Wednesday, May 25, 2022
59 F
Oxnard
More

    Latest Posts

    The Road to Tyranny by Don Jans

    Beijing Orders Energy Firms To ‘Secure Supplies At All Costs’

    WND, biden, gay sex, monkeypox

    WND News ServicesBy WND News Services

    (ZEROHEDGE) – China is officially panicking. Now that the global energy crisis has slammed China’s economy, leading to the first contractionary PMI since March 2020 as a result of widespread shutdowns of factory and manufacturing, not to mention hundreds of millions of Chinese residents suffering from periodic blackouts, Bloomberg reports that China’s central government officials “ordered the country’s top state-owned energy companies to secure supplies for this winter at all costs.”

    Translation: Beijing is no longer willing to risk social anger and going forward China will be subsidizing coal and natural gas, which will lead to even higher prices, which will lead to even higher prices for other “substitute” commodities such as oil, which is why oil surged on the news.

    The news follows a report on Wednesday that China will allow soaring coal prices to be passed on to factories in electricity prices. But prepare for a surge in PPI, which will likely not be allowed to be passed on to CPI due to ‘common prosperity’. Which logically means margin collapse, and shutting down – so even more structural shortages. Unless we get state subsidies of some sort, or differential pricing for the foreign and domestic market. There used to be a name for that kind of economy. Wall Street used to pretend it didn’t like it.

    - Advertisement -
    0 0 votes
    Article Rating
    Subscribe
    Notify of
    guest
    0 Comments
    Inline Feedbacks
    View all comments

    Latest Posts

    advertisement

    Don't Miss

    Stay in touch

    To be updated with all the latest news, offers and special announcements.