Did you know governments worldwide have spent over $5 trillion in the past two decades to subsidize wind, solar, and other so-called renewables?
To put that in perspective, if you earned $1 a second 24/7/365—about $31 million per year—it would take you 158,550 YEARS to make $5 trillion. $5 trillion is an almost unfathomable amount of money.
However, even with that astronomical financial support, the world still depends on hydrocarbons for 84% of its energy needs—down only 2% since governments started binge spending on renewables 20 years ago.
That’s all according to Mark Mills in a report from the Manhattan Institute, who concludes that:
“The lessons of the recent decade make it clear that solar, wind, and battery technologies cannot be surged in times of need, are neither inherently ‘clean’ nor even independent of hydrocarbons, and are not cheap.”
With all that in mind, it should be clear that so-called renewables—more accurately, unreliables—have been a giant flop. They are not viable for baseload power—even with $5 trillion in subsidies and two decades of trying. Today, using wind and solar for mass power generation is an artificial political solution that would not have been chosen on a genuinely free market for energy.
Wind and solar power might be useful in specific situations. Still, it’s ridiculous to think they can provide reliable baseload power for an advanced industrial economy. It’s like trying to force a square peg into a round hole.
Nonetheless, governments, the media, academia, and celebrities flippantly push for an imminent energy “transition” as if it’s preordained.
It’s shocking and depressing so many adults think they can magically change the underlying economics, chemistry, engineering constraints, and physics of energy production to suit their childish fantasies and political agendas.
Unreliables—i.e., renewables—will not replace hydrocarbons anytime soon and will certainly not bring about energy security… despite what many “serious” people believe. When it comes to reliable baseload power, most of humanity has only three choices:
- hydrocarbons—coal, oil, and gas
- nuclear power
- abandon modern civilization for a pre-industrial standard of living.
Aside from friendly aliens delivering a magical new energy technology, most places have no other alternatives.
So, with Western governments intent on going green, sanctioning large energy exporters (Russia, Iran, Venezuela), and shunning hydrocarbons in general (ESG, windfall profits taxes, limiting exploration, burdensome regulations), it boils down to a simple choice.
They can either embrace nuclear energy—which has zero carbon emissions—or give up reliable electricity. I suspect it won’t be long before Western governments turn to nuclear energy in a big way for two reasons.
- Rising hydrocarbon prices.
- Concerns about energy security.
Rising Hydrocarbon Prices
First, a necessary clarification. Sloppy, vague words lead to sloppy, vague thinking. The term “fossil fuels” is an excellent example of this.
When the average person hears “fossil fuels,” they think of a dirty technology that belongs in the 1800s. Many believe they are burning dead dinosaurs to power their cars. They also think fossil fuels will run out soon and destroy the planet within a decade.
None of these absurd things are true, but many people believe them. Using misleading and vague language plays a large role.
I suggest expunging “fossil fuels” from your vocabulary in favor of hydrocarbons—a much better and more precise word.
A hydrocarbon is a molecule made up of carbon and hydrogen atoms. These molecules are the building blocks of many different substances, including energy sources like coal, oil, and gas. These energy sources have been the backbone of the global economy for decades, providing power for industries, transportation, and homes.
Modern civilization has only two choices for baseload power—hydrocarbons or nuclear. I believe hydrocarbon prices will rise substantially in the months ahead, making nuclear—the only practical alternative—even more attractive than it already is.
There are four powerful trends that I think will push hydrocarbon prices higher.
- Trend—The End of the Petrodollar System: The US government will soon lose its ability to print money to buy energy—an incredible privilege no other country has. That will have significant consequences for oil prices.
- Trend—Rampant Currency Debasement: Governments worldwide have no choice but to engage in ever-increasing currency debasement. 2023 could be the year it reaches a crescendo.
- Trend—Carbon Hysteria and Under-Investment: Governments have redirected trillions in capital away from nuclear and hydrocarbons and sent it to wind and solar. Further, ESG madness, “net zero” goals, and other unfavorable government policies have led to a massive under-investment in hydrocarbons. I expect the carbon hysteria will cause tighter supplies and higher prices.
- Trend—Geopolitical Turmoil: The conflict between Russia (the 2nd largest oil exporter) and Ukraine has no end in sight. Tensions with Iran could explode at any moment. As a result, geopolitical turmoil could easily escalate, causing hydrocarbon supply disruptions out of Russia and the Middle East.
These are four powerful trends pushing for shortages and significantly higher hydrocarbon prices.
When hydrocarbons become expensive, the world looks to alternatives. And there is only one: nuclear.
Energy Security
Having secure access to energy, which is essential for any economy and any country’s stability, is paramount. That’s why energy security is national security.
Coffee the Christian way: Promised Grounds
Without energy security, any country is in a vulnerable position. No sovereign nation can tolerate being at the mercy of someone else for something as crucial as energy.
