Green Energy

A couple weeks ago, I had the opportunity to meet two execs from an Asian energy investment firm with offices in Hong Kong and Singapore.  The chaps were in town to visit a nearby chemical plant that purportedly has new technology of using silicone to create solar energy.  Anyhow, these guys were foreigners who spoke English well enough so I questioned them on their outlook.

Both fellows were gung-ho about green energy.  They commented on the future expectations of rising fossil fuel prices and lack thereof and that alternative energy is the way to go.  Of course, it is their business and it's not too surprising to hear that from them.

But that got me thinking.  We may be in a recession right now.  It certainly feels like it.  But, what about when we move out of this phase?  What's going to happen?  Are we going to be at an earlier stage, like are we going to be back in 2000 territory?  I don't think so.  In fact, I'm thinking we'll be building progress in the meantime that will help us explode up higher when we get out of this funk...however long it'll be.  I sorta think that we'll see more impressive returns than what we've seen earlier this decade.  

Why?  Well, BRICs are only in their early stages of industrial revolution.  The resources and headcount in these countries are astonishing and if they ever figure out how to harness both, watch out Westerners.  Not only that, we will be offsetting their consumption with our own savings during this recession.  We will once again have spending power once we get out of this gloom-n-doom stage.  Yes, the government will be heavily indebted, but that doesn't change the equation.  What's changed is the larger model of STRONGER emerging economies and more BALANCED leading economies.  Japan is better now than 10 years ago.  The US will be better 10 years from now than today.  And the BRICs will definitely be many folds better in 2018 than now.

Watch out.  The commodities boom cycle is just resting for now.