, which is already excessively costly to access for most ordinary individuals.
This in itself is a huge blind spot for the financial system. There’s a very strong case to be made that the way democratic governments have gone about enforcing AML legislation is not compatible with human rights at all. The enshrined right of habeas corpus might even be under threat. The FATF has itself belatedly realised this. Back in October 2021, it noted in a “stock-take on the unintended consequences of the FATF standards” that (my emphasis):
Situations have arisen in the course of FATF evaluations concerning the interaction between the FATF Recommendations on combating TF (particularly R.5 and R.6) and due process and procedural rights (e.g. to legal representation, fair trial, and to challenge designations, etc.), which have been considered on a case-by-case approach as they arise in specific country contexts. In addition, the FATF has also been made aware of instances of the misapplication of the FATF Standards, which are allegedly introduced by jurisdictions to address AML/CFT deficiencies identified through the FATF’s mutual evaluation or ICRG process, potentially as an excuse measures with another motivation. This information often comes as a result of stakeholder input or when the attention of the FATF or its members is drawn to a particular issue, such as when another international body is reviewing legislation or actions are taken by national authorities. Analysis in the stocktake has therefore focused on the due process and procedural rights issues most often arising in evaluations or feedback.
The stock-take identified the following factors as key examples of where misapplication of FATF standards had affected due process and procedural rights:
- excessively broad or vague offences in legal counterterrorism financing frameworks, which can lead to wrongful application of preventative and disruptive measures including sanctions that are not proportionate;
- issues relevant to investigation and prosecution of TF and ML offences, such as the presumption of innocence and a person’s right to effective protection by the courts;
- and, incorrect implementation of UNSCRs and FATF Standards on due process and procedural issues for asset freezing, including rights to review, to challenge designations, and to basic expenses.
Readers can hopefully see the issue.
The entire regulatory system since 2008 has focused on ensuring that the 24-hour payment banking infrastructure we have become used to will never face the risk of going down again.
Put bluntly, the style of service disruption currently being experienced at PayPal is something major banking and payment institutions are not supposed to be able to get away with. At least not for long. So yes, it does feel like a big deal.
For the most part, the practice of shuttering access through website maintenance, downtime or error messages is more commonly seen at cryptocurrency platforms during extreme bitcoin selloffs. Closing access to people’s accounts or pretending to do website maintenance often gives operators the time to raise the liquidity they need by slowing redemptions. But it’s far from a transparent or honourable policy.
For PayPal to have triggered a run on itself because it was merely following government orders is not just unfortunate, it is careless. But it also speaks of a deeper problem at the heart of the anti-money laundering regulatory structure. The entire system we have created may no longer be fit for purpose. Consider, for example, that despite many billions of dollars spent on FATF compliance, a company like Wirecard, whose business model in retrospect looks to have been based on fraud as a service (FAAS), could so easily rise to the top of the German stock market. Nor has any of the regulation been successful at combatting the type of electronic financial fraud (mostly based on phishing attacks or social engineering) that impacts users every day.
We need to seriously ask if the benefits outweigh the collateral damage also being incurred.
But while PayPal might not be entirely responsible for its own actions on the KYC/AML front, its business model may be more vulnerable to this sort of fallout than most people appreciate. The culpability for that lies with PayPal exclusively.
A key revenue generator for the group has always been the interest revenue it absorbs from all the customer balances it holds. (You may not have realised it, but if you have any significant sums in a PayPal account, you won’t be collecting interest on them.) A large outflow of deposits could easily inhibit the company’s ability to raise this income and harm its overall revenue-generating capability. (You don’t have to hold balances at PayPal to use it.)
More critical for PayPal at this juncture will be its inability as a payments company to access the central bank lender-of-last-resort backstop. That means if the group is genuinely facing challenges meeting transfer and redemption requests, it will only be able to turn to wholesale liquidity markets to make up the difference. The degree to which customer balances are locked up in harder-to-liquidate securities or bonds will largely determine its success here. Frustratingly for PayPal, in the current illiquid bond market, there’s a good chance that selling these quickly and without a loss could be challenging. The alternative path for PayPal will be to use these securities as collateral for temporary loans. But the expense here is potentially open-ended if there are no obliging counterparts. That may (or may not) be why the company is currently restricting transfers.
