Showing posts with label oil. Show all posts
Showing posts with label oil. Show all posts

Monday, 13 July 2026

Britain - July 20th 2026 - Business as usual or the start of major changes?

 

Prime Minister Andy Burnham?

Will July 20th 2026 mark a new beginning or the beginning of the end? Much has been said, but nothing has been confirmed. It is just words in the air. We know practically nothing about what the direction of travel will be. We are being deliberately left in the dark and this is never reassuring.



Uncertainty and fear and little hope. Once the limelights are no more, we have landed down on the same political realities. Expect no miracle. Expect a lot of pain. Much more pain that you thought that you would have to bear because there is not a chance that in the short or medium term economic prospects will improve.

Keir Starmer left having brought British Steel into the public sector. Andy Burnham is planning to bring all railway transport into the public sector and is talking about re-industrialising Britain. But he does not go so far as talking about bringing all utilities into the public sector.






Friday, 30 January 2026

China: Britain´s reaction was expected

 

Britain´s reaction was expected

It is not personal. It is just business.

In a New World Order, then each operator is free to choose who to do business with. As EU celebrates a new agreement with India, UK celebrates an agreement with China.




Today, more than ever before, countries are seeking reassurance. With regards to threats of takeover and financial threats, players have decided to go their own way and do business with whoever they can do business with.

In the meantime, the value of the US Dollar keeps falling and investors are running for cover investing in precious metals and in whatever assets they can get hold of that offer them security. In the US, despite disagreements, Democrats and Republicans are doing deals to prevent yet another Federal Budget crisis, but this means surrendering control over an ever rising US debt.

Whatever resources the US can get hold of by invading or threatening other countries, the enormity of the US debt is pushing the value of the US currency lower and lower.

Sunday, 22 December 2024

EU heats up: Olaf Scholz urgent travel to the Russian Federation

 

EU heats up: Olaf Scholz urgent travel to the Russian Federation

The announcement by Ukraine that it would halt vital supplies to the European Union prompted German Chancellor Olaf Scholz urgent trip to the Russian Federation.

Energy has been the key for the survival of the European Union and most importantly for the most important country of the European Union, the Federal Republic of Germany. Without energy, German manufacturing strength and support of its political system are in doubt. 

Germany faces a Federal Election in a few weeks time and the financial and industrial outcome is not brilliant. In the words of Alexander Gauland, co-founder of Alternative für Deutschland - the worse the situation becomes, the better for Alternative für Deutschland - and things are getting pretty bad. Ukraine is threatening the survival of the European Union. To make matters worse, an attack perpetrated today in Germany caused the death of several people and more than a 100 people were injured. It  does not play well in German politics when migration is one of the hottest topics.

As President Bill Clinton stated, 'it is the economy, stupid'. The German economy, its political stability, migration and geopolitical games are part of the same package.

The assertion that Alternative für Deutschland is the only political party that can save Germany did not go well with the usual culprits of the so called mainstream political parties that are used to win elections lying about those who challenge a disastrous status quo.

Angela Merkel started the debacle when she panicked and decided to get rid of nuclear power making Germany practically entirely dependent on foreign energy imports. The now former coalition headed by Olaf Scholz did the rest by associating itself with a warmongering movement that compromised vital energy supplies. No nuclear power, no oil, no gas. What could go wrong?

Olaf Scholz knows full well that energy shortages will be politically disastrous for so called mainstream political parties that do not protect fundamental German interests. Olaf Scholz knows in what could be the last days of his political career as German Chancellor that there are even greater risks that could lead to the disintegration of the European Union. There are conflicting interests within the European Union and this could well push countries to secede to follow their own paths. The promised Paradise looks increasingle like Hell on Earth.


Sunday, 3 November 2024

Shoemaker makes Shoes: Something that does not apply to the present government

When you have people who have never ever been in business and don't have a clue about running a business, when you have people making decisions about farming when the closest they have been to managing a farm is standing near the shelves of a supermarket, you know that the country is in trouble.

Ideology does not replace knowledge and expertise, but we have got politicians driven by blind ideology deciding what is best for the country. So, if anything can go wrong, it will go wrong.

First thing you learn about economics is that the closest the factory is to raw materials the lower production costs will be, but then comes Ed Miliband and decides to prevent new oil and gas exploration in the North Sea.

How old was he when Britain was going over the edge because of lack of oil and gas? In the 1970s, Britain was saved by the discovery of oil and gas in the North Sea, but now the all knowledgeable Marxist politician wants to prevent any more exploration for oil and gas.

