|"What's that, Mr Shoempeter?"|
In this chart, you can see the direct correlation between energy consumption and the economy. In 2007, as the US economy continued sinking into a depression, the combustion of oil stumbled, something many people at the time were blaming on its skyrocketing price. But that skyrocketing price was actuated by insider traders who knew full well what the declining economic numbers meant for mortgage-backed securities and CDO's, and were merely reshuffling their funds out of the rigged housing market into the oil-rigged futures market, allocating their assets to make their next killing, while their friend at the Fed kept re-assuring the soon-to-be-raked-over-the-coals public that all was well.
As they then went global with their rich get richer "plays", as they like to call them, you can see the proof of what I disparaged Krugman for in a post of 2010, where he scolded McCain for "not taking enough action on climate change legislation" while he (The Krug) simultaneously called for a huge deficit-spending bill, pretending, like the rest of his "profession", that there is no connection between stimulating the economy and stimulating the combustion of fossil fuel reserves. But, as you can see from the above chart, what the stimulus of China's ginormous stimulus program translated into, (as did all those dollars flooding Emerging Market economies), was a grand ramp up in oil combustion. A ramp up that now Venezuela, Brazil, Mexico, where there were gas riots this week, are all paying the price for as they invested all those borrowed funds in a future that is anything but sanguine (ie, it won't be able to generate the profits necessary to repay those loans).
And lest you have any doubts as to where the oil glut came from the above chart should help you cast them aside. As Trump rails against China for unfair trade practices, of which they are guilty of many, the mirror must be awfully cloudy for him not to see that printing of dollars by the Fed to pour into the fracking industry, and then dumping this enormous bonanza of extra fuel onto the world market is manipulation of the worst sort, all while, (unlike China which acknowledges itself to be a Communist country), pretending to be the bastion of Free Market economics. China was a communistic country when we started trading with it, we knew it, they knew it, so to whine about it now is simply two-faced political posturing. But the US of A is supposedly a mere slave to the free market, so when it pulls this and then whines about China dumping a few textiles, it's just plain hypocrisy. No big crime, I know, but jeeez, cut the temper tantrum short, couldja?, it's freakin' embarrassing.
So now, this last chart to show what is so worrisome to me about the tremendous gain in solar and wind-generated energy in the last decade, and the last years of a climate-change admitting president.