Showing posts with label alternative energy. Show all posts
Showing posts with label alternative energy. Show all posts

Wednesday, July 29, 2009

Commodities Futures Trading Commission about to Soil Itself

I was watching Business News Network and found myself supporting Don Coxe chairman of Coxe advisors.

The Commodities Futures Trading Commission, CFTC, wants to put a limit to the position that traders can take on the energy futures market. The market did its job, those who speculated and drove the price of oil to unsustainable values lost money, why does the Obama administration want to act like it is doing something.

I am not against big business, I am against them only when they get undue support from the government. They speculated they lost, there is no need for further regulation, the market had already regulated them out.

Speculation always collapses, that is why it is called a bubble, people think they will make money in speculation because prices are going up, people think they will go up for ever but guess what, when they are too high nobody wants the product and it will come flat on its face. Does the US government believe that they can really stop people from wanting money? Hardly possible.

Rather than blessing the market for the falling prices and self correcting, these masters of deceit come up and say the market does not work, well it just worked and you protected your buddies from the punishment the market had dished out to them. The market does not guarantee good times for ever, it clear says that if there is too much something must give.

The market worked, the CFTC should look out for crooks and not disturb innocent people. Limiting the position means if somebody is sure the price will rise, they can not hedge their bets as much as they like because somehow that is unfair. Unfair to whome one might ask.

Putting these limits and not allowing the futures market to do its job is shameful. Please do not speak of freedom when you really just want to meddle.

Bhekuzulu Khumalo

Sunday, April 6, 2008

Alternative Energy’s Time Has Come

Societies must progress, that is the basis of being human, the future demands cleaner energy, and this energy will not be delivered by a prayer, rather it will be delivered by the mind and human action. The senate for the state of Michigan has voted to make the State government increasingly use more alternative energy as a source of power. Though worried about the costs of producing alternative energy, hence they feared to force the recommendations on residents and business, this bill is an important step in the right direction. Note from the referencing source that the Bill passed through unanimously through the senate.

Alternative energy having a steady market means that there will be a steady flow of cash into the industry. This means that research can now take place effectively because there is cash without the industry having to go cap in hand to the government whenever they need research money or grants. Once there is income an industry can improve itself, that has been one of the main draw backs of alternative energy lack of substantial incomes to pay off shareholders and have income for research. Remember that the first coal powered stations were not as efficient as they are today, for simple reasons, without incomes enough research can not take place.

Progress is usually made by government intervention, the internet itself that we are finding all this information was a direct result of government intervention. The governor of Michigan, Jennifer Granholm understood that with Michigan taking an early initiative into this sector it will “ensure that Michigan becomes a regional manufacturer of wind – power components, attracting an estimated $6 billion in investment and creating thousands of jobs.

Michigan is not unique in helping this new technology, most Western countries have a policy of supporting alternative energy as well as countries like China. It is the future, but what is interesting about the legislation in Michigan is that it is in America, a country with an image portrayed that it is heavily against any sort of alternative energy legislation, not true obviously, America is one of the leaders in the technology, they will not want to miss the future, even Exxon has joined in the bandwagon giving $100 million towards alternative energy, a company that unlike other oil companies had consistently refused to have anything to do with alternative energy. $100 million might seem like peanuts next to the $40 billion profits they made last year, but it is still something, it is a lot.

The cost of alternative energy have fallen drastically and they are about to fall further as they become more and more mainstream sources of energy, this is new energy though it has been around since the s60’s, it just has not been exploited therefore it remains new. However its potential is remarkable, they say every five minutes we get enough sunlight to power the world for a day in terms of electricity consumption.

With all US presidential candidates supporting alternative energy, the industry is about to receive majors boosts in the coming years.

Where does alternative energy come from, the same place fossil fuel energy comes from, the mind. All the societies that are behind are behind for one reason, they have absolutely no respect for the mind, no matter what the excuse, the bottom line is because of little respect for the mind.

The sad fact is that we know from knowledge economics that in the long run the growth of knowledge is exponential. That means those societies that have little respect for the mind and respect patronage as a means of controlling citizens, those societies will get left further and further behind even when it seems they are moving forward.

Bhekuzulu Khumalo

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Bhekuzulu Khumalo

I write about knowledge economics, information, liberty, and freedom