A New War Is Starting

18.04.2018 • Switzerland

Olivier Perrin – The Brave Little Economist (Switzerland) –

Dear reader,

To maintain your lifestyle,  you work 500 slaves .

How are you going to do when the price of these slaves will go up … suddenly and soaring?

 

They do not come from India, China or Africa.

But it takes strength to push your car, train, planes, lift the elevator, lodge, transport your fruits and vegetables from around the world, just like your clothes, your consumer goods, to treat your trash, take you on a trip to Greece or simply to Le Touquet … The list is long.

These slaves are neither men nor beasts.

I’m talking about energy slaves.

 

According to the expert in oil and energy, Nicolas Meilhan, every human being works on average the equivalent of 200 energy slaves … In France we are 500 on average.

The resource war is back

You see the tragedy for our welfare states that can not support 10% of the unemployed.

But the day you double the price of access to energy … you  multiply the impact by  500 !

This shows you how dependent we are on energy: oil, coal, gas, nuclear, renewable …

Finally, especially oil, coal and gas, which represent 80% of the energy produced in the world.

Wind and solar have increased by 50% in 10 years at the cost of intense efforts … They have increased from 2 to 3% in the global energy mix:  no hope on this side .

A bad economist would tell you that the energy sector represents only 10% of the GDP of a country like France. Not enough to whip a cat.

But Gaël Giraud, researcher at the CNRS (and Jesuit priest), observes above all that energy accounts for 60% of the  growth  of our modern economies.

 

Translate:

  energy =     growth.

  energy =    growth … And very quickly  decrease .

This empirical observation goes back a long way: the great growth phase in Europe in the 12th and 13th centuries, which led to the Middle Ages, was driven by  the invention and development of water and wind mills: a new source of energy. abundant energy .

On the contrary, the classical theory linking growth to the accumulation of capital is largely false. According to Gaël Giraud, capital accounts for only 15% of growth.

Besides Gaël Giraud shows that the concentration of capital in Europe began in the sixteenth century, yet it will take another two hundred years and coal for the first industrial revolution to take off.

The bad price of gas

Unless you are an expert on the subject, you probably calculate the price of energy in relation to your liter of gas.

It is a very bad calculation.

You pay today the same price for your liter of gasoline or diesel in 2008. Yet in 2008, oil was twice as expensive as today … The difference, you pay in  taxes .

The truth is that today the price of energy is low.

 

Energy is low because oil is low and coal even more … But coal still accounts for 28% of global energy production, with oil, that’s 61% of the world’s energy!


The chart above shows oil prices in US dollars, euros and pounds sterling since the 2000s.

You will notice that in euros (the blue curve), we are today at the same level as in 2005-2007 …

EXCEPT that in the meantime, global energy consumption has increased by 30%!

The technical reserves of oil, they, fell.

So you have a growing demand for a good more and more expensive to produce:  prices should explode!

 

The only reason they do not do it is because of a country: Saudi Arabia.

The intolerable advantage of the Saudi

Saudi Arabia is the only country in the world that does not exploit 100% of its oil capacity.

Remember this fact, it is very important to understand the global geopolitical balance.

This means that Saudi Arabia is the only country in the world to hold the button to drive down oil prices INSTANTLY.

 

And that’s exactly what they do: they do not like the competition from American shale gas and oil, so they increase their production in order to break the price and shut down American wells, which are expensive to operate.

This strategy only goes for a time because Saudi Arabia is also weakened by putting pressure on prices … But now the Crown Prince of the Saudi kingdom, Mohammed ben Salman has just confiscated, end 2017, 800 billion dollars to large Saudi families … enough to put afloat for a while and allow it to put pressure on the West.

Mohammed ben Salman is the young prince of 32 who holds his old friend  Macron by the shoulder  as this photo suggests …

Saudi Arabia is the leading oil exporter in France.

But how expensive are we willing to pay for Saudi oil?

 

In a recent interview, Alain Juillet, former Director of Intelligence at the DGSE, explains that all wars today incorporate an economic and energetic dimension.

The war today is about access to resources.

 

In the early 2000s, the CEO of Total, Christophe de Margerie, unfortunately died in 2014, predicted the war for access to resources, the liter of gasoline to 2 then 3 € …

The 2008 crisis erased these gloomy predictions, but the reality behind it has been swollen: we have continued to consume more and more energy and materials without the resources available increasing.

Today, the predictions of Christophe de Margerie appear prescient.

 

But France and Europe no longer have the influence to position themselves advantageously on this geopolitical chessboard more unstable than ever.

The strikes in Syria over bad allegations of chemical weapons are much more like allegiance to the Saudis than an exercise of sovereignty.

They recall the infamous “weapons of mass destruction” of the Iraq war that we are still looking for …

We buy a few years of rest, which we do not even know how to use to prepare ourselves.

 

One thing is clear in any case: the promises of growth of our elites are powder in the eyes.

There are only 2 things to do today and at the same time:

  • Learn to consume less;
  • Position yourself in advance to take advantage of the medium-term boom in energy and raw materials.

It could well replace, at least partially, the pension that the state will not be able to serve you anymore.

For that you can bet on the rise of the prices of the oil … Or then to invest on another source of energy, whose prices are rolled up at the moment, whereas the investments start pouring again.

The resource with explosive potential for 2018

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A few days ago, Rick Rule, the leading commodities investor, unveiled to members of the  Circle of Insiders  the potential of this mineral almost forgotten in recent years but which he predicts though:

”  Let ***** prices go up to cover production costs,  or lights go out  “

Rick Rule also gives you 2 keys to invest well on this ore.

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To your good fortune,

Olivier Perrin

 

-Read more at www.le-vaillant-petit-economiste.com (French)-

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