Monday, 28 October 2013


People bemoan fossil fuels. At the same time the very same people bemoan "energy poverty", with many on low incomes paying a substantial proportion of their income towards their bills. So far the cheapest energy we have is fossil fuels. Its cheaper than wind, solar, nuclear and a number of other such alternatives and can also scale and meet our demands. We all take energy for granted. Our dishwashers, cars, TVs, computers; heat and light with a flick of the switch. Many of our fellow human beings would marvel at such convenience. From what I can see fracking is a technique that could help meet our energy needs and help alleviate energy bills for people on low incomes. Instead many want to ban it, just like we should all drive electric cars (despite how unworkable it would be in the short/medium term) or the naive belief that wind and solar can meet all our energy needs. Think again. We would all love an unlimited, clean and effortless power source but we constantly battle with the laws of thermodynamics. Its hard to generate energy. It took us a long time to perfect the techniques we have today. 

The last thing we need is destruction of human creativity. Horizontal Fracking is human creativity to meet a consumer demand for more energy with prices diverting economic resources to solve such problems for society. If companies cause grievous damage then the law should take care of them. Of course I'm all for free speech, if people wish to protest and represent an alternative viewpoint then they should be free to do so but not by infringing private property and other peoples rights. I and many others have the freedom to get lower energy bills. Blanket banning fracking would violate such rights, just like a blanket ban on smoking or driving a car would violate individual rights. Energy nurtures progress and makes all our lives more enjoyable. Lets not stifle it.

Global Poverty - We have a solution

Many people like to bad mouth free market capitalism in the West. It makes such individuals feel better about themselves. However without it as the basis for an economic system we would all live in abject poverty. It's driven progress at an increasing rate, which will get quicker during the 21st Century. Want to solve poverty? Economic freedom, not Government Planning, is the solution.

Friday, 18 October 2013

Tory Election Boom

"The panic appears to be over. Now is the time to get worried."

William Keegan, Author and Journalist

It's been over three years now since the formation of the UK Coalition Government between the Conservatives and Liberal Democrats. Austerity was supposed to be on the agenda but the reality differs, there is still budget deficits, increased spending and lots more debt. Private debt still remains at historic high levels. As all politicians always do, with an election due in less than two years its time to engineer a boom based on a policy of reckless monetary and fiscal policy. Public debts are over 1 trillion pounds, yet mainstream politics has a consensus towards further spending.

The conservatives have recently announced the "We'll help you buy a house" scheme to try and inflate the recently lagging housing market, creating the voter "feel good" factor. Monetary tightening is mentioned, as it has since the crash of '08, but words do not match the actions of our monetary overlords who continue with loose money and low interest rates. BoE recently appointed Governor Mark Carney is all for abandoning inflation targets, instead shifting the focus towards Growth, a move mirroring the priorities of the Federal Reserve. Janet Yellen has been given the the nod by another big spender Obama. Stuck within the confines of academia and Government agencies she makes a good choice to a leader who has not attempted to tackle the deficit and whose legacy will be a disaster for his successor.

The Eurozone still has too much debt, the plasters continue to hold but like any temporary measure are making the problems worse. America continues to raise the US debt ceiling as though it has validity. If they keep raising it at will then how can it be called a ceiling. Cuts from all corners of the Globe are hypothetical.

Fundamentals, as always, are key. A panic can reside but the fundamentals always come back into the picture. Golds bull market is not over, its just on its next leg, like it has been over the past decade plus with various ups and downs just like any Bull market. Governments can't defy economic reality of spending money they don't have - bond markets, currencies, commodities - will all catch up with their reckless spending. Running budget surpluses is hard work for Governments only when a party feels they require to obtain economic credibility from the electorate does a political institution follow such a path. With all parties in the UK promoting spend-onomics there will be no immediate return to that concept.

I never believed this current Government would sort the mess and they are doing what I thought they would, dodging the real issues, tinkering on the fringes with little progress to show for it. Expect more short term polices. Tackling long term issues are no good for politicians precious votes. Ironically the short term Tory boom will please Keynesian's who will proclaim our troubles are over. In reality the problems continue to compound.