Before rushing to conclusions, it’s important to stress the company still has recourse to liquidity from fully-funded (in fact over-collateralised) entities. We may not know the makeup of that liquidity, but solvency is unlikely to be an issue over the longer term. The biggest problem facing users today will be uncertainty over how quickly they can transfer funds out of the PayPal ecosystem.
What I can say is that in the modern digital age, bank runs will be different. We may even long for the days when tellers transparently shut up shop when the vaults ran dry. At least it was clear what was going on. These days, on the other hand, it will become ever harder to differentiate a bank run from a maintenance issue on a website. Such matters will be shrouded in plausible deniability and uncertainty. Suffice it to say, corporate communication departments will always err towards disinformation of their own sort, that any such outage is nothing out of the ordinary.
Even more concerning is that in the event of a run, customers will no longer be able to tell if those with better connections aren’t unfairly cutting ahead of them in the redemption queue. Virtual queues may seem technologically efficient, but there’s no transparency to them at all.
That’s why if you’re caught out by any of these policies you already don’t stand a chance of getting your account back unless you have existing connections to the management or a platform of your own. None of this is progressive or encouraging.
Izabella Kaminska is the Editor of the Blind Spot, a financial news media service focused on the news everyone else is missing.
PayPal was not contacted for this piece, which is based on the opinions of the author.
Germany’s Green Party In Dire Straits
From most loved, to most hated… audiences are drowning out Green Party speakers at campaign rallies.
By P Gosselin – No Tricks Zone – October 8, 2022
The German Greens, who are partners with the SPD socialists in Germany’s government, are sinking dramatically in the public opinion polls as it becomes clear Green Party leader and Economics Minister Robert Habeck is driving the country’s economy into the ground at a dizzying speed.
Habeck, who currently also serves as Vice Chancellor, recently stunned millions of TV viewers when he appeared not to understand what bankruptcy is. Now as tomorrow’s state elections approach in Lower Saxony, the Green Party officials are scrambling to keep Habeck from doing more damage.
Blackout News reports that the Greens are “hiding” Habeck from the public in order to control the damage, and so far he has “had only one campaign appearance”. For that one particular appearance, “the audience had to stay outside, for security reasons” and “exclusively to selected members of his party.”
“In the polls, Robert Habeck has already experienced a significant plunge in the popularity of German politicians in recent days. So it’s no wonder that the Greens are literally hiding their once most popular politician ahead of the election in Lower Saxony,” reports Blackout News.
Desperate to find new sources of energy now that the Russian supply of natural gas has been halted, Habeck has angered his party base by extending the operating life for two nuclear power plants and putting lignite-fired power plants back on line.
In Göttingen, Habeck spoke at an election rally, but only in only in front of hand-picked audience after the police had completely sealed off the event.
Just a day earlier his party comrade Annalena Baerbock was “drowned out” by demonstrators. “Already at the beginning of her speech there was a deafening concert of whistles so that Baerbock could hardly be understood,” reports Blackout News. “In addition, there were shouts such as: ‘Baerbock must go’, ‘war-mongers’, ‘get lost’ and ‘impoverishment and war thanks to the Greens’, and ‘whoever votes Green, votes for war’.”
The mainstream media however, did not report on this.
Once the darlings of politics, the German Greens have seen their popularity plummet spectacularly over the recent weeks as Germany’s economy crashes due to excruciating energy shortages and price inflation.
“Therefore, on October 3, the Minister of Economics spoke only to a few dozen hand-picked party members and a few selected journalists,” according to Blackout News.
Will Lebanon and Israel go to war over the maritime border dispute?
By Robert Inlakesh | Samizdat | October 8, 2022
Israel has announced its readiness for war with Lebanon, as the ongoing US-mediated maritime border demarcation talks head towards a dead end. The issue, however, is not just causing dispute between Beirut and Tel Aviv, but also becoming more prevalent within Israeli politics as it heads into another round of general elections.
On Thursday, Israeli Prime Minister Yair Lapid rejected Lebanese amendments to a US-proposed maritime border demarcation agreement. The previous day, Israeli officials had reportedly been briefed on the deal, which was the cause of much optimism, with an unnamed source telling Axios news that Lapid “made it clear that Israel will not compromise on its security and economic interests, even if that means that there will be no agreement soon.”
