Posts Tagged ‘energy’

The Bright Side To The Energy Crunch

Sunday, June 24th, 2012

It’s shocking the amount of money it costs to fill a automobile’s tank these days. Elevated fuel expense is having an effect on just about every facet of life. Food costs and various physical product prices are inflated as a direct consequence of increases in transportation and shipping. For those who drive, most Americans, disposable salary is decreased. It is hard to identify a silver lining in all of that.

However, there’s one positive side-effect. Quite similar to the oil crunch in the 1980s, the substantial cost of fuel has turned the Public’s eyes back toward renewable power and sustainable energy. In plain speak, the discomfort of fuel pricing has exceeded the complacency. There is now a greater interest in fossil fuel alternatives.

Alternative energy is most often defined as the capability to generate energy in the present without compromising that ability of our children and grandchildren to produce power. It generally describes using natural sources of energy which replenish themselves. Unlike oil, that is certain to finally be consumed entirely, other sources, like sunlight, wind, rain, and tides will last for as long as our world will.

Solar panel technology involves harnessing sunlight to either yield electrical power or heat water. The effectiveness of solar technology can vary depending on climatic conditions and location. Nonetheless, the issue can be overcome by feeding the national electric utility grid from locations with suited characteristics. For individual property owners, a key downside of solar is definitely the initial, installation costs that can be quite high, although the long-term savings and tax breaks can fully offset the initial expenditure during the lifetime of the solar energy system.

Considering the recent introduction of electrical passenger cars and automobiles with gas backup generators, solar powered energy now offers the actual possibility to replace virtually all gasoline use in non-commercial motor vehicles. The current generation of these passenger cars will run 80 to 100 miles per charge. The normal American drives under forty miles every day with work commuting.

Employing wind turbines to produce electrical energy is really a further development of a 1000 year old technology that uses windmills to pump water. It has different but similar topographical limitations to solar panels. Having said that, windmill farms in mountain traverses can create power for the nation’s power grid much like desert solar farms.

As far as water goes, technologies have evolved quite a bit since the hydro-electric dam. Which is still a highly viable technology that’s been around for quite some time. Presently, studies are under way to use the tidal motion in the ocean in order to create electricity with a buoy system.

The clear theme here is that alternative energy technology has been in use for a long time. Nevertheless, only the current pain of high gas costs have inspired consumers to turn from the significantly more convenient non-renewable fuels. Almost all growth includes some pain.

Check out our Solar Energy Pros and Cons report, or our Blog.

Is your home efficiently heated?

Wednesday, February 1st, 2012

Due to the rising cost of living and the state of the economic climate, many families are finding money to be very tight right now. With this in mind, people are trying to find places in their everyday lives to make savings, and one of the best places to do this is in the way we heat our homes.

Ideally, the system you use to heat your hot water and your home should be as cost efficient and as energy efficient as possible. You should take the time to find out what gas or electricity tariff you are on, and whether it really is the cheapest available. This may seem like a lot of hassle, but potentially, switching could save you a small fortune on your heating bills.

Do you use your home heating system efficiently? This is another question you should be asking yourself. You should also try to use timers to manage your heating, as well as shutting doors, insulating your home and getting double glazed windows to stop the heat escaping.

For some people, the above measures don’t go far enough when it comes to improving the efficiency of home heating systems. There are, however, some alternative types of heating system available.

A key example of an alternative heating system that is growing in popularly is air source heat pumps. These operate in quite a clever way, as they use the heat from the outside air to create useable heat with which to heat your hot water and your home.

As well as being up to 50 per cent cheaper than some systems, such as gas heating systems, air source heat pumps also last longer. Unlike your boiler, heat pumps last up to twenty years, and they don’t need servicing.

Check out our website for details about the benefits of installing a heat pump system in your home, now. You can also find information about a reputable supplier of air source heat pumps, today.

Know How To Reduce Your Energy Bills This Winter By Draught Proofing Your Home Now

Tuesday, November 29th, 2011

It is likely that you want to know how to reduce your energy bills this winter by draught proofing your home. This is something that everybody wants to know and now you can find out. There are fives ways that you can do this – it just depends on the type of insulation you need and can gain.

