If Obama becomes president, one thing is clear, we will be paying more for everything including energy and getting less of it. Brown-outs and black-outs will be common in the summer and foreclosures on homes will increase due to owners having to sell of leave because they can't afford to heat or cool their homes.
Is this a joke, maybe, but rest assured the cost of energy will go beyond anything we can imagine today - the conventional wisdom is we are in a bubble and it's only a matter of time before it bursts to bring down the price of fuel. But I believe this won't happen if the liberal socialists progressives get into total power in November.
Their strategy, the socialists, is we have to cut back on energy use - like we have to ride our bikes more, set thermostats up in the summer, back in the winter and get rid of our vans, SUV's and trucks of all sizes. Oh, and we have to eat less as the cost of food will be beyond the cost of energy. Remember it was the liberal socialist idea to convert corn into ethanol. Now corn is over $7 a bushel. Yikes. Riots over seas because of the lack of food due to corn being used for fuel.
The liberal socialist progressive agenda is, in one word, "suffer". I believe conservation is a good thing in it's self, but what the socialists have in mind is not just that we have to suffer with less energy, they want to control the populations environment by starving it. A population living on the edge is a population that can be manipulated to do the bidding of those in control of all the resources. And what better way to do this than limit the access to energy. The economy goes down hill, unemployment skyrockets and we freeze and roast in our homes - who to blame for this unfortunate situation - that damn Bush and the Republicans! But wait, there's good news in the new life.
What a great life we have now - big government, big brother, making life more secure - and if you don't like this way, they have a place for you that will change your mind. A place to help you come to grips with the new ways of life in America. You will feel much better about your self after having put aside the old worn out ways of freedom and Democracy.
What do you think global warming is all about but one of the ways to control your energy consumption and your way of life. There is no man made global warming, it's not about the environment, it's about control.
Well, sometime I get a little carried away but this scenario is not out of the question. I have always believed that everything we do or have is directly related in some way to energy consumption.
As always, stay awake, find hard scientific facts about energy and keep the faith, common sense will fight the battle!
*Brownout Stocks*
William Baldwin 06.30.08
A commodity suffers either a disruption in supply or a spike in demand. Sure to happen next: The price goes up.
Pretty simple, right? But it's way beyond the economic understanding of politicians. Their instinctive reaction to rising commodity prices is to attempt a repeal of the law of supply and demand. That is, they like rationing and price controls.
We saw this phenomenon in the gasoline lines of the 1970s, and we are about to witness it again, as electricity runs short of demand. Get ready for rolling blackouts and/or equipment-frying brownouts. The sort of electric utility disaster that descended on California in 2000 and 2001 will afflict other parts of the country in a few years, predicts energy analyst Mark Mills
In demonstrably short supply are new power plants, especially of the coal and nuclear variety. Neighbors don't want them around, so they don't get built. Hey, why not raise the price? Offer the neighbors a bribe, just big enough to get a plant built. A billion dollars might do it. Then charge that sum to ratepayers.
Alas, politicians get elected by denouncing price increases and denouncing power plants, so any kind of marketplace solution like this is not going to occur.
Do you remember what happened when the government tried to repeal the laws of economics in 1973 and 1979? If the price of gasoline needs to be $2 to make supply match demand, but the price is set at $1 by decree, drivers just pay the other dollar in an indirect way. That's how much of their time and their fuel they will burn up waiting in line with motors idling.
We'll see the same kind of waste when electric power runs short. Desperate to avoid disruptions, businesses and even homeowners will buy backup generators. These appliances are guaranteed to spew more carbon into the air than the coal plants that could have replaced them. Rather than curse the darkness, invest in government mismanagement.
There aren't any good pure-play stocks in backup power, but *Cummins (67, CMI) *and *Caterpillar (81 CAT)*, both excellent companies, have some exposure here. *Schneider Electric* *(124, SU)* and *Emerson Electric* *(57, EMR)* sell, among many other things, devices that help industrial customers cope with unreliable electric grids. Utilities may end up running their peak-power natural-gas-fired power plants around the clock, which would be good for *Anadarko Petroleum (80, APC) *and *Chesapeake Energy* *(60, CHK)*.
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