Flames from a gas burner on a cooker are pictured in a private home in Bad Honnef

GAS: MARGIN CALL! – iceberg finance

Yesterday was a really interesting day, with margin calls on the energy sector everywhere, the yen at its lowest for over 24 years against the dollar, always tonic everywhere and above all the collapse of European gas and the breakdown of support for the price of oil and brent.

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Over 1.5 trillion dollars in margin calls for energy trading, the European energy sector in crisis everywhere, as we saw yesterday, Austria, Germany, Sweden, Finland, the situation is truly tragic.

I imagine there will be a few more criminals to save, playing with gas prices with taxpayers’ money.

Not only that, Eurelectric, a European association representing more than 3,500 utilities, has launched a warning on the increase in guarantees due by electricity producers.

Leaving aside the speculators, even companies must cover themselves from price volatility, imagine what can happen with volatility and often double-digit fluctuations, sometimes even up to 40%!

Billions of guarantees that companies today do not have in liquidity and then open lines of credit which in turn run the risk of further margin calls.

The specter of Lehman Brothers is once again stirred up, even the Finnish economy minister did, but it is still the same story, the financial system is rotten!

Until politics pecks into the sewer surrounding the current financial system, there is no hope for peoples and taxpayers.

European energy trading is being strained by margin calls of at least $ 1.5 trillion, putting pressure on governments to provide more liquidity buffers, according to Norway’s Equinor ASA. (Bloomberg)

But it is useless to hope in politics, there are too many ignorant people grazing in the halls of Brussels, however even the banker has made a bad impression and his reputation has suffered a very hard blow.

Just think of Eni and its profits, Enel and others, which resell energy at current prices, earning three-figure performance.

And today the ECB will raise rates, yet another monetary suicide in history.

The BOC, Canada’s central bank has raised rates over 3% for the first time in over 14 years. They have a bubble housing market and private individuals in debt beyond belief. There is no limit to madness.

Today we are not faced with an excess of aggregate demand, but inflation depends almost exclusively on the increase in energy costs and not on demand, on the dysfunctions created in the market by the pandemic that have now been absorbed even if someone continues to march on them.

Increasing rates now risk, a collapse of investments, production, higher energy and production costs associated with an increase in the cost of financing or refinancing will kill European and Italian companies.

Bankers always make the wrong moves at the wrong time!

This is not stagflation, this is in danger of becoming a depression.

Oil prices drop to levels never seen since the beginning of the year, well before the war began.

Yields responded immediately, starting to discount a future tracking of inflation.

As written before, now the word to the ECB!

In the next manuscript coming out next week, we will explore what awaits us in this fiery autumn and what will happen to the dollar, but especially the euro and our government bonds!

The new Machiavelli is out, entitled “BEYOND THE PARITY” for all those who have contributed or want to contribute to our journey.

The manuscripts from the beginning of the year have been a perfect compass after a period of crisis, but as always the truth is the child of time.

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PUNTOSELLA KINEMATICS CORNER

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#GAS #MARGIN #CALL #iceberg #finance

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