Three Graphs That Show There Is No “Climate Crisis”

Energy News Beat

Authored by John Staddon via DailySceptic.org,

As the West fitfully weakens industrial civilisation by trying to eliminate oil, coal and natural gas as energy sources, the scientific basis for Net Zero is based more on ‘general agreement’ than hard data. Climate scientists nevertheless sound optimistic about the progress that’s being made in destroying society’s carbon energy base.

There are of course criticisms of the idea of a carbon-dioxide-induced apocalypse, largely supported as it is by general circulation (i.e., whole-earth) planetary models. There are too many different GCMs all with too many free parameters (aka ‘fudge factors’), as well as wildly divergent readings of historical climate records: Are violent climate events really more frequent, and how does weather actually relate to climate? The popular press cries havoc, but the data are not so clear. The looming economic costs of a Net Zero target are leading to some political pushback. Nevertheless, the recent jury acquittal of nine Extinction Rebellion vandals shows that passionate belief in the imminent dangers of CO2 is not limited to activists.

Climate science is complicated, but the key question is simple. The climate does seem to be getting warmer, but are we responsible? Does the level of atmospheric carbon dioxide have a major effect on the temperature of the earth? The standard answer is “yes, of course”. But in fact there are good reasons for doubt.

Popular accounts of the ‘climate emergency’ rarely show quantitative data. Yet there are widely available graphs that anyone can understand. Here are three graphs which suggest that the answer to the question is probably “no”. It is likely that beyond a certain point, carbon dioxide has a relatively minor effect on planetary temperature.

The very long-term historical record

This graph is controversial, simply because estimates of CO2 concentration and temperature before thermometers were widely available – i.e., through 99.99% of the Earth’s history – must be estimated indirectly, by proxies such as ice cores, tree rings and isotope measurements.

If this graph of global temperature and CO2 concentration over the past 600 million years is approximately valid, it shows two things:

According to one expert, and as the far right point on the graph shows, “the carbon dioxide content of the atmosphere today is the lowest in Earth history except for a period just following the end-Permian extinction event and very early in the Phanerozoic (that is, around 550 million years ago). [emphasis added]”

There is no correlation between the CO2 level and global temperature: when CO2 is high, temperature may be low, and vice versa.

The second conclusion is less certain than the first. But, certainly vertebrate life has flourished on earth at CO2 concentrations much higher than today’s.

The long-term historical record

The CO2-temperature correlation is much clearer over a shorter time scale, 800,000 years, as in the next graph (which is not at all controversial). The graph shows temperature (red line) and four estimates of atmospheric CO2 from the EPICA Antarctic ice dome studies across an 800,000-year time period.

The two main conclusions to be drawn from this graph are:

At this time scale CO2 concentration and temperature are strongly correlated: CO2 and temperature go up and down together.

But CO2 increases reliably lag behind temperature increases, showing that the CO2 changes are caused by the temperature increases, rather than the reverse. Reason: As oceans heat up, gases, including CO2, are expelled, when they cool atmospheric CO2 is absorbed; warm water can hold less dissolved gas than cool (most planetary CO2 stored in the oceans).

There are arguments, based on positive feedback, that even though ocean heating precedes rather than follows CO2 increase, the effective causation is opposite: CO2 causes heating, not the reverse. But the simplest conclusion is that major changes in atmospheric CO2 are caused by changes in planetary temperature, not the other way round.

Physics

The final graph is from a recent long paper by two physicists, William Wijngaarden (York University, Toronto) and William Happer (Princeton). The article just considers the basic physics of the greenhouse effect, given the physical properties of air and the handful of low-concentration greenhouse gases (CO2, nitrous oxide and methane) that it contains.

The blue bell-shaped curve shows the amount of solar energy flux (at different wavelengths, x-axis) radiated to space from an earth with no atmosphere. (Most is in the infrared region 400-1000 or so.) The green line is the flux with an atmosphere with no CO2 but with all other greenhouse gases at their standard concentrations. The black line is for all greenhouse gases, CO2 included, at their standard concentrations. The red line is for twice the standard concentration of CO2 (400 to 800 ppm) but with all the other greenhouse gases unchanged.

At 400 ppm CO2 does have a greenhouse effect: Radiated energy is reduced in the 500-700 frequency range. But an increase to 800 ppm has almost no additional effect – the black and red lines are almost the same. Doubling the standard concentration of CO2 from 400 to 800 ppm has almost no additional greenhouse effect.

Conclusion

Taken together, these three bits of data should make anyone doubt that further increases in CO2 pose any kind of environmental threat. The earth may be warming, but it is unlikely that CO2 is responsible. There is almost no chance that these changes are life threatening or even – granted that human activity is probably not responsible – that warming will continue indefinitely. It’s time to cease panicking. Let’s zero Net Zero.

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Daily Energy Standup Episode #257 – COP28, ESG Realities, Geopolitical Strains, and the Path Ahead

Energy News Beat

Daily Standup Top Stories

What Is COP28 and Why Is It Important?