Britain buys already too much foodstuff abroad so reducing the number of farms on British soil will force Britain to buy even more foodstuff abroad as population keeps growing. What does Labour do? Implements tax measures that will put more and more farms out of business thus reducing production in the United Kingdom.

Every step of the way, Labour policies are based on ignorance, ideological hatred and misconceptions and the alternative is, as it always have been, to borrow more and to produce less. When Labour talks about growth, Labour is not talking about economic growth. Labour is talking about indebtedness growth. And then when they can borrow no more, they will propose massive cuts that will leave people ever poorer.

The consequences of economic mismanagement will be worse than the Covid Pandemic and the energy crisis combined and this could become a very long Winter of Discontent that will end up with tears, and even spilt blood.


Thursday, 31 October 2024

Here came the budget: Main target NHS and Second target the economy and particularly interest rates and growth.

The general thinking is that the Labour government will inflict pain earlier with the hope that near the next General Election the numbers will be much better to produce good feelings amongst voters. But this is a gamble by a government that publicly stated that if they had not inherited interest rates that were already going down the present announcements about borrowing could not have been made. 

Everything is based on the presumption that the economy will improve, that interest rates will go down and that repaying the borrowing will become easier. Another factor is promised improvements of the NHS. If the economy does not improve and if improvements promised regarding the NHS are not delivered then this would be a double political wammy that could bring down the present government at the next General Election.

The hope is that no crise like the Covid Pandemic or the energy crise generated by sanctions implemented against the Russian Federation or anything of the sort happens from now until the next General Election. Anything that would require much more borrowing and generate emergency conditions, negatively affecting. the economy, is not welcome. 

Et ceteris paribus? All other things being equal? Expecting that nothing will happen along the way that could change or derail present plans is a very negligent attitude. Things are bound to change. There are crucial ongoing conflicts and the seeds for more conflicts are being planted.

Now, lets have a look at potential trading partners. What is the situation in Europe? What is the situation in the Americas? What is the situation in Africa and Oceania? What is the situation regarding new players that are rising and increasing mutual cooperation?

The belief that new global associations will remain focused on the East and will not spread towards the West is extremely naive. We now live not in a bipolar world. We live in a multipolar world. In which direction the Americas, Africa, and Oceania will go is not a given. But present trends indicate that BRICS is making inroads. Those joining BRICS happen to be the most populous countries in the world. They also happen to be those which tend to have more resources in terms of raw materials. 

Founding countries? Russian Federation, China, India and Brazil. While the main Western countries have been involved in a rising number of conflicts, China has been spreading financially and economically across key regions of the world. The impopularity of the Western approach when dealing with conflicts is spreading and such impopularity does not benefit Western countries. China has not been involved in any major conflict. In fact, it is gathering more and more influence in countries that are far away from China.

Monday, 28 October 2024

Israel vs Iran: is this the real show?

 Is Israel versus Iran the real show?

We hear the news and see mass media flooded with articles about the dangers of widespread war in the Middle East and Asia Minor. We hear the news about North Koreans joining the fight in Ukraine. It is difficult to ascertain the real dimension of what we have been told. 

The real issue of widespred war in the Middle East and Asia Minor are not Israel or Iran, for that matter. The real issue are the vast amounts of oil and gas spread across the entire region. Kuwair, Bahrain, UAE, Saudi Arabia, and so forth. If the Middle East and Asia Minor were to go up in smoke this will be a catastrophe for the world economy as a whole and there would be massive political consequences.

Both Israel and Iran have to play according to the rules. The United States of America might care about Iran, but the USA cares more about money and as long as money is being made the lives of hundreds of thousands don't matter at all, but the monies being made by shareholders matter more than human lives.

As long as the business of war keeps going and does not get out of control threatening the value of shares it is business as usual. Don't attack nuclear facilities! Don't attack oil reserves! Don't do anything that could ruin the business of war. Both Israel and Iran have to play for their own public and therefore they have to do something to prove that they are doing something.

We are dealing with Jews that do not give a damn about Jews, people for whom their own people matter very little as long as they get what they want. We are dealing with the Bernie Madoffs of geopolitics. Benjamin Netanyahu is a Bernie Madoff of geopolitics. The massacres carried out by Israel will continue. Israel has a license to kill as long as the business of war goes on as usual and monies are being made, but the Bernie Madoff also know that there are limitations. When Iran threatens to attack all those who help Israel there are direct references to oil and gas countries in the region. So any action against Iran has to be limited not to push Iran to attack the real targets in the Middle East and Asia Minor. We know how things are now under the present US Administration and I reckon that things will not change dramatically under a new US Administration because the interests are the same and the people actually running the circus are the same.

