Germany introduces €200B gas price cap to counter Russia’s ‘energy war’

[Abdul Rehman Majeed]

Well, first of all, Germany has a very strong Credit Rating, borrowing 200 billion to cap energy price is actually nothing. They had borrowed more during COVID.

Second of all, it's quite clear that Germany is betting on the energy situation will resolve within the repayment period. Depends on their loan term, it may be 2 to 5 years. I would say for certain oil and gas price will go back to normal by then. If not, then I can say it's not just Germany need to worry. It's the entire world, including China.

Once Russia gets defeated and balkanized in the next few months, Germany will have all access to Former Russian gas fields through Ukraine.

 

[nahtanbob]

Well, people don't know how much discount Russia is offering the Chinese. But 50% like the man said is pretty insane. Not even Putin will do that......lol

Most people speculate the discount between 20-30%, if that is the case, this will stop being profitable for Russia once oil price hover around 75-80 USD. Because general consensus is oil take around 50-60 USD to extract per barrel.

As for how long, that's depends on multiple factors.

1.) How long until China fills their reserve. Because that is going to fill up, and when it is filled, no point keeps buying.

2.) How long until the Brent Oil price fall below $80, it's between 80-90 now, so this may take anywhere between 6 months to 1 year. Notice pre-COVID average is $69 per barrel on a 5 year term.

3.) Depends on whether or not Russia will break before China stop buying. Oil and Gas cannot sustain Russian economy, especially when they are selling it on a discount. Russia at its worse is a 1.2 trillion-dollar economy, oil and gas at most net them 450 bil before the war. Which mean at some point Russia is going to break because they are in the red. And when they are broke, they can't afford to keep that discount running. Plus there is a war going on, that drain them money probably faster than the entire economic sector combine. This is not going to be long.

of course logic is a hard subject for some folks

Once Russia gets defeated and balkanized in the next few months, Germany will have all access to Former Russian gas fields through Ukraine.

Russia is not going anywhere. They have to leave Ukraine. Beyond that no one is poking the bear

 

[beijingwalker]

Russia is not going anywhere. They have to leave Ukraine. Beyond that no one is poking the bear

What if they don't? what are you going to do besides whining?

 

[jhungary]

of course logic is a hard subject for some folks



Russia is not going anywhere. They have to leave Ukraine. Beyond that no one is poking the bear

Logic and Mind seems like not a prerequisite for some people here.

 

[nahtanbob]

What if they don't? what are you going to do besides whining?

The HIMARs are doing a good job of kicking out Russians

 

[Mista]

living on borrowed time

lmao ITT the Chinese who racked a YTD budget deficit of USD800bil+ because of their stubborn zero-Covid policies are taking schadenfreude at the Germans with AAA credit rating...

China’s broad fiscal deficit widened to a fresh record in the first eight months of the year as land sales continued to drop while efforts to contain Covid outbreaks added to the spending burden.

The deficit in the budgets for all levels of government was 6 trillion yuan ($857 billion), according to Bloomberg calculations based on data from the Ministry of Finance released Friday. That is a new high for any comparable period and compares with a shortfall of 1.1 trillion yuan in January-August last year and a gap of 4 trillion yuan at the same point in 2020.

China Budget Deficit Keeps Widening Under Covid, Property Crisis

China’s broad fiscal deficit widened to a fresh record in the first eight months of the year as land sales continued to drop while efforts to contain Covid outbreaks added to the spending burden.

www.bloomberg.com

 

[altafahmed]

The Europeans are not looking to fight. That does not mean they can't beat the crap out of you

Europeans, specially Americans do want to fight,
1- They just want to blame others for it.
2- they try to keep it away from home.
Nato attacked Afghanistan blaming it is not handing over Osama, while in realty Afghanistan asked for proof of Osama involvement in 9/11.
They attacked Iraq for oil blaming it for weapon of mass destruction, which was a lie.

 

[nahtanbob]

Europeans, specially Americans do want to fight,
1- They just want to blame others for it.
2- they try to keep it away from home.
Nato attacked Afghanistan blaming it is not handing over Osama, while in realty Afghanistan asked for proof of Osama involvement in 9/11.
They attacked Iraq for oil blaming it for weapon of mass destruction, which was a lie.

