Item 1. The price of energy, which almost every relevant model uses, for sustainable energy deployment comparisons — has a built in baseline which assumes much higher fossil fuel prices than the world is experiencing. Translation: None of the rooftop and even few commercial and/or industrial sized PV installs in the U.S., done during the last 20 years, will break even on a non-subsidized ROI basis for 30 years unless fossil fuel energy prices recover fully and even extend beyond their old highs. SUTSO remains the only viable PV deployment plan that would remain at or below grid parity at TODAY’s energy prices. For a look at my website, click here: sutso.webs.com
Item 2. Climate change is a bigger threat then ISIL, but not because it’s going to get too warm. Despite this unusual fall, I stand by my prediction that sunspot cycle 24 (the one we are in) will continue to closely mimic sunspot cycle 5, the one preceding the Dalton Minimum (it got really cold here on Earth during the DM) and this will trigger ever colder years here in North America until the bottom of the cycle in 2021.
Item 3. ISIL has adopted another page out of Hitler’s playbook and is now euthanizing physically and mentally disabled children. Ouch. Hard to write that sentence without crying. What the hell is going on? Is this country so ridiculously myopic and self centered that we can’t see this for a repeat of Hitler in the 1930’s, a true menace that must be stopped before we have to engage the entire world in war to do so? I have no words for how disappointed I am in the President on ISIL, the Iranian deal , Israel, Yemen, Libya, Syria and Egypt. But I have to admit, he seems to have improved our relationship with Fidel Castro and his equally murderous brother Raul.
Item 4. World debt is at $US 200 Trillion and world GDP is only at $US 60 Trillion. You must also add to this debt total the derivatives load which creates another $US60 Trillion in debt drag (that’s only a 5% load, the derivatives market is 1.2 Quadrillion in size, google it) or about 20 times the world economy. The world’s productive engine cannot carry this debt load, that’s why “real” interest are actually negative right now, because if they weren’t – ALL that debt would be getting serviced and I argue that is no longer possible, so the underlying assets behind the debt will plunge in value. This deflationary spiral has already begun and is now really picking up steam.
Item 5. Don’t be fooled by any positive economic news out of China in the coming months. The battle between the reformers in the PBoC and the CCP is over and the CCP won. That means 4 important things. The reform turn toward a demand economy is dead. The Yuan will be devalued again. The SDR victory by the reformers at the PBoC will be credited to the CCP — and therefore the positive effects that could have been created will be muted because this reform was part of a package I don’t think will get completed now; and lastly and most importantly, the CCP is completely manipulating the Chinese stock market, is purging politically, AND is now doctoring data the PBoC reformers were attempting to make more transparent. Translation: Don’t trust any econ data out of China for a long while.