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IPFS News Link • Sanctions

The Sanctions Bite the West, Not Russia

• https://www.paulcraigroberts.orgPaul Craig Roberts 

The Covid lockdowns re-awoke inflation, something the Federal Reserve had been unable to do for more than a decade of massive money creation.  The lockdowns drove prices up by curtailing production.

The sanctions have added to these supply disruptions.  One question is: how much of the higher oil and gasoline prices is due to reduced supply, and how much to the scare factor and big oil jumping at the chance to raise prices behind the cover of sanctions and "disrupted markets."  

Biden's announcement of a ban on US imports of Russian oil and gas is being ignored by Germany and other US puppet governments.  In Germany, such a ban would mean the shutdown of German industry.  As the Russians have refused to avail themselves of the power to shut off the gas, the sharp rise in natural gas prices in Europe is not supply-related.  Russia could cause the complete capitulation of Europe if she turned off the gas, but Russia hasn't yet figured that out.  Indeed, if the Kremlin could think outside the box, or wasn't married to globalism, or wasn't brainwashed by its neoliberal economists that Russia needs foreign exchange, the Kremlin could have achieved its Ukraine goal without invading simply by cutting off all energy to Europe.  

As the US imports no gas from Russia and Russian oil imports are only 7% of US oil, Biden's Ban hasn't much to do with the high prices.  Moreover, Biden has announced that he is opening the US strategic oil reserve to make up for the banned imports, and the US is talking to its designated enemy, Venezuela, about that country filling in for the missing Russian oil.