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Sunday, March 20, 2022

Economics > Inflation will be devastating for poor Americans; Berlin gas price spike; Expect Shortages next Winter in Germany

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Huge gas price hikes will hurt poor Americans

– ex-Pentagon spokesman


A former US security official said the sacrifice of Americans pales in comparison

to that of Ukrainians


High gas prices at stations on the corner of Beach Boulevard and Lampson Avenue in Stanton, CA,
March 7, 2022. © Getty Images / Jeff Gritchen


Dave Lapan, a former spokesperson for the US Department of Defense as well as the Department of Homeland Security, has opined that while the latest increase in gas prices is bound to adversely affect some sections of American society, the sacrifice is necessary, and negligible compared to that of Ukrainians.

Responding to an op-ed in the Washington Post on Wednesday, Lapan tweeted that the “increase in gas prices will definitely hurt many low income, working Americans.” However, according to the retired Pentagon official, for the rest of American society, “it’s an inconvenience we can handle.” He went on to urge people stateside to weigh their gripes over the rising gas prices against “what the people of #Ukraine are enduring, and sacrificing, and overcoming.”

The article that Lapan was commenting on and agreed with is titled “$4 gas is here. It’s worth it.”

The opening line announces that “U.S. gas prices hit a record high on Tuesday of $4.17 a gallon, surpassing the prior all-time high set in the summer of 2008.”

And while admitting that Americans have already begun venting their frustration and concerns on the internet, the article advises them to realize that “paying $4 – or even $4.50 – for gas is a price worth paying to defend democracy and international order and stop funding Putin’s war.” Moreover, the op-ed in the Post states that prices for some other natural resources and raw materials are also going through the roof thanks to the sanctions the US and its allies have imposed on Russia, as well as general uncertainty. And yet, the author calls on Western leaders to keep putting the heat on the Kremlin.

Deep State has taken to writing editorials! It's not worth it, it's madness! It has nothing to do with democracy - Zelenski has jailed opposition leaders and shut down TV networks that criticized him. Is that democracy? How much are you willing to pay to maintain that kind of democracy? 

Understand that as gas prices rise so does the cost of everything that moves, which is almost everything. Inflation is the result and it will be hard on everyone. 

On Tuesday, President Joe Biden announced a ban on Russian oil, natural gas and coal imports to the US in light of Russia’s military offensive against Ukraine. The president acknowledged that the decision would likely lead to higher costs for Americans.

Earlier that day, Britain’s Prime Minister Boris Johnson, too, pledged to stop importing Russian oil by the end of the year, describing the move as “another economic blow to the Putin regime.”

And neglecting to say that it's another economic blow to the UK.

Mainland Europe, which is far more dependent on Russian energy than either the UK or the US, has stopped short of phasing out natural gas and oil imports from Russia so far.

Germany’s top diplomat, Annalena Baerbock, for instance, acknowledged on Tuesday that if Berlin was to take its cue from Washington on the issue, the country would grind to a halt the next day, as a third of all Germany’s oil imports come from Russia.

Following the start of Russia’s military offensive in Ukraine and the sweeping sanctions that the West imposed on Moscow, natural gas prices have soared in the EU, with officials warning that the trend is likely to remain for the long haul.

The EU as a whole, as well as individual member states, have, however, vowed to switch to alternative energy sources over time, with liquefied natural gas from Middle Eastern suppliers and renewables named among the possible options.

Middle East suppliers - none of which are democratic states.

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Berlin households facing huge spike in gas prices


Tariffs rise as EU seeks to move away from Russian energy




An average family in Berlin will see its gas bill increase by a whopping 26% starting in May, RIA Novosti reported on Thursday, citing Berlin-based energy provider GASAG. Rising gas prices are expected across Germany and the rest of Europe as the EU prepares plans to phase out Russian energy supplies.

“Current developments and events ensure a steady increase in procurement prices. We will therefore increase our gas prices from 05/01/2022,” reads the statement on the company’s website.

GASAG has also suspended any new electricity and gas contracts, citing rising procurement prices and inability to offer fair rates to new clients, Thursday’s Berliner Zeitung quoted the provider as having said.

Does this mean new projects will grind to a halt?

The developments come as the EU plans to phase out Russian energy supplies, including gas, due to the war in Ukraine. The EU and the US imposed four rounds of unprecedented sanctions against Moscow, with Washington banning all imports of Russian energy products earlier this week. The EU has pledged to be entirely free of its dependence on Russian gas before 2030. Currently, Moscow meets 40% of the EU’s natural gas needs and accounts for 25% of its crude-oil imports.

Hungary spoke out against sanctions on Russia’s energy sector, which, according to Foreign Minister Peter Szijjarto, will place a disproportionate burden on citizens. The EU High Representative for Foreign Policy Josep Borrell asked citizens to turn down the heating in their homes, as a way of reducing dependence on Russian gas.

Gas prices in Europe have been hit hard by the current crisis, soaring to an all-time high of $3,900 per 1,000 cubic meters on Monday. A year ago the prices fluctuated around $250-300 dollars per 1,000 cubic meters, RIA Novosti writes. Russia’s energy giant Gazprom insists it is meeting its contract obligations by keeping the gas flow to Europe at the maximum level and is not responsible for price hikes.

Obviously, a 26% rise in prices is not going to cover the cost increases. Next winter is likely to be a very difficult time in Europe if they don't stop the madness.




Germany raises concerns over gas suppliers


Berlin is predicting challenges next winter in keeping German houses warm

and businesses operating


© Getty Images / imantsu


Germany’s vice chancellor has said that next winter’s gas supplies to his country have not so far been secured. Robert Habeck, who also serves as the economy and climate minister, hasn’t ruled out there being a so-called domino effect, with a setback in the gas supply chain causing a knock-on shortage in other facilities.

“If we don’t receive further gas supplies … and the deliveries from Russia are capped or stopped, we wouldn’t have enough to keep all our houses warm and to keep all our industry running,” Habeck said, in an interview with the German radio station Deutschlandfunk.

The warning comes ahead of his visit to the Persian Gulf, which begins on Saturday. In Qatar, one of the world’s largest exporters of liquefied natural gas, Habeck is scheduled to meet with the emir, Sheikh Tamim bin Hamad Al Thani, and other government officials. On Monday, he is expected to participate in talks with United Arab Emirates ministers.

The visit is part of Germany’s efforts to diversify its gas imports as it seeks to reduce its dependency on Russia in the wake of the latest escalation in the conflict with Ukraine. Earlier this week, Habeck traveled to Norway on a similar mission.

Meanwhile, they have a brand new gas pipeline ending in Germany that is empty. Will Germans forgive the government if it is still empty next winter?

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