Good insulation is required to make a home suitable for the winter weather. A well insulated house means that the heat does not escape and the cold breezes do not get into the home, whether through an attic or non-insulated walls. You will be able to use less energy throughout the year, especially at winter, to heat the home through so will save money on your electric and gas bills.

Draught proofing is actually something you can do without the need of spending a lot of money. In fact, it is likely that you can do it with items that are already in your home. The most common way is to put a rolled up rug in front of a door, which will stop the breezes getting in through the bottom of your main doors. This is also something that you can do with any room that you are in.

Windows are another place for the heat to escape but you can counter that through the use of large, heavy curtains to block them. However, this will not stop the cold air coming through the gaps in your window. To stop this, you will need to find old clothes or some material to plug the gaps up.

You will be surprised at where you lose heat from and you will need to go through each room in the house. Take your time to find out which are the coldest rooms and look after them. Pay close attention to the attic and basement. These rooms are where most of the heat is lost through, usually through gaps that you would not usually notice.

There are three main types of insulation that you can have placed in your home and it is important to consider all of them. Two of them are placed in the walls and it will depend on the type of wall that you have. You will either need solid wall or cavity wall insulation. However, you will also need to invest in attic insulation to stop the heat escaping as it rises.

Learning how to reduce your energy bills this winter by draught proofing your home is the easy part. There are lots of options available. It is up to you what you use and which ones will work out economically viable. Looking draught proofing can be done with anything in your home, including old clothes and rugs.

Sash window draught proofing will help you save money on the electric bill. More and more individuals are turning to sash window refurbishment today.

Mid-Week Dollar, Gold & SP500 Trend Trading

Thursday, November 3rd, 2011

It has been a roller coaster week thus far as stocks and precious metals plunged on heavy selling volume on the back of a rising dollar, only to make a strong rebound Wednesday. While there has been significant intraday price movement, it was no surprise to us as we have been anticipating this pullback since discussing it in my Sunday Gold Newsletter.

Let’s take a quick look at the charts…

US Dollar Daily Trading Chart

The past couple weeks the dollar has traded in a choppy fashion, and last week I mentioned to subscribers to keep any new positions small. The dollar looked ready to make a bounce and if it reverses we will see stocks and commodities correct rather sharply.

Last week we trimmed some profits on our gold and SP500 trading positions in anticipation of a rising dollar/lower equity and metals prices. The dollar is currently in a down trend so we are still trading with the trend, but the next couple sessions could potentially change that.

As you can see on the chart a similar pattern to what we saw during the May/June top earlier this year has now formed in reverse this month. It’s a simple pattern I call a drop-n-wash. It is like dropping a knife – you panic, then take action (move foot, then wash the kife). That is typically how the market reacts to this type of price pattern after an extended trend has taking place for a long period of time.

The dollar made an obvious breakdown which the entire world witnessed, causing traders who recently went long to panic and sell their positions. Those who like to short the dollar would have taken a short position, only to see the market reverse and head straight back up again. This pattern has yet to confirm, but through the use of the shorter time frame charts (5 Min, 10 Min, 30 Min), I have a feeling the dollar may continue to rise. However, until the dollar shows considerable strength I am still playing the long equities / long gold side of the equation.

SPY – SP500 ETF Trading Fund

The SP500 made a nice move up last week and we trimmed our position back to lock in more gains as I anticipated this pullback and possible gap fill. As you can see on the chart the moving averages are all heading up and that’s the direction we are still focusing on playing (buying dips).

The morning dip on Wednesday the market sentiment started to shift to become extremely bearish on the short term time frame (10 minute charts). If the market drops down to fill the rest of that gap, I have a feeling the majority of traders will panic out of their position giving us an extreme sentiment buy signal. Also a gap fill will bring the price down to the key moving averages which will act as a support level. I will notify members to add more to my SP500 long position if that happens.

GLD – Gold ETF Trading Fund

Gold has much of the same story as the SP500 but with a couple twists. Gold has huge global demand from banks, investors and traders adding more buying power to this investment than stocks right now. We could see gold hold up above its gap that formed last week. That being said, a pullback to the key moving averages would not only act as a major support level but also fill the gap. We currently have our long positions, but trimmed some profits near the highs and are sitting tight letting the market work it’s self out.