Later on Wednesday, Israeli Defense Minister Benny Gantz ordered the military establishment to prepare for an armed confrontation with Lebanon. A four-hour cabinet meeting, which was said to have been attended by major Israeli security establishment figures, was then concluded with a public announcement that the prime minister and defense minister had been granted permission to strike Lebanon without further cabinet approval.
Why are Lebanon and Israel on the verge of war?
In early June, a ship owned by the gas company Energean arrived at the resource-rich Karish field in the Eastern Mediterranean to begin preparations for natural gas production for Israel. Lebanese President Michel Aoun condemned the arrival, warning Tel Aviv against taking any further “aggressive action.” The Karish field, as well as the nearby Qana field, have for years been central to on-off US-mediated negotiations between Lebanon and Israel. The two nations have still not come to any agreement on the demarcation of their maritime borders, with Beirut seeing Karish and Qana as vital to reviving its collapsing economy.
While Lebanon maintains, due to legal arguments put forth in previous negotiations, that the entire area is to be considered ‘disputed waters,’ Israel has maintained that all of the Karish field and the majority of the Qana field are within its own ‘Exclusive Economic Zone’. The Lebanese political and military party Hezbollah, which claims to have 100,000 battle-ready troops at its disposal, then weighed in on the debate, vowing to protect Lebanon’s rights to its oil and gas.
Secretary General of Lebanese Hezbollah Seyyed Hassan Nasrallah declared that if no maritime border deal were reached and Lebanon is not able to secure its rights, then military action will be taken. Nasrallah vowed that the new reality would be “If we can’t have our resources, nobody can.” Hezbollah’s red line is Israeli extraction from the Karish field before any agreement is signed – if this happens, the group has threatened to strike not only Tel Aviv’s infrastructure at site, but every other Israeli oil and gas facility in the Mediterranean.
Israel has since responded with threats of its own, which have ranged from a vow to eliminate the entire densely populated Beirut suburb that serves as Hezbollah’s stronghold, to Benny Gantz’s recent warning that the whole of Lebanon would “pay a heavy price” for any military action by Hezbollah. Now that the negotiations have reached a “make or break” point, there are significant fears that military action will be taken, either by Israel or Hezbollah.
Empty threats?
The most recent threats issued by the military and political leadership in Tel Aviv have caused panic among Israelis living near the Lebanese border. However, there is a significant possibility that the rhetoric is aimed at a domestic audience. Israel will enter into a new round of national elections in November and the demarcation of maritime borders has recently been weaponized against the current Israeli leadership, causing ministers to act in order to save face.
Israeli opposition leader and former long-time prime minister Benjamin Netanyahu began to lash out at interim-PM Yair Lapid back in September, releasing a video in which he claimed that Lapid had “totally folded in the face of Nasrallah’s threats” and that Hezbollah had forced him to delay extraction from the Karish field. Netanyahu has continued to heavily criticize his political opponents’ handling of the demarcation-line issue, with similar claims that Israel is backing down over the threats issued by Lebanese Hezbollah.
Netanyahu’s words ring true in that Lapid has clearly been forced to take the issue of demarcation of maritime borders very seriously and has conceded on positions held by Tel Aviv in the past. In addition to this, the extraction of gas from the Karish field has also been delayed, as Energean, which owns the rights to extract from the site, was initially prepared to begin operations in late September and has so far refrained from doing so. However, had Netanyahu remained as PM, he would hardly have had any other choice but to do the same.
The threats made by Hezbollah are very serious, and the group apparently has the capacity to follow through with them and destroy all of Israel’s oil and gas facilities. At this time, however, the Israeli far-right camp headed by Netanyahu is blaming the situation on Lapid’s weak governance, saying he is prepared to give away territory that belongs to Israel. For this reason, it is likely that Yair Lapid will attempt to delay extraction of gas from the Karish field in order to sideline the issue until after the elections.