With regards to North Korea, I reckon that Ukraine is for North Korea what the Spain's Civil War was for the Wehrmacht: a training ground. North Korea has been in isolation and has not had any opporunity to test its Army in real battles. Although the number of North Korean troops is minimal, Ukraine can provide valuable opportunities. It also sends the message of unity: boys, we are all in it together. Military cooperation at every level. About 3,000 North Korean troops will not make any major difference in the conduct of the war, from a Russian standpoint as the Russian Federation has mobilized hundreds of thousands of troops.

Much of what Western politicians say is no more than chit chat, a propaganda effort to justify the existence of people who are absolutely irrelevant. NATO is a business to keep money rolling in for shareholders. Any monies that go into the pockets of shareholders are not monies that serve the general public. They are not invested in health, education, transport, infra-structure and so forth. The most important problems remain forever unsolved and this is why we have got the problems that we have got with more and more people facing miserable lives.  



Tuesday, 16 April 2024

If Israel persists, things will be worse for all concerned

 

If Israel persists in its attempts to provoke Iran, economies around the world will suffer and the chances of a widespread all out war will increase.

The Middle East is still one of the richest nations when it comes to energy resources that most countries in the world need. If for whatever reason, the Middle East ceases to be what it is in terms of energy resources, energy prices worldwide will skyrocket and world economies that are now on the brink or already in crisis will fall apart with tragic social and political consequences.

The Red Sea and the Suez Canal are still key areas for world energy and world trade. Already insurance premiums in certain parts of the wold are rising - if a region is seen as dangerous, then transport across the said region will cost more in accordance to the danger. If an oil cargo is sunk then the spread of oil and damages to sea life and the environment will be added to financial costs. But there are also other risks that must be taken into consideration. If the Jordan River were to be poisoned, a vital supply of water for local and regional populations will be compromised. You can have as many weapons you could possibly have, but the absence of drinkable water can make any amount of weapons absolutely useless. Chemical or biological contamination could render habited areas uninhabitable. Water is a make or break resource. When one country threatens to use a harsher response, you don't forcefully think about weapons or troops. You must think about vital resources and if you cannot protect vital resources then your country has no future at all. For Israel, no amount of American aide can replace water. Without usable water, Israel or any other country will be finished.

Friday, 6 October 2023

Scotland: Was associating itself directly with the Independence Movement a faux pas?

 

Was the fact that the Independence Movement was directly linked to the SNP a serious mistake?

The Scottish National Party and its newly adopted leader and successor of Nicola Sturgeon are in deep waters. Their management of Scotland has left a lot to be desired and has somehow come to be seen as what would happen to Scotland if Scotland were to become independent. Management of health and education - to name two vital sectors of any economy - has been an unmitigated disaster. The association of SNP with the Greens as a way to remain in power has led to disastrous policy making as a way to keep the coalition going.

Long gone are the days when Alex Salmond, the most successful Scottish National Party Leader, used to tell everybody that Scottish oil resources would ensure a strong Scottish economy that would be independent from the rest of the United Kingdom. In a move to remain Socialists without being attached to what they called the English Labour Party, the Scots gave preeminence to the Scottish Green Party and Net Zero did the rest to undermine what had been until a more or less credible stance. 

The poison chalice for Nicola Sturgeon as Leader was on the surface her stance on Gender Politics and suddenly, she was stricken by a series of scandals around financial impropriety. Her way out - and her resignation as Leader was planned as a way to avoid a major crisis that could have sunk the SNP even lower - was designed as a way to disappear. No sooner she was out as leader, a political storm was unleashed.

Humza Yousaf was chosen as scapegoat. He was supposed to be Nicola Sturgeon's heir apparent. He did not inherit her power. She threw him to the wolves and now he faces the inevitable. If his first time as leader is to lose to the Labour Party opening the way back for Labour into Scottish politics, will he survive? The Scottish National Party is extremely factional. In fact, the SNP has been at war with itself not just in Scotland, but most visibly in Westminster.

The SNP should have seen that by closely associating itself with the Independence Movement all it has done is to push backwards the Independence project. The Scottish people have just realised that when it comes to health, education and the economy in general the SNP has not delivered and it cannot deliver precisely because of its close association with the Scottish Green Party.

You cannot base your calculations on fossil fuel energy while at the same time talk about getting rid of fossil fuels. It makes no sense. I can't possibly make sense. If anything, it has increased economic dependency. The point might come when Devolution itself will be questioned.  

 

Monday, 15 August 2022

Conservative Party about to break one of two new records?