World leaders are due to gather for annual climate change talks in Dubai in December. On the agenda: the phase down — or even phase out — of fossil fuels, a global goal to help the world adapt […]

ESG Moment of Truth Turns Tables for Big Oil

Deutsche Bank: Big Oil stocks should be included in ESG offerings because investors want them. WSJ: investors were leaving these funds at such a pace that fund managers were changing the names of the funds, […]

ESG Grift Endgame: Deutsche CIO Now Says Oil Companies Have A Place In ESG Funds

At the end of the day, it always winds up reverting to common sense and, in the investing world, alpha.  That’s what has Markus Müller, chief investment officer ESG at Deutsche Bank’s Private Bank, admitting […]

Pfizer Sues Poland For Bailing On COVID-19 Vaccine, Citing Shady EU Mega-Deal

In April, 2021, the world learned that European Commission President Ursula von der Leyen had been negotiating the biggest contract ever sealed for 1.1 billion doses of COVID-19 vaccines via text messages back and forth […]

DAVID BLACKMON: Energy Security Or Tyranny? 2024 Provides A Stark Choice

One significant political development seen throughout 2023 has featured a move to more conservative governments in countries like Italy, Argentina, Greece, the Netherlands and even regions in Germany as the publics in those and other […]

Highlights of the Podcast

00:00 – Intro
01:55 – What Is COP28 and Why Is It Important?
04:46 – ESG Moment of Truth Turns Tables for Big Oil
07:07 – Oil firms face ‘moment of truth’ in climate crisis: IEA
08:24 – ESG Grift Endgame: Deutsche CIO Now Says Oil Companies Have A Place In ESG Funds
11:28 – Pfizer Sues Poland For Bailing On COVID-19 Vaccine, Citing Shady EU Mega-Deal
14:18 – DAVID BLACKMON: Energy Security Or Tyranny? 2024 Provides A Stark Choice
15:40 – Outro

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Video Transcription edited for grammar. We disavow any errors unless they make us look better or smarter.

Stuart Turley: [00:00:15] Hello, everybody. Welcome to the Energy News Beat podcast. My name’s StuartTurley. I’ve got an action packed show for you today. Michael’s on assignment. And I mean, we’ve got an ENB story thread like you would not believe. I’ll tell you what, COP28 is coming around the corner. And I got some interesting tidbits on Cop28. Why it’s important. What is it? And then some narratives that are coming around the corner. The IEA faith Bristol I’m not a real fan and he’s put out some things on oil firms Face the moment of truth. Right? ESG is now famous. Momentum of truth is now coming around the corner. That’s a whole nother story. Then we have the ESG grift in game by Deutsche Bank. Then we have Pfizer suing Poland. How does that interplay with energy? I got that for you. And want to sum it up with one of my all time favorite guys on the planet, and that’s David Blackmon. He’s got a heck of a summary on all of these stories in the ENB thread that don’t. And really, you got to pick out the threads and why they’re important. Hey, with that, thank you so much for all the folks that are giving us feedback, ask us questions and really let us know. Let Michael and I know what you want to know. In anything in the industry, if you are an industry thought leader, I want to talk to you. I’ve had some phenomenal guest drop this week and it is just nerdy how successful all of them are. And I’d like to thank everybody. [00:01:53][98.4]

Stuart Turley: [00:01:54] So let’s start out with what’s cop28, Cop28, And I hear some terms in this article that I did not even think were a thing, but they are. Why is Cop28 what is Cop28 and why is it important? It’s going to be talks in Dubai and the agenda phase down or even phase out of fossil fuels a global goal to help the world adapt to extreme weather events. Okay, here’s the funny part. You also have Saudi Arabia attending. You also have who is investing an awful lot into hydrogen renewable energy. So I can understand that. But they have Saudi Aramco also showing up, which is the world’s largest oil company. Okay. That without Saudi Arabia using Saudi aramco’s funds from oil and gas, they couldn’t make the energy transition. Now you’re also seeing a gigantic push around the rest of the world, and it’s going to cause some conflicts. Let me go into that here in just a second. As it is in Dubai, how many people will attend? Cop28. I found this. 70,000 of your closest friends will be there. Michael keeps saying, I need to get over there. But no, I think I’ll just check my. Oh, okay. I’m too busy. And so we’ve got Cop26 was in Glasgow in 2021 and that was 40,000 and then 33,000 were in Egypt. This year is because they’re saying that they’re not going fast enough in cutting emissions at cop after cop28 countries will have until 2025 to submit new national plans to fight climate change. Here’s where it’s going to get dicey. Nobody can afford to keep this problem going. This year’s cop let me quote the article This year’s cop will be crucial for climate finance. Rich countries have now delivered on their promise to mobilize 100 billion a year to help poor, poor countries deal with the worst impacts of climate change. That’s only a tiny bit. And the 2.5 trillion that is needed by 2030, there is no way that the world can fund 2030. That is just simply a way to redistribute wealth. Don’t kid yourself. And I’m getting shut down by all of the social media and Google has an honor to mention it that way. [00:04:36][161.7]

Stuart Turley: [00:04:36] So when you sit back and take a look, Faith Bristol in the next article comes up and he is saying oil firms face the moment of truth in climate crisis. If my producer would fly in this one article from one post, now is the time to climate proof Europe’s economy. This is talking about really what’s coming up with Cop 28 ahead of Cop 28 EIA Faith Bristol’s and Christine. Laggard in EIB, Werner Hoyer underscore why it’s essential for Europe to accelerate its in energy transition. They are doubling down and saying that we have to increase our energy transition when it’s not working. Why are they saying that? It’s a power play. The only way that they can get everything electrified in everything, all the wealth distribution going on is flat out by forcing the energy transition. Let me back up for one second. Again, this is not about whether or not it’s wind or solar. I don’t care. I’m energy agnostic. I am energy agnostic. Let’s use the lowest cost kilowatt per hour to elevate humanity. I have said that, and I have said that out of poverty. What they’re wanting to do is a wealth transfer from the 1%, which is using one. They’re using more carbon than the bottom 60% of humanity. So again, this ESG hypocrisy is really a problem. This article is a must read. [00:06:28][111.6]

