China: Where Coal Turns To Money

Where Coal Turns To Money

Where Coal Turns To Money

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U.S.A and China Produce Coal and Money.  Coincidence?

U.S.A and China Produce Coal and Money. Coincidence?

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M.I.T. Technology Review article has this quote:

Chinese industrialists perceive pulverized-coal plants as a license to print money. “People say you shouldn’t call it a power plant; it’s a money-making machine,” says Li. As yet, no power company has been willing to be the first to hit the off switch.

The Christian Science Monitor has a nice article about planned coal vs Kyoto with an very interesting chart at the bottom showing Chinese coal swamping Kyoto CO2 targets.

Well, according to these folks we are headed to hell in a big fast 3rd world hand basket. While I agree that CO2 is not under control (and can not be due to China et. al.) I don’t see it as a climate problem. The only ‘problem’ is that it represents the transfer of economic power from the U.S.A. to China.

Notice also the rest of the world? India and South Africa get a ‘free ride’ on coal under Kyoto. Australia sells a lot to China, so that coal is counted as Chinese consumption, only their domestic consumption gets wacked. Russia was for the Kyoto protocol as long as Europe was paying them; but now has decided it isn’t so important as Bali and real costs come along. Eastern Europe lately said “never mind” about reductions. Seems it got cold…

That just leaves Germany as a significant producer who is signed on to not producing. Yet their government announced that they were more interested in economic stability than Kyoto… And the rest of Europe? Not much has changed since 2006.

And the rest of the world? Any wonder that most of the nations of the world are not too concerned about restrictions on coal? When you don’t have it, you don’t care. When your competitor can’t use their advantage, you gain.

So where does this leave us? Under the present Democratic administration in the U.S.A. we are headed toward killing coal. That leaves China to ‘run the table’ economically with increasing CO2 output, it leaves OPEC in charge of our energy destiny (gee, they don’t show up on the coal map…), and it leaves Europe out in the cold.

This is good how?

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About E.M.Smith

A technical managerial sort interested in things from Stonehenge to computer science. My present "hot buttons' are the mythology of Climate Change and ancient metrology; but things change...
This entry was posted in Economics - Trading - and Money, World Economics and tagged , , . Bookmark the permalink.

1 Response to China: Where Coal Turns To Money

  1. H.R says:

    “So where does this leave us? Under the present Democratic administration in the U.S.A. we are headed toward killing coal. That leaves China to ‘run the table’ economically with increasing CO2 output, it leaves OPEC in charge of our energy destiny (gee, they don’t show up on the coal map…), and it leaves Europe out in the cold.

    This is good how?”

    It’s not, and with all the US dollars have they might jsut decide to buy a significant chunk of the US while prices are low.

    You might have heard this before ;0) but the only true sources of wealth are mining, manufacturing, and agriculture.

    US policy makers at all levels – local, county, state, federal – all too often seem to forget this fact. Then they wonder why their economies struggle when their policies undermine or discourage wealth creating activities.

    My daughter-in-law is Chinese. She’s only been in the US for about 10 years and her family is still in China. I asked her what was going on with the slowdown in the Chinese economy, as her father has a couple of small businesses there and keeps her up-to-date. The things he told her indicate that the Chinese government is doing all of the right things to unleash internal economic growth such as lowering taxes, easing restrictions on farmers so they can earn (and spend) more, and creating incentives to invest in capital or raise living standards instead of saving cash under the mattress. If their policies are modestly successful they won’t give a toot about what’s happening in the US.

    The Chinese seem to mostly be doing the right things. The US seems headed in the wrong direction. The battle against coal is the wrong fight to wage, especially now.

    Excellent post, sir.

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