Just when you thought the narrative couldn’t get any more idiotic, Europe shocks just about everyone.
A few days after the EU threatened commodity traders it would stage an “emergency intervention” to crush energy prices which were rising at a pace of about 20% per day (perhaps Europe can now print nat gas and electricity in addition to monetizing all deficits while injecting trillions in the process)…
TRUTH LIVES on at https://sgtreport.tv/
EU emergency intervention pic.twitter.com/bN0fYl9uEW
— zerohedge (@zerohedge) August 29, 2022
… a move which actually worked for a few days until Putin reminded Europe who’s boss late on Friday when Gazprom suddenly decided it would “completely halt” all Nord Stream 1 transit altogether due to an “oil leak“, with the news sending global stock markets plunging and threatening to push European gas and power prices back to all time highs when markets reopen on Monday as well as forcing Sweden to follow Austria and Germany in bailing out energy companies as Nordic authorities warned of a “Lehman” moment risk, late on Sunday Bloomberg reported that European ministers will discuss “special measures to rein in soaring energy costs – from gas-price caps to a suspension of power derivatives trading – as the bloc scrambles to respond to latest developments in the deepening crisis.” A draft document seen by Bloomberg News notes that the Czech Republic, which holds the European Union’s rotating presidency, is set to include those tools on a list of emergency intervention options to be discussed at a meeting of energy ministers on Friday.
While anything it does is doomed to fail, Europe has been scrambling to stave off an energy catastrophe that’s threatening to become an economic, social, and even financial crisis too.
European leaders have been working for months to try to offset the impact of Russia’s squeeze on gas — a move they describe as the weaponization of energy. But the decision late Friday by Gazprom PJSC to keep the crucial Nord Stream pipeline shut brought on a new sense of panic.
In response to soaring energy prices and rationing of firewood, over the weekend, Germany – the country most affected by the Nord Stream cutoff – unveiled a $65 billion package meant to boost demand and to protect consumers, with a levy on windfall profits, in effect completely undoing the ECB’s efforts to squash demand by hiking interest rates and ending QE, similar to what the Biden admin is doing to the Fed in the US.