Impact of Energy Crisis on Europe

and will go down in history as the

one that did the most damage of any European leader in the

history of the European Union of self destruction across the whole industrial

spectrum of Europe because Europe is a fossil fuel importing

region and it had a source of low cost natural gas from

Russia that was a mainstay of the European economy.

The United States hated that, by the way,

threatening Germany, how dare you take low cost natural gas from Russia?

So when Europe and Russia made the physical connections of the pipelines, the U S.

absolutely went mad. Nord Stream, are you kidding?

Then the Ukraine war started and Europe with its 20th round of sanctions,

which is 20 rounds of economic self destruction of Europe,

cut itself off from low cost Russian gas,

which was the industrial heart of Europe,

and the United States said, that's fine, we'll provide you liquefied

natural gas at six times the cost because they love us.

So when Israel and the United States attacked Iran, this is an even bigger energy

crisis in Europe and I think everyone has heard a hundred times in the last week

that roughly 20 of the world's hydrocarbons flow through this

narrow passageway called the Strait of Hormuz, which is basically under

the effective shelling of Iran.

So the traffic of both petroleum and natural gas has stopped out

of the Persian Gulf region.

And that means that we could see oil prices 125, 150 a barrel,

comparable increases in the price of natural gas.

And it's going to kill the European economy for two reasons.

One, the out of pocket outlays will soar for diesel, for the car,

or for electricity,

which is absolutely going to spike yet again.

And second, there's going to be a lot of closure of

industry because they're no longer profitable at these high energy costs.

And that will either force directly concessions on wages or layoffs.