Bitcoin and the European energy crisis
As the European energy crisis reached its peak, the biggest effects on the global economy and bitcoin became evident.
The European crisis has peaked?
- Panic is high in Europe
- And that's a lot we can see.
- By looking at energy prices
but has the panic rate gone too far?
After looking at some tweets from Andreas Steno about why the energy crisis has already reached its peak, and how what we are seeing now is the large number of late to realize that there is an energy problem in the first place.
He was warning about the next energy crisis long before many people talked about it.
- Now, since everyone is talking about it, the crisis will tend to excel.
- As a result, Steno is "fading the energy crisis."
- or I say he's working on late hysteria.
Feelings about the dollar are similar at this point as well. I've been warning about the strength of the dollar publicly for years, and now with so much realization coming together, it feels more intense than the basics suggest. So, I became more skeptical about another dollar increase at this point.
Thoughts on the asymmetry of the energy crisis:
This is false since there is no pipeline infrastructure and it will take ten years to create. Russia can only export gas to India and China.
Also, the absolute sizes we are talking about in the reorientation of Europe are simply too large for China or India at this time.
"The ruble is strong."
Russia is actually experiencing high or higher price rises compared to Europe. Some sources indicate that Russia's domestic consumer price index is 18%. Forex exchange rate largely doesn't matter, because it's a little traded currency.
If anything, I will add, the international rouble exchange rate is a sentimental indicator for Western traders, is everything.
"German gas flows will go to zero."
No, they won't. They'll probably go anywhere between 40% to 60%. That's terrible, but not zero.
- "Russia can resell gas to Europe via China." Only very small quantities.
- Again, China and Russia do not share the same size infrastructure that Europe has with Russia.
- This rotary trade can only backfill about 5% of the gas flow.
Markets tend to overreact, especially if most of the market is delayed in trading.
Maybe that's what we see with Europe today. Some sanctions have been relaxed, and price caps (the same as collective bargaining) are now being discussed.
These actions will not work exactly as planned, but they can return prices to the world of mind, which in turn will alleviate some panic in the market.
China is a Marxist.
- Whether you like it or not, China is a Marxist nation.
- But according to many people over the years, things like, China is more capitalist now.
- They're different. It's not real communism.
- In many cases, they must say this to justify their unfounded faith in the Chinese miracle.
Additionally, they want to think that China
will somehow overtake the United States and drop it on a link or two, because of the deep hatred of American hegemony.
The renewed embrace of Marxism was also a key element in bringing forward "Xi Jinping's thinking about socialism with Chinese characteristics for a new era," which was added to China's constitution after the 19th Congress of the Communist Party last year. "
In this instance, Professor Jiang outlined a progression for the Chinese Marxist experiment.
- First, he was not a psychopath or a mass murderer
- he was fighting the initial class struggle.
- Deng Xiaoping did not abandon Marxism as a result.
but rather opened China to the world in order to build its physical base (capitalism is just a stage in communism).
Now, Xi Jinping is not suppressing human rights, but putting Chinese power and international influence back in place.
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