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    RUSSIA – Germany in CRISIS as $500 Billion Energy Costs & Falling GDP Push Economy into RECESSION



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    GERMANY is the Largest Economy in Europe and the Fourth Largest in the World. Over the past 20 years German infrastructure has been built to be reliant upon the supply of low cost Russian Natural Gas and Oil. Russia’s invasion of Ukraine has caused Huge problems for the German Economy due to the rise in Energy Costs, the need to source supplies from other countries and the massive investment into LGN Facilities. The rise in gas prices resulted in a $50 Billion BAILOUT for National Gas Supplier UNIPER caused by MASSIVE LOSSES resulting from the movement in GAS PRICES. In addition Germany has also had to bailout the energy suppliers and provide subsidy schemes for consumers. The total costs so far are c.$500 Billion and the German Economy is now suffering and heading towards RECESSION. In this video I provide more details, discuss the issues facing Germany and the impact on the European & Global Economies.

    For specific details please check out the CHAPTER list below.

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    Chapters:
    0:00 Intro
    1:52 GERMANY
    3:46 NATURAL GAS
    7:05 GAS SUPPLIES
    10:40 FINANCIAL COSTS
    12:16 INFLATION
    14:49 INDUSTRY
    18:01 GDP
    19:10 SUMMARY & CONCLUSION

    #UKRAINE
    #RUSSIA
    #GAS
    #POLAND
    #GLOBALFINANCIALCRISIS
    #RUBLE
    #SWIFT
    #RECESSION
    #CHINA
    #USA
    #NATO
    #WW3
    #WORLDWAR3

    View 36 Comments

    36 Comments

    4. Hardtack & Beans on

      Which is a good lesson not to depend on one source of a critical item. But it would be hard to pass up the sweet deal they were getting on gas. A country can't be ready for all eventualities. That would be far too expensive & wasteful. But it seems like we could do better with strategic planning in the future. A dispersal of manufacturing of micro chips next?

    7. Mady 8282 on

      I wonder if you shouldn't speak of "cleaner" or "less co2" within the context of energy produced or the energy density of the fuel. After all, Natural gas will mostly convert to CO2 when burned, while coal will generate a lot of reside, ash etc that is not CO2. So viewing this by mass, it could be argued that Coal generates less CO2 per pound than Natural Gas. Hence "Less CO2 per kWh than coal" would be a better framing than simply "less CO2."

      Now I am sure that this calculation of how much CO2 per kWh is listed somewhere comparing different energy sources. I am however, finding it difficult to find (I wonder why) but perhaps you or someone more knowledgeable than me on this matter can assist.

    8. Margaret Mary Dempster on

      All countries have been myopic re over reliance on fossil fuels. The Germans are industrious and clever people. They know how to roll up their sleeves and endure. Not like a lot of complainers, whiners and grippers here in 🇨🇦.

    9. Micha El on

      The German dependence on cheap natural gas from Russia, built up during the Merkel administration(s), was a big problem at the start of the war. But currently it is not any longer a problem of supply, but of surging prices worldwide. Germany has put a first own LNG terminal into operation, but LNG has higher production and transport costs than delivering Russian natural gas by pipelines had, additional to the now generally somewhat higher world-market price. But since the new German government got the storage facilities back from the Russian companies the old government had sold them to, they succeeded in filling them up (in some cases to more as 100% nominal capacity) – the Russia-controlled companies had depleted that storages previously to the attack on Ukraine.
      Natural gas power plants were always mostly fallback facilities, because electricity produced from natural gas (even the cheap one from Russia) is always more costly than any other form of electricity production. Gas-powered plants become only economically feasible if they are built to provide also heat for a district heating system. But since the Merkel administrations had thwarted the expansion of renewable energies, there were plans to replace coal-powered plants transitionally by firing up more gas-powered plants (already built, but mostly in reserve for the high costs of electricity produced there). Natural gas however was widely used for industrial processes (e.g. in the chemical industry) and for heating (both industrial and homes), and the share on heating was continuosly growing the last decades, since especially changing from heating oil to natural gas was heavily promoted.
      The goal of the current German government is to reduce consumption of natural gas over all by increasing the share of renewable energies on the one hand an to increase energy efficiency on the other hand – both tasks neglected during the last 15 years.
      Currently the main cause for economic crisis in Germany seems not longer to be the supply of natural gas but rather the problems with China, which was one of the most important trading partner before Covid and before the Ukraine war.
      Inflation is high all over not only Europe, but all industrialized countries, mostly caused by worldwide surging prices for fossil energy sources as well as for cereals and other foodstuff, as well as for pharmaceutical and chemical products (partly due to Covid policy in China, partly due to surging prices for primary products like natural gas). It will slow down economic growth because of higher consumer prices which decrease the purchase power of average wages everywhere, but that should be transient in most national economies if handled wisely. We will however to have to do without cheap artifical fertilizers as well as some other chemical products in the foreseeable future, because natural gas has become a too expensive primary product used in the production of that products.