No one. in the region raised a finger for Saddam or the Taliban. that speaks for itself

 

[MH.Yang]

No one. in the region raised a finger for Saddam or the Taliban. that speaks for itself

Those who supported Saddam and bin Laden were killed by American troops. As for the Taliban, if no one supports the Taliban, why can the United States spend 20 years still unable to eliminate the Taliban?

 

[nahtanbob]

Those who supported Saddam and bin Laden were killed by American troops. As for the Taliban, if no one supports the Taliban, why can the United States spend 20 years still unable to eliminate the Taliban?

because they were hiding in pakistan. quit pretending like you never knew the answer

 

[mike2000 is back]

You were warning Germany? What, did you have a private meeting with Scholz?

Equivalent to war crimes?

Russians have JUST started to react?

LMAO, this comment is fucking hilarious

Dont mind some PDF keyboard warriors. He said he was warning Germany. LMAO

 

[mike2000 is back]

O

One step: dont provoke Russia. Thats pretty much it.
Russians will make rich people poor pretty much soon and easily.

One word don't provoke India, they will make Pakistan even poorer. Lol Good logic.

It's funnier that you or your family choosed to emigrate to Germany(or the west like many others here) and not rich peaceful Russia who most of you guys support. Lol I find it ironic that many on here(including Russians themselves) mostly choose to emigrate to the West from their home countries while badmouthing the west, you will expect them to emigrate with their family to live in a country they admire and praise all the time like Russia, China, Iran, Cuba, or any other "axis of resistance". Lol but they hardly ever do.

 

[fitpOsitive]

O
One word don't provoke India, they will make Pakistan even poorer. Lol Good logic.

It's funnier that you or your family choosed to emigrate to Germany(or the west like many others here) and not rich peaceful Russia who most of you guys support. Lol I find it ironic that many on here(including Russians themselves) mostly choose to emigrate to the West from their home countries while badmouthing the west, you will expect them to emigrate with their family to live in a country they admire and praise all the time like Russia, China, Iran, Cuba, or any other "axis of resistance". Lol but they hardly ever do.

Well, what you wrote is a clear sign of missing or deficient apprehension faculty.

Let me explain it to others:
We immigrated to Germany because Germany has a better economy, it has nothing to do with love or hate. And Russia doesn't have that economy. So why will we immigrate to Russia or Cuba or the others?
I never badmouthed Germany. I advised Germany though because I always felt that Germany is getting used by Britain and USA for their nefarious agendas. Even France is getting squeezed because of Britain.

And the main reason why Russia, Cuba Iran, and others have weak economies is your country and her best buddy.
Britain is anyway not part of the European Union. So talk for yourself.

 

[Sinnerman108]

are you worried that Ukraine and its allies will beat Putin ? you should be. that will leave China alone.



What do you expect ? Europeans are going to roll over when you invade their homes. They have one of the largest wealthiest economic blocs on the planet.

Europeans have the largest stockpile of stolen wealth from the planet.
they can't even keep themselves warm on their own,
nor can they grow 12 months a year.

 

[nahtanbob]

Let me explain it to others:
We immigrated to Germany because Germany has a better economy, it has nothing to do with love or hate. And Russia doesn't have that economy. So why will we immigrate to Russia or Cuba or the others?
I never badmouthed Germany. I advised Germany though because I always felt that Germany is getting used by Britain and USA for their nefarious agendas. Even France is getting squeezed because of Britain.

And the main reason why Russia, Cuba Iran, and others have weak economies is your country and her best buddy.
Britain is anyway not part of the European Union. So talk for yourself.

Did you occur to you why Germany has a good economy while the likes of Russia, Iran, North Korea and Cuba do not ?

hint hint

Europeans have the largest stockpile of stolen wealth from the planet.
they can't even keep themselves warm on their own,
nor can they grow 12 months a year.

the only thing that counts is that Russians, Pakistanis queue up to enter the EU