Smart Energy Alternatives

Wind Is Finding Its Appeal

2007-02-08T22:03:00.000-06:00

Wind power is becoming more popular as energy alternatives are becoming more efficient and plentiful. [Read Article]

We would expect more investment and interest in Smart Energy Alternatives as petroleum sources grow more scarce and the politics of oil more problematic.

Stay tuned to our blog and feed for the latest in energy news and commentary.

The Dollar Is Losing Ground . . .

2006-10-26T20:56:00.000-05:00

The news isn't a surprise to our readers . . . We've been discussing the debasement of the dollar for quite some time now. What does surprise me though, is the fact that it's being talked about openly. [Read Article]

One option to support the dollar would be an increase in interest rates. Did you see that the dollar declined after the Fed declined to increased interest rates? [Read Article]. The article makes an important point in stating that the dollar "fell to a three-week low on expectations Europe may raise interest rates faster than the U.S." Catch that? The euro is rising in relation to the dollar since it's believed the euro bankers will raise rates faster than the Fed. Important point.

In our opinion, barring the further debasement of the currency by the inflation of the money supply, a rise in interest rates will likely occur to rally the sagging dollar. This will increase the ARM mortgage rates for homeowner having those, signaling trouble in real estate for families.

Stay tuned for more opinion and analysis.

Smart Energy Alternatives

Inflation Rising? No surprise here . . .

2006-10-17T17:51:00.000-05:00

We've been telling our readers over and over again that any talk of low inflation is erroneous. The new inflation figures just released offer a small glipse of what awaits.

A possible solution to a declining dollar will be higher interest rates, which wouldn't bode well for a situation in which the economy is already slowing. A slowing economy is hinted at in the article with manufacturing slowing.

We consider oil prices highly politicized and so we don't spend much time worrying about the price of oil rising or falling a couple dollars here or there. The long-term trend is of greater concern. As a non-renewable, ever-depleing resource, we believe that a rise in prices in a macro view is inevitable.

Stay tuned for more opinion and commentary.

Smart Energy Alternatives

Couldn't pass this up . . .

2006-10-15T10:37:00.000-05:00

Hi folks.
I know we're not a blog about cell phones, but this seems to good for us to not mention to our friends and subscribers. Since we're all in for tough times ahead . . . we try to save ourselves and other money where possible.

Our friends at Good Cellphone are offering some great deals on cell phones and plans.

If you're in market for a cell phone, check them out to see what they're offering.

2006-08-06T18:45:00.000-05:00

Smart Energy is back with it's classic site design. Be sure to visit Smart Energy Alternatives to check it out.

2006-05-03T13:52:00.000-05:00

Iceland Rocks!! I'm not referring to the actual volcanic rock in the middle of the North Atlantic. I'm referring to the cutting edge use of renewable energy. [Read article]
Their use of hydropower should be an inspiration to all people and if similar technologies were developed and acted on in other countries the worst effects of Peak Oil might be lessened if not avoided.

Read the article and be inspired by what can be done when sufficient will is present.

Smart Energy Alternatives

Alternative Energy

2006-04-26T13:40:00.000-05:00

Now this is just funny . . .

Drivers are deliberately running out of gas and waiting for assistance vehicles to give them free fuel. Since there's no free lunch, it's you and I who are paying for the gas.

[Read article]

With Peak Oil still a couple years away, in my opinion, we are witnessing what will happen in mass as not only gas prices begin to rise through the $4 / $5 per gallon barriers, but also when there are fuel shortages from lack of petroleum.

Take care. J. Warren Thomas.

2006-04-25T19:28:00.000-05:00

"Russia ignores US, delivers nuclear fuel to India" reads the headline . . . What do we make of this?

First, Russian isn't bowing to U.S. pressure so readily any longer as it's own economy gains strength and the U.S. economy is facing a serious crisis. Secondly, Russia is, in my opinion, positioning itself as the supplier of choice for these materials in Asia. Asia is the fastest growing continent on the planet, both in terms of economies and population. If Russia can position itself as the supplier of military arms and fuels, they stand to gain in term of prestige and power.

As energy becomes the currency of trade, position, prestige and power in global politics, be prepared to see bolder moves by nations attempting to position their respective countries in a position to try and survive through Peak Oil.

Stay tuned for more news from the front lines.

J. Warren Thomas - Smart Energy Alternatives

2006-04-24T13:43:00.000-05:00

J. Warren Thomas here with some more news and commentary from the front lines . . .

While walking my 6-month old son through our neighborhood over the weekend, I couldn't help but wonder what will be left of the dollar by the time he reaches adulthood. Will it be the world reserve currency? I doubt it. Will it be trusted any longer to hold secure value for investors and retirees? Not if trends continue. What's to become of our retirement savings in the face of Federal Reserve policies? I worry.