[00:06:29] So let’s go down into the next two articles. ESG investing has hit a brick wall. I’ve been calling for this for quite a while. And this is Deutsche Bank. Big oil stocks should be included in ESG offerings because investors want them. Investors want to have a return. You have orsted losing billions. You have wind farms not getting investments. All of this has been coming out in the last several months and it’s really seeing an end to the end of financing of renewable energy. The IEA’s faith riddle called for a present day momentum of truth. The oil and gas industry. This is a quote. When we think about clean energy, these are business models which are quite new and sensitive to answer straight. Deutsche Bank Marcus Miller, Chief investment officer, ESG Twitter, told Reuters. As we say on this podcast, investors are looking for traditional energy companies that have cash backs and renewables. They prefer the transition than the end exclusions, he explained. Well, here’s what’s going on with the big oil. They are using their oil and gas to fund what they can and what they can afford to lose. Now you’re taking a look at this complex problem. Shell is backing away from the renewables. Totalenergies is backing away from the renewables. Oxy is going to carbon capture so they can get the funding. Brilliant move by Occidental Petroleum. Warren Buffett loves them. So when you take a look at even Deutsche Bank coming up and saying, hey, wait a minute, ESG is flat out got to include especially natural gas. [00:08:19][110.9]

Stuart Turley: [00:08:20] So here we come into the other one in this article, ESG Investment fund liquidation increase in 2023. If we can have Andy, our producer, role in this first graphic here on this article, which is the article, is it ESG, GRift Endgame? Deutsche CEO, CIO now says oil companies have a place in ESG funds. This graphic really shows that in 2021, 21, there is a little there, 2022 now 2023, there is a huge liquidation going on. This liquidation is amazing. So when we think about clean energy, these are the business models. They are incredibly sensitive to the interest rates. Well, they’re also more sensitive to tax subsidies. Tax subsidies are drying up. And the Felix Goltz research director at scientific Media told the Financial Times back in August ESG ratings have little or to no relation to carbon intensity even when considering the environmental pillar of these ratings. It doesn’t seem that people actually looked at the correlations. They’re surprisingly low. So all what the world is clamoring for, that’s less pollution, lower cost energy, renewable energy in its current form in technology cannot meet any of those needs for sustainable. It’s not sustainable because of funding. If you are a energy expert and you are on the wind side or the renewables side, I want to talk to you. I believe in energy storage. We got to have it. I’ve talked. Some energy experts on the grid, the grid facing failure because of the renewables. Here’s where I’m talking about the elite in the in the wealth transfer. The wealth transfer that’s going on because of the renewables is going to be facing a serious backlash in the political worlds. We saw this in Argentina when they’re saying it’s the far right new elected president. However, he’s not far right. He is actually more like a independent, if you would, from the standpoint of. He doesn’t want to have any government. He wants a low government. He’s not a far right guy. He wants no involvement from government and reduce all inner activity like that. So when you take a look at all of the other ones, the left wing green are absolutely in a panic mode. What happens when wolves are in the corner? You’re going to see them do even more dark things as politicians. This is what’s coming around the corner. [00:11:27][186.7]

Stuart Turley: [00:11:28] Pfizer sues Poland for bailing on Covid 19 vaccine, citing shady EU mega deal. The EU is really actually in a real break on right now because of Naito, because of all the other things they’re trying to do. They’re a wolf in the corner and you’re about to see some even more things. Pfizer, Pfizer’s now suing Poland, which under the EU deal struck between Wanda’s land and Ball, obligated the Polish government to purchase 60 million more doses than it did. They banned them. They realized that they weren’t working and that they were actually harmful. Poland is actually trying to take care of their people, so Poland is now being considered an enemy of the EU. And in the political environment, you’re going to see more and more countries stand up to the EU. I’m going to call it right here. Is there going to be other countries, other countries that are absolutely going to have Brexit? Are they going to be poll exit? Are they going to have these other ones? I’m not sure. But what’s going to happen to this is it’s going to be flat, pretty wild to see what’s coming around the corner. And so it’s going to be interesting. So in summary on this thread, you can tell that the Pfizer story did not actually mean a lot as far as energy, but it’s systemic of the wolf in the corner and what’s going to be happening with the EU. The EU’s knuckling down on a harder push to renewable for the wealth transfer. So this one. David Blackmon you’ve got to subscribe, you’ve got to support David Blackmon. He is absolutely a phenomenal writer. And so when you come in, the CNN ran on Thanksgiving dealing with the revolt in Germany, protesting the country’s increasingly authoritarian government, latest mandates that will require consumers to ultimately replace their cheap and efficient gas or oil furnaces with costly and less effective heat pumps in the coming years. Why do you ask that? They’re wanting to do it so they can control you with electricity. If they can control you with electricity, they can say no heat for you. If you have social footprints, if you eat too much steak, you can’t have any heat. It’s all about control and wealth transfer. This is pretty crazy. I didn’t believe all this kind of stuff. [00:14:14][166.0]

