Professor Hoppe recently appeared on the ServusTV program Hangar-7 (Austria, July 14, 2022). From the shownotes (google auto-translate):
Talk in Hangar-7 – every Thursday on ServusTV Austria and every Friday on ServusTV Germany. Exclusive long versions and more in the ServusTV On media library: https://www.servustv.com/aktuelles/v/aa-29cffmyg91w11/
The war in Ukraine continues unabated, no gas will flow through the Baltic Sea pipeline Nord Stream 1 for at least another week, and the prices for electricity, gas and fuel are rising and rising. Anyone who is about to take their first holiday in a long time expects that it will be their last for the foreseeable future; Entrepreneurs no longer know how to keep operations going beyond the next few months; and economic researchers warn of massive social upheavals.
How threatening is the situation – and will it get really bad after the summer? How can we turn things around before the price wave completely overwhelms us? Are political interventions such as capping energy prices or even basic energy security now required, or do such measures do more harm than good? Who benefits from the crisis? And do we simply need more resilience and optimism?
Moderator Michael Fleischhacker discusses this with these guests:
• Economist Hans-Hermann Hoppe
• Poverty counselor Daniela Brodesser
• Economist Harald Oberhofer
• Entrepreneur Erich Windisch
• Survival expert Martin Mollay
Long version; short version on Youtube:
The auto-generated transcript (in German) is below, along with a google auto-translate in English (raw versions, unedited)
English transcript (from Google translate):
you have to pay attention too
those judge the for it
are responsible
that’s a monstrosity
the person who has this very bad situation
brought about us now prompt
you have to tighten your belt
shouldn’t raise the temperature
etc. the rulers themselves take care of it
about such things not even the
have all deputies in germany
just got a raise
approved given how about it
so if they were a role model for
the survey you can but year olds
cut their salaries in half
reduce eg the lives in Sau and
bluster and demand of the poor people
the 17 degrees that’s enough for
below for you
impression must be exerted on
those responsible for it
also on the European central bank
is nothing but a counterfeiter
institute money is being printed like crazy
as if you can make a country richer
by having more paper money
manufactures they have already mentioned the
politics you said it so di
demand for us things that they themselves
don’t do it, so you talk too
about relief package like you already
seem to have hinted at one thing
however, to agree is that
what he raised he addressed that
namely the citizens now also in terms
save and so on more into the
be taken on duty let’s see that
greater
shower instead of bath less heat and
always put a lid on when cooking
topf these are the tips from the
ministry of energy to the current
to cope with the energy crisis
remains open whether the citizens soon even
by law to save energy
are not committed at the moment
declared economics minister martin
kocher recently but his German
office colleague robert habeck is already
one step further and includes
such a law is not decided
for the time being the citizens should anyway
sweating in solidarity in the middle of a
the biggest heat waves of the year are calling
the policy towards the air conditioners
throttle and shower is cold first
In any case, cooperatives ration
already the hot water
[Music]
bans how are you doing on the we the
energy minister advises you on them
Shouldn’t the lid be on when you’re cooking?
give pot
honestly so for that only calls
but I have large population
simply feels in the intelligence
insults everyone who leads to the household
what motto put the lid on the water
boil up times sport the motion works and
ten import of sets these are things that
are of course that need
for this do not need minister or
minister helped with this
and I care
that of course a waste of energy
topic it is a huge topic and that
you have to learn to deal with it and
treat energy resources sparingly
must absolutely no topic
but you can’t do that with them
start he already have nothing more
with the people who are now at the limit
looked at the financial limit
the consumer nothing the question is yes
to ask what’s in there, sir
windy so you can see
probably also as an entrepreneur
you are always cost-conscious, especially when
none of your own or you have to
cost awareness if you can like them
the press have not already mentioned it
the sausage is in there
do you have the impression that somehow there
there is still room for manoeuvre, that’s how it is for us
that you already can i through for
ordinariness with energy crisis or
an energy crisis so i take a warm shower
and then it gets cold I always have
already done so is very pleasant can
just recommend
but I see very little
savings potential with us and what they
mrs g westerners are segregated from it
very expendable it really is one
insult for for for many people
people to recommend the window and
do not want to seal doors now
know what a 75 year old lady im
15 district in vienna in an old building like
she is supposed to do it because it
there are also no craftsmen who do that
would make and that one the cover
on the head makes so that’s too
no new insight yes, that’s how it is
things where i say okay we have to now
look that one assets we
now not urgently need sell
I can’t do certain jobs
occupied and an employee of
we can’t drive to work
do more because the fuel is too expensive
so also these things the so
I don’t see much potential anymore
europe wise it is so that the
that the appeals of politics to strong in
direction save go we had before
a colleague of strache here recently
first said when saving energy
and in avoiding consumption
still a lot in it how do you estimate
the one what you can through so
austerity frantically on the cooking pot
is what else you can bring in there
we ultimately you could say off
it is an economic logic
just really important so they say
