2015-11-09

This Isn't A Depression, It's Our Green Policies!

A joke I had was that when the recession hit China, a good byproduct would be clean air and the government could claim success with environmental policies. Now it is reality.

Bloomberg: Global Coal Consumption Heads for Biggest Decline in History
Coal consumption is poised for its biggest decline in history, driven by China’s battle against pollution, economic reforms and its efforts to promote renewable energy.

...“The coal industry likes to point to China adding a new coal-fired power plant every week as evidence that coal demand will pick up in the future, but the reality on the ground is rather different,” according to the report. “Capacity utilization of the plants has been plummeting. China is now adding one idle coal-fired power plant per week.”
This is probably the best evidence that China's economy is not growing as fast as believed. Economic growth is energy intensive, especially the growth in developing economies.

Green energy policies are not designed to create more energy, they are designed to slow economic growth. If you're a bull on the global economy, start buying up coal mines (or advanced nuclear technology) because the squeeze in energy will cause a spike in prices similar to the one that ended in 2008, but it will go on longer until the coal mines and power plants can be built. The public will be screaming for cheap energy and there will be tons of cheap energy right there for the taking.

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