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"Alert! They Warn Populations To 'Prepare For A
Total Cut-Off Of Russian Gas' As Social Unrest Looms"
by Epic Economist
"The current global energy crisis is set to become even worse than what the world experienced in the 1970s. All across the globe, consumers are being hit by soaring prices, businesses are facing energy supply shortages, political leaders and central bankers are struggling with inflation, and countries are confronting worsening supply chain problems. In addition to pushing consumer prices to soar, the ongoing crisis is transforming a previously global market into one that is fragmented and extremely vulnerable to disruption.
It is not only hampering economic growth but also deepening the world’s great-power rivalries. And now, populations around the planet are being warned to prepare for fuel and power shortages, rationing, and rolling outages as energy reserves hit dangerously low levels. On top of everything else, due to the geopolitical crisis arising from the conflict in Ukraine, a total cut-off of Russian gas is about to trigger catastrophic consequences for the global market, according to President Vladimir Putin.
In the U.S., on top of shortages of oil-based fuels and natural gas, businesses and consumers are grappling with electricity shortages. Experts say that America’s crumbling power grid is reaching a breaking point as scorching temperatures, low wind output, and record power demand overwhelm the already stressed system. In fact, on Sunday, ERCOT, the Electric Reliability Council of Texas, asked households and businesses to conserve power and warned them to prepare for rolling blackouts. The grid is facing a "reserve capacity shortage with no market solution available," ERCOT said in a press release.
The power shock in Texas is likely to result in higher crude prices because oil/gas industries will end up being forced to shutter operations during blackouts. The latest projections showed that wind generation is at only 8% of the grid’s total capacity, and the high temperatures mean no relief in sight. To make things worse, another natural gas plant caught fire this weekend – the fifth incident since the start of the year. At the same time, the outlook isn’t any more promising in U.S. oil markets. Over the past year, the U.S. strategic petroleum reserve has been drained and is now sitting at dangerously low levels.
Despite the repeated warnings that the country is set to face a shortage of fuels, more than 5 million barrels from the strategic reserve were exported to Europe and Asia last month, including to top our geopolitical nemesis in the global arena, China, even as gasoline and diesel prices continue to hit record highs all across the nation. “The situation is more than dramatic,” highlighted Axel Gedaschko, the head of GdW. “Social peace is in great danger,” he stressed.
"Let's prepare for a total cut-off of Russian gas; Today that is the most likely option," Le Maire warned. "We have to anticipate and to put ourselves in order of battle as of now," he emphasized. A potential domino effect from a Russian supply cut-off means that the entire planet could face repercussions as the global market loses one of its major suppliers, La Maire explained.
For his part, Russian President Vladimir Putin sees catastrophic energy consequences as sanctions against his country continue. For Americans, tighter energy supplies mean that they will spend 70% on energy this year, according to the calculations of Tim Morstad, the associate state director for AARP.
We’re entering very chaotic times, and our social stability is at risk. As geopolitical tensions continue to escalate, the second half of this year will see waves of social unrest emerging all around the globe as populations rise against inflation, food, and energy shortages, and the rampant cost of living."
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