The necessity of a deal for Lebanon
Lebanon sees the Karish and Qana issue as integral to its survival. Some UN experts put the percentage of Lebanese living in poverty at around 80%, while the country endures round-the-clock blackouts, a rising crime rate, and civil instability. Some people have even been spotted searching for food in garbage bins, as well as fighting over loaves of bread at bakeries. Getting its hands on a possible multi-billion-dollar oil and gas field is a matter of life or death for Beirut – but not for Tel Aviv, which enjoys far more economic stability.
The US mediator in the Lebanon-Israel talks, Amos Hochstein, gave an interview to the American owned al-Hurra TV in June, laughing when asked about the prospect of trading the Karish field for Qana. Months later, after Hezbollah upped its threats and the group’s leader, Nasrallah, stated that the Lebanese people would not be laughed at, this issue has become a rather grave one. The US, which has a clear pro-Israeli bias, is now being forced to take the talks much more seriously.
Earlier this year, as the European Union looked for alternative gas suppliers, a deal was inked between Tel Aviv and Brussels, under which Israel would send gas through pipelines to Europe via Egypt. This has encouraged Tel Aviv to announce its plans to double its gas output, and the Karish field is key to achieving this.
The Qana field, however, has not yet been explored and will take time to develop. Despite this, one of the key reasons for Israel’s rejection of the Lebanese proposal is that Beirut refuses to pay Tel Aviv royalties for the gas it would extract from the Qana field should it be handed to Lebanon. Beirut cannot commit itself to such an agreement, because this would mean normalizing ties with the Tel Aviv regime, which still occupies Shebaa farms – an area that Lebanon claims as its rightful territory.
Whether war happens will now boil down to whether bickering between Israeli political parties and individual officials will cause Tel Aviv to adopt a belligerent approach and push forward with gas production in the disputed fields before an agreement is reached. If it does, there can be little doubt that Hezbollah will open fire if its red line is crossed. Israel’s stake in the matter is additional energy revenues, while for Lebanon it is potentially a matter of life or death. Neither side wants war, but one has much to gain and the other has everything to lose.
Robert Inlakesh is a political analyst, journalist and documentary filmmaker currently based in London, UK. He has reported from and lived in the Palestinian territories and currently works with Quds News.
Saudi minister blames Washington for soaring fuel prices in the US
The Cradle | October 8, 2022
Saudi Arabia’s Minister of State, Adel al-Jubeir, rejected claims that the kingdom is behind soaring gas prices in the US, citing instead insufficient refinery production and asserting that the Gulf country does not politicize oil.
“With due respect, the reason you have high prices in the United States is because you have a refining shortage that has been in existence for more than 20 years… You haven’t built refineries in decades,” Jubeir said during an interview on Fox News on 7 October.
“Oil is not a weapon… It’s not a fighter plane. It’s not a tank. You can’t shoot it. You can’t do anything with it. We look at oil as a commodity and we look at oil as important to the global economy in which we have a huge stake. The idea that Saudi Arabia would do this to harm the U.S. or to be in any way politically involved is absolutely not correct at all,” the Saudi official added.
The minister made the claim that the issue on oil production has “been taken out of context by perhaps commentators and analysts,” while assuring that Riyadh is “committed to ensuring stability in the oil markets to the benefit of consumers and producers.”
Following the decision by OPEC+ to cut production output levels by two million barrels per day (bpd), Washington fired back strongly at it’s Gulf partners, with White House Press Secretary Karine Jean-Pierre accusing them on 5 October of “aligning with Russia.”
For weeks before the cut, the US had been lobbying OPEC+ and pressuring it against making the decision, sources told media, as US officials “tried to position the situation as ‘us versus Russia.’”
Saudi officials reportedly told their US counterparts that Washington should boost its own production if it wanted more oil on the market.
Tensions have escalated further between Saudi Arabia and the US in the wake of the production cut, with Secretary of State Antony Blinken saying on 6 October that Washington is reviewing various options regarding its relationship with the kingdom.
Food, energy, housing: True German inflation is 56 percent
Free West Media | October 7, 2022
Prices are skyrocketing and we are all getting poorer – everyone feels the price shock, but in statistics it shows up much smaller. Official inflation figures are around 10 percent. But many citizens notice in their everyday life: Prices are rising – in the supermarket, at the gas station – much faster.
