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Gazprom Warns Of "Repetition Of 2009 Gas Situation" In Ukraine

Tyler Durden's picture


We have discussed the sword of Damocles that is hanging over the heads of the Ukrainian (and European for that matter) people for some time. The dominant role that Russia plays in providing energy is becoming critical, however, as Gazprom notes:

  • *GAZPROM: UKRAINE DEBTS CREATE 'RISK OF RETURN TO SITUATION AT BEGINNING OF 2009' (when Gazprom cut off Ukraine gas supplies)

Of course, the US agreed to $1b bailout yesterday - but that's not supposed to be used as a direct transfer payment to the Russians.


Via Interfax,

The debt that Ukraine's Naftogaz Ukrainy owes for Russian natural gas has risen to $1.89 billion, Gazprom CEO Alexei Miller told journalists.


"In fact, this means that Ukraine has stopped paying for gas," Miller said.


"This is completely at odds with the provisions of the contract and international trade practice. For our part, we have always met and will meet our contractual obligations. But we can't supply gas free of charge. Either Ukraine repays its debt and pays for current deliveries or the risk of returning to the situation at the beginning of 2009 will appear. We will notify the Russian government concerning the situation that is taking shape," Miller said.


"Today, March 7, was the payment deadline for February's deliveries of gas to Ukraine. Gazprom has not received payment on the debt. Including the price discount in effect in the first quarter, the overdue debt for gas has increased significantly and now totals $1.890 billion," he said.

It would appear this is the most important map in Europe once again...


and what happened in 2009...

Gazprom demanded a price hike to $400-plus from $250, Kiev flatly refused, and on New Year's day 2009, Gazprom began pumping only enough gas to meet the needs of its customers beyond Ukraine.


Again, the consequences were marked. Inevitably, Russia accused Ukraine of siphoning off supplies meant for European customers to meet its own needs, and cut supplies completely. As sub-zero temperatures gripped the continent, several countries – particularly in south-eastern Europe, almost completely dependent on supplies from Ukraine – simply ran out of gas. Some closed schools and public buildings; Bulgaria shut down production in its main industrial plants; Slovakia declared a state of emergency. North-western Europe, which had built up stores of gas since 2006, was less affected – but wholesale gas prices soared, a shock that was declared "utterly unacceptable" by Brussels.

Forget those sanctions...

The market is not happy - Ukraine is not fixed as June 2014 bond yields soar to 47%!!


and German stocks are tanking...



The acting Premier is in panic mode:


We suspect, as the bond market makes clear, that any IMF money will go direct to Gazprom and not to debt repayment




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Fri, 03/07/2014 - 10:09 | 4520877 Flakmeister
Flakmeister's picture

I'll take notice when Putin shuts down NordStream....

Fri, 03/07/2014 - 10:14 | 4520900 johnQpublic
johnQpublic's picture

Of course, the US agreed to $1b bailout yesterday - but that's not supposed to be used as a direct transfer payment to the Russians



and people on welfare arent supposed to depend on it forever

'supposed to' and reality rarely meet

Fri, 03/07/2014 - 10:49 | 4521028 gmrpeabody
gmrpeabody's picture

Actually..., cold olive soup is on the Friday night menu in our home.

Fri, 03/07/2014 - 11:07 | 4521114 TruthHunter
TruthHunter's picture

"Actually..., cold olive soup is on the Friday night menu in our home."


And?  Then you get Russian Gas or Italian gas?

Fri, 03/07/2014 - 10:52 | 4521034 merizobeach
merizobeach's picture

"Of course, the US agreed to $1b bailout yesterday - but that's not supposed to be used as a direct transfer payment to the Russians."

Yeaaaah, um, I'm gonna need you to go ahead and come into the office on Saturday... and also Sunday, so, um, see you at nine o'clock [so you can raise that bailout by an extra $0.89 billion!]