demand to lower if it’s these these
angebots crisis because otherwise it will be
do not change anything in the prices
that is actually the point and before
especially in the energy sector who will die
demand in the now in the present time
after after electricity by around 15 percent
lower that’s an insane amount that
sure, then we wouldn’t need one
gas works more and then the price would be
immediately today significantly lower the
there are already first potentials
investigations so the price has
naturally an effect in Germany
have the households
since
energy price explosion around nine percent
energy saved one gas saved
and the industry about eleven percent
it’s not like that now
happened
I see it that way too
people act rationally and that
is
surely the vast majority
anyway does when the market is so high
prices call that everything you wear
efficiency gains
also makes possible
sure presents itself from
even naturally little prices rise
then you save more
state subsidized if I say
yes times like that in Germany like
say i will make sure the
fuel prices then that you continue
comparison can consume a lot because
I put that on top then it will settle down
yes then the demand will not
parry I wanted to ask or
do you have the impression that the
many training sessions you have the impression
that we are still too naive they have it
previously called blue-eyed live believe
they just say that kind of
lifestyle change now displayed
however, will not reach everyone
and yes, I am firmly convinced of that
of which one is made over 20 years
survival training and i track yes
also the development in this way
we are also more and more suited to people
lose touch with life itself and
always a bit more on the
put your head in the sand then comes the
big crisis then take a quick look
up and came she disappears again
is already disappearing over this one
vigilance is mindfulness and then
you forget them again
resolutions that were made at the time
this will definitely not happen again
I think either has to
suffering become so great that the
man has no other choice
because he’s really in the scenario
happens or it happens again
us from the front
but what is happening in Germany right now
then you learn again with the
resources
handles carefully so we want to
that people are better off
so that one from the front we must
just save just save just more
save no we have to make sure that
one continues to raise the standard of living
and must eliminate the sources
contribute to ensure that the living
instead of the standard of living just field me
I also want to say something very briefly
trump’s statement is fine
dependency on russia is one thing
trump would like to replace that with
dependency on america america is the
great beneficiary of the whole created the
whole thing not just buy
we now euro expensive gas and expensive oil
from america instead of from russia where it
it was cheaper they weren’t that
they weren’t an absurd relationship
we to russia had the goods
economically viable facilities
that one had and russia was one
more reliable
supplier of things they have theirs
the contracts could be kept
then no longer comply with contracts than
one in all the russians could in
europe has frozen that one now
upgrades throughout europe and also for
money wasted on something what yes
is actually not productive and the
you buy all guns from america
america is the big beneficiary
europe is the big loser and the
biggest loser in europe
Germany
Although also just bought and also there
I think that’s a strategy
but i want a hook where to go
because then namely if I get them right
understand then it is your requirement
together tell the people they should
not save and the standard of living
limit but ensures that
the standard of living on the level
can stay that means it wouldn’t work
about saving alternative sources
search but they think that these
energy crisis and with it the
price increase ski aces to be solved
can by simply having the penalties
against russia also ensures that yes
of course we say
that which cannot be lifted lies
also only at the forbidden ones in america
against the yes the vassal states
The ones you have in Europe want that
not these modules also because I see one
intention that he is the only one
block in europe it is thanks a
counterweight against the superiority of
Anglo-Saxon world could be is
a close cooperation between
germany and russia that it always
already been like that and what the americans
have achieved is exactly that on
has been destroyed forever that is
now it’s more like oberhofer too
people who now not so much that
as a very targeted strategy the american and the idea that the
Europeans actually over willing
vicarious agent of an american
strategy are but also others like
eg the President of the Chamber of Commerce
say if a political measure like
these sanctions after some now
months obviously not the effect
has scored this should score and
actually if you look at it now after the
you might look at three months
could say the imposition of this
measure namely the Europeans are
hit harder economically than that
than those against whom it was directed
namely the Russians there is not one
time to think about it
was really meant to the end
from my point of view it has a few
aspects of the first time I believe that
That should have been clear from the start
economic sanctions only economic
can work and that also takes time
and if a political regime is willing
is the prosperity of your own
population
to reduce because you absolutely have one
wants to lead aggressive war and the
want to pull through
until you get some obscure goals
then that’s natural
difficult the economic sanctions
change something politically if we but
look at the economic data and there
is there a current one
analysis of the world bank for development
of the russian economy in 2022
currently assumes that the
russian economy by eleven percent
the inflation rate will shrink in
Russia will affect 22 percent that
it both economically much more severe
as it now affects us or the usa