The true inflation is much higher: That’s why there is now the inflation radar from pleiticker.de – one can find it updated daily on their homepage. They have calculated price developments in the areas that really matter: housing, energy and basic foodstuffs. With the latest figures, inflation there was a whopping 56,3 percent over the past year – and 11,6 percent over the past week alone. For the average net income of a German household (€3 600), this means a loss in value of €1 296. This is mainly driven by the rise in energy costs. The price of electricity has risen by an unbelievable 344 percent in the past year.
The official figures, on the other hand, are hardly meaningful: The figures from the Federal Statistical Office are significantly lower and not very plausible for the reality of people’s lives for two reasons: On the one hand, it includes hundreds of products in its unrealistic “shopping basket”. On the other hand, the price shock for electricity and gas only becomes visible in the Federal Statistical Office’s inflation calculator with a long delay. Instead of the market price, the current consumer price is used, which reflects even more favorable market prices from the past. The real market price only reaches the end consumer after many weeks.
Germany economy is grinding to a halt
The German economy is slipping as a consequence of the exploding electricity and gas prices and the galloping inflation, which has now solidified in the double-digit range. The former Bild editor-in-chief Julian Reichelt has been documenting the German economic bankruptcy with a new project, called pleiticker.de.
The project is described as follows on the website pleiticker.de: “Every day, companies collapse under the exploding energy costs and file for bankruptcy. More and more people can no longer afford to live. Pleitticker.de documents the crisis that Economics Minister Robert Habeck doesn’t want to see […] The truth is: the wave of bankruptcies has long been here.”
At the beginning of September, the Economics Minister said: “I can imagine that certain sectors will simply stop producing for the time being. Don’t become insolvent.”
This is illustrated on the website not only by the sheer numbers, but also by numerous reports on the effects of the failed policy – for example on already known company bankruptcies, impending waves of insolvencies in clinics and other sectors or the mass terminations of gas customers by the public utility company.
The website also examines actual inflation, because according to Reichelt, the so-called “shopping basket” of the Federal Statistical Office does not reflect the price increases for many everyday products, but, for example, prices for home cinema systems, surfboards, services from domestic staff or visits to the opera. Essentially these are items and services that few avail themselves of.
Reichelt’s new portal therefore calculates the authentic inflation rate in the areas of housing, energy and staple foods.
Journalists who touted ‘climate’ price hikes demand pay rise
Hacks from the German regional public broadcaster WDR, have been demanding inflation compensation for themselves – in order to cope with the price increases that they themselves have demanded
Lorenz Beckhardt, WDR journalist and Quarks editor, called for a “warning strike in WDR” on Twitter: “With a few exceptions”, public service broadcasting is not done by people who “earn top salaries”. He does not offer any details on his own remuneration and whether he counts himself among his “struggling colleagues”.
The journalists want to push through a 5 percent salary hike and inflation compensation – mainly to be able to cope with the massively rising food and energy prices. For this reason they stopped work on Wednesday, October 5.
The irony is particularly biting: Not long ago, Lorenz Beckhardt had personally demanded price increases – for the sake of the “environment”. In July 2019 he appealed to politicians in a comment on: “Make meat, driving cars and flying so damn expensive that we can put an end to it. Please! Quickly!”.
Now that he has got what he wanted, he is whining about money. For the likes of Beckhardt this is obviously not a contradiction.
Totally clueless or complicit politicians?
The next hurdle facing the Scholtz federal government’s energy policy is that nobody in Berlin can say how much gas will actually be available to supply the country in winter. Despite – allegedly – well-filled storage tanks, gas in unknown quantities are not intended for Germany at all, but flows abroad.
Officially, Germany’s gas storage facilities are more than 90 percent full. But that is no reason for relief, because the gas is not reserved for German consumers and companies. The news magazine Focus recently reported on a letter from the Ministry of Economic Affairs to the deputy chairman of the Union parliamentary group, Jens Spahn, which stated: “The Federal Government does not have any knowledge of where the individual stored gas is going.”
The Federal Network Agency told the German weekly Bild am Sonntag: “The stored gas is largely owned by gas traders and suppliers who often operate across Europe.”