Fri, 03/07/2014 - 11:52 | 4521289 Uni
Uni's picture

Where I live cold soup is quite popular (and tasty)



Fri, 03/07/2014 - 13:01 | 4521550 LMAOLORI
LMAOLORI's picture



They could pay for it out of this couldn't they?

Ukraine signs $10 billion shale gas deal with Chevron


 (Destablized for fracking lol)...


Ukraine crisis is about Great Power oil, gas pipeline rivalry
Fri, 03/07/2014 - 10:36 | 4520988 john39
john39's picture

the kagens and their role in subverting U.S. foreign policy exposed:

Fri, 03/07/2014 - 10:51 | 4521031 ThisIsBob
ThisIsBob's picture

And if they won't use that USA account money for gaz won't it  free up a billion somewhere else?

Fri, 03/07/2014 - 11:02 | 4521090 cowdiddly
cowdiddly's picture

Free up What money. lol their broke. Once again, Who runs Bartertown bitchez?

Fri, 03/07/2014 - 11:05 | 4521102 merizobeach
merizobeach's picture

I don't think it works like that.  I'd guess they're broke, and haven't billions laying around anywhere.  Hence the bailout (which, apparently, still won't keep the stove lit unless they're burning wood).

Fri, 03/07/2014 - 10:09 | 4520880 machineh
machineh's picture

GAS, bItCHez!

Fri, 03/07/2014 - 10:12 | 4520894 negative rates
negative rates's picture

Consequences too.

Fri, 03/07/2014 - 10:15 | 4520909 SilverIsKing
SilverIsKing's picture

Yo Kerry, while you're at it, buy Putin some hookers and blow. Just put it on my account. Yeah, same as the $1B.

Fri, 03/07/2014 - 10:20 | 4520930 GetZeeGold
GetZeeGold's picture



.....prices will necessarily rise.

Fri, 03/07/2014 - 10:46 | 4521017 Urban Redneck
Urban Redneck's picture

MUST. . . PRINT. . . MOARRRRRR ! ! !

Fri, 03/07/2014 - 10:10 | 4520888 Sufiy
Sufiy's picture

US Dollar Slides To The New Low 79.51 As Ukraine Situation Moves To Economic Warfare

  US Military Complex can not be challenged by anyone in the open conflict, but once things are moving into the field of asymmetric economic warfare tactics of Financial Wars U.S. has a problem. Economy can not really handle any external shocks now, Bubble in the equity markets is not translating into the healthy growth so far. Any serious correction in the market can bring very weak economic data further in the proximity of potential recession. And this is where Ukraine situation is coming so handily to the FED's rescue out of Taper. Do you really think that the banks want the tigthening of the money supply now? FED wants Weak US Dollar, FED wants Inflation and FED is ready to pause Taper at any excuse now. Further escalation around Ukraine situation will provide this excuse right in time when the economic data will be turning even weaker than now.

Fri, 03/07/2014 - 10:20 | 4520928 disabledvet
disabledvet's picture

Bwhahahahaha. The USA is the largest energy producer in the world. And the largest food producer. "Ukraine needs to be secured right now."

Russia has their "War in Crimea." The EU moves to secure the bulk of Ukraine's territorial integrity.

Putin...if he is to do anything here....needs to act immediately.

Of course so does the EU. "Ukraine must remain whole and open for business."

Fri, 03/07/2014 - 10:28 | 4520961 LawsofPhysics
LawsofPhysics's picture

Yes, Putin knows he must move quickly, and that's why he is.  Many people don't understand this.

However, he can move quickly.  As for the stuffed crimminal shirts in the west, not so much.


Now remind us, what is the DEBT:GDP of say the U.S.S.A. and the E.U. compared to the DEBT:GDP of say Russia and China?

Tick tock...

Fri, 03/07/2014 - 12:18 | 4521421 WMM II
WMM II's picture

"Now remind us, what is the DEBT:GDP of say the U.S.S.A. and the E.U. compared to the DEBT:GDP of say Russia and China?"


since the 1998 default by Russia?





