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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: bond_bubble who wrote (51995)1/29/2006 10:50:41 PM
From: bond_bubble  Read Replies (3) | Respond to of 110194
 
Currently, US produces more than 50% electricity from Coal and coal prices are going up (the lowest price has appreciated more than 30% - in powder basin - from mid dec to mid jan).
eia.doe.gov

I'm assuming, transportation costs are also going up. As the monetary inflation continues, higher PPI prices are being deeply embedded in the economy!! I'm assuming, lot of power companies are signing long term contracts at higher prices... Once the recession hits, power companies might not be able to lower the coal prices immediately!!