« Does chatter matter? | Main | Larry Summers joins the FT »

Thursday, September 14, 2006



"Over the medium term, however, metals prices are expected to retreat from recent highs as new capacity comes on stream, although probably not falling back to earlier levels—in part because higher energy prices have increased production costs."

Higher energy prices have increased everybody's costs. This does not necessarily mean that petroleum prices will never be reduced to, say, half their present values?

New energy sources are coming on line. Let's not forget that this present run up in prices, particularly in the US was not due to the lack of sources but the lack of refinery capacity. This new capacity is also coming on-line. The damage done by Katrina was largely repaired within 9 months succeeding its passage.

Then there is the argument of "alternative" sources of energy. They are four that come to (my) mind: Atomic, biofuels, hydrogen and renewable resources.

Renewable resources are not the panacea that we all once thought, but the use of geothermal sources (whereby house heating can be found within a meter of the surface) will significantly affect, at least, new housing heating costs. Windmill farms dot the countryside in some countries, but they will not have a pervasive effect. The locals find them too ugly and too noisy.

Biofuels are a godsend to Europe's farmers who must look forward to lower CAP subsidies in the coming years. Will biofuels replace the need to simply store/export cereal products? I doubt it, but they remain an important source of farm income ... for as long a petroleum prices remain high.

Atomic energy is not fully exploited, largely because of accidents that have cast a pall over their usage. (Changing from fusion to fission will enhance productivity of the source.) But as people get to understand that alternatives are not all that easy to implement, then atomic energy become more attractive - even though we'll probably never be able to devise an adequate way to get rid of the residue product.

The key is changing from the carbon molecule to the hydrogen molecule as an energy source. This is promising, but neither is it on the near horizon. Hydrogen powering 90% of the planet's vehicles is not expected (today) before 2050. Bottled air, anyone?

Bill Conerly

This is really a first rate article. A great exercise in applying microeconomic principles for commodities with varying lengths of time between short-run and long-run. If I were teaching intermediate price theory still, it would be required reading.

Chanel handbags online

When her Monster Ball tour Chanel handbags online landed recently in Tokyo, La Gagita

href="http://www.youknowbags.com/chanel-handbags-c-14.html">Chanel handbag onlinewas seen in the airport carrying a white Hermes Birkin inscribed with a

message that loosely translates Chanel handbags sale to "I love little monster.

href="http://www.youknowbags.com">designer handbags sale Toyko love."In case you're not familiar with the Gaga vernacular, "little monsters" is the name

that she uses to refer to her fans,handbag sale so her Birkin message was a shout-out to those that would be attending

her Japanese shows. Using accessories and the paparazzi to communicate-clever, or not so much?
Regular readers of the blog will authentic handbags know that I'm a huge Lady Gaga fangirl, so I think it's fairly

clever. It's not the most interesting thing she's ever done, designer handbags but playing with fashion and blurring

the lines of social acceptability are two things that are integral to her public image, and not only does a Sharpie’d Birkin combine those things effectively, but it has

managed set tongues replica handbags wagging all over the internet.

nike air max 2009


This nike air max 2009 looks like a sneaker that a superhero

would wear. But these are for everyone, not only the superheroes. This latest Air Max 90 Current Moire comes in an eye popping colorway, as it features Black/Electric Green/Blue. Black is seen throughout the

href="http://shop.brandsuper.com/nike-air-max-shoes-c-54.html">nike air max shoes including the upper. Blue is placed on the inner of the sneaker. The eye

catching Electric Green is used on the Nike Swoosh and the surrounding of the Air Max unit. The midsole and shoe laces both feature white. This Nike Air Max is a Hybrid, which

we can see a lot more of from Nike.

Black leather is seen throughout the shoe including on the mid panel and the mudguard. It can also be seen around the Air Max unit. Pine Green mesh is placed on the toe

box, tongue and the ankle. The midsole, Air Max 360, shoe

laces, inner lining and tongue tag are all done up in white. Not a huge nike

air max LTD.

cheap timberland boots


cheap timberland boots have developed during 30years, now are widely distributed in 90 coutries all

world.timberland is excellent, there is no problem on shoes'design, quality, powerful and actual or fucntional aspects.timberland production include: clothing, etc.outdoor

casual footwear and geartimberland 6 inch .it urged the public to come out of their

sales outside of one of the world uggs nature.its timberland boots enjoy a full range of innovative

design, rugged, functional.their product also shows characters of young, active, rough , strong and practical.

And all they have an excellent durability first. timberland chukka boot are made of

strong leather, soft and hard in all areas of their rights. When you next time you see a discount cheap timberland roll top boots material force your hand, you see how solid it is. The second forest is not just insist that it is a chance to guide their

influence far exceeds the far-reaching. They try to take care of each person. In fact, there is a forest guide to the most appropriate activities. It is not only providing them

with timberland work boots. Woodland a quality line of outdoor clothing is that people want to see

people as good, but also requires a strong hiking clothes. Range is impressive. We have any kinds of timberland boots, you can choose your style.

The comments to this entry are closed.


  • TEST

  • Subscribe in NewsGator Online

Economist Weblogs



  • This is a personal web site, produced in my own time and solely reflecting my personal opinions. Statements on this site do not represent the views or policies of my employer, past or present, or any other organisation with which I may be affiliated. The information on this site is provided for discussion purposes only, and are not investing recommendations. Under no circumstances does this information represent a recommendation to buy or sell securities.