Fri, 03/07/2014 - 10:12 | 4520891 Chupacabra-322
Chupacabra-322's picture

"Of course, the US agreed to $1b bailout yesterday - but that's not supposed to be used as a direct transfer payment to the Russians."

But, but, wait. What about the $5 Billion the Criminal UNITED STATES, CORP. INC. forked over back in December with a visit from Criminal Foreign Agent McCain?

Fri, 03/07/2014 - 10:14 | 4520899 negative rates
negative rates's picture

We just filed suit, the Hatfields-vs- McCains of 2014.

Fri, 03/07/2014 - 10:18 | 4520918 toady
toady's picture

That went to the Ukrainian ex-President. Something about a private island and fifty years payroll for private security.

You didn't think he'd take time to pay the bills before he left, did you?

Fri, 03/07/2014 - 10:35 | 4520980 Independent
Independent's picture

If you mean Nuland five billion that money is sitting in offshore accounts and onshore accounts in Swiss and Israel.  Remember all this money never has to be accounted for how its spent, just like TARP.  Its free money for dual citizens to have a GOOD TIME and become uber wealthy

Fri, 03/07/2014 - 10:44 | 4521010 Chupacabra-322
Chupacabra-322's picture

Perhaps it's also parked at the local friendly Criminal IMF. The funds never really go directly to the Ukraine or its people. John Perkins author of "Confessions of an Economic Hitman" confirmed as much.

Fri, 03/07/2014 - 10:35 | 4520983 oak
Fri, 03/07/2014 - 10:14 | 4520893 Dr. Engali
Dr. Engali's picture

Don't worry Putin. The BernankinYellen is printing you up a check right now.

Fri, 03/07/2014 - 10:16 | 4520906 NoDebt
NoDebt's picture

No, see, that's impossible because of this:

"Of course, the US agreed to $1b bailout yesterday - but that's not supposed to be used as a direct transfer payment to the Russians."

So, as you can see, there's no way that can happen.  No way.  Impossible.

Fri, 03/07/2014 - 10:13 | 4520896 disabledvet
disabledvet's picture

I'll take notice when Ukraine shuts of Nords Stream.

The ruble has already collapsed so obviously you have a massive inflation problem in Russia.

Any cut off in of anything in Ukraine means food prices soar in Europe at large.

Fri, 03/07/2014 - 10:16 | 4520910 negative rates
negative rates's picture

The rouble is backed by gold there einstien, you are on the other hand are backed by trouble.

Fri, 03/07/2014 - 10:26 | 4520956 Flakmeister
Flakmeister's picture

Nordstream goes nowhere near the Ukraine...

Fri, 03/07/2014 - 10:35 | 4520986 Rip van Wrinkle
Rip van Wrinkle's picture

But doesn't Draghi WANT inflation?

Fri, 03/07/2014 - 10:14 | 4520898 Sudden Debt
Sudden Debt's picture


that's what my father used to say and that should apply to everybody.

If you can't pay for the gas, don't order it.

Fri, 03/07/2014 - 10:20 | 4520912 Dr. Engali
Dr. Engali's picture

Hah! have you learned nothing? If you can't buy a steak you lever up your dollar , buy 10 cokes, re-hypothicate the cokes, and  buy a four course meal a hooker and a room.... maybe a couple hot pockets for good measure.

Fri, 03/07/2014 - 10:22 | 4520942 GetZeeGold
GetZeeGold's picture're pretty good at this.

Fri, 03/07/2014 - 10:16 | 4520914 johnQpublic
johnQpublic's picture


again, but never stops being funny

Fri, 03/07/2014 - 10:18 | 4520917 negative rates
negative rates's picture

Spot on sister, you playin the left or the right?, the flats or the mounds?? Step right up to the greatest show on Earth, all the world is a stage.

Fri, 03/07/2014 - 10:17 | 4520915 thecoloredsky
thecoloredsky's picture

Problem is, in 2009 it was turned off from Jan 1-Jan 20 in the dead of winter. Now its March with higher temps which I assume makes less of an impact. I could be over-simplifying it though.