Stuart Turley: [00:14:14] And it’s now being coming around the corner. This was on The Daily Caller. I want to read the last paragraph in here from David Blackmon. Vigilance is one of the most important keys to the maintenance of all real freedom, real village. It’s in the advance of the 24 elections in the US reveals how one path lies and inevitable in the evolution of an increasingly authoritarian government in the name of climate change. Down the other path lies a return to policies that promote the energy security America enjoyed from 2017 to 2020. This election’s important. It’s whether or not you want to be treated like the EU. David brings up some great points. Fortunately, the U.S. is a few years behind. Let’s take a look at Germany. California has followed Germany and both have incredibly high. High energy costs. The energy hypocrisy of California is disgusting when it’s considering that they are going to be importing in. And then it is my prediction Russian oil that is been shipped to China, refined and then being brought in from the new refineries. Watch it. You heard it here. Second, because I said it a few days ago as well. [00:15:39][84.9]

Stuart Turley: [00:15:40] So listen, subscribe. I’ve got some fantastic guests coming around the corner. We are finishing up a couple of them. And I mean, Mark Masters is a media mogul and I cannot wait to have this one go out. He and I are. We’re cooking up on some other things. Got some other executives. I’ve got George McMillan. He is a we’ve got a series coming up on energy and geopolitical issues around the world. Listen to Tom Kirkman. It was a wonderful podcast. It is an absolute brotherhood of the nut. I am in the nerdy category, so it’s kind of fun. And when you sit back and take a look at Ronald Stein, you take a look at Sean Strawbridge, who’s an industry world leader. Steve Reese and all of these other ones. And Dr. Robert Brooks, you take a look at all of these really good leaders had some great ones. I’ve got some great thought leaders coming around the corner. If you are an industry leader, I don’t care if you’re nuclear, wind, solar like Grace Stanke our Miss America. I just released. If you were a thought leader, I want to talk to you and thank you so much. Have a great day. Energy news meeting.com and I will talk to everybody soon. [00:15:40][0.0][920.0]

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EU states raise red flag over planned sanctions on Russia – Bloomberg

Energy News Beat

A proposed ban on the re-export of key goods could put the bloc’s businesses at a disadvantage, several nations reportedly warn

Several EU member states are seeking to soften proposals by the European Commission, aimed at preventing sanctions on Russia being circumvented via third nations, Bloomberg reported on Saturday, citing people familiar with the matter.

The bloc’s executive arm recently proposed curtailing exports to nations currently able to re-export goods from the bloc to Russia – thus helping the sanctions-hit country bypass penalties imposed by Brussels over the Ukraine conflict.

The measure, which could be included in a 12th package of sanctions on Russia, targets the sale of what the European Commission considers to be high-priority items, like semiconductors that can be used in weapons production. It reportedly obliges the buyer to deposit a sum in an escrow account to ensure compliance with the requirements.

According to documents seen by the news agency, at least half of the deposited amount would be transferred to a trust fund for Ukraine, while contracts would be terminated if the sanctions were breached.

However, diplomats from some large EU countries – which were not named by Bloomberg – have reportedly expressed concerns about the measures, raising doubts about their legality, and whether the insistence on guarantees and clauses from importers is viable.

According to the agency’s sources, the member states are also pushing to narrow the scope of the proposed clauses and the list of items targeted by the measures that, according to them, could put EU businesses at a competitive disadvantage.

Other members, including the Baltic countries, back the proposals, the unnamed people told the agency.

Brussels has so far imposed eleven rounds of penalties on Russia in response to Moscow’s military operation in Ukraine.

The latest proposals reportedly include measures to cut off Moscow’s access to commercial revenues by restricting exports to Russia, including a ban on the sale of certain chemicals, lithium batteries, thermostats and motors for drones, as well as machine tools and machinery parts that can be used to produce weapons. The package may also impose a complete ban on the sale of Russian diamonds and jewelry.

For more stories on economy & finance visit RT’s business section

 

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EU at risk of another energy crisis – media

Energy News Beat

Geopolitical tensions and supply challenges could have a direct impact on gas prices, according to an Oilprice report

The start of the peak consumption season in the EU amid rising demand from Asia could drive up prices for natural gas on the continent despite ample supply of liquified natural gas (LNG) globally, Oilprice reported this week.

According to the outlet, the situation has been worsened by a range of factors, such as geopolitical tensions, including the recent Houthi ship seizure. Supply-chain challenges, like the restrictions in the Panama Canal and risks in the Suez Canal, have also been causing concerns for global LNG shipping and pricing, the report added.

“Vulnerability to any occurrence that can influence prices was made crystal clear earlier this week when European benchmark prices jumped after the news broke of Houthis seizing a cargo ship in the Red Sea,” Oilprice wrote, noting that the ship was linked to an Israeli company and therefore was widely seen as a sign of a possible escalation of the conflict in the Middle East.

According to the report, citing S&P Global, some experts in the gas trading industry believe LNG prices won’t climb much higher, even in light of rising geopolitical risks in the Middle East.

Other experts reportedly suggest that shipping news has become quite important for all sorts of commodities lately due to restricted movement via the Panama Canal and riskier passage via the Suez Canal as a result of the Israel-Hamas conflict.

Asian buyers of US LNG have also been seeking alternative routes in the wake of the limited movement in the key choke-point between North and South America, which is expected to add to freight rates, the report noted.

“Speaking of supply, it may be plentiful, but as last year’s Freeport outage demonstrated, this abundance is one outage away from a disruption and a price spike,” Oilprice wrote.

