Inflationary Nightmare Striking
March 4, 2022 (EIRNS)—The following gives an idea of the sheer force of the inflation and developing shortages now striking as a result of the economic war on Russia combined with the “green” central banks’ pre-existing inflation waves.
The futures price for late March delivery of natural gas in Europe reached roughly €204/MWh, equivalent to about $2,000 per thousand cubic meters and up 27% for the day. Russian supplies through the Ukraine pipelines were very low.
The West Texas Intermediate (WTI) oil price hit $115/barrel, up $20/barrel in a week—although Russian oil is being sold even below $100/barrel because of Wall Street and the City of London attempts to intimidate any company from buying it.
Hungary stopped exporting wheat, and wheat future prices are now even higher than the peak of $1,200/ton which they reached during the worldwide food inflation crisis of 2008-09. This action followed Russia’s cessation of fertilizer exports.
Gallup Data released the results of an international survey of countries in which between 30% and 70% of respondents said their household didn’t have the money to buy the food they needed. Four of them—Turkey, Nigeria, Kenya and Algeria—were heavily dependent, up to 65%, on Russian imports of wheat, which are stopped.
Turkey’s official inflation rate was announced as 56% annual in February. This NATO power’s currency has fallen much further in value than the Russian ruble since the start of 2021.