Fri, 03/07/2014 - 10:32 | 4520973 Debugas
Debugas's picture

actually Ukrain has enough of its own gas to keep people warm at winter. The problem is the industrial demand


Fri, 03/07/2014 - 10:18 | 4520916 waterwitch
waterwitch's picture

The FED is issuing a one-of-a-kind platinum coin, worth $1.8 BN--with Yanacovich's image on it.  That should suffice, don't you think?

Fri, 03/07/2014 - 10:27 | 4520920 krispkritter
krispkritter's picture

Get your free ObamaGas! Amazing.  Americans who are struggling to fill their tanks or heat their homes because of energy costs are paying for some other country's gas bill after 5 times more of their tax dollars were used to destroy their elected government.  Yeah, we're getting fucked alright.  And I haven't heard a peep about the billions that were dumped into the Ukraine and went missing. How about they find those umpteen billions and pay their own fucking bills...

Fri, 03/07/2014 - 10:21 | 4520924 LawsofPhysics
LawsofPhysics's picture

Who runs bartertown?  Shut the fucking pipelines down already.  If Russia was smart, they would keep those calories for their own businesses and industry (or exchange them for something fucking real (like gold or new technology).

Fri, 03/07/2014 - 10:58 | 4521059 Flakmeister
Flakmeister's picture

LOP, but Russia is not "smart", at least their oligarchs are not...

If anything the past 20 years has seen a rise in the dependence of the Russian economy on hydrocarbon exports... Now up to 70%... 

It is a easy skim for the kleptocrats, building something real is much harder and not nearly as lucrative in the short term..

By any objective measure, Russia is on its way to becoming Nigeria with ICBMs....

The Russian current accout is no great shakes either

They do have pretty impressive foreign reserves though, ~$500B...

Fri, 03/07/2014 - 11:22 | 4521115 LawsofPhysics
LawsofPhysics's picture

"By any objective measure, Russia is on its way to becoming Nigeria with ICBMs...."

and somehow you think this is a good thing?

They can still set the price and terms for selling those resources, period.  Sounds to me like it's time for the Russians to renegotiate all those contract.

Remember, when fruad it the status quo, possession is the law.

Fri, 03/07/2014 - 11:24 | 4521173 Flakmeister
Flakmeister's picture

Re: Nigeria,  not in the least....

The slow and steady concentration of the Russian economy makes it less resiliant and more suseptible to unrest... 

It takes a much smaller coup to effectively control things (not that I am predicting a coup anytime soon).....


Russia is literally tied at the hip to the EU, their oil and gas exports (80%) are constrained the pipeline system that aint't going to be revamped to flow East or anywhere else anytime soon... 

They can only play the game you suggest if they can find alternative buyers. Otherwise they suffer as well if the taps are shut...

In reality, the Ukrainian pipeline system is not an asset but more of a liability to the Russians... A captive 3% of GDP flows through the Ukrainian gaslines....

Fri, 03/07/2014 - 11:32 | 4521201 LawsofPhysics
LawsofPhysics's picture

There are plenty of alternative buyers.  China being the big one.

Fri, 03/07/2014 - 11:37 | 4521228 Flakmeister
Flakmeister's picture

How does it get there?

Fri, 03/07/2014 - 10:19 | 4520925 SpanishGoop
SpanishGoop's picture

Europe should pay Gazprom on an European Gazprom account and right after that block and confiscate the account.

"Hey, we paid the bill the rest is due sanctions".

 Win/win....or not.


Fri, 03/07/2014 - 10:26 | 4520958 slackrabbit
slackrabbit's picture

And just like I said in 2009..enjoy


Fri, 03/07/2014 - 10:28 | 4520964 buzzsaw99
buzzsaw99's picture

those maggots are going to give my money to the ukraniums? you bastards!

