Energy cost inflation a major challenge for more than half of Germany’s economy

What was once the economic powerhouse of Europe is rapidly unraveling as business leaders, associations and consumers are finally coming to the realization that Germany is in serious trouble.

In the coming months, energy supplies will dwindle to the point that rationing will more than likely ensue. The resulting energy shortages will further skew prices above and beyond current inflationary levels, eventually leading to a collapse.

The Federation of German Industries (BDI) conducted an analysis recently which found that energy cost inflation is a major challenge for 58 percent of German companies, while 34 percent say what happens next will determine their survival.

If prices continue to soar, that 34 percent will be out of business in no time. The domino effect of that loss will probably also yank an even higher percentage down with it.

Some companies are in talks about moving production overseas in order to survive. If that happens on a large enough scale, then Germany will ultimately lose a big chunk of its manufacturing base.

One in 10 German companies has already reduced or even halted all production due to the energy crisis. One in four German companies is now in the process of relocating company shares or parts of production and jobs abroad to countries where energy is more affordable.

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Idiocracy: Germany finally admits that “without energy, no economy can run”

Peter Adrian, head of the Association of German Chambers of Industry and Commerce (DIHK), is reportedly coming to grips with the fact that Germany will collapse without Russian energy.

It was all fun and games poking the Russian bear for political points. But now that the Nord Stream 1 (NS1) pipeline has been turned off and hyperinflation looms, the only thing Germany has to look forward to is racing straight to the bottom.

“More and more companies are telling us that they no longer have a supply contract for electricity or gas at all,” Adrian told RND newsroom. “The tap is turned off in the truest sense of the word. But without energy, no economy can run.”

One such company is Hakle, a toilet paper company that recently filed for bankruptcy citing unsustainable energy and material costs. The steel and non-ferrous metals industries are also on the verge of a collapse, requiring cheap and abundant natural gas in order to maintain production.

“Other sectors, such as chemical production, agriculture, and automating are all facing unprecedented hurdles as the energy crisis continues to grip Europe,” reports REMIX.

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Amtrak Cancels All Long-Distance Travel Ahead Of Possible Nationwide Railroad Strike

Amtrak announced cancellations of all long-distance train routes this week ahead of a nationwide railroad strike that could begin as soon as Friday.

BNSF, CSX, Norfolk Southern, and Union Pacific announced embargoes on certain shipments earlier this week as negotiations continue with multiple rail unions. Amtrak, whose employees are not involved with the negotiations, operates largely on track maintained and dispatched by freight companies.

Amtrak is “hopeful that parties will reach a resolution,” although the company “has now begun phased adjustments to our service in preparation for a possible freight rail service interruption later this week,” according to a statement provided to Reuters.

Trains servicing Seattle, Los Angeles, Chicago, Miami, San Antonio, New Orleans, San Francisco, and other major cities are subject to cancellation. Amtrak will only operate trains this week if they “will have enough time to reach their final destinations” before Friday.

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US economy could tank $2 billion per day, if deal is not reached with labor unions

The AAR warns that the major railroad strike would take a $2 billion per day toll on the US economy. Approximately 29 percent of all US freight is transported via rail. About half of all railroad freight includes bulk commodities like food, energy, metals, chemicals, and wood products. The other half includes consumer goods and household items. The backlog in shipments will inevitably contribute to higher food and energy costs.

Over three fourths of the freight is transported by just a handful of companies: BNSF, Union Pacific, Class I intermodal traffic, CSX and Norfolk Southern. BNSF Railway is urging its customers to contact Congressional lawmakers so they will “intervene” to “quickly resolve the service disruption.” BNSF is preparing to secure the most important shipments starting Monday, September 19th.

As the cost of energy, food, and housing skyrockets under the Biden administration, working Americans will increasingly look for higher wages. More labor strikes are only inevitable now, as hard-earned money loses its spending power in the hyper-inflated economy. More workers are going to demand salary increases just to pay the rent and survive in a reeling economy that has been irreparably harmed by the useless Biden administration.

Sources include:

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“Contingency plans” set in motion as railroad industry prepares for massive labor strike

Norfolk Southern will enact their own “contingency plans” across their network. This will include a “controlled shut down” starting Friday September 16th. This is when the “cooling-off period” expires. The Railway Labor Act was implemented by Biden officials two months ago to prevent a strike. It requires a 30-day cooling period. After September 16, the railroad industry will have to appeal to Congress to reach a deal with the labor unions.

Ten unions have already reached a deal with AAR, but two of the biggest continue to hold out: the Brotherhood of Locomotive Engineers and Trainmen and the International Association of Sheet Metal Air, Rail and Transportation Workers.

The railroads are moving quickly to secure shipments of hazardous and security-sensitive materials. The AAR warned: “We still do not have a commitment not to strike and [therefore we] must act accordingly.”

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China’s mega banks lost billions of dollars in profit as bad loans rise during coronavirus pandemic

China’s five largest banks reported their biggest profit declines in at least a decade as they brace for further increases in bad loans in an economy weakened by the coronavirus pandemic.

The five lenders — Industrial and Commercial Bank of ChinaChina Construction BankAgricultural Bank of ChinaBank of China and Bank of Communications — released their latest financial report cards last week.

