EUROPE’S ENERGY CRISIS IS KEEPING ENERGY PRICES AND INFLATION HIGH
America leads the world in oil and gas production. We believe midstream energy infrastructure offers predictable cash flows to investors..
Russia Boosts US Energy Sector
Maslow’s Hierarchy of Needs is a stylized pyramid with food and shelter at the base and self-actualization at the top. Maslow wasn’t around to contemplate where ESG (Environmental, Social and Governance) aspirations sit on his pyramid, but he would likely have placed them near the summit. The people and institutions most sensitive to ESG have […]
Policy Errors On Interest Rates And Energy
Last week JPMorgan forecast that the Fed will raise rates at their next nine meetings, resulting in a 2.25% hike in short term rates by March 2023. They warned that inflation is entering a “feedback loop”, whereby higher wages demanded by workers to compensate for eroding purchasing power feed back into higher prices. Over the […]
The Death Of Modern Monetary Theory
The last two years have provided an empirical test of Modern Monetary Theory (MMT), the idea that a government can borrow indefinitely in its own currency with no fear of bankruptcy. Stephanie Kelton is the cheerleader for testing the limits of fiscal prudence – I reviewed her book in late 2020 (see Reviewing The Deficit […]
The Costs Of Bad Energy Policy
European policymakers are being forced to reassess energy policy. Premature reliance on intermittent renewables came up short last Fall (see Europe Follows California Into Renewables Oblivion). More recently, the EU’s reliance on Russia for 40% of its natural gas imports is being exposed as especially unwise with Russian troops poised to invade Ukraine. Britain has […]
Pipelines Offer Protection From European Conflict And The Fed
Friday afternoon’s warning from the White House that a Russian invasion of Ukraine could come at any time did at least distract attention from Thursday’s CPI. Energy stocks rose while the S&P500 fell – a welcome negative correlation. Bonds also recouped their losses from the prior day. Over several decades the bond market’s sensitivity to […]