Europe's Energy Crisis Scam

Let me see if I can explain very quickly and simply, the energy crisis scam that's going on in Europe and how this demonstrates the extent to which states have been captured by business. Okay. They're talking about doing a price cap on energy purchases. They've been doing this in Greece since July, and the European Commission wants to duplicate this process for Europe or this policy for all of Europe. They will agree to buy energy at such and such amount per kilowatt hour, okay, from energy companies.

The energy companies, however, will continue to charge whatever price they want to charge. So say, for example, they wanna charge 800, euros per kilowatt hour. The European Commission will agree to pay, say, 80 per kilowatt hour. So the difference there is what? $7.20, 720.

So they will buy from the energy companies at the full price, the 800, but then the energy company has to give them back the difference, 720. That 720 that they give back to the states will then be given back to energy retailers. The tricky part about that is the providers own the retailers. So that means that the state is giving the money to the energy companies, then the energy companies are giving them the difference back to the state, and then the state is giving that money back again right back to the energy companies. It's a shell game.

And as we see, the profits for energy companies are off the charts. If prices were based on their actual cost of production and transmission of energy, then their profits would be the same as they were last year or two years ago or three years ago because they're charging according to their expenses. And the other side of it is, in order to try to keep prices lower for consumers, the government is gonna borrow money to subsidize energy prices for consumers. Governments are going to be going into debt in order to meet the profit margin demands of energy companies. That's called states being captured by big business.

And, of course, when governments go into debt, they have to slash their budgets. They have to slash their spending. They have to impose harsh austerity measures on the population in order to pay their debts. This again is corporate capture of the state. Now a relatively easy solution to this is not a price cap.

Don't put a price cap. Put a cap on profit margins. You should only be allowed to inflate your prices a certain percentage above your production costs, above your expenses. Simple solution. Just put a legal fixed limit on the percentage allowed for a profit margin for energy producers, providers, and retailers.

It it could be solved relatively easily if the states were not captured by business.