Fast forward to today's news. The dollar continues to slide. Nevermind the talk of the yuan floating and deficits. There is a glut of dollars as they are being printed to the point of causing a flood of dollars. Remember supply and demand? There's a whole lotta supply and demand is waning. [Read article]

Here are a few sample lines from the article:

"Qatar's central bank confirmed it was diversifying reserves into euros"
"Sweden's central bank said it had significantly reduced dollar holdings in its foreign-exchange reserves"
"Russian Finance Minister Alexei Kudrin said that the dollar isn't the absolute reserve currency"
"Middle Eastern central banks, including the United Arab Emirates, and Chinese officials also have repeatedly suggested that they're looking to diversify reserves away from the greenback"
"Traders have become increasingly bearish on the dollar in recent weeks"

Those lines are hints that nations and investors are losing confidence in the dollar as the supply is increasing to finance wars and domestic spending. If trends continue we could face increasing inflation as a loss in value causes a rise in interest rates and continue monetary expansion compounds the problem. This could end in hyperinflation, which would destroy the working class in the United States. It has happened elsewhere. It can happen here.

Here's some information on hyperinflation [Read article] which is recommended reading in the current environment.

Take care until next time.

Smart Energy Alternatives

2006-04-21T15:11:00.000-05:00

Russia is making a move from the dollarization of its economy. Dollarization is this case is verbal in nature and somewhat material, as prices are listed in dollars and people store dollars at home as a hedge against central bank abuses which could result in renewed hyperinflation. [Read article]

I believe this is also symbolic of a growing weakness of the dollar in foreign markets.

Our forum is mainly dedicated to alternative energy and Peak Oil, but moves against the dollar are important in the discussion, because weakness of the U.S. dollar will result in higher energy costs at home.
Smart Energy Alternatives

2006-04-20T13:17:00.000-05:00

J. Warren Thomas here some more disturbing, but not surprising, news . . .

Commutes are getting longer and roadway congestion is increasing . . . [Read article]

These commutes are becoming costlier in terms of family finances and the environment as fuel is more expensive and more is being used. The strain on the family budget will increase as fuel prices continue to rise. Any retreat in prices will be a short-term reprieve from the inevitable shortages which will occur if serious disruptions occur in supplies as a result of international conficts or Peak Oil.

Take care until next time . . . Smart Energy Alternatives

2006-04-19T13:40:00.000-05:00

Recent news states that inflation is alive and well . . . [Read article] The article makes some remarks needing some response by Smart Energy Alternatives . . . such as: "Consumer prices shot up by a bigger-than-expected amount in March . . ." reads the opening line in the article. Who exactly expected more modest inflation? Not our readers. We've been warning our readers for months that this would happen. Mainstream media sources, ever worried of spooking the public into restraining consumption or have them start asking pointed and serious questions, play the "who knew?" card. Our readers knew, that's who.

Here's another little gem from the article . . . "Core inflation, which excludes food and energy, posted a 0.3 percent rise in March . . ." So, unless I'm missing someting, inflation is up only 0.3 percent in March as long as I don't . . . eat, drive a car, use public tranportation, use a computer, power a cellphone, turn on lights, heat or cool a home, use a microwave oven, keep food in a working refridgerator, wash dishes, launder clothes in a washing machine, put my newly washed clothes in a dryer, watch TV, listen to a radio, cook, use an alarm clock, and last but not least . . . use public water facilites . . . and do things like
take a shower, flush the toilet or drink from the faucet or filtered water coming from the fridge (remember folks that the water system uses energy to clean and pump water . . . so, yes, it's gonna get more expensive but those increases are easily dealt with . . . just don't include them in the calculations!) . . . so, barring the above activities . . . inflation is not too worrisome for us! It only rose 0.3 percent.

Feel better? I don't.

If you are a hunter-gatherer, living off the land, finding nuts and berries as you go about your day before you retire to a cave to slumber for the night, inflation is a "bigger-than-expected" yet not totally shocking (based on the stock market reaction) 0.3 percent.

Rest easy our hunter-gatherer friends. The rest of us are feeling the pressure as the Dollar declines, making imported goods more expensive (read this article which refers to higher clothing prices), interest rates are increasing, making borrowing more expensive, and
spare capacity for quality oil is non-existant (see our blog archive for more on this topic).

It appears that those who are benefiting the most are the oil companies and banks. With an indebted
public who are now unable to easily expunge their debts after last years bankruptcy law changes, credit card divisions seem to be doing a brisk business. Don't think for a moment that the timing of the change in bankruptcy law was just coincidence. We're heading for rough economic waters, in my opinion, and the debtor/consumer/worker must be forced to pay.