concerns so it’s not like that the
become ineffective
what what but of course the point
is if it
if the if to the russian president
the russian population and there the
middle class and there the low one
income earners are completely irrelevant
then that’s just the problem that we
with a with an autocratic
system here in competition are the das
probably relatively long times
in the event that you longer also that that
it was also clear from the start that they wanted it
before that with the selection and question
one would ask about the sanctions
seem insensitive because the sanctions
ask me geopolitically a topic
is it they don’t answer at all
can so I have my opinion on it
but I can’t do anything about it
contribute meaningfully
I would like to return to the topic
I want to come back energy, so to speak
also thought
and and, so to speak, the topic of energy
namely, divide into what is on the exchange
placed and the exchange price so gas
the exchange price driven up
becomes by stating of of
ministers of politicians where every day
horror scenarios we have your rooms
heat halls in germany
but have and that the price in
soar when you look at the three
annual user looks from the gas look at you
the whole thing is often reasonable again
out but at least the current in
we mostly have austria
even in the hand we have 75 percent
regenerative energy ourselves
relate bio stroms to say they are
80 percent hydropower that we use ourselves
the hand we have sun we have
wind
and in total it is 90 90 95 percent
the rest is biomass and there is now
the question when you yourself in the hand
have like it since the pricing for
the population there I wanted to briefly
economists still offer oberhofer if
now to the concrete measures against
these explode energy prices and
thus also the main driver of the
talk inflation then you have to
maybe sometime before
explain why actually not rise
only the gas prices that are just for everyone
is delivered less and with it
supply bottleneck but also the
electricity prices where we, for example, in
austria this high hydropower
our renewable energy share
to have is that famous merit
order principle that leads to us
if there have been yes the cost of that
water power generation not at all
increases but the prices for the
storm had increased the total
but common sense will do
determines what is not so the result
that the price of electricity traded on the exchange
actually arises from this
so-called merit order which says am
start feeding into the power grid
have the lowest production costs
that prefers wind energy, for example
if there’s wind, that’s guaranteed
wind energy producers certainly do
your offer can be sold if
angle the same applies to sun das
the same applies to the cost structure
similar for water that would otherwise
also apply to nuclear power is a
subject that cannot be discussed
but in principle the production costs
are then relatively low and
it just goes in this order
who is the cheapest producer and
next cheapest and who can
make offers and the problem that
we currently have it just that we don’t
100 percent on the market with these
cheap sources of energy the
himself not have changed get along
but that the residual energy through
thermal power plants that operate on gas
are made available on the market
that has to be and then there is that
market price and is based on
the most expensive provider of the last
offer provides why is that that has
now two reasons one is the
electricity market is a sensitive market in
the sense that we something like
security of supply and grid stability
need that is when we say okay
we’ll just rule that out now then
do we get power outages somewhere and
then we have the third topic, that
always interesting at the moment
that these are the blackouts and such
continue that’s a risk that you
can enter if you say you want to
the now brand new everything in the
rethink pricing but you have to
take into account that it then this
risk gives the second aspect why one
that has made is an explicit
more environmentally friendly because
especially the renewable energies these
have low production costs
and now but the price we get that
gas works is the margin for this
undertake higher and that should
company in the market
motivate more in this area
invest but where the profits go
profits go to the municipalities in the
countries and the federal government and if now
hydroelectric power for the production of a
kilowatt hours I’ll say any
house digit 2 cent needed and now 35
cent available that means one
margin of 33 cents per kilowatt hour
yes something wrong that would be
so as an example is not mine
our restaurant manager
if we prosecco at the price of
champagne sold
and yes that is not going to be the current
always the same the current is you
of course that even if they use green electricity
if you have an offer then you get it
nuclear power is also imported, of course
must become someday i am more absolute
them was as a consumer than as as
end user is the effect
simply because we can do the academic
by just discussing how is that
well aware that the background
that is that you use regenerative energies
so want to promote only in the present
situation I am of the opinion that
this principle should be guaranteed
that with more or excuse merit
or should be on leave white
is simply a huge price driver and
people who are already at risk of poverty
are even more in poverty what can
whether there is an increase in poverty
but the middle class the middle class
this foundation this this depth
republic completely undermines yes so am
I said I have a bridge and I
have a center pillar and the
significant middle class then happened
currently that the foundation complete
is undermined by politics
of 54 and the water, so to speak
social phenomena are those
whole only washed out and the bridge
but eventually breaks down
and then you should be exactly where you what
they also announce that we are really there
social severe social upheaval
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German transcript (auto-generated by Youtube):
