Author Archives: Hans Verbeek

Car sales in eurozone plummet

  By Hans Verbeek | October 15, 2012 - 11:43 | ,
10 Comments

In the summer of 2012 sales of new passengercars in the Eurozone dropped to less than 750.000 per month.

Not many Europeans have saved enough to buy a new car. Most Europeans just borrow money to buy a new car. But the banks don’t trust the borrowers anymore: the economy is shrinking, unemployment on the rise. Without new car-loans, the carsales will continue to drop.

Some governements will consider subsidies to increase the sale of green cars, like electric cars and plugin-hybrids. They will give away taxpayers money to ‘save the climate’ and save the automobile-industry at the same time.

At the same time, traffic jams are vanishing, because Europeans drive less.
In Spain motorists are avoiding the expensive tollroads. The unused asphalt is baking in the sun waiting in vain for cars that have not yet been sold.

Let’s face the music and dance

  By Hans Verbeek | March 13, 2012 - 11:12 | ,
1 Comment

There may be trouble ahead
But while there’s music and moonlight and love and romance
Let’s face the music and dance

Before the fiddlers have fled
Before they ask us to pay the bill and while we still have the chance
Let’s face the music and dance

Soon we’ll be without the moon, humming a different tune and then
There may be teardrops to shed
So while there’s moonlight and music and love and romance
Let’s face the music and dance

watch?v=TnfKmNRfLYU

Price of Russian natural gas 38% higher in one year

  By Hans Verbeek | February 10, 2012 - 08:42 | ,
2 Comments

In january 2011 1000 m³ of Russian natural gas cost 247 euro. One year later that price is 343 euro: an increase of 38%.
Many European countries import large quantities of gas, mainly from Russia. Paradox made an overview:

Gas-import 2010 miljard m³
Germany 84
Italy 75
France 49
Poland 11
Portugal 5
Greece 4


In 2011 and 2012 those countries will import roughly the same amounts of natural gas. Using the price of january 2011 (247 euro per 1000 m³) and january 2012 (343 euro per 1000 m³) we can roughly calculate the gasbill over 2011 and 2012.


 2011 2012
Germany 20,7 28,6
Italy 18,5 25,6
France 12,1 16,7
Poland 2,7 3,7
Portugal 1,2 1,7
Greece 1,0 1,4

in billion euros

In 2012 Germany will have to come up with an extra 8 billion euro for the same amount of natural gas. And guess what, they didn’t put any money aside in the bank for that higher gasbill. It will cost every single German 100 euros extra this year.
The average Italian will have to pay 120 euros more than last year. For the average Italian family it will be 480 euros more.

It is very smart to use less natural gas in these desperate times. If Germany wants to keep the natural gasbill the same: 20,7 billion euro. Then Germany will have to cut its natural gas-use by 28% (!!!). Which of course is impossible.

Maybe Greece can manage a reduction of 28% in their gas-use. IMF, ECB and the gang of European Finance-ministers will twist the arms of Greece until it’s economy has shrunken by 28%.
Germany will have no trouble at all to loan another 8 billion euros to pay for the increased gasbill.
The banks, backed up by the ECB, will gladly lend the billions to Germany and the German people at a very low interest of 2%.

But this cannot be sustained very long.
Maybe the ECB should stop stimuating the economy and the burning of fossil fuel. Let’s be very wise and save some natural gas for the next generation.

Faster or slower

  By Hans Verbeek | March 7, 2011 - 10:37 |
6 Comments

The Dutch governement raised the speedlimit on some motorways from 120 km/h to 130 km/h. A small gesture to get some more votes in last weeks regional election.

The Spanish governement lowered the speed limit from 120 to 110 km/h, to save expensive fuel. The new speedlimit is part of a bigger energy-conservation plan.
The Spanish look further ahead to the coming years and decades. The Dutch don’t look much further ahead than the next election.

I’d rather look at the beautiful and talented Sheryl Crow

[youtube]http://www.youtube.com/watch?v=vkct9ZpEpic[/youtube]

Currency Failures from Argentina to Zimbabwe: A Brief History of Inflation | Timothy Terrell

  By Hans Verbeek | February 27, 2011 - 07:00 | ,
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Timothy Terrell shows examples of hyperinflation in recent history.

[youtube]http://www.youtube.com/watch?v=DB_uHq1_8FA[/youtube]

Hyperinflation sounds terrible, but all the countries he mentions are still around. People still have jobs, they smile and laugh. The bakers in those countries are still baking bread.

In the 21st century most money is virtual. That may facilitate inflation.
But remember: hyperinflation is a temporary thing, it’s like erasing debts.
Hyperinflation will end and bakers will continue baking bread, pies and even cakes.