On September 5th 2022 in Britain, the Conservative Party will break a new record whoever is elected British Prime Minister: it would be the first Asian Prime Minister or the third female Prime Minister, after a leadership campaign in which there was a very diverse range of candidates.

The original article indicated 'second female Prime Minister' when in fact it should have been said that she would be the third female Prime Minister. We totally forgot Theresa May. 

Candidates openly disagreed regarding many issues and no one knows with any degree of certainty what will the direction of travel of the new Conservative government. The next hurdle is the choice a new Conservative Cabinet to support the agenda of whoever is elected. Expertise and stamina will be in high demand given the kind of problems the new government will have to deal with from the very beginning. There are extremely hard choices ahead. It is all about energy: energy of the chosen team to deal with lack of energy that is pushing up inflation and leading to industrial unrest.

The situation is especially worrying since British woes are directly linked to geopolitical decisions made by the present government of which one was the Chancellor of the Exchequer and the other still is Foreign Secretary. Until the beginning of the electoral campaign, they were part of the same team, but during the hustings both candidates let it be clear that their agendas were remarkably different. 

The one thing they have got in common is the concept of self-sufficiency and self-sufficiency when it comes to energy supplies will be on a collision course with enviromental commitments. For strategic reasons, Britain might have to delay, water down or even push aside many of the declared goals. Fracking could be at the core of new efforts to make Britain self-sufficient.

Having said that, in the immediate future, the new government will have to deal with the fact that there will be shortages and that the costs of energy might not be coming down as many would like them to come down. The words 'rationing' and 'blackouts' have been mentioned as something Britain will have to face in the coming months.  

Friday, 12 August 2022

British Conservative Party is about to break a record: first Asian Prime Minister or second female Prime Minister


On September 5th 2022 in Britain, the Conservative Party will break a new record whoever is elected British Prime Minister: it would be the first Asian Prime Minister or the second female Prime Minister, after a leadership campaign in which there was a very diverse range of candidates.

Candidates openly disagreed regarding many issues and no one knows with any degree of certainty what will the direction of travel of the new Conservative government. The next hurdle is the choice a new Conservative Cabinet to support the agenda of whoever is elected. Expertise and stamina will be in high demand given the kind of problems the new government will have to deal with from the very beginning. There are extremely hard choices ahead. It is all about energy: energy of the chosen team to deal with lack of energy that is pushing up inflation and leading to industrial unrest.

The situation is especially worrying since British woes are directly linked to geopolitical decisions made by the present government of which one was the Chancellor of the Exchequer and the other still is Foreign Secretary. Until the beginning of the electoral campaign, they were part of the same team, but during the hustings both candidates let it be clear that their agendas were remarkably different. 

The one thing they have got in common is the concept of self-sufficiency and self-sufficiency when it comes to energy supplies will be on a collision course with enviromental commitments. For strategic reasons, Britain might have to delay, water down or even push aside many of the declared goals. Fracking could be at the core of new efforts to make Britain self-sufficient.

Having said that, in the immediate future, the new government will have to deal with the fact that there will be shortages and that the costs of energy might not be coming down as many would like them to come down. The words 'rationing' and 'blackouts' have been mentioned as something Britain will have to face in the coming months.  

 

Sunday, 7 August 2022

UK: In just a few weeks, the British economy could be in the doldrums and much stronger leadership will be needed

 

What is happening right now is deeply worrying because the times of easy money could be coming to an abrupt end. The issue is not just rising inflation. The issue is that salaries and pensions have been pegged to inflationary pressures. 

At this point in time, asking for salary rises pegged to inflation could itself be a force towards more inflation and more borrowing when interest payments will be taking their toll on public finances.

And what if, as expected, the Treasury does not agree to salary increases that it could hardly afford? Would the state sector be ground to a halt? It is understandable that public workers that are seeing their incomes devalued are prone to ask for salary rises. Having said that, those in charge know full well that public finances have been drained and that any monies to pay for higher salaries will come from additional borrowing at a time when interest rates are going up and from an increase in taxation.

If energy is the main driver when it comes to inflationary pressures, then more energy will have to be produced and to do so all the promises in terms of a reduction of the use of fossil fuels will have be put aside. In the 1970s, Britain was almost brought down to its knees and the country was working just a few days a week. The issue was then energy or lack of it. Today, the issue is the price of it. Whoever takes the reins of power in September will have to make difficult choices. Doing less to save energy is not an option. Slowing down the British economy by enforcing energy savings will make matters a lot worse. 

