{"id":63472,"date":"2022-09-07T06:38:31","date_gmt":"2022-09-07T11:38:31","guid":{"rendered":"https:\/\/olduvai.ca\/?p=63472"},"modified":"2022-09-07T06:38:31","modified_gmt":"2022-09-07T11:38:31","slug":"europes-nightmare-scenario-comes-true-energy-bills-to-rise-by-e2-trillion-will-reach-20-of-disposable-income","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=63472","title":{"rendered":"Europe’s Nightmare Scenario Comes True: Energy Bills To Rise By \u20ac2 Trillion, Will Reach 20% Of Disposable Income"},"content":{"rendered":"
\n

Europe’s Nightmare Scenario Comes True: Energy Bills To Rise By \u20ac2 Trillion, Will Reach 20% Of Disposable Income<\/a><\/h3>\n<\/header>\n
\n
\n

What is the scale of the energy challenge?<\/p>\n

We got a very shocking sense of the staggering numbers involved in the existential, crippling European crisis earlier today when Norwegian energy giant Equinor echoed what Zoltan Pozsar said in March, warning that \u201cEuropean energy trading risks grinding to a halt\u00a0unless governments extend liquidity to cover\u00a0margin calls of at least $1.5 trillion.<\/u><\/em>”\u00a0<\/strong>As Bloomberg put it, in its best non-Zoltan imitation, “aside from inflating bills and fanning inflation, the biggest energy crisis in decades is sucking up capital to guarantee trades amid wild price swings. That\u2019s putting pressure on European Union officials to intervene to prevent energy markets from stalling.”<\/p>\n

\u201cLiquidity support is going to be needed<\/em><\/strong>,\u201d Helge Haugane, Equinor\u2019s senior vice president for gas and power, said in an interview. The issue is focused on derivatives trading, while the physical market is functioning, he said, adding that the company\u2019s estimate for $1.5 trillion to prop up so-called paper trading is \u201cconservative.\u201d\u201d<\/p>\n

In other words,\u00a0massive\u00a0<\/strong><\/em>amounts of newly-printed funding (because with yields blowing up, Europe’s fiscal stimulus will be over before it started unless central banks step in and backstop the latest energy hyperinflation bailout plans) will be required to avert an energy disaster. Alas, the final number\u00a0will be even more massive,<\/strong><\/em>\u00a0because overnight Goldman’s research team published a must read note (available to pro subs<\/a>), in which the bank looked at the scale of the energy bill challenge, potential European government responses and industry implications, and quantified the total damage. The numbers are staggering:<\/p>\n

According to Goldman,\u00a0Italian household energy bills could rise from ~\u20ac150 to ~\u20ac600 in 2023.\u00a0<\/strong>Some more details:<\/p>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Europe’s Nightmare Scenario Comes True: Energy Bills To Rise By \u20ac2 Trillion, Will Reach 20% Of Disposable Income What is the scale of the energy challenge? We got a very shocking sense of the staggering numbers involved in the existential, crippling European crisis earlier today when Norwegian energy giant Equinor echoed what Zoltan Pozsar said […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,3],"tags":[21867,33123,281,4318],"class_list":["post-63472","post","type-post","status-publish","format-standard","hentry","category-economics","category-energy-2","tag-energy-bills","tag-energy-price-inflation","tag-europe","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/63472","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=63472"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/63472\/revisions"}],"predecessor-version":[{"id":63473,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/63472\/revisions\/63473"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=63472"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=63472"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=63472"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}