Hi Paul, re: energy costs
In the WSJ, they said 100 server farms have asked PG&E for an amount of power that is equivalent to the power consumed by 1.2 million families. (My observation is: 1.2M/28M people in Calif/2.4 people per household = 2%). California's power consumption rose 6% YOY, which is 3 times the normal growth rate, according to an article, "Power-Hungry Web 'Server Farms' Find Cooler Reception in California" By Neal Templin, The Wall Street Journal
RE: "may end up exactly where Jimmy Carter and Paul Volker put us in 1978 - 1980."
Do you really think this is going to get as bad as the 78 - 80 period? That would not be good.
I sort of doubt it will get as bad, because the USA seems more likely to start a war to combat energy inflation. (I'm not saying that is good, but am commenting on an observation.) Military action against one oil country, appears to convey military support to other oil countries/allies, which in turn seems to reduce pricing pressures by oil allies.
Also, fundamentally today's US corporations are more productive than the corporations of the 70's. They are structured differently, so there won't be an additional drag on the economy in that sense.
Regards,
Amy J |