We learnt from the imposed Covid lockdown leading to lack of economic activity that slowing down the British economy will cost livelihoods: businesses will be closed down and an undetermined number of jobs will be lost. Companies that generate little or no revenue at all have no reason to maintain jobs. Less economic activity endangers jobs and produces less tax revenues. If you slow down an aircraft in plain flight the time comes when the only way is down. We cannot have yet another loss of economic activity. We need energy and we need energy wherever we can find it. If foreign oil and gas producers don't want or cannot provide additional oil and gas, Britain will have to become self-sufficient and all options should be on the cards, including fracking.

Whoever is chosen as Prime Minister will have to make hard choices and implement decisions that will prove to be as unpopular as fundamentally necessary. Whether Rishi Sunak or Liz Truss is in command, he or she will have to forget about popularity contests. The popularity contest is only there to get one of them elected. Real governance demands dogged determination to do what is right.   

Monday, 18 July 2022

Democrats have two houses of Congress and Biden fails to push legislation through?

 

President Biden in the first two years of his presidential mandate fails to push legislation through Congress despite having majorities in both houses.

He travelled to Saudi Arabia to persuade Saudi Arabia to produce more oil to lower market prices, failed to persuade Saudi Arabia and managed to push up oil prices.

And what will happen in the mid-term elections? Will Democrats lose legislative control with President Biden turning himself into a lame duck President?

This is what America has to face at a very dangerous time in its history.

On the other side of the Atlantic, President Zelenskiy cannot trust his own intellgence officers and sacked none other than the chief intelligence official saying that Ukrainian intelligence services have been infiltrated and this is happening during an ongoing military conflict that Ukraine is losing despite the best propaganda efforts of the BBC, SKY, CNN and other Western media that want to maintain the 'Stalingrad ilusion of a winning Wehrmacht' but this time in Ukraine.

As temperatures soar we might be inclined to forget that temperatures will fall and that Europe will pay a very high price for the so called energy crisis and it is not going to be merely about economics, and issue that is already generating social unrest and will ultimately lead to political crisis and more.

If things don't change soon, this will be the Democrats' Vietnam. Jimmy Carter lost the opportunity of a second presidential mandate because of Iran and the failed rescue attempt of the hostages in Teheran. The withdrawal from Afghanistan was a clear indication that the present American government is not on top of its briefing. It was a popularity disaster as well as a military disaster. Could yet another crisis - this time a financial crisis - sink the Democrats' ship and open to the way to a return of the Republican Party?  

Monday, 27 June 2022

Russia is winning: Sanctions against Russia are hitting hard those who applied sanctions against Russia as inflation destabilizes economies

 

Transport strikes were the most visible indication that things are going south in the United Kingdom. Now there is the threat of other sectors of the economy like health and education going on strike and no sector is safe as the legal system is now being affected and people will have to defend themselves in court, including in serious cases that can lead to lenghty jail sentences.

This is not about Labour or Conservative. Whoever is in power the consequences of the economie going the wrong way due to energy prices and sanctions against the Russian Federation. European countries that rushed to implement punitive measures had little understanding of the dramatic consequences for their economies are now seeing the error of their ways and praying for no more energy cuts.

If inflation is more than 9% and the government in some cases is only willing to give a 3% salary rise, how are workers going to be persuaded to accept what is effectively a wage reduction? But those at work are not the only ones who will suffer. Pensions are somehow pegged to inflation rises and the question is how is this going to be dealt with. If you have got a state pension, you are going to be affected. If you have got a private pension, you are going to be affected. If you pension fund consists of investments in shares the obvious thought is that if the economy performs badly then investment returns will be lower.

Some Conservative politicians are talking about reducing taxation and cutting down or simply getting rid of VAT and there are those who say that green taxes that severely affect prices should be abolished. If the whole issue is so much depending on energy costs then the green agenda will be dead in the water. We have got to use every bit of fossil fuels we can get our hands on in order to lower energy prices. This means using coal and allowing fracking. 

Friday, 1 April 2022

From today, countries that are hostile to the Russian Federation will have to pay for oil and gas with rubbles

 

From today, countries that are seen as hostile to the Russian Federation will have to pay for oil and gas with rubbles. To that effect, they will have to open an account at a Russian bank that will make the monetary conversion to rubbles in order to continue receiving oil and gas from the Russian Federation.

The measure was not unexpected and it makes perfect sense, proving once more, that measures implemented against the Russian Federation will ultimately backfire and end up damaging the economies of countries that allowed themselves to engage in knee-jerk reactions without having a thought about the potential repercussions.

