Financial

Fit for 55 or sustaining sustainable sustainability

It surely is a religion: the worship of the planet earth. No doubt about that. At the same time it is risible: a peninsula attached to a huge Asiatic continent wishes to make the global climate better and – as if the movement of waters and winds could be stopped at state borders – to make its own climate better. How? By banning the fossil fuels (which means: by banning the combustion engine), relying on renewable sources of energy and developing the CO2 market (you know, the market where you buy and sell CO2 quotas). You see, in the Middle Ages people would trade in relics: in the 21st century people trade in CO2! Isn’t that one thing alone a grand exploit that the European Union has pulled off?

No combustion-engine cars to be manufactured after 2030 plus net CO2 emissions by 2050! Why? For what purpose? Well, to save the planet, stupid! We all know that Mother Earth is suffocating and getting overheated (or overcooled, depending on the currently valid scientific version concerning the global climate); we all know that it is man-made. If you are not convinced, then look at the children: they know it! They know it for certain! That’s why they are protesting and begging you (if that is not enough: demanding of you) that you reconsider your life choices.

You know, it is not only the climate. We are all running out of water and food. What do you think will happen once water and food are in short supply? Famine? Y-e-e-e-s. Try hard to follow the thought where it leads. Imagine a global famine and water shortages. What do you think it will lead humanity to? Yes, bingo! To war! So, to prevent war over food and war over water from breaking out, the men and women (or the representatives of the other sixty or so recognized genders) who happen to be at the helm of the European Union do their best to spare us the bleak future. Yes, we will all pay for it: prices will shoot up, but then health, life and peace are invaluable. We will all willingly sacrifice our comfort and resign from the luxuries and pleasures of the flesh to… save the flesh.

Ursula von der Leyen (President of the European Commission or in plain English: the EU’s prime minister) and Frans Timmermans (Executive Vice-President of the European Commission or again in plain English: the EU’s deputy prime minister) along with all the Directorates-General (in plain English: ministries) indefatigably keep foisting upon us the magic phrases of European green deal, climate neutral Europe, reduction in emissions, clean transport, electric vehicles, sustainable (their beloved word!) houses, clean energy, renewable energy, protecting nature, a healthier future, support for vulnerable citizens (always the same!), and they assure us that all this is doable. Ursula von der Leyen says that she wants Europe to become the first climate-neutral continent in the world by 2050. She says verbatim: “I want Europe to become…”. You see? Occasionally, they let a word out here and there for all to hear: they want to enforce those changes, Ursula von der Leyen, Frans Timmermans, and company. Whenever they are on their guard, they say that it is the Europeans who want it, but when they are off their guard, they say as it is. Continue reading →

The ruble as an international currency

In retaliation for freezing Russian assets by the West, President Putin has signed a decree that enables Russian exporters of gas to demand rubles rather than dollars or euros. This is an interesting development in the war that is being waged between the West and Russia. The European Union depends to a very large extent on Russian gas. The efforts to create the green economy (they like to call it sustainable economy) are far from being completed. (To think of it: they have sought to put us on the green economy to spite Russia! Climate change was the bait for the gullible to join in.) Europe will need Russian gas (and oil). In order to buy it, it will need to have the Russian national currency. To acquire the Russian national currency, the West will be forced to trade dollars or euros for rubles at the Moscow stock exchange, thus raising international demand for the Russian currency and turning it into a means of international exchange. Sanctions work both ways.

On March 18, the Luzhniki Stadium gathered thousands of Russians in a patriotic rally, attended by various artists and the Russian president himself. Vladimir Putin delivered a speech in which – quoting the Gospel – he praised the efforts of the soldiers of the Russian Russian Federation fighting in Ukraine. A sea of waving Russia’s national white-blue-red flags dominated the scenery. The event was an eruption of patriotic feelings, something unknown in the West. If you think that the “regime” in Moscow is about to collapse or to be toppled, then think again.

Government bonds or shares are all rubbish. What to invest in?

The answer is not easy. Bill Gross, the founder of Pimco and “king of government bonds”, predicts that the yield on US 10-year bonds will rise to 2% next year. This would mean the 3% loss for investors at the current inflation rate. The dynamics of demand and supply also point to the further fall in the prices of US government bonds (rise in yield). Today, the FED is buying 60% of all US bonds as part of its quantitative easing, but will soon have no choice but to reduce the scale of US bond purchases in the face of inflation. At the same time, China, Russia are massively dumping these debt securities. So should one invest in equities? Now, when their prices are shooting through the roof? After all, shares can turn out to be rubbish if companies’ profits don’t want to rise as they have in recent years. With today’s inflation, it’s not worth holding cash either. The situation is becoming dramatic.

If you want to learn more, if you are looking for tips for your investments, please read recommendations and warnings for investors in our bulletins.

UK: Millions on pre-paid energy meters could face cut-off as prices soar

The chaos in gas and electricity markets is set to hit one group of people the hardest this winter: the four million households that use prepayment meters (PPMs).

While most people pay their bills monthly for energy they have already used, PPMs require people to pay for energy before they use it. PPMs take whatever money is in the meter and supply energy to the household.  Source Open Democracy

European gas prices surge as Gazprom hits supply hopes

Russia’s Gazprom has damped hopes for additional gas exports to Europe next month as the continent struggles with record prices, despite recent hints from President Vladimir Putin that more could be forthcoming.

UK and European gas prices surged as much as 18 per cent on Monday after a keenly awaited pipeline capacity auction showed no increase from Russia either through the Ukrainian pipeline system or lines passing via Poland to north-west Europe. Source FT