Fri, 03/07/2014 - 10:30 | 4520968 Montgomery Burns
Montgomery Burns's picture

Rule *1 for (former) dope dealers.....Do not front!

Fri, 03/07/2014 - 10:51 | 4520993 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

That next bill will be double the US/EU has to subsidize if they want to keep the gas on, the contract is up....


Fri, 03/07/2014 - 10:42 | 4521001 hookah
hookah's picture

Wow Russian soldier really protecting Crimea

Fri, 03/07/2014 - 10:42 | 4521002 vote_libertaria...
vote_libertarian_party's picture

uhhhh....why don't the Ukranians just print some money?


Problem solved....NEXT!!!

Fri, 03/07/2014 - 10:46 | 4521016 madcows
madcows's picture

So, the Russians can threaten not to provide energy to EU, and the EU's will suffer.  BUT, the Russians, who won't receive any income as a result of the sales won't be hurt.  I call russia's bluff.  Go for it you shirtless wonderlick dingleberry.  Your economy is no better than the rest of the world's.  Suck it.

Fri, 03/07/2014 - 10:46 | 4521019 BandGap
BandGap's picture

Interesting. Putin needs to shore up the ruble to stem inflation? Methinks that genie is out the bottle.

Shit could go up in flames any day now.

Fri, 03/07/2014 - 10:48 | 4521022 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

The Greecification begins. Guess who is taking the first hit to pay for all these loans to keep the gas on.

You guessed it pension haircuts.

translated to English

Shock and payment

The Government has prepared an action plan quick fix budget problems The Ministry of Finance has prepared a plan to optimize budget expenditures on the basis of which the end of March to be held sequestration budget. For this purpose, inter alia, to reduce capital costs, eliminate tax schemes and incentives and cut social benefits, such as 50% of pensions for working pensioners. Experts doubt that the government will be able to make changes in all directions - to better identify three to five key objectives and implement them. ... Sound familiar. Like Troika loans maybe. ... The plan combines the idea of ??budget sequestration, to be held in late March - before the government promised to reduce the cost of 65-80 billion USD. Already yesterday, Finance Minister Oleksandr Shlapak said the adoption of government regulations on the use of saving money and local budgets. Document introduced a special regime for local authorities - the capital and "any other expenses" will not be funded until the debt will be repaid on energy and salaries. The debt he did not name. ... Action plan is traditional for Ukrainian government aims to combat conversion centers and tax pits legalization of shadow turnover of alcohol and alcoholic beverages. It is on the audit of "Ukrspirt" cease and implementation schemes without alcohol taxation. ... The government is going to raise the excise tax, although the latter indexing them took place in January. This, according to Dmitry Boyarchuk only provoke another increase of the shadow market of excisable goods. Economist of the National Institute for Strategic Studies Alex Moldovan offers an alternative - an increase in the VAT rate on luxury items. ...
Fri, 03/07/2014 - 11:13 | 4521120 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

Just so people know Ukrspirt is a state run biodiesel fuel company. Ties into their their agricultural region.

By Jan. 1, 2014, the State Enterprise Ukrspirt will produce 150,000 tons of bio-ethanol annually, which will fully cover the need of the domestic Ukrainian market for bio fuels. Analyts say the total capacity of Ukrspirt plants for bio-ethanol is about 100,000 tons. Upgraded distilleries will add 50,000 tons annually (their reconstruction shall be completed by Jan. 1, 2014). To date, Naumovsky (9,500 tons annually) and Ivashkovsky (7,200 tons annually) distilleries are ready to produce bio-ethanol, along with Horostkovskoye distillery and spirit store (47,400 tons), Gaysinsky distillery (10,600 tons annually), Luzhanskoye distillery and spirit store (8,200 tons annually), Barsky distillery (11,000 tons annually), and Chervonensky food plant (7.1 tons annually). ... Government analysts believe that introduction and production of bio-ethanol will reduce the country's dependence on imported oil and petroleum products, and is a stable global trend. Another important aspect for Ukraine is that the European Union has legally and strategically justified the use of ethanol in production of gasoline fuel. ...
Fri, 03/07/2014 - 10:48 | 4521024 DutchMadness
DutchMadness's picture

Putin Rules!