In Germany, Alternative für Deutschland has raised the alarm as Germany faces a struggle with rising energy prices that rather than reducing dependency on fossil fuels increases dependency on fossil fuel at much higher costs. German coal is a crucially important commodity. Whether it is dirty or non-environmentally friendly is absolutely irrelevant. The country needs energy to avoid an economic disaster.

After Covid, some countries in the so called West are living in a permanent state of emergency. In UK, British authorities have announced reductions of Council Tax for certain families for amounts of up to 150 Pound. The only problem is that the same families because of measures taken by British authourities have seen their expenses rise by several thousands of Pound. Little consolation for those facing the direst situations. The number of those living under the radar keeps growing. Cases of families living in a single room shared with complete strangers are on the rise. The number of those falling below the poverty line kees rising and private debt - as well a public debt- keeps rising.

Friday, 18 March 2022

Rishi Sunak: EU embargo of Russian oil and gas will tip EU into recession

 

You couldn't make it up. On the one hand, Western politicians try to sound menacing and decisive and after speeches especially made with that purpose comes reality. Just a few days ago, German Chancellor Olaf Scholz raised the alert that such embargoes would seriously undermine the German economy. By extension if market prices go up, inflation will start to speed up in the EU and in the UK. Prices are no determined by particular countries. Prices are global. Only for this reason, there have been approaches to Saudi Arabia, United Arab Emirates and Venezuela to seek oil and gas production increases.

The Bank of England has just put up the basic interest rate on Thursday this week and announcing increases of interest rates would become the norm rather than the exception in months to come. Taking money away from peoples' pockets will curb consumption and curbing consumption means reduced economic activity. Reduced economic activity in turn means that with less demand many jobs will become redundant and jobs are being made redundant as you read both in terms of public jobs and private jobs. Why did a major ferry operator lay off 800 staff today? Is it because the company expects to have big earnings in the coming months? What about spring and summer when people tend go on vacation? Is it because they expect a reduction or an increase of the number of passengers wanting to travel to and from the continent?

The coming summer season could be a lot hotter and not just because of rising temperatures. Keep checking rising utility bills, travelling fares, fuel at the pumps and grocery bills.

The Fixed-Term Parliaments Act 2011 is said to be coming to an end. This will make the political situation a lot more fluid. But putting aside national elections, let's see what happens to the British economy from now until the May 2022 elections. Ordinary people are living under enormous pressure and such pressure is bound to be stronger if unemployment and inflation suddenly pick up. The combination of the two will be deadly.  





Sunday, 27 February 2022

The longer the conflict lasts, the greater the danger of nuclear war

 

The longer the conflict lasts, the greater the chances of the unthinkable happening. In 1945, President Truman decided to use atomic bombs in Hiroshima and Nagasaki to shorten the war and prevent a rising number of American casualties should American forces have to fight on Japanese soil where stiff resistance was expected. It was also a political statement for the then Soviet Union and to prevent a Soviet attack against Japan.


In 2022, the presence of nuclear devices is supposed to be a deterrent,but there is always a 'what if...' scenario in which the parties might decide to use nuclear devices. In 2020, NATO carried out military exercises 'to prepare for nuclear war'. If you prepare for something, you anticipate that it might come the time when it will actually happen. If it were to happen, it would open a whole series of new possibilities. One thing is combat with conventional forces and quite another is a scenario in which weapons that are much power powerful than the atomic devices used in Hiroshima and Nagasaki are detonated in Europe and elsewhere. What would trigger the use of nuclear devices? Would there be a preemptive attack? Who will make the first move? If there is an attack going one way, it is going to be immediately followed by an attack going in the opposite way.

If we can imagine the commotion created by the bombs thrown in Japan decades ago, it is not difficult to foresee the commotion today if nuclear bombs were to fall destroying capital cities. In order to understand what would be the prevailing mentality, we need to remember what happened in World War Two. If any of the parties had had such bombs earlier during the conflict would they have hesitated? If instead of sending bombing crews one after another to be shot down, if instead of sending U-boots to be sunk, the parties had had nuclear bombs to wipe out any armed resistance, to destroy every industrial capability, in one go, what would they have done?

Think about D-Day. If the allies had had the choice of using nuclear bombs instead of sending hundreds of thousands of men across the sea, many of whom lost their lives before reaching France, would they have they used nuclear bombs instead? If instead of loading V1s and V2s with conventional explosives Germany had had nuclear devices to put an end to the war in one go, would Germany have used nuclear bombs instead of conventional forces? The reason heavy water installations were bombed by the allies was that they did not want Germany to develop atomic devices. If Germany had had atomic bombs, would the Soviets have reached Germany? 

