NEW - France's glass manufacturer Duralex suspends operation for 5 months due to surging electricity bills.
— Disclose.tv (@disclosetv) November 3, 2022
"Our bill (for gas and electricity) has gone from 3 to 13 million euros per year, or 46% of our turnover," the CEO of Duralex said. pic.twitter.com/HwHErZTGbA
And then suddenly for no reason at all 1st world countries lost the capacity for generating reliable electricity https://t.co/anuUi5eGyj
— Auron MacIntyre (@AuronMacintyre) November 3, 2022
[url=https://www.zerohedge.com/markets/germany-preparing-emergency-cash-deliveries-bank-runs-ahead-winter-power-cuts][/url]Quote:
Germany Preparing For Emergency Cash Deliveries, Bank Runs And "Aggressive Discontent" Ahead Of Winter Power Cuts
As Reuters reports citing four sources, German authorities have stepped up preparations for emergency cash deliveries in case of a blackout (or rather blackouts) to keep the economy running, as the nation braces for possible power cuts arising from the war in Ukraine. The plans include the Bundesbank hoarding extra billions to cope with a surge in demand, as well as "possible limits on withdrawals", one of the people said. And if you think crypto investors are angry when they can't access their digital tokens in a bankrupt exchange, just wait until you see a German whose cash has just been locked out.
Officials and banks are looking not only at origination (i.e., money-printing) but also at distribution, discussing for example priority fuel access for cash transporters, according to other sources commenting on preparations that accelerated in recent weeks after Russia throttled gas supplies.
Although German authorities have publicly played down the likelihood of a blackout and bank runs - for obvious reasons - the discussions show both how seriously they take the threat and how they struggle to prepare for potential crippling power outages caused by soaring energy costs or even sabotage. They also underscore the widening ramifications of the Ukraine war for Germany, which has for decades relied on affordable Russian energy and now faces double-digit inflation and a threat of disruption from fuel and energy shortages.
As everyone familiar with the recent history ofthe Wimar RepublicGermany knows, access to cash is of special concern for Germans, who value the security and anonymity it offers, and who tend to use it more than other Europeans, with some still hoarding Deutschmarks replaced by euros more than two decades ago.
According to a recent Bundesbank study, roughly 60% of everyday German purchases are paid in cash, and Germans, on average, withdrew more than 6,600 euros annually chiefly from cash machines.
And here is the punchline: a parliamentary report a decade ago warned of "discontent" and "aggressive altercations" in case citizens were unable to get their hands on cash in a blackout. Translation: in case of cash withdrawal halts, German society may very well tear itself apart.
If a blackout struck, one option for policymakers could be to limit the amount of cash individuals withdraw, said one of the people. Needless to say, that would be a very bad option for Germany, and for fiat in general (after all, if the FTX bankruptcy is a black eye for crypto, what can one say about fiat if one of the world's most advanced economies limits access to cash). The Bundesbank processes cash moving through Germany's shops and economy, removing fakes and keeping circulation orderly. Its massive stocks make it ready for any spike in demand, that person said.
One weakness that planning exposed involves security firms that transport money from the central bank to ATMs and banks. The industry, which includes Brinks and Loomis is not fully covered by law guiding priority access to fuel and telecommunications during a blackout, according to the industry organization BDGW.
"There are big loopholes," said Andreas Paulick, BDGW director. Armoured vehicles would have to line up at petrol stations like everyone else, he said. The organization hosted a meeting last week with central bank officials and lawmakers to press its case.
"We must preventively tackle the realistic scenario of a blackout," Paulick said. "It would be totally naive to not talk about this at a time like now."
Meanwhile, another Reuters source notes that German financial regulators worry that banks are not fully prepared for major power outages and view it as a new, previously unforeseen risk. Banks consider a full-scale blackout "improbable", according to Deutsche Kreditwirtschaft, the financial sector's umbrella organization. But banks nevertheless are "in contact with the relevant ministries and authorities" to plan for such a scenario, especially since anything banks say is "improbable" tends to happen rather regularly. It said finance should be considered as critical infrastructure if energy is rationed.
