Demand Destruction: The Real Energy Crisis Hitting Europe and Japan

Iran has imposed stricter terms for reopening the Strait of Hormuz and will not reopen it until the U.S. ends the war and accepts those terms.

Real energy shortages are emerging and will severely impact global economies as the Strait of Hormuz remains closed for months. The U.S. has drawn down its strategic petroleum reserves below a limit that threatens the structural integrity of the storage caverns. Europe's natural gas reserves are critically low, with Germany at only 50% full instead of the expected 70-80%, as LNG flows to Asia rather than Europe.

Demand destruction will accelerate European deindustrialization as soaring energy costs force energy-intensive factories to close.

The West is waging an energy war against Russia and Iran, but the European vassals are suffering the most from their own sanctions and policies.

Surging Western energy costs might be part of a plan, linked to Scott Bessent and discussed by Ryan Perkins, to destabilize BRICS financial systems centered on China.

This strategy is a reckless gamble that will severely damage European and Japanese economies before it creates any serious problems for China or BRICS.

The energy confrontation is undeniably causing a massive transfer and concentration of wealth toward energy companies and a shrinking circle of elites.

Concentrating the benefits of empire in a shrinking group while imposing burdens on everyone else is historically a recipe for faster imperial collapse.

Japan is heavily dependent on imported energy and has unnecessarily alienated nearby Russian suppliers by aligning with U.S. sanctions, causing its economy and currency to suffer.

Japanese leadership is trapped in an ideological confrontation that sacrifices the country's economic future for the sake of the American empire.

The Kuril Islands dispute persists because the U.S. blocked a 1950s Soviet-Japanese agreement to return two islands, and Russia now constitutionally refuses to cede them due to their strategic value for submarine patrols.

The U.S. is sacrificing its European and Japanese vassals by moving them to the front lines to absorb damage in an economic war aimed at taking down China and BRICS.

Trading nations like Germany, Japan, and Britain have sacrificed their economic futures for a U.S.-led strategy that makes no geopolitical sense for them.