Fri, 03/07/2014 - 10:55 | 4521050 tony wilson
tony wilson's picture

this is not a problem as we understand from jewish written histories.

nazi folks can always burn furniture and books for warmth.

the black shirt faschists in kiev must have seen bbc hitler shows by laurence rees or spielberg mind programming

it is nearly spring so not all books will need to burn.


raw potato is edible it is a conspiracy theory to suggest one cannot survive on raw tato and turnips.

in time ukraine will have precooked digested monsanto crops so cookers will not be needed.

Fri, 03/07/2014 - 10:56 | 4521055 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

And if you don't think it is about gas guess who is weaseling into the market using the Ukraine as pretense.

Fruits shale revolution

The U.S. wants to liberate Ukraine from the energy dependence The U.S. Congress proposed to complement the package being discussed sanctions against Russia abolition of restrictions on exports of U.S. gas. Legislators believe that the move will "liberate Ukraine from energy dependence on Moscow" and deprive Russian leverage against Europe.
With the abolition of restrictions on gas exports made by members of both houses of Congress. On Wednesday, Republican Ted As introduced the bill in the lower house, directing the ministry will apply a special procedure for the approval of applications for energy supplies to former Soviet states and the EU. A Republican, Michael Turner and Sen. Mark Udall offered to expedite the permitting process for gas exports to WTO members. These proposals may be included in the discussion in the Congress a package of economic and visa sanctions against Russia, which, according to lawmakers should "forever liberate Ukraine from the dictates of Moscow." ... Shale revolution has allowed the U.S. to dramatically increase oil and gas production. Nevertheless, the ban on exports of energy, introduced back in the 1970s, is still in effect. While he is only allowed in countries with a U.S. free trade agreement. In recent years, major oil companies tried unsuccessfully to seek the abolition of these restrictions: a 2011 U.S. Department of Energy has approved only 6 applications for the construction of export terminals, 20 more appeals are pending. ...
Fri, 03/07/2014 - 10:58 | 4521062 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

(Reuters) - NATO Secretary General Anders Fogh Rasmussen criticized Russia on Wednesday for pressuring Kiev not to sign a free trade pact with the European Union, a move that triggered mass protests.


"An association pact with Ukraine would have been a major boost to Euro-Atlantic security, I truly regret that it could not be done," Rasmussen told le Figaro daily. "The reason is well-known: pressure that Russia exerts on Kiev."


Fri, 03/07/2014 - 11:00 | 4521076 Flakmeister
Flakmeister's picture


The US is still a net importer of NG....

This is a backdoor way to allow producers to raise domestic prices to international levels...

i.e. screw joe sixpack so a few producers can profit....

Fri, 03/07/2014 - 11:46 | 4521139 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

One way or the other the pipelines are coming to the east coast and LNG terminals to ship gas across the Atlantic to Western Europe. It is a solution looking for the right problem with A LOT of money to be made solving it. 


I've said it before and I'll say it again this was always the one ace in hand the US held against Russia for energy dominance. The Russians can't block off the back side shipping lanes through the Atlantic. That is US/Western Europe turf.


Also here is the original article in the root post since google translate doesn't change the url address from the intial browsing point for people who want to translate it themselves.


Critical thinking question what happened to the USD in the 70s and why would that be related to a ban on energy imports to Europe? Who ultimately gets fucked by lifting that import ban besides the Russians?

Fri, 03/07/2014 - 11:46 | 4521273 TheFourthStooge-ing
TheFourthStooge-ing's picture


One way or the other the pipelines are coming to the east coast and LNG terminals to ship gas across the Atlantic to Western Europe.

The permitting process and construction of LNG terminals are not like a quick stroll through the park. It sure would be a shame if, after all the time and costs involved, the fracking boom fizzled out.

