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Strategies & Market Trends : New US Economy Policy -- Ignore unavailable to you. Want to Upgrade?


To: Arthur Tang who wrote (278)5/23/2001 8:37:41 AM
From: Arthur Tang  Read Replies (1) | Respond to of 435
 
The new economy is balancing wealth vs. supply and demand? Or is it an energy policy?

Supply of resources are from the core of this earth. Demand is created by the desire of human beings to have higher standard of living. But when we achieve wealth, we tend to waste our resources; that is human nature.

Federal Reserve banks tends to think everything is monetary policy. The new economy planners think of resource management as the ultimate economical limit. Conservation and recycling to renew resource availability has been planned for many years. Gasoline formula has been changed from internal combustion to steam generation(explosion and steam is generated by heating up the water in the gasoline). The saving in alcohol and crude oil is now up to 87% in volume. The volume of usage is now going to be balanced by price. Restricting wealth to waste energy is the target.

Electronics by submicron lithography in semiconductors are energy saving plan in progress. LCD screen will reduce TV energy usage. Microwave cooking recipes(frozen recipes and canned recipes) will reduce the energy demand three times a day. Cooking is the largest demand in energy, just ask for a daily voltage chart from any power company and see for yourself. Electricity generation is adjusted by increasing and lowering of voltage available(105 to 125 AC volts). Which can be more efficient by proper voltage planning(higher voltage for more demand). We are changing it to heating a cooked meal(from the local supermarket) instead of cooking every meal, to save energy.

Energy planning is that simple. Renewable resources, recycling of carbon and hydrogen(in agricultural products to make alcohol), will perpetual our reserve from the core of the earth.

Energy scare is but a ploy to increase cost of living. Price adjustments of energy cost to individuals however is necessary to adjust demand. When gasoline was 35 cents a gallon, we used to just go for a drive for fun. Today we have to temper our desire with the cost factor of the use of gasoline(Europe and other parts of the world had always paid more for their gasoline).

Other sources of energy, wind, hydroelectric, geothermal, sun and many others will all be used to our advantage if they can be used to cook our meals(some needs more hot water).

Energy policy is after all a cost of living formula based on the way we live. Not a monetary policy that FEDS can formulate. It will seek its own level(the new economy level), wealth vs. supply and demand.