What is predicted to happen in Europe is just stunning, literally stunning.

♦Context – According to official data from the World Bank, the combined Gross Domestic Product (GDP) of the European Union was just over $17 trillion US dollars in 2021. That is the last calculated measure.  The combined GDP value of European Union represents roughly 12.78 percent of the world economy.

According to analysts for Goldman Sachs, the current energy crisis in Europe has increased electricity prices at a rate that is increasing almost daily.  Within the data it is now estimated that households within the EU will pay an additional $2 trillion for electricity in the next year.

Put that $2 trillion into context with their GDP, and that scale of energy cost would be wiping out 12% of the purchasing strength within the total EU economy.  Forget about buying anything else, if this analysis is correct Europeans will be buying food and energy, nothing else.

If you consider what that means, it is bordering on full economic collapse of western Europe.

What is being described above is what we posited when we outlined the impact of the “Energy Economy” {Go Deep}.  When you suck 12% of the purchasing power out of an economic engine simply to maintain the status of current energy use, everything else starts to collapse.

Also keep in mind we are only talking about the direct impact of $2 trillion in electricity cost.  The downstream consequence is far greater because everything created, produced, or manufactured, including food, is dependent on electricity – which will drive the final cost to produce of all those products even higher.

The damage is almost unimaginable in scale.

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Well, it looks like it’s official now. After several days of sporadic reporting on Russia’s decision to shut down the Nord Stream 1 natural gas pipeline into western Europe, it looks like the valves have been shut down until EU sanctions against Russia are removed.

Strategically the Nord Stream 1 pipeline is the major gas supply route into Germany, Europe’s largest economy. As noted by Reuters, “European gas prices, as measured by the benchmark Dutch TTF October gas contract, rose by as much as 30% on Sept. 5, amid growing fears of a total shutdown of Russian pipeline imports ahead of the European winter.”

Europe was already going into a deep economic recession due to inflation created by pre-existing green energy policy.  The Nord Stream shutdown will make things exponentially worse as energy prices skyrocket.  The Russian owned energy company Gasprom sent out a video that can be best described as psychological warfare.  WATCH:

https://youtu.be/n2b_0gfV_4E

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Yes, it’s like something out of a dystopian ‘hunger games’ movie, except it is unfortunately real life.  ITV News in Great Britain is running a wheel-of-fortune type marketing campaign where desperate viewers can call in for an opportunity to spin the wheel and win having their energy bills paid.

Comrades, it is not a spoof, this actually took place today and it looks like it will continue due to popular demand.  UK citizens are facing astronomical increases in energy bills as a result of the EU green climate change agenda in combination with Russia halting the export of natural gas.  The price of natural gas increased 30% today alone as Russia cuts off supplies completely.  Europe is on the brink of the worst economic recession in history.

ITV steps in with a promotional effort that shows just how bizarre this Build Back Better future has become.  Perhaps next week viewers might be able to call in for a chance at winning extra food rations, chocolates or even gasoline.  Here’s a video to show what is happening.  WATCH:

https://youtu.be/rC7O8LISY48

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Good luck comrade citizens, you too could be a winner on the wheel of survival.  It’s all in good fun comrade. Smiles everyone, smiles.

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Joe Biden has hired John Podesta to be the new Clean Energy Czar [Announcement Here] citing his experience in progressive causes.  Hilariously, the New York Times is running with a justification that Podesta holds some prior experience in advancing the climate change agenda. [See Here]

(NYT) […] In bringing on Mr. Podesta, Mr. Biden continues to surround himself with veterans of past Democratic administrations, old hands who can step into challenging positions without on-the-job training.

“His deep roots in climate and clean energy policy and his experience at senior levels of government mean we can truly hit the ground running,” Mr. Biden said of Mr. Podesta in a statement. (more)

If Podesta is the new Clean Energy Czar, it begs the question of what the heck John Kerry is doing now?  I digress.

You might remember that Steven Chu was the Obama Climate Change Czar for the first clean energy boondoggle that came as an outcome of the American Recovery and Reinvestment Act (ARRA), those shovel ready jobs that didn’t materialize and carried the Solyndra spending nonsense.

John Podesta had nothing to do with the Obama-era clean energy initiatives or energy spending programs. Podesta was inserted into Obama’s orbit in the second term (2013) specifically to watch out for Hillary Clinton’s interests when she left to run for President.   Podesta later joined her in 2015 and took over the strategy team.

Bottom line, John Podesta is being now being hired to divvy up the $316 billion in Green New Deal money recently authorized by congress.  That is what Podesta specializes in, the distribution of taxpayer money to DNC allied groups and networks in advance of the 2022 midterms.   Podesta, Hillary’s fixer, is a bagman, nothing more.

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Comrades, a heatwave hit the Colorado region Tuesday with temperatures exceeding 90 degrees.

Indoor temperatures began climbing, and when formerly free-range residents attempted to adjust their air conditioning, they discovered they were locked out from control in their own home as the power company took over.

(Denver ABC7) – […] when thousands of Xcel customers in Colorado tried adjusting their thermostats Tuesday, they learned they had no control over the temperatures in their own homes.

[…] “I mean, it was 90 out, and it was right during the peak period,” Talarico said. “It was hot.”  That’s when he saw a message on the thermostat stating the temperature was locked due to an “energy emergency.”

[…] Xcel confirmed to Contact Denver7 that 22,000 customers who had signed up for the Colorado AC Rewards program were locked out of their smart thermostats for hours on Tuesday.  (read more)

Comrade Citizens, it is important that we support the needs of the energy collective.  All good thinking citizens put the needs of the state ahead of their selfish desires.

