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THIS WEEK’S EDITORIAL
THE RUBLE CONTINUES TO STRENGTHEN AGAINST THE US DOLLAR: The Russian Ruble continues to strengthen. In the last 6 weeks, it has doubled in price against the US Dollar. And as the Dollar has been falling against the Ruble, it has been gaining against other currencies. The US Dollar Index created against a basket of currencies — the Euro, Yen, Pound, Canadian Dollar, Swedish Krona, Swiss Franc — has risen strongly in those 6 weeks, continuing the uptrend that began way back in June last year. This makes the rise of the Ruble all the more remarkable.
So can the Ruble continue its rise against the US Dollar? Trends tend to continue because they are trends and they end when they change direction. In BOOM’s estimate, most investors cannot define either trend direction or trend change. But the Ruble is trending upwards for 6 weeks now and that will only change when something forces it to move the other way. Demand for Rubles from foreign investors should remain strong for the foreseeable future as far as BOOM can see due to the decisiveness of Russia’s leadership.
RUSSIA DIVERTS ENERGY: Vladimir Putin is preparing Russia to turn away from providing energy supplies to Western Europe, preferring instead to supply markets that are to the South and East of Russia. That includes the Eastern regions of Russia itself to stimulate the domestic economy.
Indications are that this may be done faster than Western Europe can adjust and it is therefore an ominous turn of events for the major economies of Western Europe. It also means that India and China will be the major Southern beneficiaries. Eastern European nations such as Hungary, Czechia, Bulgaria and Romania may also benefit from Russia’s decision along with Turkey, Greece and perhaps all of the Balkan nations.
All of this is presumably in response to the major European nations being clearly reluctant to make payments for their energy in Rubles. And that reluctance is, no doubt, due to the heavy influence of the United States, the alternative energy supplier.
Putin has instructed his government to develop a new plan by June 1 for the further development of oil and gas infrastructure in Russia. It is reported that he said “I ask you not to delay,” to his ministers and heads of departments. He also is reported to have said “As for the export of energy resources, it is necessary to accelerate the implementation of infrastructure projects – railway, pipeline, port, which will allow in the coming years to redirect oil and gas supplies from the West to the South and East.“
Such moves in Russian energy supplies would leave a massive hole in Western Europe’s energy requirements and in their ability to run fully functional economies. It is a terrible outcome for Germany and France in particular. They are facing a future of total dependence upon the US for their major energy supplies. Such a strategy is fraught with risk and uncertainty because the US is not a great energy exporter. On Friday, unsurprisingly, European stock markets fell sharply and US stock markets followed when they opened.
Deagel.com, a website that deals with weaponry and Geo-political considerations, reported thus —
Quote: “As for the gas infrastructure, the president (Putin) called for the inclusion of the Power of Siberia and Sakhalin-Khabarovsk-Vladivostok gas pipelines into the Unified Gas Supply System in order to provide gas to the eastern regions of Russia.
It is necessary to expand the program of gasification of Russian regions, to change approaches to its implementation. “The task is quite specific. Wherever possible, pipeline or liquefied gas must reach the consumer,” Putin stressed.
Regardless of the external situation, it is necessary to ensure “a sufficient supply of petroleum products on the domestic market” at prices acceptable to car owners, transport companies, businesses and the agro-industrial complex.
The President instructed the government, with the participation of business and the Institute of Oil and Gas Technology Initiatives, to ensure the transition to Russian systems of standardization and certification in the gas and petrochemical industries. “This must be done before the end of this year“. Link: https://deagel.com/news/n000021305
EUROPE ANNOUNCES: Meanwhile, just 4 days ago, Germany announced (perhaps in an economic suicide note) that they will stop importing oil from Russia by the end of this year. This was announced by the German Foreign Minister, Annalena Baerbock, on Wednesday.
“I therefore say here clearly and unequivocally, yes, Germany is also completely phasing out Russian energy imports,” Baerbock said after a meeting with her Baltic counterparts. “We will halve oil by the summer and will be at zero by the end of the year, and then gas will follow, in a joint European roadmap, because our joint exit, the complete exit of the European Union, is our common strength,” she said.
Russia supplies around 40% of the EU’s natural gas and around a third of its oil needs. In contrast, one month ago, the European Commission confirmed that it expects the EU to remain dependent on energy imports from Russia for at least another five years, through to 2027. So there seems to be a rather large difference in expected timetables between what the EU Commission said one month ago and what the German Foreign Minister said early last week.
To BOOM, this sudden rush to the exits away from Russia and towards the US indicates a panic reaction from Germany which cannot end well for Western Europe in the long run. BOOM cannot see how the US can possibly provide the large energy requirements to Western Europe that are implied by this announcement by Baerbock.
THE TWIST IN THE TALE: But there is more to this story. On Friday, while the European stock markets were falling, in an interview with the German weekly publication, Der Spiegel, Olaf Scholz, the German Chancellor, said that a ban on Russian gas would not stop the conflict in Ukraine. He also said that embargoing Russian gas would cost millions of jobs and crash the German economy. He also said that avoiding a military confrontation between NATO and Russia was his Top Priority. “The point is that we want to avoid a serious economic crisis, the loss of millions of jobs and the closing of factories that would never open again“. So, who is governing Germany — Scholz or Baerbock?