At times politics can get in the way of blackout planning. In Frankfurt, Germany's banking capital, one city council member proposed requiring it to present a blackout plan by Nov. 17. The politician, Markus Fuchs of the right-wing AfD party, told the council it would be irresponsible not to plan for one. But the other parties rejected the proposal, accusing Fuchs and his party of inciting panic.
https://www.zerohedge.com/markets/germany-preparing-emergency-cash-deliveries-bank-runs-ahead-winter-power-cuts
That's interesting. Wonder how CBDC is going to go there.Quote:
According to a recent Bundesbank study, roughly 60% of everyday German purchases are paid in cash, and Germans, on average, withdrew more than 6,600 euros annually chiefly from cash machines.
I've been following the deindustrialization of the west for a while.
— Zero Rekt (@Z3r0An0n) November 30, 2022
Thread:https://t.co/OK3jfLxxTE
World biggest chemicals company PERMANENTLY "downsizing" in Europe.https://t.co/FNUU0ubeIf
— Zero Rekt (@Z3r0An0n) November 7, 2022
European energy prices visualized.
— Zero Rekt (@Z3r0An0n) November 29, 2022
The "deindustrial" revolution.https://t.co/ULN6kQecQz
Digital ID and vaccine passports are the beginning of a ‘social credit system’ where “Europe is turning into China” says Eva Vlaardingerbroek @EvaVlaar pic.twitter.com/40H14NqbUZ
— James Melville (@JamesMelville) November 22, 2022
Good Morning from #Germany, where supermarket prices keep rising. German Food CPI jumped 21% YoY in Nov, the highest food price #inflation since the start of the statistic & way higher than in other Eurozone countries. In #Italy, food inflation is just 14% & in #Spain 16%. pic.twitter.com/s8Rn5CzV5d
— Holger Zschaepitz (@Schuldensuehner) November 30, 2022
Good thing we don't eat crow around here.AlaskanAg99 said:
The main concern, just like energy, is as they cut their own throats, there will be demands for US exports...as supply here is constrained prices will hike.
Global commodities and all.
If wheat in Ukraine isn't planted in the spring, along with reduced fertilizer, crow size will also be reduced.
Quote:
Volkswagen's CEO warned this week that manufacturing batteries for electric vehicles in the European Union will be "practically unviable" if leaders fail to rein in ballooning energy costs.
"Unless we manage to reduce energy prices in Germany and Europe quickly and reliably," Thomas Schfer wrote in a Monday LinkedIn post, "investments in energy-intensive production or new battery cell factories in Germany and the EU will be practically unviable."
"I am very concerned about the current development regarding investments in the industry's transformation," he said. "This needs to be urgently prioritized unbureaucratically, consistently, and quickly."
Simple answer: Then don't focus on something that is this tenuous and risky just to hit some arbitrary virtue signal goal. My god.NASAg03 said:Quote:
Volkswagen's CEO warned this week that manufacturing batteries for electric vehicles in the European Union will be "practically unviable" if leaders fail to rein in ballooning energy costs.
"Unless we manage to reduce energy prices in Germany and Europe quickly and reliably," Thomas Schfer wrote in a Monday LinkedIn post, "investments in energy-intensive production or new battery cell factories in Germany and the EU will be practically unviable."
"I am very concerned about the current development regarding investments in the industry's transformation," he said. "This needs to be urgently prioritized unbureaucratically, consistently, and quickly."
https://www.foxbusiness.com/economy/volkswagen-ceo-says-building-ev-batteries-europe-practically-unviable-soaring-energy-costs
Ironic considering they are all in on ESG and those very policies are making it impossible to achieve ESG goals.
Evening, a very nice ECMWF model mean this evening, looking very poised looking at this, nice block of high pressure up to Greenland, certainly very poised for from a cold potential perspective for #Europe and the #US! #winteriscoming 1/2 pic.twitter.com/OkdjVHVMFZ
— WEATHER/ METEO WORLD (@StormchaserUKEU) November 27, 2022
Goodbye Germany, and Belgium, Wales, and Denmark. [/World Cup]Quote:
Say goodbye Germany, then the rest of the EU
Quote:
Diplomats from the European Union agreed on Friday to set a top price of $60 per barrel for Russian oil cargoes, according to Andrzej Sados, Poland's ambassador to the bloc and a key negotiator of the policy, as well as other E.U. diplomats and officials who spoke on condition of anonymity because they were not authorized to speak with the media. The policy, devised by the Group of 7 industrialized nations and their allies, aims to limit Russia's revenue while averting a global oil shock.
