As Germany’s electricity and natural gas prices soar, a wave of companies – some having a long tradition – are filing insolvency. Many midsize companies rely on natural gas as a source of energy, but prices have multiplied since early this year.
Blackout News here reports toilet paper maker Hakle has filed for insolvency, citing “increased energy costs”.
“Tenfold increase in gas and electricity prices”
Others include shoe retailer Görtz, who cite low sales as consumers cut back on their discretionary spending, and automobile supplier Dr. Schneider. Steel producer ArcelorMittal in Hamburg und Bremen are also following.
“With a tenfold increase in gas and electricity prices, which we had to accept within a few months, we are no longer competitive in a market that is 25% supplied by imports. We see an urgent need for political action to get energy prices under control immediately,” said Reiner Blaschek, CEO of ArcelorMittal Germany (Financial Market World).
Another industry sector facing extreme hardship is the bakery industry, which relies heavily of affordable energy. According to Blackout News: “For bakeries, the energy crisis is now worse than the Corona pandemic, according to industry sources. ‘We have the problem as a micro baker that we have to adjust our prices to the raw material and energy prices, of course, which also burdens the customer, if he is also a bit tighter on cash,’ says an affected baker from Heilbronn.”
One baker in our local area has seen his monthly gas bills go from 3000 euros earlier this year to 11,000 euros!
“Severe and long-lasting recession”
The wave of insolvencies has just begun, and is “picking up speed”, writes Blackout News. “What we are seeing now is just the tip of an iceberg. Increased energy prices are affecting all industries, whether directly, as in the case of steel mills and bakeries, or indirectly, as in the case of shoe retailer Görtz. If politicians do not take countermeasures here, Germany will fall into a severe and long-lasting recession, with mass unemployment and a massive loss of prosperity.”
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“Tenfold increase in gas and electricity prices”… So SANCTIONS do work fine!
Combine sanctions with the SRF (via JPMOrgan) control of the financial terrorist “Title Transfer Facility (TTF) Virtual Trading Point” and voilà… Happy Misery!
Don’t forget to chop down the Forests in Germany. If Musk/TESLA can SO CAN THE “PEOPLE” (aka slaves)!
The price of gas started rising well before Putin invaded Ukraine.
The obvious problems ahead may not yet be completely reflected in the German DAX stock market average.
DAX and other EU stock averages (last week, and year to date 2022):
German DAX increased 0.3% (down 17.6%).
U.K.’s FTSE rallied 1.0% (down 0.5% y-t-d).
Japan’s Nikkei rallied 2.0% (down 2.0% y-t-d).
France’s CAC40 gained 0.7% (down 13.2%).
Spain’s IBEX 35 recovered 1.3% (down 7.8%).
Italy’s FTSE MIB rose 0.8% (down 19.2%).
https://www.statista.com/statistics/1104490/weekly-dax-index-performance/
There is a joke: What’s the difference between California and the Titanic?
Ans: The Titanic went down with the lights on.
It seems Germany is going down with the lights out.
The sad part of this is that there is no apparent way to help.
Another sign of insolvencies…
“European countries are on track to reach a gas storage filling target by the start of this winter, but the cost of replenishing stocks will be over 50 billion euros ($51 billion), 10 times more than the historical average of filling up tanks for winter.”
Who do you think is going to pay the BILL?!
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Such foolishness as our current energy policy can only end in massive destruction of wealth. Perhaps that is its purpose. However it is worth some caution when dealing with individual cases of business closure.
No company ever closed down citing mangement incompetence or poor decisions. It is always some variation on the theme of “market conditions”.
“How Europe’s Energy Disaster Will Cripple the U.S. Economy”
https://www.birchgold.com/news/eu-energy-disaster/
The Greens always said the modern industrial economies are not sustainable. So now we’ll get to see what a post-industrial economy looks like. Remember, 90% of Germany votes for Green energy policies.
Seriously folks: You want war, go this is the face of war. Send you complaints to Joe Biden, your Red-Green-Black coalition government, and to NATO headquarters. These are all self inflicted wounds.
https://strategic-culture.org/news/2022/09/07/germany-energy-suicide-autopsy/
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“The EU brought to its knees by the Straussians”
https://www.voltairenet.org/article217976.html
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