Summary
The nation's energy producers, once united, now battle over the policy decisions of the U.S. Congress. Producers of natural gas battle the oil companies. Electric utilities fight among themselves over the use of coal versus renewables. Coal companies battle natural gas producers. Supporters of Global Warming believe the divisions improve prospects for legislation. It is hard to pass clean-energy legislation when energy firms are united in opposition. Is legislation a hoax and a Ponzi scheme?
Analysis
It is a characteristic of a failing government to avoid the main problem and focus on divisive issues that make the deepening financial crisis even more severe than it already is. The idea behind it is if government can organize industry-sponsored chaos, it can appear heroic in its futile efforts to bring about recovery. The critical uncertainty is whether citizens have the perception to see through this. Will Rogers, noted humorist, once said that "you could fool some of the people all of the time and all of the people some of the time but that you could not fool all of the people all of the time." That being the case, the longer the functionaries can can keep them confused, the longer they can keep their heads. Once the people have had enough, revolution looms. It is a conceit of modern functionaries that the U.S.A. is invulnerable to revolutionary forces.
Michael Lynch consults with leading institutions through GLG
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.
