Wednesday, 18 June 2008

The ground for the next bubble is being slowly prepared

In the last post, I mentioned a read about Green Environmentalist Gore's through-the-roof hydro bills. To be honest, I do not think Gore cares a penny about the Mother Nature, the effects of so called global warming, greenhouse effects, etc. More likely, Gore is on a mission in one of those crooked big-scale schemes that at the end of the day screw a lot of people, businesses, and countries and that make tons of money or achieve other objectives for their originators.

The Kyoto Protocol, for example, is an important building block in the big long-term environment-related project, whose ultimate objectives are to: (1) limit and control the growth of fast-growing developing economies, including BRIC's; (2) create a potentially big market for pollution rights and related derivative instruments; and (3) prepare the grounds and info support for the next big bubble, which will happen to be the Alternative Energy Bubble.

The macro-size bubbles are not created overnight, it takes time and money to grow them. We all know what happened, is hapenning, or is about to happen to the junk-debt, high-tech, AIDS-research, housing, asset-backed-securities, credit-derivatives, and traditional-fuel bubbles. For every such bubble, there is a well-planned and generously funded informational campaign. I think that harismatic Gore is a pubic figure in one of such campaigns.

We all remember all this bullshit about the new-paradigm perpetual economic growth, the new-age service economies, the Y2K end of the world for computers, AIDS' and SARS' global threat to the humankind's survival, real estate being your investment friend forever, elimination of mortgage risks through pooling and repackaging, global oil shortage, etc. Well, prepare yourselves for the next big one. The big players in the traditional fuel chain are getting prepared for the qualitative shift to the "eco-friendly" energy, and the currently inflated fuel prices is one of the last calls to make big money in this process of transforming from Big Oil, Gas, and Coal to Big Hydrogen, Solar, Wind, and Whatever. They, and the related players in such industries as transportation and auto manufacturing, can finally pull out some of those techs that they have been shamelessly keeping away from the widespread general public use for years and make some serious money.

Here is the cooking recipe for the energy market: First, heat up the good old markets with military interventions, media coverage, active support by loyal jackals in the financial services industry, market manipulations, and a lot of bullshit stories. Second, squeeze the markets and economies with high prices and try extracting the consumer surplus to the last drop. Third, through this process and by orchestrating the instability in the asset and debt markets, destroy the equity value of real-sector and high-tech businesses and buy them cheap, to be used later in your new project named Alternative Energy. Fourth, gradually dispose of the old product and old tools (in this context, coal, oil, and probably natural gas and the related techs, equipment and pipelines) by shifting the residual old market focus to the developing second-tier countries. Fifth, unpack carefully hidden new techs and open the new feeder. Sixth, make tons of money on sales of the new product, related techs and equipment, service support, and (of course) related financial instruments.

It is not to say that the transition process will happen overnight. It will take years, but this next bubble will inevitably come to replace those that have already lost or are losing public credibility. The Ponzy Scheme fiat-money financial system cannot function without new progressively increasing bubbles. The Alternative Energy bubble will be larger than the previous ones. When this new mega bubble bursts a decade or so later, it may be really laud.

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