Thursday, July 21, 2022

Rationally.

This is coolbert:

"Raise the price until the pips squeak. " - Mish.

Freeze to death in dark Germany? Economic fallout from the Ukraine Conflict hardly confined to the shipments of grain and other foodstuffs to world markets.

From the strategic geo-economic blog of Mish Shedlock and thank is to same.

"Germany Takes Putin's Blackmail Threats Seriously, Is a Dirty Deal in the Works?"

Devoted readers to the blog are strongly encouraged to read the entire Mish article. Especially that part about Vlad acting rationally.

"For this story, note that Canada delivered sanctioned parts to aid in the Nordstream 1 natural gas pipeline to Russia."

According to Mish key points and take-away:

* "After Russia invaded Ukraine, Germany pledged to end dependence on Russian oil and natural gas."

* "Putin responded by reducing the flow of natural gas to the EU."

* "Putin is acting rationally in the short term by cutting supply to drive up the price.  He is acting rationally in the long term by simultaneously working on new energy pipelines to China." 

* "There is no means for Germany to meet its current energy demands without Russia."

* "Germany pressured Canada to break its sanctions and send parts to Germany. Don't be surprised if those parts end up in Russia." [turbines for the flow of natural gas through NG pipelines.]

With conclusion and  finality:

"Eurointelligence came to this conclusion: 'Despite official denials, we believe that there is intense pressure within the government for a dirty deal with Putin.'"

coolbert.




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