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  • Russia is set to switch off the gas for work on a key pipeline — and Germany fears the worst

    From cnbc.com

    Russia is poised to temporarily shut down the Nord Stream 1 pipeline — the European Union’s biggest piece of gas import infrastructure — for annual maintenance. The works have stoked fears of further disruption to gas supplies that would undermine the bloc’s efforts to prepare for winter. Some fear the Kremlin could use planned maintenance works to turn off the taps for good. The summer maintenance activities on the pipeline, which runs under the Baltic Sea from Russia to Germany, are scheduled to take place from July 11 through to July 21. It comes as European governments scramble to fill underground storage ... (full story)

And walla!! Maybe the reason for Euro down move today.
After euro market ipen, all take sell potition. Maybe this news was release before euro market open.
Quoting chemosi
And walla!! Maybe the reason for Euro down move today.
Look at the U.S. dollar. This is the reason why Euro I falling as it does every other currency in the basket.
Start with 1000$. Increase by 3% every day. After one year 2 213 314$
not a really good thing for US , inflation + very expensive USD won't help the US
Quoting Faucon
not a really good thing for US , inflation + very expensive USD won't help the US

You actually need expensive currency in order to fight the inflation. Inflation means low currency value + high goods prices.
Start with 1000$. Increase by 3% every day. After one year 2 213 314$
Quoting NotAtrader
{quote} You actually need expensive currency in order to fight the inflation. Inflation means low currency value + high goods prices.
So this war and everything US is doing to give USD value is to help with inflation?
Quoting Blazed
{quote} So this war and everything US is doing to give USD value is to help with inflation?
FYI the war was started first by Putler which is the reason for the inflation not only in USA but all over the world.

Nice try, but biased
As you probably understand the war started by Putin is the reason for the global inflation, not the other way around.
Start with 1000$. Increase by 3% every day. After one year 2 213 314$
Quoting NotAtrader
{quote} FYI the war was started first by Putler which is the reason for the inflation not only in USA but all over the world. Nice try, but biased As you probably understand the war started by Putin is the reason for the global inflation, not the other way around.
Not agree, even JP told in the testimony that it's not a primarly reason, moreover if we speak in context of war, it's all about energy prices, and prices because sanctions. So it's even not a war, easy peasy.
Quoting NotAtrader
{quote} FYI the war was started first by Putler which is the reason for the inflation not only in USA but all over the world. Nice try, but biased As you probably understand the war started by Putin is the reason for the global inflation, not the other way around.
"Oil Billionaire Blasts Biden's Gas-Price Blame-Game, Says Only One Thing Will Fix Inflation"
https://www.zerohedge.com/political/...-fix-inflation
"New York billionaire and refiner John Catsimatidis, who owns hundreds of gas stations, blasted President Joe Biden’s pinning the blame on high prices at the pump on gas station owners, arguing there’s only one solution for inflation - boosting production of crude."

"For his part, Catsimatidis said in the interview on Fox that there’s only one fix for the current inflationary spike—a big part of which is due to soaring energy costs.
“We have 100 years’ worth of oil,” he said. “Open up the spigots.”
“If we open up the spigots and flooded the market with oil, with crude oil, American crude oil, we bring the price of oil back” and “inflation goes away,” Catsimatidis said."
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Quoting NotAtrader
{quote} FYI the war was started first by Putler which is the reason for the inflation not only in USA but all over the world. Nice try, but biased As you probably understand the war started by Putin is the reason for the global inflation, not the other way around.
Ok cool, but my main question would be how can an expensive currency help fight inflation? I apreciate the economics knowledge if you can provide it. Thanks
Quoting Blazed
{quote} Ok cool, but my main question would be how can an expensive currency help fight inflation? I apreciate the economics knowledge if you can provide it. Thanks
What is inflation? This particular type of inflation is high goods prices (because of distorted energy supply) + somewhat weak currency.
When the currency becomes stronger due to operations performed by the central bank/FED/RBA etc, you can buy more for the currency je the prices of the goods get “lower” RELATED to the value of the currency. Thus the inflation comes down.

There are three types of inflation. Not all inflations can be fought by rate hikes.
Start with 1000$. Increase by 3% every day. After one year 2 213 314$
Quoting NotAtrader
{quote} FYI the war was started first by Putler which is the reason for the inflation not only in USA but all over the world. Nice try, but biased As you probably understand the war started by Putin is the reason for the global inflation, not the other way around.
Wow what a joke nice mate, I see learn the economics on CNN
Who is putting the sanctions not Putin the EU and US the inflation cant be made instant is a product of many years of printing money and robbing by the politicians, what they are expecting with the sanction they rob the Russian people and have no answer from the other side common lets be honest
Quoting NotAtrader
{quote} What is inflation? This particular type of inflation is high goods prices (because of distorted energy supply) + somewhat weak currency. When the currency becomes stronger due to operations performed by the central bank/FED/RBA etc, you can buy more for the currency je the prices of the goods get “lower” RELATED to the value of the currency. Thus the inflation comes down. There are three types of inflation. Not all inflations can be fought by rate hikes.
This moment was disscussed several times recently, it's supply inflation, high demand. Look to the salaries, job market, so much money printed. It's more about USA and China relationship, moreover US has enought resources, what cannot say about Europe. Russian-Ukraine conflict has small impact to all of this.

Updated: ofc if we speak about US context only, about Europe different story......
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Quoting chemosi
{quote} "Oil Billionaire Blasts Biden's Gas-Price Blame-Game, Says Only One Thing Will Fix Inflation" https://www.zerohedge.com/political/...-fix-inflation "New York billionaire and refiner John Catsimatidis, who owns hundreds of gas stations, blasted President Joe Biden’s pinning the blame on high prices at the pump on gas station owners, arguing there’s only one solution for inflation...
I think the proof is in the pudding, if there really is a major shortage of oil in the US then come earnings the oil companies should have been hurting but since they are still making record profits almost triple from previous years we can safely assume otherwise. Its not logical that a company would thrive if there is a shortage of its main commodity. Royalties paid for oil/gas are ridiculously low and governments are basically giving resources away to these companies only to buy them back at a higher price. Maybe cut off politician funding from big companies would give better results
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  • Posted: Jul 5, 2022 8:38am
  • Submitted by:
     Newsstand
    Category: Fundamental Analysis
    Comments: 16  /  Views: 4,832

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