The West Will Not Survive Without a Return to Colonialism

NEW – September 13, 2022

Under a recent FB post about the failure of stock quotes and huge “paper” losses with a reference to “Burovaya”…

“In recent years, European utilities have made it a habit to use derivatives to fix the price of future electricity sales in order to protect themselves from possible price drops, writes the Financial Times.

As energy prices have risen this year, utilities don’t really need that kind of protection and will end up with a big profit. But they can’t cancel contracts, and price spikes have resulted in huge paper losses.

Exchanges are now trying to protect themselves against risks by requiring collateral from them, which is usually provided in the form of cash. How large these margin requirements may be is not yet clear.

Burovaya: Real risks exceeded the level of risks included in the price of futures on the stock exchange. In the simplest approximation, this means that the situation has gone beyond the forecast.

It means that the energy collapse exceeds the possibility of stopping it by the G7 (‘consumer cartel’).

It means that a new escalation in the energy exporting countries is inevitable, up to the aggravation of hostilities. Including in Ukraine.”

…an interesting dialogue took place in the comments. I summarised and made a separate text. It is, in my opinion, important for understanding what is happening.

– Can you explain on your fingers? I don’t understand economics. And it seems to be something very important.

– The exchange market evaluates not the current value of the goods, but political risks and market prospects. Hedging (insures) the rise or fall in prices. Today, the risks of the energy market are so colossal that they have broken through all the expectations (exchange rates) of major players, exceeding insurance premiums. Simply put, the market has thrown beyond the most fantastic forecasts. Prospects have gone into an airless space, where there is no understanding of the future (non-monitisable reality). Hence the conclusion that energy-deficient countries (and this is the entire West, including the United States) have no other option for getting out of the market vacuum, except for the destruction of energy-abundant countries and taking direct control (management) of oil and gas fields. A return to colonialism, to the world of the International Oil Cartel, when the “seven sisters” controlled all the extraction, processing and trade of oil. Otherwise, the West will not survive…

READ:  Expensive Fake for Dinner

– That is, Russia too?

– Yes. Moreover, their affairs in Venezuela and Iran have stalled. It is fundamentally important for the United States not to let Russia bring the situation in Ukraine to an end. Any negotiations and freezing of the situation will be a global defeat for Russia. We will be returned to the model for a while (sanctions will not be lifted, but oil and gas will be “allowed” to trade). They will praise for reasonableness, Siluanov will be recognised as the best minister of finance, Nabiullina – the best head of the Central Bank, then they will break Iran and Venezuela and begin to put pressure on us. There is no strong Russia in their picture of the world. They won’t stop. They’re just stuck and need a respite. And we have a huge mass at the top who want to return to the old “normality”. Brains are lacking, they do not understand the consequences or believe that they will be looked after and they will not be touched …

– So now the strategy will change? Has Russia lost initiative at the front, and now it will be crushed not only by sanctions, but also by the direct participation of NATO?

– Russia will be pushed to the peaceful option. Even division along the Dnieper will suit them. If only Ukraine remained as a subject. The thing is, they don’t have time. Time trouble. Therefore, the strategy has broken down and they are acting tactically. If Russia cannot be pushed in the short term, then it must be corrupted. It means to corrupt the Russian elite. The mechanics of corruption is simple. Its essence lies in the possibility of getting rich quickly by removing oneself from the moral norms and attitudes of society, as it was until recently. With this option of enrichment, the guarantor of the preservation of their well-being is not the national state, but the international (i.e. dollar) financial system.

READ:  Park in the "Heart" of Belgrade Will be Named After the Perished Alexandrov Ensemble


Copyright © 2022. All Rights Reserved.