The EU Still Pays Russia for Fossil Fuels

Despite the price caps, sanctions, and bans, the EU is Russia’s second-largest importer of fossil fuels. [The Rude Awakening] March 06, 2023 [WEBSITE]( | [UNSUBSCRIBE]( The EU Still Pays Russia for Fossil Fuels - The EU imports substantial Russian fossil fuels despite price caps, sanctions, and bans. - Only China imports more from Russia. - The EU imports $119 million of fossil fuels per day. [URGENT! The Truth About Biden’s Role In the Nord Stream Attack]( President Biden has denied all involvement in the Nord Stream pipeline attack… But in [this SHOCKING presentation]( one man reveals evidence that Biden not only ordered the attack… But that it will devastating consequences for every American citizen… Including crippling fuel shortages… widespread “Biden blackouts”… and energy bills rocketing to $1000! [Click here to learn the TRUTH, and how to protect yourself from the fallout](. [Click Here To Learn More]( [Sean Ring] SEAN RING Good morning on this bright, lovely Monday from Piedmont. I hope you had a restful weekend. I slept so much that my cough finally stopped. This morning I was drinking a Lavazza Tierra Reserva cappuccino at my favorite cafe and wondering what to write. Then I found an article on our favorite Doom Porn website, Zero Hedge. Titled “[Which Countries Are Buying Russian Fossil Fuels?]( it shows a chart Niccolo Conte over at Visual Capitalist created based on information provided by the Centre for Research on Energy and Clean Air (CREA). To say it made me laugh is an understatement. Believe me, I’m happy the EU isn’t starving itself of energy, thanks to any misguided USG diktat. And yet, the Germans (especially) are doing a shocking amount of neocon bidding. Let’s look at the graphic and see what we can glean from it. The Graphic Here’s what the fuss is about: [SJN] Credit: [Visual Capitalist]( Honestly, this may look worse than it is. But here’s how I’d summarize it. China, Russia’s de facto ally, has paid the Russians over $66 billion for its fossil fuels. Turkey, a member of NATO but not the EU, has paid Russia about $25 billion. And India runs closely behind the Turks, at $24 billion. But those warmongering Germans! They’ve paid the Russians over $26 billion themselves, evenly split between crude oil and natural gas. Before you call Ze Germans “hypocrites,” let me offer an argument in their defense: priorities. German Priorities If you believe in The State, and my goodness, the Germans do, then the state's first duty is to protect its citizens. Deindustrialization is no way to protect your citizenry. So, I imagine the German government is trying to please its colonial master, the USG, without destroying its own country’s infrastructure and industry. Not only that, but Germany also must stealthily protect itself because the idiotic German Greens want to send Germany back to agrarian times. What’s the answer for Germany? It seems to be “shout at Russia over the Ukraine war while quietly importing Russian fossil fuels.” But why import oil, natural gas, and coal from Russia if Germany is so green? Let’s take each in turn. [Will This Company’s Breakthrough Give New Hope To Millions?]( [Click here to learn more]( If You Or Somebody You Know Suffers From Arthritis, Pay Close Attention [>> Click Here For All Of The Urgent Details <<]( [Click Here To Learn More]( Oil: The Most Important Fuel on Earth Oil is the most important fossil fuel for several reasons: - Abundance: Oil is one of the most abundant fossil fuels on the planet. It’s estimated that there are trillions of barrels of oil reserves around the world. - Versatility: Oil can be used in various applications, from transportation fuels to lubricants, plastics, and chemicals. - Energy density: Oil contains a large amount of energy per unit of volume. This makes it an efficient fuel source for transportation and power generation. - Infrastructure: The infrastructure for extracting, refining, and transporting oil has been developed over many decades, making it easier and more cost-effective than other fossil fuels. - Economic importance: Oil is a major driver of the global economy, with many countries relying heavily on oil exports to generate revenue and create jobs. Everything you are wearing, sitting on, typing on, eating, or watching was either made with or transported to you by oil. It’s that simple. We can’t live without it. Just have a look at how an oil barrel is “cracked” or what it’s split into: - Gasoline: About 45% of a barrel of crude oil; powers cars. - Diesel fuel: About 25%; used in transportation and industrial applications. - Jet fuel: About 8%; powers aircraft. - Heating oil: About 4%; heats homes and buildings. - Liquefied petroleum gas (LPG): About 4%; used for cooking, heating, and transportation. - Asphalt: About 3%; used in constructing roads and other infrastructure. - Petrochemicals: About 7%; used in producing plastics, synthetic materials, and other products. The remaining 4% of the barrel makes other products, including lubricating oils, waxes, and other specialty products. Let’s look at coal, which is much dirtier. Coal: The Other Cheap Fuel Coal is still used as a fuel source because of its abundance, low cost, and reliability in electricity generation. To elaborate: - Abundance: Coal is incredibly abundant, and there are large reserves in many parts of the world. - Low cost: It’s an attractive option for