The wind of madness blows on our future prosperity
27 Jan 2009 [2 Comments | 328 views]
If you were to ask people for a word to explain the collective errors that caused the economic crisis today, then it seems most would spit out the word made up of the five letters beginning with ‘G’, ending with a ‘D’, and which has an ‘R’ and two ‘Es’ in the middle. But it sometime seems to us that a slightly longer word would be more apt: madness. Surely only madness can explain how markets, governments, banks and the general public repeated the errors seen so often in the past.
But, here is another piece of madness for you.
You may have heard, there is this thing called a credit crunch, and to deal with it governments everywhere, and in particular in London, have come up with this idea of spending.
Spend, spend, spend. This is the mantra of today’s world. Before the credit crunch it was us, you and me, and the bloke next door. We spent too much, and saved too little. And now we have run out of puff, the government has taken on the baton.
And yet, while all around sparkling new money is being spent by the government, the one area where such spending can be justified is being starved of the cash it needs.
It beggars belief . But it is true, nonetheless.
Climate change: it’s time to tax and give back, then save world
15 Dec 2008 [0 Comments | 173 views]
Last week the issue of Kyoto, cap-and-trade and what we do about cutting back on carbon emissions was on the agenda.
It is bad timing of course. Who cares about saving the world for the next generation, when the world needs saving for this one? (If only it was as simple as just saving the cheerleader.)
It is just that while climate change may not be topic of the moment, it seems some people do still care. But there is a problem. We are looking at the wrong cure. While the world focuses on the credit crunch, there is a risk that as our eyes turn away from the ball, we will all get hoodwinked into the wrong move.
Wind power: hot air, or can we sail to victory over climate change and expensive oil?
26 Jun 2008 [0 Comments | 230 views]
Wind is in the news this morning, with the government due to announce renewable energy plans. Is wind a partial answer, or just hot air? There is so much contradictory evidence out there, it is difficult to decide. Yet few questions are more important. In this article we drill down to the key issues.
When Christopher Columbus, that's the sailor, not the film director, set out in 1492, he not only discovered the Americas, he also provided a lesson on how we can slash the cost of travel and go some way at least to winning the war against the terror of climate change.
Think about how he got there. He sailed, under
McCain announces solution to energy problem
24 Jun 2008 [0 Comments | 132 views]
As the price of oil continues to occupy gravity defying heights, talk turns to cars run on electricity. But there is a snag with these cars; batteries are heavy, and heavy means inefficient cars.
Fret not, US presidential hopeful John McCain has come to the rescue. He is proposing a $300 million prize to anyone who can develop "a battery package that has the size, capacity, cost and power to leapfrog the commercially available plug-in hybrids or electric cars."
Mr McCain
Oil crisis the search is on for alternatives, maybe hydrogen and algae have the answer
17 Jun 2008 [1 Comment | 145 views]
Oil touched $140 a barrel yesterday, and still the debate roars on: is it a bubble or is expensive oil here to stay.
We have argued that, actually, neither is right. Sure, the way oil has soared in recent years does feel bubble-ish, but there is no doubt that the fundamental reason for expensive oil is demand outstripping supply.
We have argued though, that just like in the housing market, when something is so expensive that people struggle to be able to afford it, it will fall in price eventually.
It is like that now. Then again, our spending on oil as a percentage of GDP was higher in the 1970s it would need to close in on $200 before we reached a comparable percentage today.
Even so, evidence is mounting that consumers are reining in on their journeys. In the automobile world demand for fuel efficient cars is on the rise.
The subsidies imposed on oil in some Asian countries are distorting the markets but remember, subsidies come with a price. Governments have to find the money to fund subsidies and this money will usually come from taxes. The longer oil stays above $100, the more likely it is these subsidies will fall. They key of course is China, although a cut in subsidies is unlikely this side of the Olympics. An appreciating yuan will make oil cheaper in terms of China's currency so this will probably help support demand too.
But then there is another side of the equation.
While demand falls, in most parts of the world, the hunt is on for new sources of supply.
In
Can the Sun provide our pension?
3 Jun 2008 [0 Comments | 135 views]
There was a time when the British public's favourite topic of conversation was the weather. That was in the days before TV programmes like Location, Location, Location, when people bought properties to live in, and speculation was the preserve of city types.
Yet maybe our pre-occupation with the weather tells an economic story, too. Because, lets face it, the weather in Blighty can be downright awful – it is chucking it down with rain as these words are typed.
But where there is weather, there is energy – and when oil is priced at current levels we need other sources of energy.
Now independent consultancy Element Energy has released a report suggesting the UK could generate the equivalent of five nuclear power stations' worth of energy, through installing energy generating devices in homes spread across the land.
The rising cost of food, who is to blame?
14 May 2008 [1 Comment | 149 views]
Be in no doubt, there is one overriding reason why food has shot up so high in price. It’s down to food subsidies. And perhaps even more seriously, biofuel subsidies. These subsidies are hugely damaging in so many ways. The cost to the taxpayer is astronomical, they distort markets, but most seriously of all they [...]
Wind power hits the windbreak
9 May 2008 [1 Comment | 162 views]
With oil right up in price, and with bio-fuels proving so controversial, the case for exploring alternative forms of energy is obvious – and at face value, few must seem more appealing than wind power. Yet actually, wind power is a hugely controversial topic – and now its very viability is coming under threat, thanks to the soaring price of commodities.
Wind farm; not here thank you
22 Apr 2008 [0 Comments | 125 views]
Wind farms are a good idea, but not here thank you. It was going to be Britain’s biggest land-based wind farm 181 wind turbines on the island of Lewis in the Hebrides. But yesterday, the Scottish Government said “No”. It was worried about the adverse effect on the wildlife in the region, where the air [...]
The other crisis: soaring food prices and seven lost years
14 Apr 2008 [5 Comments | 578 views]
Wheat prices are up 181 per cent in three years. Rice has risen by 70 per cent over the last year, and it is hurting. Sure, it is hurting in the developed world, where rising food prices are creating inflationary pressures; it is hurting in Italy, which saw a one-day pasta strike last year; but in other parts of the world, it is really hurting.
Back in 1798 , the economist Thomas Malthus published one of the most important and controversial, and possibly the most-debated, theories in the history of economic thought. He argued that any technological advances and the benefits they bring lead to a rise in population, so that that the benefits from that advance are cancelled out by the rising population. In other words, the human race can expect to always exist at subsistence levels.