Now, coming back to today's realities. If there is the scenario in which it is foreseen that millions of troops would lose their lives in combat, would any of the parties choose to use nuclear weapons instead of suffering heavy casualties at the front? Why does Israel have nuclear devices? Why do Pakistan and India have nuclear devices? Why does Britain have nuclear devices? Why does anybody want to have nuclear devices? The reason is pretty obvious. 

What is the danger of economic sanctions? What was the danger of the American oil embargo against Japan before Japan attacked Pearl Harbour? If you push a country towards the wall, somebody might decide that if there are no economic benefits then war is a preferred option. Japan was becoming an industrial power in Asia and needed oil. This is why Japan decided to attack Pearl Harbour, to attack the one country that had limited Japan's chances to achieve economic development. The economy was the core issue that led Japan to attack the USA. 

President Putin's immediate reaction to the mention of further economic measures was to put the Armed Forces on alert. If the so called West is genuine, if the USA is genuine, in terms of favouring a peaceful outcome to put an end to the conflict, putting up pressure is not the right answer. If it is believed that the only way forward is nuclear war, the entire world loses.



Monday, 31 January 2022

Ukraine Crisis or Oil and Gas Casino?

 

Ukraine Crisis or Oil and Gas Casino

While most people and the mass media seem fixed on events linked to a mythological invasion, what is happening to oil and gas shares around the world?

 

There are all kinds of headlines linked to events in Ukraine, but what is the reality of it all? Who is really making truckloads of money speculating in international markets? With the Covid pandemic and the loss of economic activity, oil and gas prices went down as demand went down. Then suddenly, economic activity started to pick up and oil and gas prices went up again. 

 

British newspapers were mentioned that should there be shortages of oil and gas, Britain would be receiving gas from.... Australia? You only have to look at mapamundi to see that there is a lot more than meets the eye. Container ships bringing American fracking gas across the Atlantic? Container ships bringing in gas all the way from Australia? As some environmental activists complain about air traffic including the use of private jets, has anybody stopped to think about the footprint of ships carrying vast amounts of gas and oil across vast oceans of the world? At what cost? Suddenly, you can forget about environmental targets because what we are listening about has nothing to do environmental targets and a lot do with geopolitical objectives and speculation in world markets.

 

India and China were a lot more honest when it comes to energy needs and energy sources. Yes, they will not phase out their production of coal - just to give an example - and they will continue building up coal energy plants. Undoubtedly, any talk about shortages and especially shortages due to geopolitical situations will benefit certain investors. War in Europe? How much money can we make out of it?

 

Recently, a very expensive jet fighter went down in Asia. There were the usual comments about the best American technology falling into Chinese hands because the jet crash on 'unfriendly waters'. How much did the aircraft cost? Who cares? There will be another aircraft to replace the one that crashed, and monies will be made by certain 'investors' that would like to have another war, another massive war, because wars are money making machines. They could not care less about human lives lost or ruined.

 

In more than one way, those who invest in wars are exactly what the drug cartels are about: quick riches regardless of the thousands upon thousands of lives lost or ruined. This is the business of war.

 

The fat cats will continue increasing their fortunes. Their helpers like the authorities of NATO will see their bank accounts grow and grow and they will continue making inflammatory speeches because the more inflammatory their speeches are a major war is ever closer.

Friday, 21 January 2022

The Human Cost of Energy Crisis and the threat of war to make money

 

When the President and the Vice President of the USA so casually talk about war, lets be reminded of what war means. Neighter Joe Biden nor Kamala Harris have ever been closed to a real threatre of war.

In Britain, writing for The Guardian, Simon Jenkins says 'that Britain shuold stay well out of Russia's border dispute with Ukraine. Also in Britain The Independent states in one of its articles that USA wishes to go to war.

Before there is any major war in Europe, energy costs are crippling economies and causing prices to rise throwing more and more families into poverty. Can you imagine what could happen if there was a real major conflict in Europe?



Cost of energy in Germany are leading to major inflation rises and the idea that Germany will not be able to rely on imports coming from the East - namely the Russian Federation - is nothing less than a nightmare. Year after year, the political environment in Germany has become more and more fragmented. SPD only manage to win the Federal Election not because of gaining more votes, but because CDU/CSU went down dramatically. Germany is polarized between right and left and those who know the history of Germany know that this no good. 

Both France and Germany are pushing for talks with both Ukraine and the Russian Federation - a group of four talks - to bypass NATO and the USA. They do so because they don't trust the USA's intentions?  USA wants War in Europe, a war that will be completely detrimental for Europe. But greed in the USA has no limits. For several years, the USA has been stockpiling oil and gas and especially gas that comes from fracking and needs to make money with it. By blocking the Baltic pipeline between the Russian Federation and Germany, Europe becomes ever more dependent of American exports that the USA is sending to Europe as 'aid to alleviate shortages'. So there is money to be made and the American intention of going to war against Russia is yet another economic war as the illegal invasion of Iraq was an economic war.