As we've stated many times before . . . save money, get out of debt and get prepared.

Smart Energy Alternatives

2006-04-19T13:15:00.000-05:00

Here's some positive news for alternative fuels. [Read article] A new method of creating biodiesel fuels which could benefit farmers and reduce fuel costs involved in food production.

Smart Energy Alternatives

2006-04-18T20:00:00.000-05:00

Consumer spending remains strong in the face of stark economic reality. [Read article] The article does note that "many workers worry about whether their pay will keep pace with inflation." Considering that pay is almost stagnant, that's a valid concern. (sigh)

Yet I'm not at all surprised that the consumption frenzy that constitutes 70% of the U.S. economy continues like the band playing aboard the sinking Titanic. The manic U.S. consumers have an insatiable appetite for things coupled with a lack of awareness about the peril they face.

With the savings rate at 0 or lower and the economy on unsteady legs, our readers have the knowledge to prepare themselves, slow spending, get out of debt and have some funds ready for the downturn which will come.

Take care until next time . . . J. Warren Thomas

2006-04-17T18:32:00.001-05:00

J. Warren Thomas here with more news from the front lines of Peak Oil . . .

Oil tops $70 again. [Read article] Our readers aren't surprised, nor are they buying the excuse of Iran news and Nigerian rebels as the full story. True, threats to the dwindling supplies are cause for concern and a reason for the prices rise. Yet, (here comes the news that the managed corporate news doesn't want to reveal) if the threatened supplies could be compensated for elsewhere through increased output, the petroleum needs would be met and prices increases would be less acute. The article states that prices are "more than 20 percent higher since mid-February." Why?

Quality oil cannot be found elsewhere in abundance.

The article does concede that Saudi Arabia has some spare capacity, but that the "spare capacity is heavy, sour and more difficult to process." That's about the extent of the discussion which might clue the public into the threat of Peak Oil. What does this mean for you and I on the home front? It's not good news.

Any time oil prices rise our transporatation costs increase. This means more money spent on commutes to work, the grocery store or even pricier public transportation. Also, recall that the production and tranporation costs of food will affect the lifestyle of consumers, as prices increase both as a result of higher oil prices and a devaluing Dollar.

We've spoken many times about the rise in interest rates. Couple the interest rate increases with price inflation, higher oil costs and a real estate mania which has almost satiated itself and you seeing an economy in peril.

Take care until next time.

2006-04-17T18:32:00.000-05:00

J. Warren Thomas here with more news from the front lines of Peak Oil . . .

Quality oil cannot be found elsewhere in abundance.

The article does concede that Saudi Arabia has some spare capacity, but that the "spare capacity is heavy, sour and more difficult to process." That's about the extent of any discussion which might clue the public into the spectre of Peak Oil. What does this mean for you and I on the home front? It's not good news.

Take care until next time.

2006-04-16T09:30:00.000-05:00

This is an interesting article on recent increases in gas prices. [Read article] The opening quote of "If you hear strangled screams, it's probably because you're near a gas station." might be foreshadowing of what awaits motorists in coming years.

Take care and get prepared.

Smart Energy Alternatives

2006-04-15T22:57:00.000-05:00

More wind energy for Scotland is good news for us fans of alternative energy. [Read article] This might not be great news for petroleum companies, but reality must dictate policy at some point and this is a move in the right direction.

Thumbs up Scotland

Smart Energy Alternatives

2006-04-13T19:06:00.000-05:00

Hey folks, J. Warren Thomas here with some more news we warned you about months ago. The NY Times is reporting that interest rates are rising [Read article] and that "the era of cheap money may finally be nearing its end."

Our regular readers have been well informed of this because of our discussions of interest rate theory as it relates to the FOREX markets and money supply. But the question needs to be asked . . . How does this affect Peak Oil and the prices of fuel for myself and family?

Very good question. It's gonna hurt. Prices are going up faster than would occur simply because of the depleting oil supplies. Price inflation is being fueled by supply issues and because of money supply inflation which depreciates the value of the currency. I hate to be the bearer of bad news . . . but the government is (in my opinion) skewering the consumers who rely on the U.S. Dollar to hold its value in the marketplace.

The article notes that "some consumers will soon be paying more interest on credit cards and home mortgages." We agree completely. We've been telling our readers on a regular basis to get out of debt as part of our comprehensive Peak Oil survival plan. It's not to late to get started on the road to debt-free living.

I particularly liked the suggestion in the article that some "experts" suggested that interest rates "have been kept low by the purchase of federal government debt by foreign governments and investors." Good point . . . and since the continued printing of Dollars has caused a slide in the value of the currency . . . investors and foreign governments are not as excited about holding the devalued "Benjamins." Hence, interest rates will increase to support demand for dollars by increasing the return on investment. This is exactly what we've been telling our readers for months.

