12/26/08: Oil prices, Oil prices, Oil prices

I have been writing a lot about the price of oil, but only because not enough is being done to protect the health and wealth of humans and the environment. Since not enough is being proactively done we have to wait for the markets to signal investment in alternative energies. What economists are really trying to say in this scenario is that as long as oil is cheaper than wind or solar power there will always be large numbers of humans that will accept the cost to themselves and their environment for prices to be lower in the current moment.

This is an article from the "christian science monitor" commenting on how great it is that oil prices are low and expected to be low in the next year.

These two articles from "business week" are about decreased investment in a sustainable economy because of low oil prices, and this one is about Obama trying to do something governmentally about a market that is not signaling the long term costs and supplies of energy sources.

12/24/08: Environmental Economic stuff

The economist gives a good article on alternative engines and focuses on steam. It is a bit satirical but the solution to environmental degradation (in the popular media it is a.k.a. "Climate Change") needs to be as broad as possible.

The price of oil needs to be high to create large investments in alternative energies and a "sustainable" economy. But, the price of oil is low. This article shows what happens to investment in a sustainable economy when the USA goes into a depression and the price of oil is low.

The economist supplies another great article on computers and how green this whole technology thing is . The article gives some good information on how sustainable the carbon emissions of the computer world are. Currently, Computing and Telecommunications produce 2% of global emissions which is comparable to the amount that aviation emits (plane travel). The article did not specify what was being emitted by technology use, but apparently it is 2% of global emissions of all things. Pollution is not a single thing, some pollution is preferable to other pollution. So, 2% of global emissions does not mean much. But, the article is worth reading, and so is most of the economist.

12/21/08: The envionment, Obama and his appointees & our financial crisis

Obama has identified most of his environmental appointees already. If these guys can not turn as around in the environmental sector then we are hopeless. I have confidence in them because the ideas and infrastructure already exist to create a sustainable economy, we just need to do it. Mainly, we need support & money behind science. It is technology that improves our lives, not men in suits talking politics. Politicians just bicker over who gets what when and how, scientists and engineers are the ones that bring us increased productivity and comfort.

The secretary of the interior is going to be Ken Salazar. The secretary of the Interior in the Executive branch holds a lot of power over land even if the name does not quite imply it. They manage "public lands, national parks, oil and gas resources, and even the U.S. Fish & Wildlife Service and U.S. Geological Survey." This is an article by motherjones that shows what some major environmental groups thinks of the appointee. And this is an article by the NYTimes that gives some good background to who Salazar is

It will be interesting to see how many environmental issues Obama focuses on. Of course there is Climate Change. But, a deeper issue is industrial chemicals in our life. The testing for chemicals before they are allowed to be manufactured is inadequate for a couple of reasons. One of the main reasons is that chemicals are tested in isolated circumstances instead of in mixture with other chemicals that it may interact with in the world. This article explains this and focuses on men's reproductive health.

Shall we forget the crimes of Bush and Cheney. Many groups have been trying to bring Cheney to court for international and national crimes.

Our financial situation is in a strange situation. Banks borrowed a lot of money from the US government so they could still function and survive as a bank. The problem is that when they got lots of money they hoarded it instead of lending it. The other problem is that Henry Paulson, the Treasury Secretary, is not spending the $4 trillion relief money as Barny Frank intended him to as dictated in the recent bail out billC. Part of the relief money was supposed to go to the US government buying risky home-loans from banks and refinancing the loan to suit the borrower. This is not happening though, instead Paulson is charged with just protecting investors. It is important to protect the economy by creating an environment that is conducive to investment, but the economy represents the wealth of people and if the economy is not providing for the people this is when the government steps in.

12/10/08: Obama and his stimulus package

The stimulus package for the banks was based on the idea that banks needed more money so that they could lend more. This is not what happened, what happened was that banks hoarded the money to balance their sheets. This is the time when people need low interest rate loans the most and they are not getting it because the US government gave a bunch of money to bankers instead of defaulting borrowers. MotherJones gives their comment and their prescription for the economic and societal ailment we have been inflicted with.

Also, Joseph Stiglitz, a professor at Columbia and one of the great outspoken economists of our time comments on the damage in the last 8 years and what needs to be done. This is very much worth reading.

