By Victor Sperandeo with the Curmudgeon
Energy prices have been rising at an outstanding pace this year (+63.4% as of 10/8/21). Of course, this is logical since in his first week in office, the Biden Administration canceled the XL Pipeline and federal leases for exploring and developing natural gas. The reason that was stated was “Climate Change” which is an existential threat to the world...(?) “White House Downplays Rising Energy Prices, says “Climate Crisis” Is More Important” | The Daily Caller. “Certainly, we all want to keep gasoline prices low, but the threat of the crisis — “the climate crisis” — certainly can’t wait any longer,” White House press secretary Jen Psaki told reporters Wednesday. https://dailycaller.com/2021/10/07/white-house-climate-change-energy-prices-jen-psaki-joe-biden/ Glad they told us it was a crisis.
The prediction for the end of the world has been made for over 30 years... e.g. “U.N. Predicts Disaster if Global Warming Not Checked,” Peter James Spielmann, June 29, 1989“ | Energy Central https://energycentral.com/c/cp/un-predicts-disaster-if-global-warming-not-checked-peter-james-spielmann-june-29
It is an impossible prediction to make, even if you believe that man causes climate change, (which it does not). The “Climate” is NOT about the weather. It is about the atmospheric conditions for a large geographical area for a minimum of 14 years, usually 30 years. “The classical period is 3 decades, as defined by the World Meteorological Organization (WMO). These quantities are most often surface variables such as temperature, precipitation, and wind. Climate, in a wider sense is the state, including a statistical description of the climate system.”
For example: Antarctic will be very cold, while the Sahara Desert is very warm. If it rains in the Sahara, and it is above 32°F for one day or a week in the Antarctic, it is not climate change, just the weather, which always varies for many reasons.
The reasons for climate change are basically to raise fossil fuel prices and attach a tax to it that the bulk of the population (the middle class) will have to pay. But what you rarely hear is the quantity of CO2 (Gas) in the atmosphere, which is the claim of causing “Global Warming”. When Gina McCarthy, Administrator of the EPA from 2013 -2017, was asked at a hearing if she knew the quantity of CO2 gas in the atmosphere, she did not answer. It is 0.038%, let’s say four hundreds of 1%! It was 0.028% in 1800 (https://www.sealevel.info/co2.html) so it has risen about 0.012% in 220 years. So, the Green New Deal is supposed to drive CO2 emissions to “zero” by 2050 because 0.04% of CO2 controls the world atmosphere to the point of annihilation? The other gas of concern is Methane, which comes from cows — and due to GLOBAL WARMING we are told to not eat meat! The amount of Methane gas in the atmosphere is a trace 0.00017%! That’s 2 ten thousands of one % rounded. Does anyone believe that this minuscule amount of gas can affect anything? This is absurd! This seems - preposterously unreasonable, unsound, or incongruous - extremely fatuous, foolish, inane, nonsensical, or ridiculous. If this happens expect to live like The Simpson’s in the Stone Age?
Let me quote some facts on why the “Green New Deal” as designed is imbecilic. Under current technology, a 747 can go 90 miles on batteries powered by “Green Energy” i.e., solar and wind. So, a conclusion is - the end of airline travel. This data is from a “maven” in the energy business and who is an oil analyst... Rob West, Founder of Thunder Said Energy.
No one I have ever seen/met in my 56 years of Wall St. knows more about energy than Rob West. Currently, according to Mr. West, the world consumes 63,000 “terawatt hours” (TWH) of energy a year. It is headed to 120 thousand terawatt hours in 2050. A terawatt-hour is a unit of energy equal to outputting one trillion watts for one hour. It is equal to 3.6x1015 Joules. This value is large enough to express annual electricity generation for entire countries and is often used when describing major energy production or consumption.” Green energy (solar and wind) outputs 270 TWH hours of energy worldwide or 0.00423 amounts of energy! Please tell me - where is the sanity of our leaders?
This in other words, and according to West, means every person in third world countries uses 3 barrels of oil a year for 6.5 billion people, and in the developed world nations, 1.3 billion people use 13 barrels each annually. So, to speak of “zero” use of fossil fuels in 30 years is beyond lunacy. It is impossible!!! Forget driving, which uses 14% of the world’s energy in a year. There are 35 categories that use over 1% of the world’s energy. Cement uses 8%; food for fertilizer uses 13%; and metals 10%. So, you’ll have mass starvation, no lights for your homes (1% of energy) much less any buildings if this were done. North Korea will look like Monaco compared to the US.
Bottom line, energy prices are going up unless the people revolt (unlikely). Thereby the price of everything is going up, as energy is used to produce almost everything, as the Gov’t continues to spend (bribe some people to vote for them), and thereby the Fed must print $$$ to buy the debt used for spending, which is inflation. It won’t be “transitional” as long as climate change and energy are the enemy of the people, and “spending” is the political answer to get elected?
As H.L Mencken so brilliantly said it: “The government consists of a gang of men exactly like you and me. They have, talking one with another, no special talent for the business of government; they have only a talent for getting and holding office. Their principal device to that end is to search out groups who pant and pine for something they can't get and to promise to give it to them. Nine times out of ten that promise is worth nothing. The tenth time is made good by looting A to satisfy B. In other words, government is a broker in pillage, and every election is sort of an advance auction sale of stolen goods.” This is the politics of why “Climate Change” is used (to obtain more taxes from the middle class, which controls inflation to a degree, and keeps most people from obtaining bourgeois status, and “Spending”, to buy votes are used as the ideological rants of the day!
Quote for the time: “Inflation and credit expansion, the preferred methods of present-day government openhandedness, do not add anything to the amount of resources available. They make some people more prosperous, but only to the extent that they make others poorer.” Ludwig Von Mises (from “Bureaucracy”)
The statements in this communication are the opinions of its author, Victor Sperandeo, and are not to be relied upon by anyone as the basis for an investment decision. Any investments made by a party in reliance thereon are made at such party’s sole risk. No guarantee of any kind is implied or possible where opinions as to past or future market conditions/events are provided. Past performance is not necessarily indicative of future results.