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Dead because of a lie. Dead because selfish people in government wanted a war and lied to get one. How can you not be angry?ADV: Precious Metals & Financial Market News: Protect Yourself By Staying Informed
THOUGHT FOR THE DAY!
Credit crisis dims the lights for power industry
Great Falls Montana: As workers scramble to build an $800 million coal-fired power plant on a patch of farmland here, a crisis that began on faraway Wall Street threatens to stretch America's power supplies to the brink — driving up prices and laying the stage for future shortages.
The power industry is under extraordinary financial pressure just five years after North America suffered its worst blackout ever, when rolling outages turned out the lights on 50 million people. Even before the extent of the global credit crisis was fully known, the nation's largest power providers warned of even bigger blackouts to come with the power grid under ever growing strain.
The industry has faced criticism for blackouts, but it also faces opposition to new new plants and stringing new power lines.
With the economy teetering toward recession, it may face its toughest obstacle yet.
If credit woes put the brakes on scores of proposed plants, observers say a shift to other, more expensive fuels could end up soaking customers. The alternative is more frequent and potentially extended outages.
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Comments
How economics works.
Don RobertsonThis story points out why the country should not let foreign investment compete in our capital markets any more than we should let foreign workers into our labor markets.
The utility company described in this article is bemoaning the lack of cheap credit.
Cheap credit is what drives inflation.
Inflation is what enforces cheap wages because a rise in wages will follow inflation only in an effort to keep up.
Cheap credit also requires domestic holders of capital to seek risk to keep up with inflation because capital markets do not pay a return commensurate with the value of domestic capital, which should be inflation plus some rate of return.
Infusions of foreign capital into our country keep capital market costs elevated in impoverished foreign capital markets, but risky due to more fragile, second tier capital market economies.
Round and round we go.
It is Wall Street that profits endlessly from the inefficiency of the capital markets domestically and worldwide. And these capital markets are inefficient because of Wall Street.
Credit worthiness in the case of too many American companies has recently been proved an obscene fiasco.
Wall Street has built up a system of magical capital that is repeatedly destroyed in the bust boom cycle.
And whole generations of Americans have repeatedly seen their savings wiped out by Wall Street.
It is both Wall Street and cheapened capital markets that need to be abolished.
If we are to re-assert our world dominance in a more meaningful way than endless war, Americans need incentive to save and create a better world than what Wall Street could ever possibly offer.