The sanctions on Russia exclude commodities. The West buys $350M in oil daily from Russia and Europe buys another $300M in natural gas.
Russian Bank squeeze Lacks Punch, WSJ March 1, 2022
Amid $14 oil in 2008, Putin moved on Georgia and put his man in the presidency, later removed.
Amid $100 oil in 2014, Putin seizes Crimea.
Amid $95 oil in 2022, Putin invades Ukraine.
Our government removes sanctions on Nord Stream 2 German pipeline and construction renewed. Bernie Sanders calls for a windfall profit tax on oil and gas, amazing as his Green New Deal policies raised energy prices.
Stickers are now appearing on U.S. gas pumps. Joe Biden points to high gasoline prices and proclaims, I did that!
As mentioned in this space many times, energy is half the Russian exports. High energy prices allow his adventures.
The best thing we can do to defeat this man is to lower energy prices. This will only happen with increased energy production.
Natural gas can be stored, wind and solar energy cannot. The climate actives need to watch the stoic Ukraine Mother with her 4 month old baby in the Ukraine basement. Hers is a need that must be met now.
But will President Biden tell John Kerry to get a grip on reality. Kerry is more worried about ground thaw than Ukraine lives. I am writing Tuesday, March 1. I doubt he will change course in the State of the Union.
The forty mile column of armored invaders would be an easy target for missiles or trained aircraft. Is there no one willing to strand that column before it reaches the Ukraine Capital?
Putin’s behavior is worrisome. Shutting Russia off from the international banking system has moved the ruble to a value of one cent to the US Dollar. Since the Ukraine invasion began the value of the dollar would buy 70 rubles but now 107. This is the reason for long lines at Russian ATMs, Russians are panicking to dump rubles. Mr. Putin does not handle humiliation well. Is there a Russian general or oligarch to stem these nuclear urges?
Oil prices have topped $100 and our stock market is doing what we predicted in this space the last few months. The Ukraine invasion is the fundamental event that verifies what the technical set up has been saying as indexes topped from November to early January.