It is a solution looking for the right problem with A LOT of money to be made solving it.

Maybe so. If nothing else, someone could buy the LNG terminals at pennies on the dollar from the bankruptcy sale and use them for importation of LNG.

Fri, 03/07/2014 - 12:01 | 4521293 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

The permitting process and construction of LNG terminals are not like a quick stroll through the park.

Yes they are when the right scare tactics are used and right people are paid off. Who run the backdoor barter town tentacles?

It does take time to build the infrastructure and the issue really is the states more so than the Federal Government though they can be controlled fairly easily by cutting aid unless they go along with the plan. It won't fix the short term problem but this isn't about short term. Once the ball is rolling they don't stop and abandon these things midstream disasters, fizzling out or not. The US has the world's largest reserve of shale gas with no export markets right now. They are purposely trying to keep from tapping it's full potential while waiting for everyone else to use up their reserves first while controling the pricing game in the meantime through price indexed gas against oil which is how most the world prices natural gas right now. The US is one of the major exceptions. Russian gas is priced in this manner also...

A solution in search of a problem like Obamacare. Heglian dialetic.



Fri, 03/07/2014 - 12:25 | 4521337 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

The Hegelian Dialectic The Anti-Human Principle U.S. Pavlovian Conditioning

Revolutionaries in government have created economic chaos, shortages in food and fuel, confiscatory taxation, a crisis in education, the threat of war, and other diversions to condition Americans for the “New World Order."

The technique is as old as politics itself. It is the Hegelian Dialectic of bringing about change in a three-step process: Thesis, Antithesis and Synthesis.

The first step (thesis) is to create a problem. The second step (antithesis) is to generate opposition to the problem (fear, panic and hysteria). The third step (synthesis) is to offer the solution to the problem created by step one: A change which would have been impossible to impose upon the people without the proper psychological conditioning achieved in stages one and two.

Process sound familiar with Obamacare and now the Ukraine? Sound familiar with gun control and Sandy Hook?

Who threw the first punch?

Who's organization do the Neo Nazi goons running the interm government work for as mercenaries?

What is their bread and butter in doing for said organization?

What is the biggest prize in this game?

Fri, 03/07/2014 - 13:36 | 4521313 Flakmeister
Flakmeister's picture

This could be a very interesting summer for NG...

We still have not reached the typical seasonal minimum in storage (~1 month away)...

Stocks are extremely low...

If the Fracking Boom is still truly alive and well, one should see a rapid recovery in storage over the summer...

Download the spreadsheet at the bottom of the above link to see what the prospects are:

The only play showing any growth is the Marcellus...

Haynesville and Barnett appear to have peaked...

The rest are flat...

Fri, 03/07/2014 - 11:02 | 4521086 Smegley Wanxalot
Smegley Wanxalot's picture

Putin doesn't hold all the cards at the table, because Obama showed up with a few Hallmark Kwanzaa cards he had left over from couple months ago.

Fri, 03/07/2014 - 11:02 | 4521088 Atomizer
Atomizer's picture

I'll gladly pay you Tuesday for a gas provisions today.

Fri, 03/07/2014 - 11:24 | 4521174 nah
nah's picture

the russians are using gas bitchez

Fri, 03/07/2014 - 12:02 | 4521331 Hongcha
Hongcha's picture

Watching OGZPY (ogzippy) it's up $.05 ... this ain't September 1939 and Gazprom isn't Krupp Werks.  Mr. Market doesn't think a damn thing is happening here people.  He's lining up lunch and drinks at 4 with the boyz.

Fri, 03/07/2014 - 13:14 | 4521666 kellycriterion
kellycriterion's picture

There are always economic angles. But there's an important point to remember when trying to evaluate them or even what they might be.

Political thugs will burn through fantastic amounts of society's resources for relatively trivial gains funding their own operations. Or to maintain their power base? Any amount of blood and treasure is just fine. Maybe there's a grand strategy or maybe it's just another day in the gangsterhood.

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