Take care our there and get out of debt.

Smart Energy Alternatives

2006-04-12T13:30:00.000-05:00

gas prices continue to climb. [Read article] Our readers aren't surprised. but let's emphasize again, we are not so much interested in any short term trends, but in the longer term trends of price increases as demand for petroleum exceeds both current supply and the ability to produce more.

Here's a great graph showing the longer term trend in oil prices: [View]

Take care . . .

Smart Energy Alternatives

2006-04-10T13:37:00.000-05:00

J. Warren Thomas here . . . bringing the latest news from the front lines of Peak Oil.

We hear today that oil prices are yet again on their upward march. [Read article]

Our readers won't be surprised. So, as journalists write of "regional instability" and other pacifying phrases which are used, in my opinion, as a mask for the depleting oil reserves, you will know what's going on behind the scenes as nations, companies and people prepare themselves for a massive change in how human civilization obtains its energy.

With oil at $68 and change per barrel and gas at the pump pushing $3.00 per gallon, the financial pressure will continue on families in the U.S. already pushed to the limit with higher interest rates, zero wage/salary growth, and a rapidly depreciating dollar.

Don't get overly excited about news that on any given day the dollar may gain against a foreign currency. [Read article] It's the long-term trends we are watching for oil reserves, outsourcing, exchange rates and monetary inflation. For a look at the longer-term trend of the dollar vs. the Euro see this: [View chart]

Take care and stay tuned to this blog for the latest news commentary.

Smart Energy Alternatives

2006-04-07T13:25:00.000-05:00

Hi folks . . . more news from the front lines of Peak Oil, inflation, debt and survival. News reports indicate that "fears" of inflation are causing a decline in stock prices. [Read article] The article notes that the Fed might "continue boosting rates to stem demand and battle inflation."

Great point, but one we at Smart Energy Alternatives disgree with. We've asserted for a long time now that the rate increases which we've predicted are caused by the devaluation of the dollar through printing of fiat currency at will. This devalues the dollar and thus foreign interests wanes as dollar holdings lose values vis-a-vis foreign currencies. Thus, to increase foreign investor demand for dollars and prevent further dumping of T-bills on the open market, interest rates must rise to improve the return on investment for holding the depreciating dollar.

The news on inflation is coming so quickly at this point we won't be able to address all the various articles, but we will keep you informed of what is happening.

We'll soon have some features on the current state of Peak Oil, debt and protecting your family before the crisis hits critical mode.

Take care.

Smart Energy Alternatives

2006-04-06T13:22:00.000-05:00

With the economy's strength being sapped by increasing energy prices and higher interest rates, retail sales are beginning to sag. [Read article]
The article's author first starts by placing responsibility on "moderating economy and cooler weather" which caused consumers to spend less. Close but no prize.

If the reader is patient enough and continues to read past the facts regarding reduced spending by young adults . . . well, yeah . . . they're spending more on fuel for their cars for starters . . . the article does point out a couple of more serious drags on the economy as "higher interest rates" and "higher gasoline prices." Our readers have been aware for some time that interest rates would rise, and the reasons behind it. It's not magic and it's fairly easy to predict. Stay tuned to our blog and read the blog archives for our past discussions on the topic.

Smart Energy Alternatives contends that interest rates will continue to rise as long as dollars are printed at will. The value of dollar will decline and interest rates will increase to retain investor interest. Yet, news reports indicate that the dollar is less favorably viewed in the eyes of foreign investors, as they turn increasingly to depend on the Euro. Stay tuned for more details on that topic and what means for even higher energy costs in the next several years.

Take care, get out of debt, and ensure you can take care of your loved one as we approach Peak Oil.

2006-04-03T22:40:00.000-05:00

Hi readers.

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2006-04-03T22:26:00.001-05:00

A recent article points out that Asia is thinking renewable energy.[Read article] This is significant for a couple of reasons. (1) It demonstrates some forward thinking by Asian countries as petroleum supplies are further depleted daily, and (2) it weakens the ties the countries have to those who control oil and natural gas reserves.

The geopolitical aspects of alternative energy in the face of Peal Oil is often overlooked. Many observers make frightening references to wars and vassals paying homage and blood money for access to the fuel sources. This may happen.

Smart Energy Alternatives believes that the countries not sitting atop vats of oil or are not invading foreign countries to control access to dwindling oil reserves will be developing alternative sources of energy to "break the ties that bind."
This is smart both for the people of those countries and for the further development of alternative energy technology.

Stay tuned to Smart Energy Alternatives for the latest news and commentary on the Peak Oil front.