Powell/Economy

[MU Fan in Connecticut]

What about working on the supply side instead? Granted, the Fed can't really do that.

The supply side has fixed itself.  International price of metals have significantly dropped the last 6 months.  Gas and oil has finally obviously dropped the last 2 months.

The international container issue is greatly improved.  They show up for pickup now when you make a reservation and no more boat delays.

[Uncle Rico]

if you want to get inflation under control, we've got to get our energy costs under control.  europe and great Britain are a mess while russia is laughing all the way to the bank.  europes energy costs are going nuts! the german people are scrambling for fire wood and the polish are standing in line for coal. they are punishing their own people mandating they curtail their own energy use with limitations on thermostat A/C settings to 27 degrees celsius (80 F)  i doubt the "leaders" are following their own rules-gasp!

      green energy is the path to poverty; it is unsustainable and not near ready to supply the worlds needs.  if we were serious about "climate change" the first thing they would outlaw would be private jets...cue in the laugh track

My energy bill has been lower every month this year. 

[The Sultan]

if you want to get inflation under control, we've got to get our energy costs under control.  europe and great Britain are a mess while russia is laughing all the way to the bank.  europes energy costs are going nuts! the german people are scrambling for fire wood and the polish are standing in line for coal. they are punishing their own people mandating they curtail their own energy use with limitations on thermostat A/C settings to 27 degrees celsius (80 F)  i doubt the "leaders" are following their own rules-gasp!

      green energy is the path to poverty; it is unsustainable and not near ready to supply the worlds needs.  if we were serious about "climate change" the first thing they would outlaw would be private jets...cue in the laugh track

Uh....

The reason for the high energy prices in Europe is because they have become too dependent on fossil fuels from Russia. Since they don't have their own reserves of oil and gas, an investment into renewables and nuclear would lead to less dependence on Russia for energy.

You are correct that renewables can't yet meet all energy demands. But nuclear is a legit option that has been ignored for too long.

[rocket surgeon]

Uh....

The reason for the high energy prices in Europe is because they have become too dependent on fossil fuels from Russia. Since they don't have their own reserves of oil and gas, an investment into renewables and nuclear would lead to less dependence on Russia for energy.

You are correct that renewables can't yet meet all energy demands. But nuclear is a legit option that has been ignored for too long.

  you are right about all of this-

     someone warned europe, especially germany about their dependence on russia (pipeline) natural gas and they laughed at him

     green energy-my poor choice of wording-yes renewable, but not sustainable.  we are far from the level of it being able to supply to our needs.  why can't we come to some agreement on a combination of fossil fuels and green energy as opposed to all or nothing-follow the money.  however, green is far from as green as they like to tell you


  i guess if reeko's bills are lower, no problems exist.  my water bill in az has been low as well.

    yes yes yes to nuclear

[tower912]

That is what we are doing now.  Still using a combination of fossil fuels and renewables as we work to transition to renewables.     Many places have hydroelectric in the mix, too.   A diminishing option in the Southwest.    Get a 5 mile x 5 mile waste area, set up a solar farm, and supply the SW with power.

Also, with the rapidly changing and improving battery technology, soon the whole 'what do you do if it rains' argument will be moot.

Keep sciencing.   This is an amazing economic opportunity.

[Uncle Rico]

  you are right about all of this-

     someone warned europe, especially germany about their dependence on russia (pipeline) natural gas and they laughed at him

     green energy-my poor choice of wording-yes renewable, but not sustainable.  we are far from the level of it being able to supply to our needs.  why can't we come to some agreement on a combination of fossil fuels and green energy as opposed to all or nothing-follow the money.  however, green is far from as green as they like to tell you


  i guess if reeko's bills are lower, no problems exist.  my water bill in az has been low as well.

    yes yes yes to nuclear

I won't run out of energy resources.  Arizona will run out of water along with the rest of the southwest. 

[tower912]

Eventually, the bullet will have to get bit, the money will have to be spent, and desalinization on a huge scale is going to happen.

[TSmith34, Inc.]

Eventually, the bullet will have to get bit, the money will have to be spent, and desalinization on a huge scale is going to happen.

Crossover to the investing thread: ERII

[The Sultan]

  you are right about all of this-

     someone warned europe, especially germany about their dependence on russia (pipeline) natural gas and they laughed at him

It's actually been an American concern for years and under multiple administrations.

https://www.reuters.com/article/us-usa-eu-summit/obama-tells-eu-to-do-more-to-cut-reliance-on-russian-gas-idUSBREA2P0W220140326

https://www.washingtonpost.com/world/2018/09/25/trump-accused-germany-becoming-totally-dependent-russian-energy-un-germans-just-smirked/

https://www.wsj.com/articles/SB121867961126739479

https://www.bloomberg.com/news/articles/2014-06-15/hillary-clinton-says-europe-is-too-dependent-on-russian-gas

[MuggsyB]

It's actually been an American concern for years and under multiple administrations.

https://www.reuters.com/article/us-usa-eu-summit/obama-tells-eu-to-do-more-to-cut-reliance-on-russian-gas-idUSBREA2P0W220140326

https://www.washingtonpost.com/world/2018/09/25/trump-accused-germany-becoming-totally-dependent-russian-energy-un-germans-just-smirked/

https://www.wsj.com/articles/SB121867961126739479

https://www.bloomberg.com/news/articles/2014-06-15/hillary-clinton-says-europe-is-too-dependent-on-russian-gas

Russia is making considerably more $ from oil now btw than they were before these "most crippling sanctions ever" and after the West "cut him off.  They are swimming in cash.  Now maybe that changes down the road with their need for Western software or what have you but right now they are raking in coin.

