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09.14.11
Global Financial Crisis, Act II

The world economy has bifurcated, which creates powerful crosscurrents as each segment deals with different challenges. The debt-ridden, legacy economies of the West need to deleverage, while the capital-rich emerging economies need to manage growth, capital inflows and inflationary forces.

Meanwhile, Act II of the Global Financial Crisis appears to be playing out, albeit in slow motion, with an epicenter in Europe. Fears of a Lehman-like collapse in that region abound, but global economic conditions are much different than in 2008. For example, bellwether commodities like corn, copper and crude oil do not reflect the crisis mentality.

08.29.11
The Running of the Bulls?

August has been a difficult month for the stock market with the major indices down double digits. Investors are pricing in a double dip recession in the U.S. and a commensurate stall in global growth. Despite rather benign economic conditions in China and elsewhere, the concept of decoupling between emerging economies and the developed nations is not yet in play. Because resource stocks are both cyclical and commodity-related, they will have the most volatility during such challenging times.

04.15.10
Diplomatic Tightrope

The enormous cultural differences have made cooperation between Washington and Kabul a walk on a diplomatic tightrope stretched back into the Middle Ages. In the course of the last few months, every significant U.S. emissary sent to the country has slipped and fell into the abyss, including the Vice President, various ambassadors, special envoys and even U.N. officials. President Karzai has that effect on people. A two hour session of constructive criticism concerning the eradication of corruption leveled at Karzai by President Obama on March 28th produced nothing constructive.
 

04.15.10
Risk Reward

Uranium is a unique molecule, which holds more than 1000 times the energy of a molecule of hydrocarbon fuel. One reason is that it weighs a lot more. A gallon of milk weighs 8 lbs, but a milk carton filled with uranium weights 150 lbs. Moreover, it releases no carbon dioxide during its exothermic reaction, so it does not contribute to global warming and other ecological consequences of using fossil fuel. According to one model discussed below supported by Bill Gates, electricity can be produced by these new modular reactors at half its current costs.
 

04.15.10
The Great Reactor Revival

The Obama administration is going nuclear. After the accidents at Three Mile Island and Chernobyl, plans to build 100 nuclear reactors were cancelled. The three-decade construction moratorium in the U.S., however, is coming to an end and a new generation of nuclear power generators are on the drawing boards all over the world, designed to be safer, simpler, smaller and less costly.