As we've been saying over the course of the last week, it is naive to believe that there would not be a reaction to the sanctions the US and others have levied against Russia. Well, today we have learned what the reaction is; a banning of the exporting of products and raw materials from Russia through the rest of the year. Many of you may be sitting there thinking, "Russia is only 2% of global GDP and we don't do much trading with them anyway. Not a big deal." Our friend Giraolamo Carlo Casio has something to tell you.
That's a material amount of commodities production coming out of Russia. And even if we don't source any of these commodities directly from Russia here in the US there are other countries who do and won't have access to these markets throughout the rest of the year (at the very least) and will be driven to our suppliers. Making the competition for the materials that are available to us more intense.
Natural gas, palladium, oil, wheat, fertilizer and many industrious metals integral for the modern technology and lifestyle we enjoy today will be very hard to come by. This is not good. Not good at all. As I said above, the federal government in the US has severely fucked around and the American people are about to find out just how bad of a situation they have put us in.
Let me be clear, this is not a defense of Russia in any way. It is an indictment of the horrifying incompetence of the US federal government and the perfect storm of blunders that led us to where we find ourselves today. Weaponizing the dollar. Kneecapping the oil and gas industry at home. Pushing Ukraine to cross red lines set by Russia in regards to NATO/EU membership. So many unforced errors that lead your CRAZY Uncle Marty to believe that it is all part of a controlled demolition. There is no way the people controlling Joe Biden can be THAT incredibly dumb. At least one would hope.
Regardless if it's incompetence or maliciousness, the Biden administration came out today and doubled down. Claiming that it would not seek to increase oil and gas production here in the US and that US consumers should brace for higher prices at the pump. Blaming the higher prices on Russia and GrEeDy OiL aNd GaS cOmPaNiEs. Completely disregarding the fact that they are reacting to price signals from the market which are telling them that the accessible supply of oil and gas isn't going to be sufficient for consumer demand in the US. Therefore creating the need for them to raise prices. Worse yet, the mainstream media, filled with a bunch of rich disconnected derelicts, is telling the American people that higher gas prices are "the price we need to pay for a 'clean conscience'".
"Don't worry, poors. You'll probably have to decide between buying groceries and driving to work, but don't worry, you'll feel extra good about it." This defeatist mentality needs to revert course if we are ever going to get back on a path of prosperity and abundance in the US.
The boys at Cathedra Bitcoin have a very contrarian and optimistic view of the future in the US. And it includes a Bitcoin Standard and a build out of as much energy infrastructure as possible. I highly recommend you freaks read the shareholder letter they dropped today as it relates to everything I just wrote about. (Disclaimer: I am on the board of directors at Cathedra.)
Could really use consistent 80 degree days again.