Never mind fuel - that's just for starters! Fuel was the opening act, the overture if you like. We start with fuel, but then comes everything else - get ready for food shortages. It won't be a choice of heat or food, both will be in short supply, along with everything else as well.
And when people go hungry, they start throwing things!
I've been warning about this since 1999 - debts were mounting and robust supply systems were being replaced with fragile global supplies that were all just-in-time deals. Companies everywhere stopped doing sensitivity analysis on their supply lines. If they had done so, they would have realised that the tiniest little thing could bring their factories to a shuddering halt.
That's how the movie opened.
Debt - the 2007 CDO crisis was the opening act. It set the scene. Deregulation of the banks meant that investment and speculation could be done by you friendly High Street bank - and they did. By the bucket load! But when the CDOs started to fail, the great liquidity crisis of 2008 came. And idiotic and economically illiterate politicians were conned into allowing central banks to print money by the trillions to bale their greedy arses out.
That was just the first half of act two. Enter the Bad Guys - Putin, et al. Agents for chaos. Unwittingly aided and abetted by the criminal gangs that have taken over Wall Street, The City and the tower blocks in the South of Frankfurt. Criminals that have loaded the whole world with mountains of debt that arithmetically can never be repaid. Ever!
The problem with an efficient but fragile global supply chain is that it stops working at the smallest of disruptions. It could be a virus. It could be a war. Or both. Our fragile supply systems are not designed for such shocks.
The food shortages will hit North Africa hardest - but Western inner cities will see grinding shortages as well. And governments everywhere have long since run out of options. Including the Russian government.
And cheap commodity prices deter new investment in new commodity sources, resulting in stagnant supply and eventually scarcity and higher prices. The commodity markets are notoriously boom-and-bust in nature every couple of decades as a result.
The global economy, in a blank-sheet-of-paper naïve design that disregards the complicating factors of geopolitics, basically says this: we’ll take Chinese labour, Russian and Brazilian commodities and combine them into finished products and services across the world.
We don’t need to build manufacturing and shipping facilities, because the ones we have in China will always be available. We don’t need to dig new nickel mines for the batteries for those silly milk-floats, because the mines in Russia will supply the world. Chile can supply our copper, Brazil can supply our beans, Ukraine can supply our wheat, Taiwan can supply our semiconductors, China can supply our labour - it's all good!
Until it’s not.
Russia is one of the biggest oil and gas exporters in the world. They’re also one of the biggest exporters of wheat, nickel, fertilizer, platinum, uranium, coal, aluminum, timber, iron - the list is long. And it takes several years to discover and build a new mine.
Russia invaded Ukraine for purely economic reasons - their big problem is that they got the economics of going to war completely wrong. That's what happens in a top-down system that allows for no feedback from the lower orders.
The only hope for returning to the old order is for someone to take Putin out of the back of the Kremlin and have him vanish - one way or the other. But I wouldn't hold my breath on that one! By the time the Russian people realise what is happening and what has happened already, the old world order will be gone.