The G7 meeting in Germany made at least one key point very clearly. Joe Biden’s so-called “energy transition” to renewable fuels is a complete failure, not only in the United States, but now all over the world, globally, a fiasco.
In Europe, countries are talking about renewables, but they are reopening coal plants. That’s because they either can’t get enough of Russian oil and gas supplies, or because what they can get is too expensive, or both.
Austria, Germany, Italy, Holland… all coal plants reopen. And they pushed aside their so-called “green strategies”.
They made a good transition, to the worst of carbon pollutants. The president of Nigeria, a major oil and gas producer, rebukes the Europeans for believing that renewable energy sources will pave the way for an industrial boom.
The price of European Brent oil is around $115. WTI is about the same. Gasoline just under $5 is causing a political backlash and threatening economic recession. Biden’s green strategy is in complete meltdown.
Alas, the man who had a smile on his face was Vladimir Putin. The sanctions strategy backfired on the United States and NATO. Putin clenched his fist.
The ruble was at its pre-war high. It is the British pound and the euro that are sinking out of sight. Putin found new clients, China and India.
India’s imports from Russia went from 30,000 bpd in February to 1 million bpd in June.
When the Indian Finance Minister was asked why he is doing this, “Doesn’t it undermine Ukraine’s western defense?” He answered simply: “Everyone else is buying Russian oil, so why not do that?”
I hate to say it, but he’s right. I hate to say this, but Putin is smarter than the West.
if Joe Biden was willing to face reality and back off his war against fossil fuels by brandishing all the regulations, restrictions, and penalties for fracking, pipes, refining, etc., if he had shown some resilience in the face of sky-roaring energy prices and a political revolution at home. , it is entirely possible that today’s energy supply would be much greater for all components and distillates, or that prices would be lower, or at least futures prices would be much lower.
All this would have added relief to the energy crisis in the West. Lower prices would have hurt Putin’s financing of the war machine, but Biden was stubborn, self-centered, politically narcissistic and completely failed to help the NATO alliance, as well as ordinary workers, people driving trucks, groceries, and real wages.
All of this could have been mitigated, if not avoided, had it not been for his stubbornness to the idea of going 100% to renewables – insanity.
Now comes the craziest part of it all. After tricks like a tax holiday on gas or draining our strategic petroleum reserves (which are available for national security, not political price fixing), or even subsidizing discount cards for gasoline, here’s the latest one: price control. Yes, price watch. I’m amazed that the socialists took so long to get there.
Leading the way is Janet Yellen, a distinguished former Federal Reserve chairwoman who is married to a Nobel laureate who promotes Russian oil price controls. really? But wait! He is getting better.
That ex-Wall Street capitalist Emmanuel Macron wants to get really big. He wants price controls on all oil producers: Russia, Saudi Arabia, OPEC, maybe Venezuela, maybe Iran – who knows? His global oil price controls may mean – you guessed it – US oil price controls as well. right?
These are just fair global oil price controls, not on solar or wind, but on fossils.
As I close my eyes and relax, I see Richard Nixon, Jerry Ford, and Jimmy Carter. “Whip swells now” is widespread. It is a global race towards socialism. No matter the obvious shortages, energy wars, or just the stupidity of an old socialist blunder scheme, but, again, when you look around the G-7 table – Biden, Trudeau, Schulze, Macron, Draghi, Johnson – I don’t see much commitment to capitalism free market.
I don’t see any Reagan. I don’t see any Thatcher. I don’t see Milton Friedman. I don’t see Adam Smith. I do not see the signatories of the American Declaration of Independence. Oh wait a minute, this is tomorrow’s special. This is just a tease. Tomorrow’s theme is “Reclaiming Life, Liberty, and the Pursuit of Happiness”.
It works for me because Americans don’t see much life, freedom, or happiness right now, but I know a way out, and yes, the cavalry is coming. Big governmental socialism woke up.
This article is excerpted from Larry Kudlow’s opening comment on the June 28, 2022 edition of Kudlow.
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