The blast at a massive US gas export plant last June shut the facility down for the rest of the year. Freeport, which had accounted for a tenth of European LNG imports before the blast, only reopened in February this year. The force majeure has led to a spike in gas prices on the continent.

With temperatures dropping for winter, gas prices could climb higher in the EU, while global prices may be more resilient, Oilprice concluded.

A warm winter last year and efforts by the EU to build up stocks helped to avoid a recurrence of the 2021 energy crisis, when gas prices in the region spiked over €300 ($320) per megawatt hour following the bloc’s decision to shift away from Russian supplies.

European gas prices were volatile this week as traders weighed higher heating demand in colder weather with still nearly full EU inventories. The front-month Dutch TTF Natural Gas Futures, the benchmark for Europe’s gas trading, were trading 1.3% lower on Wednesday at $44.66 per megawatt-hour as of 11:04am GMT.

For more stories on economy & finance visit RT’s business section

 

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Escobar: The Eviction Notice Is Being Written, And Will Come In Four Languages

Energy News Beat

Authored by Pepe Escobar,

The Eviction Notice is being written. And it will come in four languages. Russian. Farsi. Mandarin. And last but not least, English…

A much-cherished pleasure of professional writing is to always be enriched by informed readers. This “eviction” insight – worth a thousand geopolitical treatises – was offered by one of my sharpest readers commenting on a column.

Concisely, what we have here expresses a deeply felt consensus across the spectrum not only in West Asia but also in most latitudes across the Global South/Global Majority.

The Unthinkable, in the form of a genocide conducted live, in real time on every smartphone in the third decade of the millennium – which I called the Raging Twenties in a previous book – has acted like a particle accelerator, concentrating hearts and minds.

Those that chose to set West Asia on fire are already confronting nasty blowback. And that goes way beyond diplomacy exercised by Global South leaders.

For the first time in ages, via President Xi Jinping, China has been more than explicit geopolitically (a true Sovereign cannot hedge when it comes to genocide). China’s unmistaken position on Palestine goes way beyond the geoeconomics routine of promoting BRI’s trade and transportation corridors.

All that while President Putin defined sending humanitarian aid to Gaza as a “sacred duty”, which in Russian code includes, crucially, the military spectrum.

For all the maneuvering and occasional posturing, for all practical purposes everyone knows the current UN arrangement is rotten beyond repair, totally impotent when it comes to imposing meaningful peace negotiations, sanctions or investigations of serial war crimes.

The new UN in the making is BRICS 11 – actually BRICS 10, considering new Trojan Horse Argentina in practice may be relegated to a marginal role, assuming it joins on January 1st, 2024.

BRICS 10, led by Russia-China, both regulated by a strong moral compass, keep their ear on the ground and listen to the Arab street and the lands of Islam. Especially their people, much more than their elites. This will be an essential element in 2024 during the Russian presidency of BRICS.

Even with no check out, you will have to leave

The current order of business in the New Great Game is to organize the expulsion of the Hegemon from West Asia – as much a technical challenge as a civilizational challenge.

As it stands, the Washington-Tel Aviv continuum are already prisoners of their own device. This ain’t no Hotel California; you may not check out any time you like, but you will be forced to leave.

That may happen in a relatively gentle manner – think Kabul as a Saigon remix – or if push comes to shove may involve a naval Apocalypse Now, complete with expensive iron bathtubs turned into sub-ocean coral reefs and the demise of CENTCOM and its AFRICOM projection.

The crucial vector all along is how Iran – and Russia – have played, year after year, with infinite patience, the master strategy devised by Gen. Soleimani, whose assassination actually started the Raging Twenties.

A de-weaponized Hegemon cannot defeat the “new axis of evil”, Russia-Iran-China, not only in West Asia but also anywhere in Eurasia, Asia-Pacific, and pan-Africa. Direct participation/normalization of the genocide only worked to accelerate the progressive, inevitable exclusion of the Hegemon from most of the Global South.

All that while Russia meticulously crafts the integration of the Black Sea, the Caspian Sea, the Baltic Sea (Finnish hysteria notwithstanding), the Arctic and the Northwestern Pacific Sea and China turbo-charges the integration of the South China Sea.

Xi and Putin are gifted players of chess and go – and profit from stellar advisers of the caliber of Patrushev and Wang Yi. China playing geopolitical go is an exercise in non-confrontation: all you need to do is to block your opponent’s ability to move.

Chess and go, in a diplomatic tandem, represent a game where you don’t interrupt your opponent when it is repeatedly shooting itself on the knees. As an extra bonus, you get your opponent antagonizing over 90% of the world’s population.

All that will lead to the Hegemon’s economy eventually collapsing. And then it can be beaten by default.

Western “values” buried under the rubble

As Russia, especially via Lavrov’s efforts, offers the Global South/Global Majority a civilizational project, focused on mutually respectful multipolarity, China via Xi Jinping offers the notion of “community with a shared future” and a set of initiatives, discussed in lengthy detail at the Belt & Road Initiative (BRI) Forum in Beijing in October, where Russia, not by accident, was the guest of honor.

A group of Chinese scholars concisely frame the approach as China “creating/facilitating global nodes for relating/communicating and platforms for concrete collaboration/practical exchanges. The participants remains Sovereign, contribute to the common endeavor (or simply specific projects) and receive benefits making them willing to keep on.”

It’s as if Beijing was acting as a sort of shining star and guiding light.

