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FOX Business’s Stuart Varney says “another damaging downgrade is possible” as America’s financial reputation takes a hit.
“Varney & Cie.” Host Stuart Varney discusses the devastating impact energy inflation has on Americans’ 401 (k) as Europe falls victim to renewable energy failure.
STUART VARNEY: Your 401 (k) takes a hit this morning. Let’s not play the blame game here. Let’s just see why your equity investments are losing value …
First, inflation, energy price inflation in particular. It’s true: gas prices are the highest since 2014.
Oil is very close to $ 80 a barrel: we haven’t seen that in years.
And natural gas, well above $ 6 today and rising rapidly. It costs a lot more to drive your car, heat your home, and for utilities to generate electricity.
WHY A 401 (K) ISN’T THE WONDERFUL SAVING TOOL YOU THINK IT IS
It’s not just us. It’s global. All over the world, energy prices are skyrocketing. Natural gas in China costs the equivalent of almost $ 30. In Europe, it’s around $ 25. It’s so expensive that some European fertilizer companies are reducing their production! It will be interesting to see what happens at the United Nations Climate Summit, which begins on November 1.
The energy price crisis is partly due to the failure of renewables: the wind did not blow in Europe this summer! How are they going to explain this brave new green world that is really not working!
ENERGY PRICES HAVE TAKEN INFLATION IN EUROPE TO THE HIGHEST SINCE 2008
Another problem for the market is the threat of downgrading of the debt rating. It happened in 2011: our financial reputation took a hit. And so are the markets.
We now have the same political chaos regarding the debt ceiling that we had back then. Another damaging derating is possible.
But what really worries me is a cold winter. Because that would really trigger energy price inflation, which is bad enough.
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