How it started:
How it's going:
Last night, Eric Heymann, a senior economist at Deutsche Bank, released a note discussing options for Germany to manage its current energy crisis. The three scenarios involve the Russian oil sold and sent to Germany through the Nord Stream 1 pipeline.
In his last scenario, Heymann discusses what might happen if Russia turns off the pipeline completely, a real possibility given Germany's support of Ukraine.
More from ZeroHedge:
[W]hat we find most remarkable is DB's assessment not of supply but demand, i.e., the bank's projection of German gas consumption.
Here, as Heymann writes, demand will remain some 10% below the respective level one year ago over the next few months: "This reduction is driven by savings of private households, industry, and the services sectors, incentivized by very high gas prices."
It gets worse: according to DB, the overall weaker economic development - because as a reminder, Europe will very soon be in a deep recession - will dampen gas demand in the manufacturing industry.
But the punchline is when DB contemplates possible "substitution for gas" by other energy sources - the bank lists hard coal and lignite in the power sector, as for private households, it predicts that "wood will be used for heating purposes where possible," while industries will switch to oil derivatives, all of which contributes to lower gas demand.
You read that right: the largest European bank now predicts that a growing number of German households will be using firewood for heating! Maybe allowing a petulant Scandinavian teenager to set the country's energy policy was not the brightest idea after all.
OOF. That last line.
Here's a fun extra for ya:
And now for my two cents 👇
When the really rich talk about "The Great Reset," they're not talking about getting us to this:
They're talking about getting us to this:
Change my mind!
P.S. Now check out our latest video: "Highlights from Biden's speech last night" 👇