electricity generation, particularly in countries with limited financial resources. - Reliability: Coal-fired power plants provide baseload power. Baseload power is the minimum amount of electricity consistently required to meet the energy demands of a given area or region at any given time. This is important for maintaining a stable power supply. - Infrastructure: Many countries have invested heavily in coal-fired power plants and related infrastructure, such as transportation and storage facilities, making it more difficult to transition away from coal. Coal burning is a dirty business. There have been quite a few technologies invented to clean it up, such as flue gas desulfurization (FGD), low-nitrogen oxide burners, coal gasification, carbon capture and storage (CCS), and integrated gasification combined cycle (IGCC). Different clean-up technologies fit different situations. That is, some technologies work in some cases and don’t work in others. Finally, let’s look at natural gas, a clean-burning fossil fuel. Natural Gas: A Cleaner Fossil Fuel Natural gas is considered a cleaner form of energy because it produces fewer emissions when burned. Here are some reasons why natural gas is regarded as clean energy: - Lower carbon emissions: Natural gas emits about half as much carbon dioxide (CO2) as coal and about 30% less CO2 than oil when burned. - Reduced air pollution: Natural gas combustion emits fewer pollutants such as sulfur dioxide (SO2), nitrogen oxides (NOx), and particulate matter than coal and oil. These pollutants contribute to air pollution and can have negative health impacts. - No ash or sludge: Natural gas combustion doesn’t produce ash or sludge, which are byproducts of coal combustion that can cause pollution and environmental damage. - Versatility: Natural gas can be used in various applications, from electricity generation to heating and cooking. It can also be used as a transportation fuel, particularly in compressed natural gas (CNG) or liquefied natural gas (LNG). And still, Greens moan about natural gas while politicians call it a “transitional power fuel.” Why Not Renewables? Renewable energy sources like wind and solar power are less predictable and unreliable baseload power sources due to their variable output. Theoretically, renewable energy sources can be combined with energy storage systems, such as batteries, to provide baseload power and reduce dependence on traditional baseload power sources. But this hasn’t proven economically feasible yet. Wrap Up Over the past year, Russian fossil fuel revenues from the EU fell by 85%, and the oil price dropped by 50%. Daily Russian fossil fuel revenues have fallen from $1.2 billion to $567 million, or about 52%. But Russia is not out of partners. Russia is surviving, with China, India, and Turkey picking up the slack. Despite the bans, sanctions, and price caps, the EU is still Russia’s second-largest trading partner. But it remains to be seen if the Germans and the rest of the EU can stay away from Russian goods without destroying their own economies. See you tomorrow! All the best, [Sean Ring] Sean Ring Editor, Rude Awakening In Case You Missed It… A Happy Friday Mailbag [Sean Ring] SEAN RING Happy Friday! Grab that cup of java and have a seat. I got a few fun messages in the mailbag to share with everyone. (I only tweak them grammatically and hide any oversharing.) Then, I hope you’ll have a lovely glass of something bubbly this evening. Let’s get straight into it: East Palestine Versus Ukraine East Palestine and/vs Ukraine: I found this article interesting but somewhat confusing. The disaster was caused by a private co. Shouldn't they be the ones to show up and fix the problems? Why should that be gov - Biden - Buttigieg’s- problem since you already think big government is too big. I hope you aren’t suggesting tax money bailout the railroad. Regarding Ukraine: most of the aid is military supplies. The big defense contractors and their shareholders will be getting rich for years to come as they rebuild stockpiles. This is where taxpayer money is going. Buy defense stocks!! What am I missing? PL F. Thanks, PL F., for the great questions and comments. Let me parse this out. Yes, a private company, Norfolk Southern, caused the disaster. Yes, it should be held accountable and financially liable. Yes, the government is far too big. I'd be thrilled if we got rid of the Department of Transportation. But we haven’t. What’s the point of its existence if not for these types of accidents? What more significant problems does Mayor Pete have on his plate? As for Biden, my argument is one of optics. It would take nothing to have Air Force One land nearby and to visit those affected for moral support. That he didn’t tells me Ukraine matters more to him than Ohio and Pennsylvania. Personally, I prefer an America First president, but most Americans didn’t feel that way in 2020. I am not suggesting a dime of taxpayer money go to Norfolk Southern. Regarding Ukraine, you have a point. Defense contractors may be an excellent call. Since September 10, 2001, here’s how that sector has performed: [SJN] Lockheed Martin leads the way with a staggering 2,023.24% return. Over the same period, the SPX managed “only” 264.11%. Northrop Gruman earned a 1,812.67% return, General Dynamics earned 821.67%, Raytheon earned 683.20%, and Boeing earned 633.39%. Yes, war is a racket. [US Attack on Nord Stream a Covert “Act of War”?]