Europe has “maybe 6 weeks or so (of) jet fuel left,” the head of the International Energy Agency said Thursday in a wide-ranging Associated Press interview, warning of possible flight cancellations “soon” if oil supplies remain blocked by the Iran war.
IEA Executive Director Fatih Birol painted a sobering picture of the global repercussions of what he called “the largest energy crisis we have ever faced,” stemming from the pinch-off of oil, gas and other vital supplies through the Strait of Hormuz.
“In the past there was a group called ‘Dire Straits.’ It’s a dire strait now, and it is going to have major implications for the global economy. And the longer it goes, the worse it will be for the economic growth and inflation around the world,” he said.
So do people not understand that this is game over? We are in a zombie economy, it may still be walking but in reality it’s dead.
Even if the straits open tomorrow, planting season is ending with out the needed fertilizer. Smelters and pot lines for aluminum, iron and glass are going cold. They can’t just be restarted, cold idle make them giant bricks and damages them. Pharmaceutical manufacturing is shutting down, and also can’t just be restarted. Clean rooms must be re-certified before restart. Similar problems for micro chips production that uses helium from the gulf.
The global economy is having its Wiley E. Coyote moment. The floor is gone, but gravity isn’t doing its thing yet.