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alstry (36.57)

Venezuela Prepares For War as Electricity Demand Declines.....

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December 09, 2009 – Comments (2)

Consumers and businesses may finally be seeing some relief from rising utility bills, thanks to the biggest decline in U.S. electricity demand in decades.

http://sify.com/finance/demand-for-electricity-sputters-and-bills-may-fall-us-news-business-jjisajbdcdh.html

Venezuela gets set for war with arms shipment

President Hugo Chavez said his country had received thousands of Russian-made missiles and rocket launchers to prepare for a possible armed conflict with Colombia. "They are preparing a war against us," Mr Chavez said. "Preparing is one of the best ways to neutralise it."

http://news.scotsman.com/world/Venezuela-gets-set-for-war.5891854.jp

Venezuela is a very large producer of oil....a war with Colombia and the U.S. could have a material impact on oil availability and prices.  With the U.S, economy already in a tail spin evidenced by a decline in electrical demand not seen since 1945.......the consequence could be significant and very disruptive to our economy.

Compound that with a  Fed that is running out of bullets attempting to jump start the economy....1.01.10 seems like a reasonable estimate for Concentric Contraction to occur.

 

2 Comments – Post Your Own

#1) On December 09, 2009 at 5:55 AM, weg915 (< 20) wrote:

You live in CA so are aware that as demand goes down and people conserve the utilites continue to raise rates in order to compensate for loss of revenue.

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#2) On December 09, 2009 at 7:37 AM, alstry (36.57) wrote:

Demand goes down when people get kicked out of their homes and businesses shut down...steel factories are big consumers of energy and many have scaled way back.....we have had tens of thousands of businesses and factories close doors over the past year.....millions are staying home from work and not going to the office.....etc.

This decline in electrical usage is spreading worldwide and it is the first time it has happend since 1945.

 

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