Germany’s government may be confused about their future energy supplies but Vladimir Putin is not. Germany will now have to come back to Russia, cap in hand, and beg for the certainty of its future energy supplies. It has become hopelessly lost in the rhetoric of war dished out by Vlodimir Zelensky and others to the point where it is no longer acting in the best interests of the German people. At this point, the clear loser in the Ukraine matter appears to be not just Zelensky but Germany and France.
PFIZER AND MODERNA SHARES PLUNGE: There is a growing concern globally about the fact that the so-called Covid “vaccines” from Pfizer (NY Stock Code: PFE) and Moderna (NY Stock Code: MRNA) cannot possibly be vaccines.
The question on everyone’s lips is this — if Boosters are needed every 3 months, then how can these injections be vaccines? By definition, a vaccine is supposed to provide long term protection against a targeted disease. Three months is certainly not long term, in anyone’s estimation.
Also, it is becoming obvious that the degree of “protection” offered by the Covid jabs is woefully inadequate. The newspapers are now full of stories of “fully vaccinated” people contracting Covid, being hospitalized and even dying. Some prominent politicians are affected. And everyone has heard of the professional athletes suddenly dropping dead or withdrawing from competitions. The truth is emerging, slowly but surely.
So the “safe and effective” jingoism that governments everywhere have used to justify the uptake of the jabs is now being seriously brought into doubt.
As a result of these doubts, last week, the Moderna share price continued its downtrend that began in August last year. It fell sharply 15.2 % over the week’s trade — an horrendous result for investors. Pfizer’s share price was more resilient. But it fell by 9.4 % during the week. Its downtrend began in December last year.
Plunges in share price of 9 — 15 % over a single week are ominous in any company. They usually indicate that unknown dynamics could be at play. These companies have been granted immunity by many governments against civil legal actions for any negative consequences stemming from the use of their Covid jabs.
However, the reality is that large numbers of injured people have now registered official reports on these products with Government Adverse Event Reporting systems. In the UK, Europe and the US, in total, such reports now number over 3 Million. It is not easy to make such reports and they must be made by either Doctors, victims or the families of victims. The under reporting rate of such official data sources is often quoted as being at least 10 fold or possibly 100 fold.
If the under reporting rate is 10 fold, then 30 million people may have suffered Covid vaccine injuries just in the regions of UK, USA and Europe. If the under reporting rate is 100 fold, then 300 million people may have suffered injury in those regions alone.
Source Link: https://johnplatinumgoss.com/covid-statistics-2022/
As far as BOOM is aware, criminal actions are not covered by Government granted immunity programs. It is therefore possible that preliminary criminal investigations are being discussed in regard to this matter. If so, prosecutions may follow as sure as day follows night if sufficient evidence of crime can be collected. Criminal negligence is a legal term that refers to conduct in which a person ignores a known or obvious risk, or disregards the life and safety of others. Criminal negligence is when a person acts with a disregard for obvious risks to human life and safety.
VACCINE ADVERSE EVENTS UNDER REPORTING RATE: The under-reporting rate discussion usually refers to the Harvard Pilgrim Health Care study on VAERS — The US Vaccine Adverse Event Reporting System
The Final Report to the AHRQ — Agency for Healthcare Research and Quality — is titled — Electronic Support for Public Health–Vaccine Adverse Event Reporting System (ESP:VAERS) Inclusive dates: 12/01/07 – 09/30/10
In the Results section of the Report, the following statement occurs — QUOTE: “Adverse events from drugs and vaccines are common, but underreported. Although 25% of ambulatory patients experience an adverse drug event, less than 0.3% of all adverse drug events and 1-13% of serious events are reported to the Food and Drug Administration (FDA).
Likewise, fewer than 1% of vaccine adverse events are reported. Low reporting rates preclude or slow the identification of “problem” drugs and vaccines that endanger public health. New surveillance methods for drug and vaccine adverse effects are needed.“
Reference Link: https://digital.ahrq.gov/sites/default/files/docs/publication/r18hs017045-lazarus-final-report-2011.pdf
In economics, things work until they don’t. Until next week. Make your own conclusions, do your own research. BOOM does not offer investment advice. SUBSCRIBE – FREE AT BOOM: http://boomfinanceandeconomics.com/#/
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BANKS DON’T TAKE DEPOSITS, THEY BORROW YOUR MONEY: LOANS CREATE DEPOSITS — that is how almost all new money is created in the economy (by commercial banks making loans). https://www.bankofengland.co.uk/quarterly-bulletin/2014/q1/money-creation-in-the-modern-economy
Watch this short 15 minutes video and learn as Professor Richard Werner brilliantly explains how global banking systems really work. https://www.youtube.com/watch?v=EnC1UlnFLyI
AND Watch for 4 minutes, this Bank of England explanation: Money is essential to the workings of a modern economy, but its nature has varied substantially over time. This video describes what money is today. https://www.youtube.com/watch?v=ziTE32hiWdk
Most economists are unaware of this and even ignore the banking & finance sectors in their econometric models. EMAIL: gerry {at} boomfinanceandeconomics.com
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The EU has already indicated that European countries can pay for gas in Rubles. However the UK has sanctioned the bank through which we could pay for Russian gas. Unless Boris eases the sanction we will have to get all our gas elsewhere. Already reports that the Eastern European and Baltic states are happy to buy Russian gas and re-sell it to other countries who have tied up their supplies in knots. Expect prices to rise even more for us Brits before commonsense (next winter) kicks in. The current policy isn’t sustainable politically or economically.
