Impact of Energy Crisis on Europe

Van der Leyen 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 US 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.

And now we are going to be forced to buy gas from Russia.

Probably Van der Leyen will say,

we don't really need energy when there's no more industry, no more work,

no more economy.

Europe will be on to its 47 sanctions package.