Friday, 1 October 2021

Green Party: Protecting the environment or just another left wing movement?

 

The British newspaper The Guardian gave away the reality of the Green Party. This is not about the environment or saving the planet. This is about yet another grouping that has the intent to erode the foundations of our way of life. 
If the idea is to protect the environemnt - I am sure that people right, centre and left of politics are concerned about the planet - there is no need to mix ideological stances with measures to protect the planet. 

If we look closely at China - for example - the whole issue of the Sea of China is about mineral resources including oil. It is the presumed existence of vast deposits of fossil fuels that led to a more assertive Chinese position in the Sea of China. Therefore, whatever is said in public speeches, it is reality that counts and reality tells us that oil is the bone of contention between China and India and coal mines continue to be created to reach an energy resources that is readily available. Whoever has access to readily available sources of energy has the competitive advantage. What was the idea behind Japan's expansion in Asia in the early Twentieth Century? The aim was to get energy to support Japan's industrial development.

Whatever is said about the environment, the essence is that countries need energy. When it comes to nuclear energy - there is the choice between fusion and fission, between a risky option and a safer option, but in the end we need to have access to radioactive raw materials to be able to use them as fuel in nuclear reactions and later we need to have safe ways to dispose of spent radioactive materials. 

We could cover the entire planet with windturbines and solar panels and still we would not have enough realiable energy to meet growing needs.

The environmental discourse is about what would be ideal and about what is feasible, and even what we see as better options - windturbines and solar panels - need to be produced and such production is also detrimental for the environment. 

They tell us that electric cars are better for the environment How could the production of tens of millions of electric cars with batteries made using lithium be so beneficial for the environment is a mystery. Lithium would have to mined and processed using - most probably - fossil fuels.

We are being presented with false choices and slogans. More than 7.5 billion souls that inhabit the planet at any given time will need massive amounts of energy, energy that cannot be produced with gimmicks and slogans.
 

  

Wednesday, 22 September 2021

Johnson/Biden: Trade Deal dead in the water

 

This reminds me of couples that go around denying that their marriages are in trouble. We have never been so happy, they say. This is before the next morning announcement indicating that they have agreed to bring their marriage to an amicable conclusion.

This was said to be a meeting about climate, but right at the beginning the British Prime Minister indicated that there is not going to be a bilateral trade agreement in the foreseable future.

Reading between lines, I reckon that the beginning was not the best of beginnings, starting with an unilateral American withdrawal that left its NATO partners buffled. After that, came the announcement of a deal regarding nuclear submarines that only benefits the USA despite the fact that UK was the middleman. On top of that, it damaged the relationship with France. A UK politician tried to rest to dimish the importance of the damage caused by saying that in the last ten years Britain and France have coordinated their military with French officers in charge of British units and Britsh officers in charge of French units and so forth. Ten years are ten years, but in politics 24 hours is a lot and much of what has happend regarding AUKUS should not be underestimated. 

The rise of energy prices due to a rise of energy consumption will not make choices any easier. If gas prices and oil prices go up, coal is a natural component of the energy mix that cannot be left behind. Joe Biden can talk about financial support to be offered to poorer countries to support towards more environmentally friendly economies, but reality tells you fossil fuels will continue to be the first choice for many for many years to come.

The choice between diesel and nuclear was a logical choice to make. Firstly, it is about not using fossiel fuels and, secondly, it is about operational capabilities. While diesel vessels depend on regular refuelling, nuclear vessels can operate continuously for at least 25 years. The decision was rational, but the way it was implemented created divisions that could have been avoided. The jobs that would have been maintained or created in France will now go to the USA. USA's submarines are all nuclear so it will not be too difficult to produce a few more. In any case, it is expected that the new submarines will become operational by the year 2030, as long as there are no delays. As a British politician explained, this is not about real military capabilities in the short term. The idea is to send a message to China about the determination to prevent a Chinese military escalation in Asia Pacific.

A journalist asked who was more of a priority in terms of talking about US/UK relations: Joe Biden or Kamala Harris? In the USA, people are already talking about the American mid-term elections due to take place in November 2022 when all 435 seats of the House of Representatives and 34 or a 100 seats in the Senate will be up for election. What happens from now until the Mid-Term Elections will determine if Biden ends or does not end as a lame duck President during his first term in office.