As the national energy emergency now begins to unfold, the officials in charge of energy resource equity remind everyone how critical it is to remain compliant with all ministerial energy objectives.  Compliance is expected from all correct thinking citizens.

As long as you remain compliant, there is no reason for concern.  Do not attempt to adjust your household allocation of energy.  Energy advisors will be made available for enhanced personal education to explain the benefits of our Green New Deal.  Your cooperation is appreciated Comrades.  Please report any non-compliant energy consumers to your local energy enforcement agency.

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Let’s say you are an average household with an income around $100,000/yr who has an increase in electricity rates from $300 to $500 due to Joe Biden’s new national energy policy known as the Green New Deal.  That’s $200 more per month for this initial economic/energy “transition” moment.

That extra $200/month equates to $2,400 per year.

That $2,400 per year is static economic activity.  Meaning nothing additional was created, and nothing additional was generated.  The captured $2,400 is simply an increase in the price of a preexisting expense.

Take that expense and expand it to your community of 100 friends and family households.  The $2,400 now becomes $240,000 in cost that doesn’t generate anything.  $240,000 is removed from the community economy.  $240,000 is no longer available for purchasing other goods or services within this community of 100 households.

The economic purchasing power of the 100-household community is reduced by $240,000 per year.

Take that expense and expand it to your county of 10,000 households.  Now you are reducing the county economic activity by $24 million.  In this county of 10,000 households, $24 million in economic transactions have been wiped out.  Meals at restaurants, purchases of goods and services, or any other spending of the $24 million within the county of 10,000 households (approximately 25,000 residents) has been lost.

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During his opening monologue tonight, Tucker Carlson becomes the first mainstream pundit to point out the lies in the central bank argument.

The federal reserve and EU central banks claim they are raising interest rates to stop inflation by slowing demand.  A demand side approach.  However, it isn’t demand driving inflation; it’s the cost of energy driving inflation. That’s a supply side issue.

The central banks cannot admit what they are doing, or people would catch on.  They are intentionally reducing economic activity in order to support having scarce energy production. WATCH:

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The financial pundits are slowly starting to drop the pretending and discuss the bigger economic picture. However, as they tread very carefully, they are being very cautious about admitting too much.

A Reuters discussion of the comments by Federal Reserve Chairman Jerome Powell, starts to dip the media toe in the painful pool; yet they will not admit the Biden energy program is the source of the inflation Powell is targeting with his policy moves to shrink energy demand. Thus, the pretending continues.

If you take the written words and extract the parseltongue, you can see a more fulsome picture of what is being outlined.

JACKSON HOLE, Wyo., Aug 29 (Reuters) – The message from the world’s top finance chiefs is loud and clear: rampant inflation is here to stay and taming it will take an extraordinary effort, most likely a recession with job losses and shockwaves through emerging markets.

That price is still worth paying, however. Central banks spent decades building their credibility on inflation fighting skills and losing this battle could shake the foundations of modern monetary policy.

In other words, the U.S. economy is based on core U.S. energy systems and moving that construct to alternative energy, windmills, electric vehicles and solar panels; along with getting Americans to accept a lowered standard of living; is an “extraordinary effort.”

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As the global cleaving begins taking shape based on the new western energy system, the Build Back Better agenda, Russian energy exports are worth a lot more money.  As a result, the Russian economy has gained more wealth than before the western sanctions regime was triggered.  As noted by the Wall Street Journal:

(Via WSJ) – […] Demand from some of the world’s largest economies has given Russian President Vladimir Putin the upper hand in the energy battle that shadows the war in Ukraine, and has confounded the West’s bid to cripple Russia’s economy with sanctions.

Sales are booming in Russia’s export market, the world’s largest in crude and refined fuels. And new trade arrangements have given Mr. Putin cover to use natural gas exports as an economic weapon against Ukraine’s European allies. Before the war, Russia supplied Europe with 40% of its gas. It has since throttled flows through the Nord Stream pipeline to Germany and other conduits, driving prices higher and putting pressure on European households and businesses.

Oil revenue more than makes up the difference. “Russia is swimming in cash,” said Elina Ribakova, deputy chief economist at the Institute of International Finance. Moscow earned $97 billion from oil and gas sales through July this year, about $74 billion of that from oil, she said.

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When Chairman Powell says things are really, really going to suck as monetary policy tries to support Biden’s goals to reduce energy supplies, will people believe him?

The agenda of the federal reserve was clearly outlined today in the remarks from Chairman Powell in Jackson Hole, Wyoming.  The Fed chair is trying to manage the economic policy transition by reducing economic activity to match intentionally diminished energy supplies.  Lowering economic activity drops demand for energy. Unfortunately, as admitted by Powell today, this means a period of “some pain” for Americans as the central banks join together in an effort to lower consumption.  WATCH:

What does “some pain” mean?  It means lower incomes, higher prices, lowered standards of living and more scarce resources.   During this transition to owning nothing and being happy about it, the pain is your wealth being stripped as the economy is intentionally diminished.

We will not be able to afford much; we won’t be able to afford the foods we want; we will not be able to purchase anything except the essentials, and those essentials will cost much more; we won’t be able to vacation, travel, or enjoy recreational activities; we won’t be able to afford any indulgences; but at the end of the process, we will learn to live more meager existences based on lowered expectations needed for sustaining the planet.   Pay no attention to the elites who don’t have those concerns, comrade.

[Transcript] – POWELL: “At past Jackson Hole conferences, I have discussed broad topics such as the ever-changing structure of the economy and the challenges of conducting monetary policy under high uncertainty. Today, my remarks will be shorter, my focus narrower, and my message more direct.”

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