In sharp contrast, what remains of Western civilization – certainly with not much to do with Montaigne,

Pico della Mirandola or Schopenhauer – increasingly plunges into a self-constructed Heart of Darkness (without Conrad’s literary greatness), confronting the true, irredeemably horrifying face of conformist, subservient individualism.

Welcome to the New Medievalism, precipitated by the “kill apps” of Western racism, as argued in a brilliant book, Chinese Cosmopolitanism, by scholar Shuchen Xiang, professor of Philosophy at Xidan University.

The “kill apps” of Western racism, writes Prof. Xiang, are fear of change; the ontology of bivalent dualism; the invention of the ‘barbarian’ as the racial Other; the metaphysics of colonialism; and the insatiable nature of this racist psychology. All these “apps” are now exploding, in real time, in West Asia. The key consequence is that the Western “values” construct has already perished, buried under the Gaza rubble.

Now to a ray of light: a case can be made – and we’ll be back to it – that orthodox Christianity, moderate Islam and several strands of Taoism/Confucianism may embrace the future as the three main civilizations of a cleansed Mankind.

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NATO’s Proposed “Military Schengen” Is A Thinly Disguised German Power Play Over Poland

Energy News Beat

Authored by Andrew Korybko via Substack,

NATO logistics chief Lieutenant-General Alexander Sollfrank suggested the creation of a so-called “military Schengen” for optimizing the movement of such equipment across the EU. At present, bureaucratic and logistical obstacles impede the free flow of arms throughout the bloc, which he believes could hamstring the West’s ability to respond to any unexpected conflict along its periphery. It’s not just this proposal’s substance that’s significant, however, but also its timing.

NATO’s Proxy War On Russia Through Ukraine Appears To Be Winding Down” for the reasons explained in the preceding hyperlinked analysis. Accordingly, Bloomberg’s report about the EU’s draft security guarantees to Ukraine conspicuously omits any mention of mutual defense obligations of the kind that Kiev has sought for years and which greatly contributed to the latest phase of this nearly decade-long conflict. Sollfrank’s suggestion therefore seems to contradict these emerging de-escalation trends.

Upon reflection, however, it’s actually revealed to be a thinly disguised Germany power play over Poland. The EU’s informal leader ramped up its regional competition with Poland in mid-August through its promised military patronage of Ukraine, which readers can learn more about in that hyperlinked analysis. In brief, Poland aspired to become the leader of Central & Eastern Europe (CEE) throughout the course of the NATO-Russian proxy war, but Germany rose to the occasion to challenge its ambitions.

The liberal-globalist opposition coalition’s victory in last month’s Polish elections, which its Foreign Minister earlier accused Germany of meddling in, will likely result in former Prime Minister and European Council President Donald Tusk’s return to the premiership. In that event, this German-aligned politician could voluntarily subordinate his country to Berlin, thus resulting in Poland ceding its envisaged regional sphere of influence to that country and becoming its largest-ever vassal indefinitely.

Tusk’s plans to improve ties with the de facto German-controlled EU are regarded by conservative-nationalists as a means to that end, particularly due to that body’s efforts to further erode Polish sovereignty. Although he claims to oppose changes to the EU Treaty, some doubt his sincerity and suspect that he slyly wants to prevent large-scale protests over this issue. If these two scenarios come to pass, then Poland’s sovereignty would be further reduced, including in the defense sphere.

Prior to last month’s elections, Germany and Poland were competing to build the EU’s largest military, but the aforesaid sequence of events could result in Warsaw throwing in the towel. Even though its next potential Defense Minister said that his country won’t cancel any of its military contracts, conservative-nationalists also suspect that he’s either being insincere or could be coerced by Berlin/Brussels into doing so. All things considered, these concerns are credible and should be taken seriously.

Germany’s national interests as its incumbent policymakers conceive them to be rest in becoming the EU’s hegemon, which necessitates neutralizing Poland’s ambitions to lead the CEE space, ergo its alleged support of Tusk and speculative efforts to erode Polish sovereignty via the EU. These moves importantly preceded NATO’s proposed “military Schengen”, and that’s not by coincidence either. Rather, they’re meant to facilitate Germany’s unprecedented post-WWII power play over Poland.

If Tusk improves ties with the EU like he promised, complies with any EU Treaty changes despite unconvincingly claiming to oppose them, and the “military Schengen” is imposed upon his country, then German forces could return to Poland en masse on the pretext of defending the EU from Russia. This doesn’t contradict the de-escalation trends pertaining to the NATO-Russian proxy war, but complements them since it could be spun as compensating for the lack of Article 5-like guarantees to Ukraine.

On the one hand, the EU would wisely avoid laying any tripwires that Kiev could maliciously exploit to provoke a larger conflict with Russia upon the inevitable freezing of the present one (whenever that happens), while at the same time reassuring the public that they can still adequately respond if need be. The “military Schengen” would serve the purpose of enabling the bloc’s de facto German leader to swiftly dispatch its forces, which are planned to be the EU’s largest, to the eastern frontier in that event.

It goes without saying that they’d have to transit through Poland and could easily end up deployed there indefinitely, whether as a so-called “deterrent to Russian aggression” or as part of a preplanned response to an artificially manufactured (i.e. false flag) border incident. After having voluntarily subordinated itself to Berlin under Tusk as is soon expected for the reasons that were explained, the restoration of German hegemony over Poland would therefore be completed without firing a shot.

