The biggest contributor to global inflation is China no longer being the driving force behind factory production. Factory production is a deflationary force. The US with the IRA will be the global manufacturer that is driving global growth and a deflationary force.
If I misquoted anyone or used the wrong avatar, blame it on the crappiest user interface since WinDoze.
This thread is about the long term while your objection is about the short term. I remember as a kid in Budapest during WWII people scavenging wood from bombed out buildings. It was ‘illegal’ but who the hell cared?
Yes, renewables are coming and the sooner the better but not before they are viable. That’s the lesson Germany (not Russia) has taught the world, Russia just took advantage of unrealistic German Green policies.
Government might included those calculations but private buyers, individual and corporate, will look out for their own interests.
I got to hand it to Goofy, sometime he gets it absolutely right!
While selling insurance we were taught that it’s not the proximate cause but the original cause that determines the liability. Russia took advantage of a German mistake. Insurance would put the onus on the German Green policies.
True! But a word in defense of OPEC, the original OPEC.
OPEC was envisioned by a Venezuelan politician, member of a Socialist but Democratic party, to curb the abusive power of the oil companies. His solution was to create a cartel to regulate the output of oil. Years earlier it was John D. Rockefeller who was doing that job. The Trust Busters broke up Standard Oil and in the ensuing turmoil they had to bring back order to the oil market. The job was given to The Railroad Commission of Texas – America’s OPEC:
“As has been publicly reported in recent weeks, global commodity price increases, in part due to ongoing war in Ukraine, sharp and sudden increases in interest rates, prolonged supply chain constraints, and persistent inflation have significantly increased the expected cost of constructing the project. As a result, the project is no longer viable and would not be able to move forward absent amendments to the PPAs”
Of course! Typical of Big business and Government. Let’s start with a contract that neither one of us know any of the details about, let’s both go down the merry path until it’s not looking so merry anymore, then Big Business goes back to the Government with their hand out to get more government (our) funding, easement of restrictions, etc. so that we Big Business folks can make more money.
That’s business as usual in MA.
Void the original contracts by mutual agreement and restart the bidding process all over again. The demand for power did not disappear.
Very true. What has changed is the assumption of ever decreasing production costs.