Friday, January 4, 2013

What we can learn from Washington and Colorado, or Why Homegrown is Good for You

Monthly gas price vs. electricity price in $/gallon equivalent 1976-2012 (Edison Electric Institute)

Assumption #1:  The voting population votes their pocketbook.
Correlation:  If things are good, you want to keep them that way.
Result:  Those in power stay in power
Observation:  Whether you want to admit it or not, the US economy is getting better and it will continue to improve over the next two years.
Proof:  The above graph does a wonderful job explaining why the US economy is improving and why it will contiue to.  We could also reference The Financial Times story,  US Energy Independence , to support the argument, but it really isn't necessary.   Energy is cheap and getting cheaper.  As the price of energy goes, so goes the US economy. 
     We are energy addictics and we finally have homegrown weed to fulfill the need.  Nirvana.
     You may want to complain about the price of gas, which is fine, but that does not mean energy is not getting cheaper.  Do not confuse gasoline, an energy source used to power automobiles with electricity, natural gas, coal, ect that is used to power the manufacturing of stuff.  Lots of stuff at that. No let's say it like it is, more stuff than you can think of. From agriculture to veternairy supplies, we produce a lot of stuff. 
     We are more competitive now than we were 4 years ago.  We have a stable government and standardized accounting practices.  We have access to the biggest capital markets and the technology to support the flow of information and materials.  Where would you want to build a billion dollar oil refinery? Uzbakastan?
      Read it for yourself, Productivity gains November 2012 the resurgence of the American worker has started.
     The only problem is the politicians and main stream media.  We will have to listen to them tell of their heroic efforts to but out the fire when in reality there was no fire, just market forces working to equilibrium. 

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