My trading partner J.W. Jones posted a great gold play yesterday which had a nice payout already. Read about his gold options trade here.

Mid-Week ETF Trading Conclusion:

In short, the focus should be kept on trading with the underlying trends until a trend change has been confirmed. So that means short the dollar, long equities, metals and oil.

That being said, because things are starting to look unstable it is crucial to trade smaller position sizes during times of uncertainty like this. Anticipating major market tops is very difficult and generally costly play, just ask everyone who has been trying to pick a top for the past 2 months… Anticipate trend changes, but don’t trade them until the price/volume action confirms the new trend.

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The Casino of Paper Money

Thursday, November 3rd, 2011

Capitalism is similar to a giant casino where capital, i.e. paper chips, are issued by the house, i.e. banks, as interest-generating loans. The longer the chips remain in play, the more debt is created which accrues to the house as profit.

Most of those in the casino, i.e. workers, producers and savers, must “invest” their savings with professional gamblers, e.g. investment banks, insurance companies, and pension funds, who arbitrage the odds at various tables and are given additional credit by the house in order to do so.

The professional gamblers offer a small return to the workers, producers and savers and pocket the difference between their winnings and the returns offered; and, as long as the velocity and amount of capital bet increases, the house is profitable and can pay what is owed to the professional gamblers who pay what they owe and keep the rest.

Problems happen when the velocity of capital slows and the aggregate amount bet diminishes. This explains the obsessive concern of the house bookkeepers (central bank economists) regarding the velocity of money and the overall money supply.

After 1900, the velocity of money steadily fell until 1913 when America officially became a casino to be managed by the Federal Reserve, i.e. the house. The house fix, however, was temporary and lasted only 5 years. Note what happened to the velocity of money after 1971 when the casino’s chips are no longer backed by gold.

When the historic 1920s US stock market bubble collapsed in 1929, the money supply contracted 25 % by 1933; and, as a consequence, the US made the private ownership of gold illegal that year.

The US confiscation of gold was enforced by the casino to prevent Americans from taking their paper chips off the table to instead buy gold; as gold buying diminishes the overall money supply, i.e. the amount of paper chips in play, and the velocity of capital, i.e. the volume of paper money being bet with the house.

That the US could again confiscate gold is a possibility as America is still operated by the same managers, the Federal Reserve. However, there are differences between the 1930s and today and I discussed this possibility previously on a youtube video, see http://www.youtube.com/user/SchoonWorks#p/u/9/5o36Dj-ukPo.

If the US does outlaw the private ownership of gold, it will erode the ability of Americans to recover after the collapse. The US government, however, is primarily concerned with the ability of the Fed to loan the government money, not the well-being of its citizens. This should be obvious to most Americans. Unfortunately, it isn’t.

Capitalism is similar to a Ponzi-scheme where earnings and winnings must be constantly re-cycled, i.e. “re-invested”, in order to keep the scheme going. This is why the US is so upset with Asian nations with high savings rates-earnings in Asia are not being recycled as quickly as the West requires.

To Asians, savings are a sign of healthy economies and balanced living. To US and Western bankers, high Asian saving rates constitute a “savings glut”, causing the velocity of money and amount bet in the West to slow and threaten its global Ponzi-scheme

This is why China, Japan, Korea, and Middle-Eastern oil-producing nations are pressured to recycle their savings back to the US and/or other Western economies. By so doing, they become captive to the West as their increasingly indebted economies become dependent on the West’s paper driven demand.

In Asia, however, savings are still considered a virtue, not an under-leveraged asset as in the US and Europe. Gold, too, is held in high regard in Asia. Recently, Chinese households have more than doubled the percentage of their savings invested in gold.

The Chinese are investing in gold because in the 1940s the value of Chinese paper money plummeted 1,000-fold in a hyperinflationary collapse and they remember. Europe, too, suffered extreme monetary distress during the early 20th century, and the Europeans likewise understand that gold is the money of last resort; and, after global markets imploded in 2008, it is understandable why the European demand for gold quadrupled.

In America, however, the house is committed to keeping America’s savings invested in paper assets and paper promises, i.e. bonds, in order to keep its Ponzi-scheme alive. How long the house, i.e. the Fed, can do so is now the world’s quadrillion dollar question.

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