#energy

🚨THE ENERGY SHOCK COULD TURN INTO A FISCAL PROBLEM

Governments are shielding consumers from soaring energy costs they can't afford with money they don't have.

- China, Hungary and Japan have capped prices at the gas pump.

- Georgia suspended its 33¢/gallon gas tax.

- The UK to help shoulder heating fuel bills.

- New Zealand is sending $120/month to households.

The problem: Global public debt hit $100 TRILLION before the war started.

Interest rates are far higher than during COVID or the 2022 energy crisis.

Every fiscal intervention now comes at a much steeper cost.

"This idea that whenever there's a shock we'll issue more debt has been policy for 25 years. The trade-offs are more stark now." — Kenneth Rogoff, Harvard

The longer the Persian Gulf crisis lasts, the deeper the fiscal hole.

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