( [Click here to learn more]( In this shocking presentation, new evidence reveals the TRUTH about the attack on Nord Stream, and why millions of Americans would be devastated from the fallout. [See for yourself.]( [Click Here To Learn More]( What’s the National Interest? Just wanted to thank you for the excellent Rude column “China Takes the Gloves Off.” Clearly, there is something going on in DC that doesn’t have the best interests of the nation in mind. Eventually, the truth will emerge. In the meantime, thanks to people like you, at least some of us have an inkling of what’s up. Hope you are enjoying a peaceful weekend. Best wishes, Margaret B. Thank you, Margaret, for the kind words. Your comments reminded me of one of my favorite economists, Thomas Sowell. There are a few quotes of his I’ll pass on to you, as they describe perfectly what you intuitively understand: “There are no solutions. There are only trade-offs.” “It is hard to imagine a more stupid or more dangerous way of making decisions than by putting those decisions in the hands of people who pay no price for being wrong.” “Politics is the art of making your selfish desires seem like the national interest.” Is ESG Here to Stay? Sean, What I learned about money from my father and mother is what they knew: if you need more money, get another job; work longer hours. After 25 years of 80-hour weeks and at least 2 and sometimes 3 jobs, I was able to retire from my day job. I began learning other ways of financial success with investing about 2009. Didn't lose a penny in 2008! 😎 I have learned much regarding financial topics from Agora and related publications. When I retired in 2018, having learned about paying attention to such things, I tried to learn where my TSP money was invested. I was informed that that information was proprietary information. That prompted me to remove all of my money out of the TSP into a self-directed IRA and invest using the info gleaned from Agora sources. Although I don't care to spend every waking hour worrying about my investments like some of your colleagues seem to, I have used what I have learned from y'all to do quite well so far. I am grateful for that. I think China is also watching Russia's relative weakness with an eye to taking advantage of it at some point in the future. Trump might get another shot at a Nobel peace prize. I would like to know if any reliable brokerage firm has the balls to not drink the ESG Kool-Aid. Or at least leave their clients alone if they want to ignore the stupidity? Thanks and carry on Agora! Tom B. Tom, I must congratulate you. You have figured out the game of life and are enjoying it. Well done! As for Russia and China, one day, they may duke it out. But we’re a long way from that. They’ve got bigger fish to fry right now and will be friendly for the foreseeable future. But ESG? Now, that’s starting to get interesting. I’ll give you a few examples as to why the ESG game may be fizzling out. A few weeks ago, [I wrote]( about how good fund managers like the UK’s Terry Smith ignored ESG missives. Then, Governor DeSantis of Florida, along with fellow Trustees of the State Board of Administration (SBA), passed a resolution directing the state of Florida’s fund managers to invest state funds in a manner that prioritizes the highest return on investment for Florida’s taxpayers and retirees [without considering the ideological agenda of the environmental, social, and corporate governance (ESG) movement](. Finally, Vanguard's CEO, Tim Buckley, [withdrew his firm from the $59 trillion Net Zero Asset Managers initiative]( part of the $150 trillion United Nations-affiliated Glasgow Financial Alliance for Net Zero. “Our research indicates that ESG investing does not have any advantage over broad-based investing,” Mr. Buckley said in a recent interview with the Financial Times. ESG may have seen its peak already, and thank heavens for that! One Bitcoin to Rule Them All? Hi Sean, Ever since subscribing to Paradigm, I have read (and enjoyed) your missives. Every day they are posted. I have not missed any. Question: You always talk about and analyze the USD and other currencies. Do you think any of the cryptos could one day be used routinely for selling and buying the same way the USD (and other currencies) are used to do this? Joe B. Thanks, Joe! I really appreciate it. The short answer to your question is “yes.” I think cryptocurrencies (Bitcoin) will be used for ordinary transactions. It is already used in crypto hubs like San Francisco and Zug, Switzerland. But I find crypto hard to use. And I’m technically inclined. I use a computer every day. I use my smartphone every day. But just getting USD into BTC and back is painful. Until they make that process easier, people won’t use it. Then, we’ll need to get to a point where people are pricing goods in BTC and not constantly converting goods prices into USD from BTC. Then and only then will mass adoption take place. We may be a generation or two away from that. And governments will do everything they can to prevent the switch. Wrap Up Thank you so much for writing in. It’s always great to hear from you. Have a wonderful, restful weekend. All the best, [Sean Ring] Sean Ring Editor, Rude Awakening [Paradigm]( ☰ ⊗ [ARCHIVE]( [ABOUT]( [Contact Us]( © 2023 Paradigm Press, LLC. 808 Saint Paul Street, Baltimore MD 21202. 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