12/10/08: China and the crisis

China's economy is doing worse than anyone predicted. China was going to be the worlds anchor as it floated through this crisis, but we can not rely on China as much as we thought.

An interesting situation is emerging in China. During the last couple of decades of great economic growth China has been paying off its educated population with good paying jobs. In exchange for prosperity these college educated individuals have strayed from talking politics, but with the money disappearing can China continue to buy the tranquility of its educated?

12/9/08: Obama and Climate Change

As Obama is poised to enter office Bush is not as lame of a duck as he seems. Detainees and Guantanamo are being hurried into trial before Obama enters office.

Obama will have to deal with the financial crisis, the $4trill bailout money mostly spent, Afghanistan in poor shape and Iran is already directly telling Obama that they will continue to enrich uranium for energy and they will not stop even if he says "please."

Then, Obama will have to deal with climate change. The UN is meeting in Poland from Dec. 1-15 to negotiate the specifics of a Kyoto update that includes some very important topics of money and further cuts in CO2 emissions. And, apparently the Chairman of the United Nations Intergovernmental Panel on Climate Change during a meeting in Poland this week said that he does not support deep cuts in carbon emissions, and says that we should not jump to conclusions so fast. He is a lone voice, but heard none-the-less.

Also, according to FoxNews Iraq plans to pool resources with it's neighbors to create security in the Middle East. Fox provided a very short article with hidden suspicion.

12/8/09: Car Industry Bailout

The US Government has decided to bailout the car industry and now Congress just needs to approve (which it probably will).

We are loaning $15bill at least, creating a six member government oversight committee for the car industry, demanding fuel-efficient vehicles and emptying our government fund for fuel-efficient technologies.

12/7/08: Savings in this crisis

What is going on with savings, stocks and bonds?

This article explains a lot about banks, savings, world finance, etc. It helps to know something about the specifics of our financial crisis so we respond to the situation as intelligently as possible. The article also has links to some good articles in it about housing prices around the world and about savings and investment: what is happening and what is needed.

At this point in history if you don't talk the economic talk you are being led blindly into the future.

12/7/08: US Soldiers in Afghanistan

With the closing of the chapter of the US occupation of Iraq, focus shifts to Afghanistan. Obama wants a troop surge to fight the "good war" in Afghanistan. The war against the Taliban will be hard fought as the Taliban will continue to fight until the USA repeals its arm of control from the Middle East.

Obama does not have a total Afghanistan plan, he has advisers with conflicting beliefs and we will just have to wait and see which plans and ideas win in this issue. This would seem scary for a lot of people, they may want to see definite plans for them to agree or disagree with. But, Obama is practicing an old type of American politics. Obama is inviting debate, consideration, dissent, and as acting as the President he will choose which plan is most suitable. The question then, is: do you trust his judgment?

The UN wants to ensure that foreign troops in Afghanistan will treat the Afghan citizens with more respect and care. In the past, foreign soldiers have failed to do so, causing many civilian causalities. The UN is also calling for the Afghan people to take charge in visioning their own future.

12/4/08: Could solar be cheaper than coal soon?

For environmental economics the focus is on the cots of generating energy from coal, oil, solar, wind, and other alternative energies. Currently, coal and oil are still cheaper. Oil is currently artificially low because the price is reflecting decreased output due to decreased demand. In economics this low price is supposed to encourage people to buy more so more production can occur so more can be charged for the product. The only problem with this traditional equation is that the Long-term costs of oil production and the environmental costs are not calculated into the equation. But, remember in the end it is many governments that control the selling of oil, so just raising prices to drastically reduce demand would bankrupt many countries (Venezuala, Saudia Arabia), and low oil prices will bankrupt them too.

Solar energy in particular needs to rise to the challange. Solar energy needs to become cheaper than coal. Once solar is cheaper than coal then we can power our power stations with solar and then can use electric cars. Electric cars powered by a power system that feeds off of solar would rid us of a dependence on coal and oil.

But, we must remember the pain that comes with creative destructionism. It kills jobs, profits, industries and companies. But, our system is based off of innovation and adaption.