Kudlow, Keeping it $urreal
Permit me to take a contrarian view on the oil price shock. I say three cheers for higher energy prices. Why? Because I believe in markets. When the price of something goes up, demand falls off (call it conservation) and supply increases (call it new production). We're seeing a tectonic shift.
As Dan Yergin has advised us, energy supplies in the next few years will explode. Now the public is even favoring nuclear power. And the government is stepping out of the way by giving FERC the authority to override localities who oppose nuclear power, liquefied natural gas or other forms of energy.
So supply will rise exponentially in the years ahead, demand will slow a bit and we'll all live happily ever after. The moral of this story: markets work if you let them.
Argh! Whack! Whack! Whack! (MonkeyGrinder dents his forehead on a brick wall.)
Gotta watch these politcal animals. Peak oil is not the primary narrative being spun in the mainstram media, best efforts of Matt Simmons notwithstanding. The Oil Drum has a discussion that touches on this as well.
I am certainly surprised to hear Yergin admit energy supplies will explode. Must be in the $2500 dollar CERA report, and not the abstract. Which energy supplies are set to ignite? The earnestly manic Kudlow doesn't say, but most likely, it is the LNG terminal closest to where you live.
KABOOOM!!! Hate to see it, probably true.