The news for the Western world is grim. The much-vaunted Ukrainian counter-attack near Kherson has been a catastrophe. 1,700 Ukrainian troops killed. No doubt thousands of others wounded, deserted and surrendered. Nearly all their equipment, including their Polish tanks, destroyed. This was the last gasp.
Meanwhile, on this 1st September, dozens of European business are going bankrupt every day. Yesterday we received this e-mail from a business supplier:
‘Thanks for your email,
Just to give you some idea of the current manufacturing costs here in Slovakia and to be brutally honest throughout the upside down world, We paid last year 85,000 euros for electricity, This year its going to be around 500,000 euros, As of Jan 1. 2023 its going to be 1.2 million euros at best.
So that’s just the electricity, never mind the gas, the increase in raw materials, salaries and all other manufacturing costs, This is a hard way of saying its impossible to reduce and every customer of ours has to accept it or not, Surprisingly we have never ever been as busy! You cutting margins down low is of course difficult, but at least you have margins, We simply do not have anything to reduced’.
In conclusion, expect revolutions and riots in Western countries. Russia has plenty of cheap oil and gas. All that Western countries have to do is to buy them from Russia in roubles. It is not complicated. The West has sanctioned its own people. Russia is awash with money that has come from the refusal of Western countries to buy their commodities.
If you don’t believe me, read the article below by Professor Geoffrey Sachs. He should know.