Schlagwort-Archive: price stability

Some misconceptions from the Greens

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I know what I’m writing here is heresy. At least it is for the supposed to rule us well deledefs in Germany. Anyway here we go

Now can we rely on actual an currently working renewable energy? Well the depressing answer is “no”. We can’t . Neither wind nor sun is guaranteed to work every day, every hour. So we always will have strong up-and-downturns. There is not denying there are those gray days where neither one see the sun nor feel the slightest movement of air. And there will always be those day where the sun is burning and the wind storming.

Can we follow this variability. I’m afraid that won’t work either. So no we simply are not that variable with our needs.

So what can we do then? Can we store the electricity. Well to depressing low level yes we can. It might work e.g to keep my computer running with a large enough battery which may keep the currency even for a week or so. Can we do the same for let’s say melting steel? Well no, there is not way of storing away big masses of energy. Yes agreed you can warm water with it and you may use this water to make electricity again. But this really is a big loss and currently nothing on a large scale is available.

So the current unpleasant but nonetheless truth is. We have no reliable way storing away electricity. That’s a simple fact of life which nobody can change immedieatly, so currently if we’d have 100 GW renewable energy we need another 100 GW “traditional” energy, be it gas, coal, oil, nuclear power. So this means we have a need for double the needed energy just in case one half is not available. That is uneconomic to the highest extend, so do we keep all the other conditions the same and let us assume one 1 KWH costs 20 ct. Then we need double the price for one KWH just being able to satisfy our current need for currency.

The other option just can’t be needing half the energy. But that does nor work for electricity. So with all mean the Greens are working against the objective reality, and how should that work? The simply answer is it hadn’t, doesn’t and never will (long term) So either we find a way storing electricity or we must limit other outputs from the industries which have to “be” the reserves. In both cases we need at best double the prices of today. And you can bet hardly anyone will jump on the idea having double his expenses for the same output just because the Greens ignore reality

Simple but legendary

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Well I do not know how many of you can associate Ludwig Erhardt with something. However a books published in 1957 and now in it’s eights or so edition. Still is
as actual and valid as before. The most prominent example:
“Price stability should be considered a base human right”

Why is that simple but legendary. Well money is the mean to freeze demands. If anyone just spends all he/she has, nothing is left for investing. So someone must
have act economical sound, such that he/she can afford not to spend all one’s money. Now this money is earned at a certain point in time. And in that certain point in time the money has it’s “original” value. Now what happens while prices are not stable? It’s simple work in the past is devalued. How? Well simple the if money looses half it’s value in let’s say 10 years. The original save has been betrayed. And look into the big inflations. You always will see the honest man living withing it’s bounds was betrayed. And especially in Germany who was responsible for this. Well in every war people should buy bonds, but this is just to make those keen on having war more or less happy. And well because they have the guns they do not argue about it they just make a law which demands that all the money has to be put into “war bonds”. Well they will be named differently probably. But it’s for stealing money of worth and living the creditors with the vague hope of economic recovery.

Well after war there is alway economic recovery but it’s not that the governements will ever pay back their debts. They will do currency cuts, deevaluate the old debts and isssue new worthless money. As long as they have the power to play with our values that way, any hope of improvements are vain. So how does your country handle price stability?

See what happens in hyperinflations. See how poor one can get if money is no longer worth anything. There is not better way to ruin any country but through ruining their money.

Now 60 years later this is still a simple truth. But it’s also legend.