Tuesday, April 26, 2022

Russia to Cut Gas to Poland and Bulgaria, Making Energy a Weapon....the allies have two months before this alliance shatters.

via Bloomberg.
Russia says it will cut gas flows to Poland and Bulgaria on Wednesday—a major escalation in the standoff between Moscow and Europe over Vladimir Putin’s war on Ukraine. For weeks, the Kremlin has threatened to turn off pipelines if Europe didn’t pay for gas in rubles. The European Union argued that would defeat the purpose of sanctions aimed at punishing the country for its aggression. Gas prices surged 17%, amid concern that other countries could be next. But Poland says it’s fully prepared for a cutoff of all energy supplies and has been outlining plans to live without Russian gas even before the war.

 They're finally gonna do it.

The Russians are gonna cut off the gas to Poland and Bulgaria.

Make no mistake about it.  That's the low hanging fruit.  The US and the rest of Europe will seek to make up the difference but will probably fail.

But the real hit will come when Putin swings around to hitting Germany.  When that happens you'll hear the screaming begin. 

This war has been easy for the allies.  The Dills have been doing the fighting and they dying.  Many immigrated to other countries. But now it will get hard.  Now the war will start to affect the lives of people outside the war zone.

It will be interesting to see how long the fever for prolonged combat lasts then.  I don't think it'll be long at all.  I think when you see rolling blackouts, fuel rationing and sky high prices, I believe you'll see people singing my tune.  They'll finally see the need for talks.

If not talks then you'll see the Europeans capitulate and pay in roubles.

The US will howl.  Why?  Because it'll be another wound for the petro dollar.  

Baskets of currencies will become the norm (everyone will follow the Israeli model).

The powers that be just didn't think the sanctions thru. They just reached for that rusted hammer and banged away without considering knock-on effects.

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