Electricity in Transition – Part II

[Inside Wall Street with Nomi Prins]( Welcome to Inside Wall Street with Nomi Prins! It’s the only daily newsletter featuring the insights of renowned author and former Wall Street insider, Nomi Prins. Every day, Nomi shines a light on a massive wealth transfer she calls The Great Distortion. That’s the true cause of the permanent disconnect she sees between the markets and the real economy. And she shares ways you can come out ahead, if you know where the money is flowing. You’ll find all Nomi’s Inside Wall Street issues [here](. If you have questions or comments, send Nomi a note anytime [here]( or at feedback@rogueeconomics.com. Nomi’s Note: Welcome to a special edition of Inside Wall Street. All this week, I’m bringing you some of my favorite content from geopolitical strategist Peter Zeihan. In the fight against climate change, leading nations have promised to reduce carbon emissions and power their countries by cleaner means. Around the world, different energy transition strategies are yielding different results. And right now, we’re in the middle of the worst energy crisis the world has seen for decades. Some countries are struggling to keep the lights on. [Yesterday]( in the first of a two-part series, Peter showed us what two of Europe’s largest countries, Germany and France, are doing to keep their economies powered up. Today, he looks closer to home… and explores the different approaches being taken by our two most populous states, Texas and California. And he shows us that when it comes to the energy transition, location matters… --------------------------------------------------------------- Electricity in Transition – Part II Adapted from Peter Zeihan, Author, The End of the World Is Just the Beginning Texas is a very sunny place. Especially western Texas, which is part of the American Southwest. The Southwest is the sunniest region on the North American continent. And Texas is also in the Great Plains, which is one of the windiest locations in the Western hemisphere. Texas doesn't have an official green program. But it’s been adding solar and especially wind power at huge volumes. Also, as the turbines go higher and higher, above about 700 feet, you’re tapping into stronger and more reliable wind currents. That means you can even use that wind power for base load capacity, because it's not so intermittent. Recommended Link [Want to better understand global politics?]( [image]( Critically acclaimed author Peter Zeihan comes recommended by Fareed Zakaria, Ian Bremmer, and former Presidential candidate Mitt Romney. Find out why. Order his latest book, The End of the World Is Just the Beginning. [Get it here and receive a $100 Legacy Research credit.]( -- And then that brings us to California. One of the fun things about California is its policymakers are a little wackadoo from time to time. But one of the things that California does not get enough credit for is this: Its bureaucrats have been imbued with enough power to move the goalposts when it's clear that the technology is not working out. The state legislator in Sacramento will pass green mandates. But if 5-10 years down the line, it looks like the technology is not maturing as they thought… the bureaucrats have the authority to move those goalposts a little bit. It puts pressure on the industry, without it necessarily being a death blow. [Featured: The diversification method is crushing people.]( I think a lot of the concerns folks have about California experiencing wide-scale blackouts because of the green transition are a little overblown. I'm not saying it’s not a risk. It's something we should keep an eye on. But California has developed a legal structure for dealing with this. But we need to compare California (a very sunny, moderately windy state) with Germany (not sunny or windy at all, [as we saw yesterday](. Recommended Link [Man who warned of Russia invading Ukraine releases a new set of predictions]( [image]( Geopolitical expert and best-selling author Peter Zeihan has just released a startling new set of predictions in his latest book, The End of the World Is Just the Beginning. The first printing completely sold out, but you can [get it now right here.]( [Click here now.]( -- Power Problems California and Germany have very similar mandates for their green tech. But it really doesn't work in Germany at all. We're seeing that right now with all the coal coming back online and, at least to this point, their refusal to bring nuclear back online. We're going to see a broadscale failure in Europe of all things green, probably this year and certainly next year. Particularly in Germany. The winter is probably going to be pretty harsh. But in California, it's a different picture. Not only does the geography work better for green tech, we have a more flexible legal system. There are also secondary impacts that help in places like California and Texas, that don't in Germany. Again, it has to do with geography. [Featured: My exclusive trading method could make all your financial worries go away - Jeff Clark]( Peak demand in Germany is in the winter, at night, when solar can’t help at all. Peak demand in Texas and California is in the summer during the day. And if you have solar panels on your roof, you are preventing that solar gain from going into your attic. I used to live in Texas. I took a thermometer up into my attic. And I discovered that before and after I got solar panels, the temperature difference was typically 30 degrees in the heat of the summer. It makes it a lot easier to cool your house if the solar energy is not hitting the roof in the first place. California and Texas can count on that. Germany, not so much. Recommended Link [How Son of a Farmer Left a Career in Money Management at 42]( [image]( Son of a Kansas farmer turned millionaire reveals … The easy way to make some extra income in a matter of weeks – from the comfort of your own home. “I used this secret to leave money management at age 42 – I never have to worry about money again.” – Jeff Clark [Find out how right here.]