. . .
Talks to set the cap in Brussels were contentious, spanning more than a week. An E.U. embargo on the vast majority of Russian oil imports kicks in on Dec. 5, so the price would apply to buyers outside the region.
The price cap would lock in an existing discount on Russian crude compared with alternatives from other parts of the world. At $60 per barrel, the cap is a little lower than major buyers of Russian oil, like China and India, currently pay, but would not apply if buyers ship and insure the cargoes with companies from countries outside of the group imposing the cap.
It is unlikely to drastically reduce Russia's oil revenues, which are critical to its war effort in Ukraine.
E.U. diplomats also agreed to launch another round of sanctions talks this weekend, with a view to imposing new restrictions on the Russian economy and key individuals. The promise was key to clinching the deal on the price cap, as several hard-line pro-Ukraine European nations, led by Poland, see the price cap as not sufficiently damaging to Russia's export revenues.
Poland also successfully negotiated a regular review of the price cap, to ensure that it tracks the market closely.
. . .
The cap will come with soft-touch enforcement. Under the system, buyers could continue purchasing Russian crude provided that they pay less than the agreed-upon maximum price. The plan places the burden of imposing and policing the price cap on the businesses that help sell the oil: global shipping and insurance companies, which are mostly based in Europe.
European maritime businesses, such as tanker companies and insurance firms, will be permitted to facilitate the transport of Russian crude outside the bloc only if the shipment complies with the price cap. In other words, it will be left up to these companies to ensure that the Russian oil they are transporting or insuring has been sold at or below the capped price; otherwise, they could be held legally liable for violating sanctions.
Russia has repeatedly said it will ignore the policy and refuse to sell oil under the price-cap system. But some 55 percent of the tankers that transport Russian oil out of the country are Greek-owned, according to maritime data and analysis by the Institute of International Finance, and the main insurers for these cargoes are based in the European Union and Britain. Companies in other parts of the world offer such services, and Russia uses them, but switching all of its exports to alternative providers would probably be more expensive and less secure for buyers.
The cap reflects what American officials have said is their primary goal: to keep millions of barrels of Russian oil flowing to the global market as a new wave of European sanctions on Russian oil exports takes effect, avoiding a sudden contraction in supply on global markets that could send gasoline and heating fuel prices soaring in the United States and around the world and make already high inflation even worse.
. . .
Excellent description of the German energy situation. And the hypocrisy involved. ⬇️ https://t.co/IHOKGsmT8s
— Björn Peters (@BjrnPeters3) December 2, 2022
Germany to exit European energy treaty in order to make it easier to shutter fossil fuel plants without compensation.
— Steve Milloy (@JunkScience) November 30, 2022
With the recent announcement of a 90% 'windfall profits' tax on energy companies, the German left is rushing to turn Germany communist.https://t.co/e37BKdjV80
Lol ...... 🤡🌎
— Wall Street Silver (@WallStreetSilv) December 3, 2022
Imagine California and those countries talking about banning Gas/Diesel engine cars.
This is your future. pic.twitter.com/AWo3Gi20Ej
Germany 🇩🇪 sold Europe to Russia with their reliance on Russia for gas and NOW they have decided to run their 5G infrastructure on China’s Huawei. Germany’s leadership continues to make the worst possible decisions for their own national security. #Germany #China #Russia 1/2 https://t.co/ezutBqrS9o
— 🇺🇸Kyle Bass🇺🇦 (@Jkylebass) December 2, 2022
Germany racing to the bottom to be the vassal state of China AND Russia. Hard to believe that they could get things this wrong.
— 🇺🇸Kyle Bass🇺🇦 (@Jkylebass) December 2, 2022
GERMANY - is to comply almost immediately with the EU directive to end fertilisers, following the Netherlands
— Bernie's Tweets (@BernieSpofforth) December 4, 2022
First it was energy and now it’s food.
The Net Zero con will leave millions of citizens dependent on state handouts. It isn’t a theory it’s an Agenda. pic.twitter.com/NfkxgoK6Uc