All five posted at least 10% year-on-year declines in profit for the first half of 2020 as they set aside more funds for potential loan losses in the coming months — much like many banks around the world.

“The banks have been asked to … perform ‘national service.’ They’ve been asked to support the economy at the expense of their own operational strength,” said Jason Tan, research analyst at CreditSights, told CNBC’s “Squawk Box Asia” on Monday.

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63% of small business are now on hiring freeze, 10% laying off employees

The demand for labor in small businesses in the U.S. hit record-low in August as 63 percent are now putting their hiring on hold because they can’t afford to augment their workforce. Also, 10 percent of small businesses laid off employees last month.

These numbers were based from a recent Alignable Research Center poll. For comparison, 45 percent of small businesses had hiring freeze and four percent fired employees in July.

A total of 5,618 small business employers participated in the poll from Aug. 13 to Sept. 6. About 60 percent of the entrepreneurs said freezing hiring and firing their employees were inevitable as labor costs are at least 50 percent higher than they were pre-Wuhan coronavirus (COVID-19) pandemic.

Twenty-nine percent lamented that payroll costs have doubled. Almost half of the respondents stated that they halted hiring due to economic factors, including general inflation, labor costs and fears of a recession. By state, 75 percent of New York small businesses stopped hiring, 74 percent in Ohio, and 68 percent in Pennsylvania.

Some 66 percent of small business owners say the country “is in a recession for sure,” with 28 percent adding it feels more like a “depression.”

Moreover, only 23 percent of small business owners say they have fully recovered financially from the worst years of COVID, which declined by two percent from July and down 20 percent from December 2021. This recovery rate is the lowest the Alignable Research Center has seen in more than a year. (Related: THANKS, BIDEN: Small businesses struggle as highest inflation in decades wrecks US economy.)

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US supply chain could take another critical blow as railroads prepare “contingency plans” for large-scale labor strike

(Natural News) The U.S. supply chain could take another critical blow, as tens of thousands of railroad workers prepare for a major labor strike. The Association of American Railroads (AAR) has failed to reach a deal with two of the largest labor unions in the railroad industry. Approximately 90,000 railroad workers could go on strike by late September. The failed negotiations have prompted Union Pacific and CSX to announce “contingency plans,” as a full-blown work stoppage seems inevitable.

The American Baker’s Association, representing more than 300 companies, warned that “Even a temporary interruption would create a devastating ripple effect” across US supply chains.

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FORCE MAJEURE: Massive global shutdowns are now under way for METALS SMELTING operations covering iron, copper, nickel, aluminum, zinc and STEEL

(Natural News) Without metals and industrial elements — steel, copper, aluminum, iron ore, nickel, zinc, titanium, etc. — human civilization cannot exist. Nearly all manufacturing is dependent on metals for industrial processes. Even plastics cannot be made without metals for the injection molding, and aluminum and copper are required for all electrical systems, both commercial and residential.

Yet right now, aluminum, copper and steel plants are shutting down worldwide. We’ve compiled a list (see below) of just some of the shutdowns so far this year.

Some shutdowns are happening under “force majeure” declarations. Others cite sky-high energy prices, and yet others say there’s not enough demand as the global economy implodes (by design).

In today’s podcast (below), I cover the global shut downs of metals smelting and fabrication operations, revealing the shocking global trend of the dismantling of infrastructure that keeps humanity alive. Note that this is happening in parallel with global shutdowns of:

  • Food, fertilizer and agriculture
  • Energy
  • Manufacturing
  • Housing

Thus, billions of human beings are being thrust into a scenario where they face unemployment, bankruptcy, starvation and freezing temperatures, even as their own (western) governments plot against them to maximize suffering and death.

Below, find the full list of metals and steel plants that have so far shut down around the world. But first, here’s the Situation Update podcast that gets into this (and much more), covering the day’s explosive news items with analysis and commentary:

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Biden regime scrambling to contain fallout after disastrous inflation report and shocking stock market decline

(Natural News) The Obama sycophants running Dementia Joe Biden’s regime, as well as fellow Democrats in Congress, are continuing to destroy the magnificent economy Donald Trump and Republicans built through a series of America First policies and tax cuts.

On Tuesday, the Dow Jones Industrial Average tanked more than 1,200 points following yet another disastrous inflation report — inflation, by the way, that Biden and Democrats say isn’t happening.

“The Dow Jones Industrial Average slid 1,244 points, or 3.8%. The S&P 500 dropped about 4.2%, and the Nasdaq Composite sank 5%. It was the worst day of the year for all three averages. More than 490 stocks in the S&P 500 fell, with Facebook-parent Meta dropping 8% and Caesars Entertainment losing 7.3%,” CNBC reported around the time the markets closed for the day. “The drop erased nearly all of the recent rally for stocks, pulling the S&P 500 back toward its Sept. 6 close of 3,908 and causing some traders to glance back at mid-June, when the index fell below 3,700.”

UBS director of floor operations Art Cashin said of the day’s activities during an appearance on CNBC‘s “Squawk on the Street” in the afternoon: “I think we may even go back and retest the June lows. Certainly the 3900 is just so tempting, and you’re pulling back below the 50-day moving average here. It’s very much about the technicals. It’s not so much that the one number made the economy go topsy-turvy. It meant a lot of guys who were making preliminary favorable bets got caught off base.”

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