Unsurprisingly, many governments inevitably turn to nuclear to help ensure their access to reliable energy. That’s because a small amount of uranium can produce tremendous energy in a nuclear power plant.
According to the Nuclear Energy Institute, a one-inch tall uranium pellet can produce as much electricity as one ton of coal, 149 gallons of oil, and 17,000 cubic feet of natural gas.
It’s impractical for countries without domestic hydrocarbon supplies to stockpile several years’ worth of coal, oil, or gas. On the hand, it is practical for countries to stockpile five years’ worth of uranium for nuclear power plants.
Take Japan, for example. Japan is the world’s third-largest economy. Before the Fukushima disaster, nuclear power plants produced around 30% of Japanese electricity. After Fukushima, Japan shut down all of its nuclear reactors.
Japan shuttered its nuclear power plants despite a government policy that requires it to stockpile at least five years’ worth of energy supplies. This policy dates back to the early 1970s when a large regional war in the Middle East disrupted energy supplies and rocked Japan, which lacks its own energy resources.
Uranium is the only feasible way for Japan to meet the terms of this policy. It’s impractical for Tokyo to stockpile five years’ worth of coal, oil, or gas.
Japan has made an emergency exception to this policy because of Fukushima. But without energy security, it’s in a vulnerable position concerning its historical rival China. That is especially true if geopolitical turmoil in the Middle East or Eastern Europe disrupts oil and gas supplies.
It would be ironic to see Japan suffer from another oil shock during the period in which it suspended the very policy to protect it from one. That should incentivize Japan not to delay restarting its nuclear reactors.
In fact, Japan has recently made a dramatic pivot towards nuclear power because it has finally realized there is no alternative for it to meet its energy security needs.
Tokyo has started reactivating its nuclear reactors and implementing pro-nuclear policies.
While Japanese restarts are an important factor determining the market balance, it is not the only one. Even if the Japanese demand for uranium never returns, the 150 new reactors in China could create enormous new demand that will more than offset it over the longer term.
Here’s the bottom line with uranium.
I wouldn’t be surprised to see hydrocarbon prices spike amid a geopolitical crisis, which would be a catalyst for much higher uranium prices.
Regardless, hydrocarbon prices are set to soar for the other reasons I mentioned above. As a result, I expect Western countries will soon become desperate for energy security.
They’ll eventually realize—as Japan did—that nuclear power is the only solution. And when they do, it will turbocharge the uranium bull market that is already underway.
With multiple crises unfolding right now, the next big move could happen imminently. That’s why I just released an urgent PDF report, it’s called: The Most Dangerous Economic Crisis in 100 Years… the Top 3 Strategies You Need Right Now. It details how it could all unfold soon… and what you can do about it. Click here to download the PDF now.
Article cross-posted from International Man.
Five Things New “Preppers” Forget When Getting Ready for Bad Times Ahead
The preparedness community is growing faster than it has in decades. Even during peak times such as Y2K, the economic downturn of 2008, and Covid, the vast majority of Americans made sure they had plenty of toilet paper but didn’t really stockpile anything else.
Things have changed. There’s a growing anxiety in this presidential election year that has prompted more Americans to get prepared for crazy events in the future. Some of it is being driven by fearmongers, but there are valid concerns with the economy, food supply, pharmaceuticals, the energy grid, and mass rioting that have pushed average Americans into “prepper” mode.
There are degrees of preparedness. One does not have to be a full-blown “doomsday prepper” living off-grid in a secure Montana bunker in order to be ahead of the curve. In many ways, preparedness isn’t about being able to perfectly handle every conceivable situation. It’s about being less dependent on government for as long as possible. Those who have proper “preps” will not be waiting for FEMA to distribute emergency supplies to the desperate masses.
Below are five things people new to preparedness (and sometimes even those with experience) often forget as they get ready. All five are common sense notions that do not rely on doomsday in order to be useful. It may be nice to own a tank during the apocalypse but there’s not much you can do with it until things get really crazy. The recommendations below can have places in the lives of average Americans whether doomsday comes or not.
Note: The information provided by this publication or any related communications is for informational purposes only and should not be considered as financial advice. We do not provide personalized investment, financial, or legal advice.
Secured Wealth
Whether in the bank or held in a retirement account, most Americans feel that their life’s savings is relatively secure. At least they did until the last couple of years when de-banking, geopolitical turmoil, and the threat of Central Bank Digital Currencies reared their ugly heads.
It behooves Americans to diversify their holdings. If there’s a triggering event or series of events that cripple the financial systems or devalue the U.S. Dollar, wealth can evaporate quickly. To hedge against potential turmoil, many Americans are looking in two directions: Crypto and physical precious metals.