In that scenario, which Polish conservative-nationalists are powerless to prevent and can only be offset by unlikely variables beyond their control, Germany would essentially be tasked by the US with “containing” Russia in Europe as part of Washington’s “Lead From Behind” stratagem. Once that country’s continental hegemony is fully secured through the means that were described in this analysis, America can then more confidently “Pivot (back) to Asia” to focus on containing China.

Those two superpowers are currently in the midst of an incipient thaw as proven by the positive outcome of their leaders’ latest face-to-face meeting earlier this month on the sidelines of the APEC Summit in San Francisco, but it can’t be taken for granted that this trend will continue. It therefore makes sense for the US to outsource its anti-Russian containment operations in Europe to Germany in order to free up the resources required for more muscularly containing China in Asia if this thaw fails.

As has traditionally been the case throughout history, Polish sovereignty is once again in the process of being sacrificed as part of the Great Powers’ games, but this time its borders will remain intact even though the country is poised to functionally become a German vassal in the coming future. There are indeed some variables beyond Poland’s control that could offset this scenario, but they’re very unlikely, so it’s probably a fait accompli by this point that Poland will play second fiddle to Germany indefinitely.

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These Are The Top 50 Largest Importers In The World

Energy News Beat

In 2022, global imports climbed to $25.6 trillion in value, or about the size of the U.S. GDP.

As an engine of growth, global trade broadens consumer choices and can lower the cost of goods. For businesses, it can improve the quality of inputs and strengthen competitiveness.

In the graphic below, Visual Capitalist’s Dorothy Neufeld and Christina Kostandi show the 50 largest importers, with data from the World Trade Organization.

Which Countries Import the Most Goods?

With $3.4 trillion in imports in 2022, the U.S. is the largest importer globally.

Even though higher inflation and market uncertainty loomed over the economy, U.S. imports increased 15% annually, with China as its top goods importing partner.

As the world’s second-largest economy, China’s imports hit $2.7 trillion in value, although growth slowed in 2022.

Taiwan, China’s top trading partner for imports, is a major provider of electronics products, including semiconductor chips. However, the China-Taiwan trade relationship remains complicated given geopolitical tensions sparking unexpected import bans.

A handful of European countries also fell in the top 10 importers, led by Germany and the Netherlands. Overall, the European Union is the largest importer of agricultural products, fuels and mining products, and automotive products globally.

Global Trade Fragmentation

In 2023, the World Trade Organization projects that import volumes will contract as much as 1.2% across North and South America, Asia, and Europe.

In part, this is being driven by slower demand in manufacturing economies.

Whether or not this weaker volume is also being impacted by trade fragmentation remains unclear. One indicator may be seen in the trade of intermediate goods, which are products like wood and steel that are used in the production of a final good.

In the first half of 2023, the share of intermediate goods in world trade dropped to 48.5%, down from its three-year average of 51%. On the one hand, this may suggest that supply chains are contracting. Yet it may also be due to the influence of higher commodity prices, which have a bigger impact on the cost of intermediate goods than on final goods.

Still, other factors have an impact on the flow of trade. These include subsidies, export bans, and legislative policy, such as the $52.7 billion U.S. CHIPS Act, that incentivizes local production of semiconductors.

Considering these factors, broader trends of global de-globalization remain to be seen.

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Zurich Issues Digital Bond Using Wholesale CBDC

Energy News Beat

On Monday the Canton of Zurich issued a CHF 100 million ($113m) digital bond via the SIX Digital Exchange, Ledger Insights reported. While most of the bond terms were unexciting – it has an 11 year term and a coupon of 1.45%  – the most distinctive aspect is this transaction is that it settles using a wholesale central bank digital currency (wholesale CBDC) issued by the Swiss National Bank (SNB).

The joint lead managers on the issuance were Zürcher Kantonalbank, UBS and Raiffeisen Switzerland. Zürcher and UBS were announced as part of the CBDC pilot earlier this month, but Raiffeisen was not.

A Zurich spokesperson confirmed that wholesale CBDC settlement takes place on December 1 and only for the two pilot banks. Raiffeisen and the Canton of Zurich will receive conventional Swiss francs, not wholesale CBDC. At that point, the bond will be listed on both the SIX Digital Exchange and the main SIX Swiss Exchange.

While there have been plenty of wholesale CBDC trials, two things are distinctive about this pilot.First, the SNB is allowing the use of a live wholesale CBDC over an extended timeframe.Second, the SDX platform on which the SNB issues the CBDC is not a test platform. It is the same production platform that SDX has used for issuing tokenized Swiss francs used for previous SDX settlements.  

Meanwhile, in February the City of Lugano issued a CHF 100 million tokenized bond via SDX with investors able to invest via the SDX central securities depository (CSD) or the conventional SIS CSD. Enabling the use of the SIS CSD means that investors don’t need to be up to speed with DLT and hence significantly improves liquidity. It was the first digital bond to qualify for SNB’s repo.

Zurich confirmed it is similar, subject to the repo approval by the central bank, but it expects to qualify as HQLA Level 1. Additionally, it expects an S&P issuance rating of AAA.

How does settlement work given there are two CSDs?

One point of curiosity is how it’s possible to support settlement on both SIS (T+2 settlement) and SDX (T0) given the different settlement timeframes. The two CSDs are integrated, but because the bonds are natively digital, the SDX CSD is the primary registry.