    12. Ken Lodge on

      As a rule I rarely respond, but I have a bone to pick with all Economists. For almost the entire year just gone by, gradually growing with intensity we have been listening to Economists from all over the world projecting the, "Recession of 2023!" Well here it is, we are on the doorstep of the new year and it sounds to me like you're ready to jump out of your skin you're so excited the recession is coming, the recession is coming! All over the world the service industry, manufacturing as well as food producers and especially energy have been obscenely raising their prices and calling it inflation. Now the recession all the Economists have lauded for the past year is finally upon us and to hear it, all you economic analysts are tickled pink: "Yay! You got one right!!!"

    14. cybiz on

      The 'crisis' wasn't caused by Russia invading Ukraine. It was caused by moronic Europeans thinking banning resources from Russia would destroy Russia's economy when they were totally reliant on the resources THEY had banned. Moronic is too soft a word for these brainless zombies. Russia just sold more oil and gas to China and India while Europe is desperately trying to find how to replace the resources THEY banned.

    15. Lennart Strawalde on

      What you got wrong is to blame Germany of pulling other countries into a recession that is not true. Recession has arised in other european countries long before we had a chance to do so.
      A global recession will not be caused by Germany, you better look at Russia, China and maybe USA. And don't mix up the reasons!

    18. Dark Sun on

      @Joe
      Sorry Joe, but You are not upto date. The gas and oil prices in Germany are decreasing rapidly, cause of these reasons:
      1. The European gas reserves where filled to 100 % at start of the coming winter
      2. The gas consumption of industrie and households has shrinked about 20 % thanks to combined reduction and efficiency management. So we have more reserves than all winters before.
      3. The first LNG Terminal is already in use and the renewable sector is increasing more rapidly, than expected. Thus the future looks safe and bright.
      4. The European Union is helping one another, acting and trading together in Union. Therefore a price cap on gas was installed for example
      5. The latest "business climat index" is quite optimistic.

      Great Britain is welcome to join in again, cause a renewed, united Europe is Putin worst nightmare and the best chance to manage all coming crisis.
      What do You think about this?

    24. Karl Slicher on

      Announce the inevitable switch to shale gas and oil. As soon as the investments are made, the prices will begin to permanently crash with the fact being acknowledged that everyone can be energy independent within a year with shale extraction.

    29. Stephan Feger on

      THX for sharing. The crisis will certainly speed up the transition to renewable energies and improvement of energy-efficiency of our homes and industries. So in the long range the necessary investments will pay off and even might improve german competitiveness

    32. Mike Dennington on

      The previous Chancellor G Schroeder sold Germany down the road to Russia in order to get himself a very well paid cozy job with the Russian energy company and A Merkel did nothing to stop this. All this influence by Schroeder existed due to the PR electoral system in Germany which forces collaboration between parties and hence cronies of people like Schroeder to be corrupt and jump into bed with Russia.

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