Particularly riling is that this also applies to the gas that Trading Hub Europe buys with state aid and has stored under trusteeship of the Federal Network Agency in the former Gazprom storage facility in Rehden. So, although this gas was financed with tax money, it is not reserved for Germany.
It can be purchased by all national and international companies registered on the German gas market to the highest bidder. For German gas customers, whether private or corporate, this is tantamount to a resounding slap in the face: their own government obviously shows no interest in ensuring energy security and giving preference to German customers.
CDU politician Jens Spahn, also criticized this outrage: “The very expensive gas bought in our storage facilities must reach German consumers in winter,” he demanded. In view of the crisis, that should actually go without saying, but in Germany, of course, politicians are pursuing Anglo-Saxon priorities.
Incidentally, neighboring Austria has a similar problem: according to the head of Austria’s largest energy storage company, RAG, a gas storage capacity of 85 percent should be reached by the end of the month. But even there, the country owns just under half of the gas.
The geopolitical consequences of the OPEC+ agreement

By Hazem Ayyad | MEMO | October 7, 2022
Amir Hossein Zamani Nia, Iran’s OPEC governor, announced when he left a meeting with representatives of the 13 member states of the Organisation of Petroleum Exporting Countries (OPEC) and their ten allies – known as OPEC+ – the decision to reduce oil production by two million barrels per day for November.
The initial reactions to the large production cut were hysteria. One American journalist asked the Saudi Minister of Energy, Prince Abdulaziz Bin Salman, if he was worried about the American reaction to the production cut. He sarcastically told her to enjoy the sun in Vienna; a clear indication of the difficulties that Europeans will face next winter.
The American reactions to the decision of the OPEC+ countries were quick and distinct. White House press secretary Karine Jean-Pierre commented on the decision by saying it was clear that the OPEC+ alliance was “aligning with Russia” and was making a “short-sighted decision” to reduce oil production at the height of the conflict in Ukraine.
White House National Security Adviser Jake Sullivan noted that US President Joe Biden was feeling “disappointed” with the decision of the OPEC+ alliance to reduce its oil production.
The reactions confirm President Biden’s failure to manage the sanctions against Russia and the dismantling of the OPEC+ alliance, whose decisions ruined the ambitions of the US administration, the US Treasury, and the Federal Reserve to fight inflation and reduce interest rates.
The OPEC+ alliance has once again proven its strength and the unity of its countries, which include Iran, Saudi Arabia, the UAE and Russia. Despite the disparity, competition and conflict between its countries, the OPEC+ agreement exceeded the limits of technical performance confirmed by UAE Energy Minister, Suhail Al Mazrouei, when his country announced it was joining the efforts to reduce production. Its geopolitical reach extended from the Gulf and Yemen to the Red Sea and the Mediterranean.
The agreement that included regional opponents such as Iran, Saudi Arabia and the UAE, and international sponsors such as Russia, stressed the geopolitical dimensions as it coincided with a meeting held by the Russian President’s Special Envoy to the Middle East and Africa, Deputy Foreign Minister Mikhail Bogdanov, on Wednesday evening with the Emirati Ambassador to Moscow, Mohammed Ahmed Al-Jaber, to discuss the situation in Yemen and the Gulf region after the expiry of the deadline for the truce agreement in Yemen on 2 October.
This meeting came at the request of the Emirati ambassador and coincided with threats made by a member of the Political Bureau of the Houthi movement, Muhammad Al-Bakhiti. He said: “We have the ability and the courage to strike the Saudi and Emirati oil facilities if our demands are not met.”
The meeting with the Emirati ambassador coincided with a press conference held by the US special envoy to Yemen, Tim Lenderking, during which he discussed his country’s position on renewing the truce in Yemen between the countries of the Arab coalition, led by Saudi Arabia and the UAE, and the Houthi group. The US official held the Houthis responsible for hindering the reaching of an agreement without providing practical solutions for resuming the truce or dealing with Houthi threats.
These actions and movements confirm the connection between the regional files and their connection to the international mediations led by both America and Russia in Yemeni. Saudi Arabia and the UAE view the OPEC+ agreement as a trump card and a comprehensive framework that allows activating mediations and truces in Yemen, with the positive and consensual atmosphere it provides, which the Biden administration was unable to provide. This is despite its frequent talk about security cooperation in the Red Sea and the Gulf and naval and air manoeuvres, but it quickly turned into a political and economic framework that serves Israel and its interests more than it serves the interests of Riyadh and Abu Dhabi.
