Germany warns of Lehman-like contagion from Russian gas cuts

YahooFinance-Bloomberg/Arne Delfs and Vanessa Dazem/6-23-2022

“Europe’s largest economy faces the unprecedented prospect of businesses and consumers running out of power. For months, Russian President Vladimir Putin has gradually reduced supplies in apparent retaliation over sanctions imposed over the invasion of Ukraine. The standoff escalated last week after steep cuts to the main gas link to Germany, putting reserves for the winter at risk.”

USAGOLD note: Though the natural gas problem for Germany is covered in the United States, few have weighed its implications for the European Union as a whole and the rest of the global economy. This article explores the details. It might turn out to be a very unpleasant winter for Europe, as a settlement in Ukraine seems more distant now than ever. Germany’s Economic Minister Robert Halbeck raises an early red flag saying “The whole market is in danger of collapsing at some point.”