( -- First Rule of Geopolitics Where does this take us? Well, we're going to see Europe’s green programs broadly collapse this year. Especially Germany’s. Their programs are going to be shown to be hollow. The technologies are going to be shown to not work very well at all in those geographies. We're going to see carbon emissions expand considerably. But in California, everything's going to be more or less hunky-dory. The green movement is going to have about two years to digest this. And hopefully, the outcome of this for the green movement will be a recognition that geography matters. That’s the first rule of geopolitics. And if that's the case, then maybe we'll get some smarter policies in a whole lot of places. (New York State, by the way, is in a very similar situation to the Germans.) California can show a way forward. And if the greens can realize that place matters, and where you get your power matters… then Diablo Canyon – the nuclear power plant I talked about yesterday – probably won't shut down. Then we can have a new model of an integrated system that is more carbon-friendly for the environment… without the risk of massive rolling brownouts and blackouts. That's probably where this is going to go. It will mean that the knives come out within the green community… Between the ideologues who think that all solar is good – even if it's facing north at the North Pole in the middle of the night… And those that can actually do math, like me. Regards, Peter Zeihan Author, The End of the World Is Just the Beginning --------------------------------------------------------------- Nomi’s Note: Nomi here again. As a veteran geopolitical analyst and strategist, Peter has immersed himself in the world of international affairs throughout his career. In his latest book, The End of the World Is Just the Beginning, he combines his unique understanding of demography, economics, energy, and politics to map out what happens next in our world.. Including in the energy transition. To order your copy of Peter’s book today – at a discount over the major retailers – [simply click here](. --------------------------------------------------------------- Like what you’re reading? Send your thoughts to [feedback@rogueeconomics.com](mailto:feedback@rogueeconomics.com?subject=Inside Wall Street Feedback). --------------------------------------------------------------- MAILBAG Nomi’s recent essay about the [main culprit behind rising energy prices]( stirred this reader to respond, naming a culprit of his own… Nomi, I do like what I read from you (for the most part). But occasionally, you surprise me, as you did in your post on who is to blame for the energy price crisis. You make a flat-out statement that the “Russian sanctions” are largely to blame for the spike in energy prices. Nomi, you know better. The sanctions maybe account for 40%-50% of the spike in energy prices, which came long after Biden, on his first day in office, systematically began shutting down the U.S. fossil fuel sector of our economy. All to fulfill his campaign promise to the far left in the Democratic Party to “Go Green,” no matter what the cost. Now to be clear, I don’t mention this obvious omission from your pronouncement on energy prices to make a political point, one way or the other, on whether “going green full bore” is right or wrong. I don’t know other than to surmise that it will be years before we can get off fossil fuels and be able to rely totally on renewables. I won’t live long enough to see that day, but I do hope it happens. – Douglas N. And Nomi’s essays on [the revival of the nuclear industry]( and [thus the uranium market]( drew plenty of feedback from readers… Our government has driven us off the cliff with its green agenda. All electric cars is a pipe dream. Based on what I’ve read, there aren’t enough raw materials on the earth to do this worldwide. Electric vehicles as an alternative/alongside continued combustion vehicles had potential. I also believe that while there are many factors at play in inflation, I believe the reduction of gasoline and diesel with the increased costs has sent a significant ripple through our entire country's economy, which will only become worse. I do believe nuclear will have an important role to play in the transition away from fossil fuels to create energy. And my understanding is that there are new projects under development, which will enhance and scale the creation of these power facilities. – Fred L. Regarding nuclear, I agree with you. In fact, if you keep up with that industry, there have been some interesting and surprising developments. The United Kingdom has approved the construction of new reactors. Japan (yes, Japan!) is talking about building new capacity. And, miracle of all miracles, our very own California has (thankfully) decided not to shut down Diablo Canyon. Although Germany will be closing some reactors, they cannot shut them all down while facing the energy crunch they find themselves in. France is chugging along nicely. And even the Low Countries are starting to rethink nuclear. – Dave W. It seems to me that the point is virtually never made that the many thousands that were killed at, or associated with, Fukushima were the result of the earthquake and tsunami and not from the meltdown of the reactor. Only one person, a technician inside the plant, died from radiation. This fact does not seem to be internalized by analysts and even "uranium-bugs." I find this astonishing. – Raoul S. Do you agree with Peter’s premise that those coming up with energy transition policies need to acknowledge that geography is an important factor? Do you think, as Fred implies, that a more balanced approach to the energy transition is warranted? Write us at [feedback@rogueeconomics.com](mailto:feedback@rogueeconomics.com?subject=RE: Electricity in Transition – Part II). IN CASE YOU MISSED IT… [In 20 years, this little-known trader didn’t have a single losing year…]( In his debut video, Market Wizard Larry Benedict reveals how to make all the money you need, in any market, using a single stock. [Click here to watch the video]( and get the name and ticker of the one stock that could put you on the road to financial success. [Click here to learn more.]( [image]( Get Instant Access Click to read these free reports and automatically sign up for daily research. [The 101 Guide to Pre-IPO Investing]( [An Insider's Guide to Making a Fortune from Small Tech Stocks]( [The Trader’s Guide to Technical Analysis]( [Rogue Economincs]( Rogue Economics 55 NE 5th Avenue, Delray Beach, FL 33483 [www.rogueeconomics.com]( [Tweet]( [TWITTER]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. 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