OPEC+ has shifted from a technical framework to an emerging economic and geopolitical framework; fuelled by the Ukrainian war and Russian demands. The tense American reactions deepened the Arab Gulf states’ mistrust of the American partner, which repeatedly failed to deal with the Yemeni and Iranian file. It also failed to deal with the economic requirements of the Gulf states and their political and cultural specificity, which put them in conflict with the powers of the region and threatened their political and religious legitimacy.
This article first appeared in Arabic in Arabi21 on 6 October 2022.
OPEC+ decision to cut oil counteracts Europe’s idea of price cap on Russian energy
US and Europe can no longer make condescending and hegemonic demands on energy producers
By Ahmed Adel | October 7, 2022
The European Commission is hoping to impose a cap on gas prices as the current energy crisis will inevitably deepen over the winter. However, European Union member states are divided over the proposed measures, which are designed to lower soaring inflation amid Moscow’s response to sanctions imposed for its military operation in Ukraine.
Although France, Italy, Poland and 12 other EU countries urged the Commission to propose a broader price cap targeting all wholesale gas trade, the Netherlands, Denmark and Germany – Europe’s biggest gas buyer – are among those opposed against the measure as they believe capping prices could endanger the security of supply as it undermines the EU’s ability to attract gas deliveries.
It is recalled that in early September, Russian President Vladimir Putin described the idea of a price cap as “stupid”, highlighting that the EU was “in no position to dictate”. After warning that the EU would “freeze” if such a cap was imposed, Putin said: “We will not supply gas, oil, coal, heating oil – we will not supply anything.”
While EU leaders are doggedly and obsessively calling for a price cap, industry experts show their scepticism, and in some cases concern on the repercussions of such an action. It is already noted that EU sanctions imposed against Russia are already affecting European economies far worse than the Russian economy.
In this light, chairman and CEO of French energy major TotalEnergies, Patrick Pouyanné, said on October 5: “Honestly, I am not sure that a price cap on Russian oil is a good idea.”
“What I am sure is that if we do that (cap), then Putin will say that ‘we don’t sell my oil’ – and the price will not be at $95, it will be at $150,” Pouyanné said.
For her part, Elisabetta Cornago, a senior energy researcher at the Centre for European Reform, explained that “It’s hard to picture such a level of market intervention. This is uncharted territory.” Another expert, Bram Claeys, a senior advisor at the Regulatory Assistance Project, said that the energy price cap would “quickly start costing billions” because it would force governments to continually subsidise the difference between the real market price and the artificially capped price.
Despite the scepticism from energy experts, the head of the European Commission, Ursula von der Leyen, maintains the need to introduce a ceiling on the price of Russian gas. At the end of August, she announced that the European Commission was taking quick and long-term measures to improve the situation amid rising electricity prices in the EU.
However, it appears that Russia is already pre-emptively responding to price cap suggestions by convincing its partners in OPEC+ (Organization of the Petroleum Exporting Countries) to reduce oil production by 2 million barrels per day from November. This will cause a severe crisis, which will reverberate in Europe and the United States, especially as the OPEC+ decision was made just weeks before the US midterm elections.
For this reason, the White House angrily said in a statement that Biden was “disappointed by the shortsighted decision by OPEC+ to cut production quotas while the global economy is dealing with the continued negative impact of Putin’s invasion of Ukraine.”
OPEC+ comprises of 24 members, many of them close partners with Russia, such as Saudi Arabia, the United Arab Emirates, Iran and Venezuela, and not a single member is Western. In addition, the most influential members have significant differences with Washington, and unlike in decades past, are not afraid to push back to defend their own interests.
Washington is trying to impose the No Oil Producing and Exporting Cartels, or NOPEC bill, which is designed to protect US consumers and businesses from oil spikes. However, OPEC’s most influential members have warned that this legislation would cause chaos in the energy market.