[tower912]

Russia has enough allies to soften the blow of European/NATO sanctions gor a while.   Sadly.

[JWags85]

You are correct that renewables can't yet meet all energy demands. But nuclear is a legit option that has been ignored for too long.

One of the most baffling things in the whole energy debate.  The only thing I can figure is there is not enough money to counter the fossil fuel vs green energy lobbies

[Uncle Rico]

One of the most baffling things in the whole energy debate.  The only thing I can figure is there is not enough money to counter the fossil fuel vs green energy lobbies

Ding, ding, ding

[The Sultan]

I think it's also about how regulated the entire industry has become after Three Mile Island and Fukushima.  But until renewables become a more reliant energy source, nuclear is the best way to go if countries don't want to become dependent on fossil fuels - for either environmental or security reasons.

[Pakuni]

One of the most baffling things in the whole energy debate.  The only thing I can figure is there is not enough money to counter the fossil fuel vs green energy lobbies

It mostly comes down to a cost-benefit analysis from the energy sector.
These numbers are slightly dated, but a study from 2014 found that constructing a nuclear reactor costs $5,366 for every kilowatt of capacity. A gas-powered generator cost $912 per kilowatt.
With gas prices relatively cheap for most of the past 30 years, it made little sense for power companies to invest upwards of $5 billion in a nuclear plant - not to mention dealing with the political implications - when they could build more gas- and coal-powered plants for a fraction of the cost.

[Jay Bee]

The supply side has fixed itself.

Wat

[jesmu84]

It mostly comes down to a cost-benefit analysis from the energy sector.
These numbers are slightly dated, but a study from 2014 found that constructing a nuclear reactor costs $5,366 for every kilowatt of capacity. A gas-powered generator cost $912 per kilowatt.
With gas prices relatively cheap for most of the past 30 years, it made little sense for power companies to invest upwards of $5 billion in a nuclear plant - not to mention dealing with the political implications - when they could build more gas- and coal-powered plants for a fraction of the cost.

Sounds like a good place for carbon taxes to be used

[jesmu84]

The supply side has fixed itself.  International price of metals have significantly dropped the last 6 months.  Gas and oil has finally obviously dropped the last 2 months.

The international container issue is greatly improved.  They show up for pickup now when you make a reservation and no more boat delays.

I was at the car dealership for maintenance this weekend. They had 20-40 new cars on the lot instead of the usual 200.

I don't think supply chains have caught up across the board

[ATL MU Warrior]

I was at the car dealership for maintenance this weekend. They had 20-40 new cars on the lot instead of the usual 200.

I don't think supply chains have caught up across the board

This is true, but the days of dealerships carrying that much inventory are likely gone for good. 

[JWags85]

Sounds like a good place for carbon taxes to be used

I remain suspect until there is more clarity on carbon taxes.  Cause while I support green energy initiatives and pushes for renewable energy, carbon taxes and carbon credits seems like the Wild Wild West with tons of scammers and lack of transparency.

[real chili 83]

Biomass.  Like what King County is considering.

[MU82]

Russia is making considerably more $ from oil now btw than they were before these "most crippling sanctions ever" and after the West "cut him off.  They are swimming in cash.  Now maybe that changes down the road with their need for Western software or what have you but right now they are raking in coin.

There's only so much sanctions can do, especially when it's one country leading those sanctions but the rest of the world has their own needs.

There are always unfortunate consequences from actions like these. For example, take the "easy to win" trade war that the previous administration launched against China. Not only didn't we win it, but the trade war hurt American farmers so badly that a new welfare program had to be created to help support them.

What would you have done differently in this case? Bomb Russia? Send in U.S. troops? Ignore Russia's aggression?

[tower912]

Biomass.  Like what King County is considering.

I did not realize bio is Catholic.

[jesmu84]

This is true, but the days of dealerships carrying that much inventory are likely gone for good.

This is likely true.

But it's one example of, I'm guessing, many that demonstrate supply chains haven't caught up.

[jesmu84]

I remain suspect until there is more clarity on carbon taxes.  Cause while I support green energy initiatives and pushes for renewable energy, carbon taxes and carbon credits seems like the Wild Wild West with tons of scammers and lack of transparency.

Skepticism is warranted whenever it comes to a new tax or program. As we're all well aware, anything that major from the government will have been written/manipulated by industry