Many thanks Rossa – I missed this one – a very useful report confirming mad Boris’s crazy anti-Russian stance. Of course he is merely dancing to the City of London’s tune who are determined to wreck the Russian economy one way or another but they are up against very powerful forces which will be displayed as the months pass.
“There’s no question, as Hudson states, that “the world economy is being inflamed” – with the U.S. weaponizing trade. Yet on the Right Side of History we have the Rublegas, the petroyuan, the new monetary/financial system being designed in a partnership between the Eurasia Economic Union (EAEU) and China.”
https://thesaker.is/the-total-war-to-cancel-russia/
This is the most ridiculous thing I’ve seen yet, but I’m sure worse is coming.
Puerile comes to mind but even that is generous. All my doubts about the incompetence of our ‘leaders’ are confirmed – I cannot express the depth of my disgust.
It doesn’t make it better that their incompetence is because of their evil, does it?
It has been written that evil will persist. Today religious conditions are deplorable throughout the earth. As with the Samaritans of Jesus’ day it can be said to them: “You worship what you do not know.” (John 4:22) Their worship of the political “image of the wild beast” and of other false gods will result in their being destroyed in the coming “great tribulation” upon all the rest of ‘Babylon the Great’ (the Anglo/American empire) and upon all her political paramours in this mundane system of things.
Such worldwide danger increases the nearer we get to the ‘great tribulation’ ”21 for then there will be great tribulation such as has not occurred since the world’s beginning until now, no, nor will occur again. 22 In fact, unless those days were cut short, no flesh would be saved; but on account of the chosen ones those days will be cut short.” (Matt. 24:21, 22) Humanity needs to be enlightened with the truth of God’s Word, the Bible.
There are some serious ramifications coming for people who believe they can BELIEVE something into existence. Those people will be standing valiantly clapping their hands for Tinkerbell’s light to come back on.
I have heard that the USA is shipping tankers to both Germany and the UK to supplement their oil reserves. I wonder where that oil comes from?
And, if you’ve not taken advantage of AP’s fine links, let me tell you this one is a good one.
Thanks for the pointer, Ghost, and I’m pleased that knowledge of this evil money-slavery is getting out there. He looks so young and innocent – clearly he knows nothing of the deep meaning in his words – just learned it rote in his corrupted indoctrination.
Look at all that gold! Matthew 6:24: “No one can slave for two masters; for either he will hate the one and love the other, or he will stick to the one and despise the other. You cannot slave for God and for Riches.”
Thank you for a good collection of videos. Am listening to the discussion of Bank Credit now.
I have a video cued to a certain spot (19 minute point, approximately) where there is discussion of the “lend-lease” program and how it was used in the second world war versus what is happening now. I think it illustrates quite well how the money game is played on an international level.
Instead of sending money and weapons to Ukraine, Blinken’s selling them the weapons, so it appears to be an export with payment due in the future. But, does anyone expect Ukraine to be able to pay for anything in the near (or distant) future? So, we are doing for Ukraine what we did for the Taliban, but ahead of the humiliating retreat.
I suspect our State Department hopes this war will weaken Russia enough that NATO can somehow take advantage, but I suspect their strategy in war is just as bad as their strategy in finance. Russia is going to emerge from this stronger and healthier than any Western nation.
Just the loss of Facebook and Instagram helps strengthen their cultural bonds. Cultural bonds? What are those?
Anyway, I think you (and perhaps others) will get a lot out of his discussion of the lend-lease idea in Ukraine.
Like a runaway train indeed!
Excellent, thanks Ghost – a runaway train indeed – CHS has the story:
“The task now is to make sense of this complex inflection point in history. Two statements summarize the transition from the existing global order to the next iteration:
1. Finance dominated resources in the old order. Now the roles will reverse and real-world resources will dominate finance. We can’t “print our way” out of scarcities.
2. Reshuffling currencies and credit will not stop the breakdown of the global order’s “waste is growth” Landfill Economy Model.
Playing financial tricks has extended the life of an unsustainable economic model that glorified “growth” from wasting resources. By expanding credit “money,” the current global order fueled unsustainable consumption driven by unsustainable speculation. Stop expanding “money” and credit and the global order of “growth” implodes.”
HollyO
Haven’t heard from her in over a year.
I don’t remember this one AP – maybe before I arrived in force? I really only started on TBP when Jim generously allowed me to serialise the 3rd Edition of my book – beginning in May 2018.