Saudi Energy Minister Prince Abdulaziz bin Salman said on October 5: “We will continuously prove that OPEC+ is here not only to stay but here to stay as a moderating force to bring about stability.”
It is recalled that when Biden arrived in Saudi Arabia earlier this year on a mission to urge one of the world’s largest oil exporters to ramp up production in a bid to help bring down gasoline prices, OPEC+ raised oil output by a minuscule 100,000 barrels per day in what was widely seen as an insult to Biden.
In this way, it is demonstrated that Western influence over energy is waning and that OPEC+ members are behaving more confidently in protecting their own interests. Putin has delivered on every warning he has made whenever a red-line was crossed, and there is little doubt that if Europe imposes a cap, he will counteract Europe’s economic aggression by significantly cutting energy flows, which will make prices soar. There is effectively very little Europe and the US can do to stop this and they must accept the fact that they are at the mercy of OPEC+ and can no longer impose their condescending and hegemonic demands over the organisation and its member states.
Ahmed Adel is a Cairo-based geopolitics and political economy researcher.
Serbia furious over latest anti-Russia sanctions
Samizdat | October 6, 2022
The Serbian government has slammed the latest package of EU sanctions targeting Russia’s oil exports, describing it as the “first EU sanctions package” against Serbia.
Restrictions on the maritime transportation of Russian oil would make it too expensive for Serbia and severely hit the nation’s economy, government officials said on Thursday. In a scathing statement, Serbian Interior Minister Aleksandar Vulin called the EU “the place of our future humiliation and suffering.”
Belgrade will now be “forced to buy more expensive Iraqi oil and thus lose hundreds of millions of euro,” he argued, accusing neighboring Croatia, which is an EU member state, of lobbying for the new measures.
Vulin said the only “consistent” feature of EU policy is “revenge on free nations,” and decried the fact that Western Balkan nations had not been exempted from the latest batch of anti-Russia measures.
The EU “introduced not the eighth package of sanctions against Russia but the first sanctions package against Serbia,” the minister said. He argued that this was why it is “better to be a militarily and politically neutral country” rather than a member of a club of nations that allows the “[psychological] complexes” of its members to run the show.
Serbian Prime Minister Ana Brnabic was equally critical of the new sanctions, saying they were introduced “at the expense of the lives and living standards” of all Serbian people. “It will cost us hundreds of millions of euro,” Brnabic told Serbia’s Happy TV broadcaster.
“What they thought they would do to Russia they did to us on Wednesday, because we depend on the oil pipeline in Croatia,” the prime minister added, accusing Brussels of “using energy for political blackmail and retribution.”
On Thursday, the EU announced the eighth package of restrictions on Russia which include a price cap and “further restrictions” on the maritime transportation of Russian crude oil and petroleum products to third countries. Serbia imports Russian oil by sea through a Croatian port terminal on the island of Krk, from which it is then transported through a pipeline to Serbian territory.
The new measures would make such imports at least 20% more expensive, according to Serbian media. In June, Serbian President Aleksandar Vucic warned that Serbia would not be able to import Russian oil after November 1 due to EU sanctions.
US imports from Russia up despite sanctions
Samizdat – October 6, 2022
US imports from Russia reached $522.1 million in August, 7.7% more than the July total of $484.8 million, marking the first monthly increase since April, according to a report released on Wednesday by the US Census Bureau.
The growth comes despite US President Joe Biden’s pledge to deal a “crushing blow” to Moscow through restrictions on commodity trade.
According to analysts, Washington continues to benefit from the anti-Russia sanctions. While pressuring the EU to give up supplies from Russia, the US continues to buy hundreds of unsanctioned types of goods.
“There is a tacit agreement between the US government and business: we puff our cheeks, and you trade with Russia if it suits you. Their words don’t meet their actions,” Aleksandr Razuvaev, a member of the supervisory council at Moscow’s Guild of Financial Analysts, told Russian state media on Wednesday.
Meanwhile, exports of American goods to Russia slumped by 19% to $66.8 million in August from $82.5 million in July. In June, Russia imported goods worth $58 million, down from $77.4 million in May, and $89.1 million in April.
The data shows that in total from January to August the US imported goods from Russia worth $12.1 billion, while exports stood at just $1.3 billion.