There are huge advantages to cryptocurrencies, but there are also inherent risks because “virtual” money can become challenging to spend. Add in the push by central banks and governments to regulate or even replace cryptocurrencies with their own versions they control and the risks amplify. There’s nothing wrong with cryptocurrencies today but things can change rapidly.
As for physical precious metals, many Americans pay cash to keep plenty on hand in their safe. Rolling over or transferring retirement accounts into self-directed IRAs is also a popular option, but there are caveats. It can often take weeks or even months to get the gold and silver shipped if the owner chooses to close their account. This is why Genesis Gold Group stands out. Their relationship with the depositories allows for rapid closure and shipping, often in less than 10 days from the time the account holder makes their move. This can come in handy if things appear to be heading south.
Lots of Potable Water
One of the biggest shocks that hit new preppers is understanding how much potable water they need in order to survive. Experts claim one gallon of water per person per day is necessary. Even the most conservative estimates put it at over half-a-gallon. That means that for a family of four, they’ll need around 120 gallons of water to survive for a month if the taps turn off and the stores empty out.
Being near a fresh water source, whether it’s a river, lake, or well, is a best practice among experienced preppers. It’s necessary to have a water filter as well, even if the taps are still working. Many refuse to drink tap water even when there is no emergency. Berkey was our previous favorite but they’re under attack from regulators so the Alexapure systems are solid replacements.
For those in the city or away from fresh water sources, storage is the best option. This can be challenging because proper water storage containers take up a lot of room and are difficult to move if the need arises. For “bug in” situations, having a larger container that stores hundreds or even thousands of gallons is better than stacking 1-5 gallon containers. Unfortunately, they won’t be easily transportable and they can cost a lot to install.
Water is critical. If chaos erupts and water infrastructure is compromised, having a large backup supply can be lifesaving.
Pharmaceuticals and Medical Supplies
There are multiple threats specific to the medical supply chain. With Chinese and Indian imports accounting for over 90% of pharmaceutical ingredients in the United States, deteriorating relations could make it impossible to get the medicines and antibiotics many of us need.
Stocking up many prescription medications can be hard. Doctors generally do not like to prescribe large batches of drugs even if they are shelf-stable for extended periods of time. It is a best practice to ask your doctor if they can prescribe a larger amount. Today, some are sympathetic to concerns about pharmacies running out or becoming inaccessible. Tell them your concerns. It’s worth a shot. The worst they can do is say no.
If your doctor is unwilling to help you stock up on medicines, then Jase Medical is a good alternative. Through telehealth, they can prescribe daily meds or antibiotics that are shipped to your door. As proponents of medical freedom, they empathize with those who want to have enough medical supplies on hand in case things go wrong.
Energy Sources
The vast majority of Americans are locked into the grid. This has proven to be a massive liability when the grid goes down. Unfortunately, there are no inexpensive remedies.
Those living off-grid had to either spend a lot of money or effort (or both) to get their alternative energy sources like solar set up. For those who do not want to go so far, it’s still a best practice to have backup power sources. Diesel generators and portable solar panels are the two most popular, and while they’re not inexpensive they are not out of reach of most Americans who are concerned about being without power for extended periods of time.
Natural gas is another necessity for many, but that’s far more challenging to replace. Having alternatives for heating and cooking that can be powered if gas and electric grids go down is important. Have a backup for items that require power such as manual can openers. If you’re stuck eating canned foods for a while and all you have is an electric opener, you’ll have problems.
Don’t Forget the Protein
When most think about “prepping,” they think about their food supply. More Americans are turning to gardening and homesteading as ways to produce their own food. Others are working with local farmers and ranchers to purchase directly from the sources. This is a good idea whether doomsday comes or not, but it’s particularly important if the food supply chain is broken.
Most grocery stores have about one to two weeks worth of food, as do most American households. Grocers rely heavily on truckers to receive their ongoing shipments. In a crisis, the current process can fail. It behooves Americans for multiple reasons to localize their food purchases as much as possible.
Long-term storage is another popular option. Canned foods, MREs, and freeze dried meals are selling out quickly even as prices rise. But one component that is conspicuously absent in shelf-stable food is high-quality protein. Most survival food companies offer low quality “protein buckets” or cans of meat, but they are often barely edible.
Prepper All-Naturals offers premium cuts of steak that have been cooked sous vide and freeze dried to give them a 25-year shelf life. They offer Ribeye, NY Strip, and Tenderloin among others.
Having buckets of beans and rice is a good start, but keeping a solid supply of high-quality protein isn’t just healthier. It can help a family maintain normalcy through crises.
Prepare Without Fear
With all the challenges we face as Americans today, it can be emotionally draining. Citizens are scared and there’s nothing irrational about their concerns. Being prepared and making lifestyle changes to secure necessities can go a long way toward overcoming the fears that plague us. We should hope and pray for the best but prepare for the worst. And if the worst does come, then knowing we did what we could to be ready for it will help us face those challenges with confidence.
