Does the gas crisis affect Dutch greenhouses: No more tulips?
The increase in interest rates in Europe could no longer be used as a justification for the dollar index to its peak. After it reached a new high for the second time in over 20 years. This is primarily due to the Russian gas supply cutoff to Europe. Although it has already surpassed 80% of the fundamental value. Europe’s natural gas storage capacity has not yet achieved 95% of the safe storage volume. As a result, natural gas prices once more increased as a result of the growing inflation in Europe.
Pieter Wijnen, the owner of a greenhouse, would prefer to concentrate on cultivating vegetables. However since Russia invaded Ukraine in February, gas and power rates have taken precedence over his red and yellow bell peppers or miniature cucumbers. He added his 32 hectares greenhouse in the southern Dutch province of Limburg. It annually produces 11 million kilograms of bell peppers. Much of which is sold in German shops. In a greenhouse this big, in the winter, you need to heat it.
The Netherlands is now the second-largest exporter of agricultural goods in the world, behind the United States. However, the $7.9 billion gas industry, which was built on cheap gas, is currently experiencing a crisis. It may expedite the transition to new energy sources. It may cause many enterprises to fail. As a result of Russia limiting its gas production in reaction to Western sanctions over its invasion of Ukraine. Gas prices in Europe have increased 20 times since last year. According to the business association Glastuinbouw Nederland, up to 40% of its 3,000 members are struggling financially. This could result in fewer out-of-season fruits, vegetables, and flowers in European stores and a shift in production to warmer nations.
Gas Crisis: Worldwide effects
After extensive data analysis, it is also because of this that the eurozone has been in a panic over winter energy prices it is evident that the majority of USDT users and the majority of BTC and ETH buyers are in the European time zone, maybe even being Europeans themselves. But can risk markets be financed when Europe is facing a severe energy crisis and needs to prepare for the coming winter? Although it is unknown, the figures from Monday, which already show the U.S. celebrating Labor Day, suggest that Europe isn’t. Although it is slightly higher than on weekends, the purchasing power of the USDT conversion is still not what it would be on an average weekday.
The outlook for the U.S. bond market is not good, particularly because short-term U.S. bond yields have been on the rise over the past two weeks. This demonstrates that a significant amount of money is exiting the U.S. short-term bond market. The medium- and long-term U.S. bonds are showing signs of improvement, but from the standpoint of the colonial interest rate, they are still in a strong position. This further demonstrates that investors do not have a positive outlook on the next American economic trend. Cash becomes the best investment option as the dollar index increases.