Exchange trades executed on one exchange cannot settle on the other. Any trade executed on the SIX Digital Exchange settles atomically via the SDX CSD. On-exchange trades executed via the main SIX stock exchange settle in two days via the SIS CSD using x-clear, SIX’s pan-European central counterparty. One can assume that at the two day point, SDX’s blockchain logs the change in real time. Over the counter trades can settle on either CSD.

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The post Zurich Issues Digital Bond Using Wholesale CBDC appeared first on Energy News Beat.

 

Zurich Issues Digital Bond Using Wholesale CBDC

Energy News Beat

On Monday the Canton of Zurich issued a CHF 100 million ($113m) digital bond via the SIX Digital Exchange, Ledger Insights reported. While most of the bond terms were unexciting – it has an 11 year term and a coupon of 1.45%  – the most distinctive aspect is this transaction is that it settles using a wholesale central bank digital currency (wholesale CBDC) issued by the Swiss National Bank (SNB).

The joint lead managers on the issuance were Zürcher Kantonalbank, UBS and Raiffeisen Switzerland. Zürcher and UBS were announced as part of the CBDC pilot earlier this month, but Raiffeisen was not.

A Zurich spokesperson confirmed that wholesale CBDC settlement takes place on December 1 and only for the two pilot banks. Raiffeisen and the Canton of Zurich will receive conventional Swiss francs, not wholesale CBDC. At that point, the bond will be listed on both the SIX Digital Exchange and the main SIX Swiss Exchange.

While there have been plenty of wholesale CBDC trials, two things are distinctive about this pilot.First, the SNB is allowing the use of a live wholesale CBDC over an extended timeframe.Second, the SDX platform on which the SNB issues the CBDC is not a test platform. It is the same production platform that SDX has used for issuing tokenized Swiss francs used for previous SDX settlements.  

Meanwhile, in February the City of Lugano issued a CHF 100 million tokenized bond via SDX with investors able to invest via the SDX central securities depository (CSD) or the conventional SIS CSD. Enabling the use of the SIS CSD means that investors don’t need to be up to speed with DLT and hence significantly improves liquidity. It was the first digital bond to qualify for SNB’s repo.

Zurich confirmed it is similar, subject to the repo approval by the central bank, but it expects to qualify as HQLA Level 1. Additionally, it expects an S&P issuance rating of AAA.

How does settlement work given there are two CSDs?

One point of curiosity is how it’s possible to support settlement on both SIS (T+2 settlement) and SDX (T0) given the different settlement timeframes. The two CSDs are integrated, but because the bonds are natively digital, the SDX CSD is the primary registry.

Exchange trades executed on one exchange cannot settle on the other. Any trade executed on the SIX Digital Exchange settles atomically via the SDX CSD. On-exchange trades executed via the main SIX stock exchange settle in two days via the SIS CSD using x-clear, SIX’s pan-European central counterparty. One can assume that at the two day point, SDX’s blockchain logs the change in real time. Over the counter trades can settle on either CSD.

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The post Zurich Issues Digital Bond Using Wholesale CBDC appeared first on Energy News Beat.

 

Zurich Issues Digital Bond Using Wholesale CBDC

Energy News Beat

On Monday the Canton of Zurich issued a CHF 100 million ($113m) digital bond via the SIX Digital Exchange, Ledger Insights reported. While most of the bond terms were unexciting – it has an 11 year term and a coupon of 1.45%  – the most distinctive aspect is this transaction is that it settles using a wholesale central bank digital currency (wholesale CBDC) issued by the Swiss National Bank (SNB).

The joint lead managers on the issuance were Zürcher Kantonalbank, UBS and Raiffeisen Switzerland. Zürcher and UBS were announced as part of the CBDC pilot earlier this month, but Raiffeisen was not.

A Zurich spokesperson confirmed that wholesale CBDC settlement takes place on December 1 and only for the two pilot banks. Raiffeisen and the Canton of Zurich will receive conventional Swiss francs, not wholesale CBDC. At that point, the bond will be listed on both the SIX Digital Exchange and the main SIX Swiss Exchange.

While there have been plenty of wholesale CBDC trials, two things are distinctive about this pilot.First, the SNB is allowing the use of a live wholesale CBDC over an extended timeframe.Second, the SDX platform on which the SNB issues the CBDC is not a test platform. It is the same production platform that SDX has used for issuing tokenized Swiss francs used for previous SDX settlements.  

Meanwhile, in February the City of Lugano issued a CHF 100 million tokenized bond via SDX with investors able to invest via the SDX central securities depository (CSD) or the conventional SIS CSD. Enabling the use of the SIS CSD means that investors don’t need to be up to speed with DLT and hence significantly improves liquidity. It was the first digital bond to qualify for SNB’s repo.

Zurich confirmed it is similar, subject to the repo approval by the central bank, but it expects to qualify as HQLA Level 1. Additionally, it expects an S&P issuance rating of AAA.

How does settlement work given there are two CSDs?

One point of curiosity is how it’s possible to support settlement on both SIS (T+2 settlement) and SDX (T0) given the different settlement timeframes. The two CSDs are integrated, but because the bonds are natively digital, the SDX CSD is the primary registry.

Exchange trades executed on one exchange cannot settle on the other. Any trade executed on the SIX Digital Exchange settles atomically via the SDX CSD. On-exchange trades executed via the main SIX stock exchange settle in two days via the SIS CSD using x-clear, SIX’s pan-European central counterparty. One can assume that at the two day point, SDX’s blockchain logs the change in real time. Over the counter trades can settle on either CSD.

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