Germany inflation hits 30-year high at 7.3%, growth outlook dims

Flavor Of The Week!

 

Why can't they produce and distribute their goods?

Why doesn't the US make its own fertilizer?

Can you explain this to me, who as you have often noted, am not very smart.

 

Earth to Mr. noname: inflation/supply/spending/energy problems were hitting us before Russia attacked Ukraine. Get out from whatever moon-rock you’re hiding under, and throw away Bidens Cue-cards.

 

Yeah, globalization sucks.

 

Yes, but added to this particular problem involving Germany, Russia now demands that all transactions must be in RUBLES, not euros! The deadline for this is stipulated by Russia to be tomorrow, April 1st, and knowing the Russian sense of humor, I doubt that it's a joke.

Germany refuses, and says it will continue to pay in euros. Thus, tomorrow, something is going to happen, and Russia is in the stronger position because it can always sell its energy products to China and India, plus a few others.

And to add to the 'fun' in Germany, the Germans will shut down their remaining nuclear power plants effective at the end of this year 2022, along with any remaining coal-fired energy plants. Next winter, they're more likely to turn 'blue' than Green....

. "Veil Spaß!"

 

On top of that, the Russian's have now cleverly tied the Ruble to the gold standard. They just boosted the Ruble and just wiped out about thirty percent (30%) of the value of the US Dollar, worldwide, when it comes to Gold Bullion.

 

People speculate. Have you heard about that? It's not just done on Wallstreet.
Like hoarding toiletpaper. Maybe you get that.

/facepalm.

 

Why doesn't the US make fertilizer? The same reason why it doesn't make most of the computer chips, or is doesn't make 90% of the cheap crap sold at Walmart:

Because of the free market, which prefers cheap labor overseas, for additional profit for the mega corps.

Of course, it is easier for the free marketers to blame Biden for it. However, who gave the corps a mega tax cut as a reward for the offshoring? Trump!!

 

You may, or may not have heard, but there was a global pandemic which caused lot of industries to close down for a period of time. Also, distribution chain (ports, trucks etc) are designed to run at near max capacity, which means they typically cannot handle much more then than the usual load, but now there is much more than the usual load. Also, retailers saw a big jump in demand, so they responded by increasing re-stocking orders, which means more product trying to get thought the stressed distribution chain.

Next up: Surplus of products. This will happen when the distribution chain resolves its current issues.

Private businesses are burdened by making business decisions, and if they can get fertilizer for $50 from one place compared to $75 from another, they are likely to take the lower price. Free market economics offers such choices.

They are doing a heck of a job destroying their own future. Europe will never trust Russian imports again. As for now, EU made a deal with US for natural gas imports, and likely Germany will go back to nuke power, and they already have that capability.

 

That's why we (should) have protective tariffs.

To get Biblical about it, we've sold our birthright for a mess of potage.

 

And now they can't get it at all. Globalization sucks.

 

Yea man, I mean why can't Germany drill for their own oil (which they don't have). I'm glad you pointed that out. LOL

What you are really arguing is that free market economy / capitalism sucks. Re-naming it 'globalism' is just a new pseudo-con talking point.

Sorry bubba. You can start your fertilizer factory and HOPE there is another pandemic so farmers would buy your product as opposed to best price elsewhere. Or are you hoping the government "fix" the issue, like they "fixed" it in USSR?

 

What does Germany have to do with the US?

Globalism is a new phenomenon and was so called by the globalists themselves. The rich get richer and the poor get poorer.

I don't have to hope. The government is acting. Much to your dismay, I imagine, that Americans won't go hungry in the future. Why we should allow ourselves to remain hostage to Chinese fertilizer manufacturers and pharmaceutical manufacturers is a question whose answer is best known by you and other proglobalists.

https://www.wowo.com/usda-investing-in-american-made-fertilizer/#:~:text=The USDA announced it will support developing additional,American fertilizer production to help supply American farmers.

 

Unfortunately, Russia also has 43% of the world's enrichment capacity for Uranium. Europe: 33%, US, only 7%.

https://theconversation.com/russias...nd-gas-its-also-a-key-nuclear-supplier-179444

This means, Russia has us by the balls with nuclear energy too. Ain't capitalism great. Sacrifice national security for a quick buck.

 

Excuses, excuses, excuses.

Always excuses, never results....

 

It is also known as free market capitalism

Sure, although the poor don't necessarily get poorer. Sometimes the trickle down theory works, and even when it doesn't the system offers opportunities for everyone.

I don't know about "by the balls" because they can't use it against us.

 

Why would the government get involved in fertilizer production (other than ensuring safety standards)? Wouldn't that be a command economy, if it did?

You are all over the place with your "solutions" to out current problems. None of your "solutions" are based on free market principles, and if Dems had suggested for the government to mandate fertilizer production in the US when Trump was in power, you'd have criticized them. of course, now that Biden is in power, anything to throw at the wall to smear Biden is good enough, no matter how anti-free market.

 

No, Russia does not have us by the balls with nuclear energy. The U.S. and Australia are reported to have the world's largest Thorium reserves on the planet.

Well, thank God there's no greed and self-interest in the alternative...

 

If you re-read my post, I wasn't talking about reserves, but processing (enrichment) capacities. The raw Uranium ore doesn't help you, if you have to ship it to Russia to get processed.

 

I don't hold to free market principals. I don't hold to any principals at all, I am a pragmatist.

I would prefer tariffs to stimulate domestic fertilizer production, though. I am not out to smear Biden or protect Trump. I am pointing out a problem with globalization and how reliance on foreign sources have caused problems. These problems erupted under Biden but have been decades in the making. Can we discuss the problems without partisan bickering. I hope so.

 

You are absolutely right! Meanwhile, given the hideous imbalance of the economy in the States right now, the price of gold schleps along at between $1,800 - $1,950 per ounce, when it probably should be somewhere between $3,000 - $4,000 per ounce... or even more.

We ditched the Gold Standard way back in the early 1970's (thank you, Richard Nixon). Ever since then the only things backing up the "World's Reserve Currency ($)" is fluff, guff, bullshit, and other vapor-ware, supported fully by a reckless, irresponsible central bank (the Fed) which cares about nothing (NOTHING) but the almighty-god STOCK MARKETS....

. "And you thought my biggest fugg-up was 'Watergate'...?!"

 

Um...no, they have not. They are offering to buy gold with Rubles, but they are offering $52 per gram, when the going price is $68.

 

With that, I fully agree. I always thought you are one of the more balanced posters on here, so I apologize for the presumptuous reply.

 

Yes, they are increasing demand for the Ruble. They are also forcing Europe to purchase their energy in either Ruble or gold, again, creating demand. You do realize the Ruble has rounded 100% since the sanctions have begun, right? Plus, Europes exclusionary sanction list is something to scratch your head on. Exclusion list consist of oil, NG, food, fertilizer and all metals. That's 95% of Russia's economy.

I don't think NATO is as tight as Biden is telling us, considering we are the only ones heavily sanctioning the Russian country.

 

NATO does not, and cannot, impose sanctions, because its not an economic entity.

As for Ruble, EU already told Russia that they are not going to trade in Rubles. Instead they made a deal with the US to buy NG from here as opposed to Russia. Germany will probably re-start their nuke power plants. Russia is in process of committing economic suicide, because no one will trust them after this.