Electricity in Transition – Part I

[Inside Wall Street with Nomi Prins]( Welcome to Inside Wall Street with Nomi Prins! It’s the only daily newsletter featuring the insights of renowned author and former Wall Street insider, Nomi Prins. Every day, Nomi shines a light on a massive wealth transfer she calls The Great Distortion. That’s the true cause of the permanent disconnect she sees between the markets and the real economy. And she shares ways you can come out ahead, if you know where the money is flowing. You’ll find all Nomi’s Inside Wall Street issues [here](. If you have questions or comments, send Nomi a note anytime [here]( or at feedback@rogueeconomics.com. Nomi’s Note: Welcome to a special edition of Inside Wall Street. All this week, I’m bringing you some of my favorite content from geopolitical strategist Peter Zeihan. Around the world, countries are wrestling with a worsening energy crisis. From Texas to California, Germany to France, many places are turning to renewable and nuclear energy to keep their economies open. Some successfully; some not so much. Today, in the first of a two-part series, Peter shows us what’s working in Europe… and what isn’t. And he shows us why Germany, which has been regarded as a model of excellence in the energy transition, has got it all wrong… Read on below… --------------------------------------------------------------- Electricity in Transition – Part I Adapted from Peter Zeihan, Author, The End of the World Is Just the Beginning California. Texas. Germany. France. Not a normal grouping of places, policies, or politics. All four, however, are in the midst of a transition to renewable or green energy. All four are grappling with energy reality… popular expectations… the vagaries of climate and weather… and rising energy costs. And all four are experiencing a mix of successes and failures, both in and out of their control. So today, I want to talk about electricity. We've got a lot of things going on in California, Texas, France, and Germany. I'm going to knit them together into a story for you that hopefully makes some sense. Let’s get to it… Recommended Link [Offer: We’ll “Pay You” $100 to Read This Bestselling Book]( [image]( You read that right. Peter Zeihan’s new book The End of the World Is Just the Beginning has soared up the bestseller list. The first printing completely sold out. But we’ve figured out a way to get it in your hands at a huge discount. Plus, we’ll issue you a $100 credit – which you can use toward any Legacy Research product – when you request a copy. [Click here for the full details.]( -- Different Places, Different Policies – Same Transition Our story starts with Russia. The biggest issue is that the Russians have shut down the Nord Stream 1 pipeline, again. Nord Stream 1 is the primary flow of natural gas from Russia direct into Germany. It goes under the Baltic Sea. Natural gas provides about 15% of the electricity the Germans use. The Germans also use that natural gas as the base of their heavy industry. And heavy industry is really the foundation for everything in German manufacturing. So to lose any part of it – even temporarily – is a big deal. [Featured: The diversification method is crushing people.]( But regardless of what happens next with Nord Stream 1, Germany won’t be in the clear. I would anticipate the other natural gas pipelines that cross Belarus and Ukraine on their way to Germany are also going to go offline this year. Either due to war or partisan damage. One way or another, the Germans have to figure out how to do without Russian gas. They're trying to bring in liquified natural gas (LNG) from new facilities as quickly as they can. They're hoping to have those up and running by the end of the year. But any LNG they bring in is LNG that's not going somewhere else in the world. So there's no way this gets solved without much higher natural gas prices. And that brings us to our three other places: France, Texas, and California. Recommended Link [17 facts to help you make sense of our chaotic world]( [image]( Economist, investigative journalist, and expert investor Dr. Nomi Prins says there are “17 reasons why you need to devour Peter Zeihan’s new book, The End of the World is Just the Beginning.” [Find out why here.]( -- In anticipation of higher natural gas prices, the French re-nationalized Électricité de France. That’s their electricity company. They did that so the state can directly control the rates charged to customers. Then there’s Texas. Texas had a record-setting heatwave this summer. I was unfortunate enough to be in Dallas recently. It was a “balmy” 110 degrees. And the whole system nearly crashed. We almost had rolling blackouts in Central and Northern Texas because of the heat. And then finally, you've got California. California is pushing for a 100% green grid. As part of the debate, it’s looking to eventually take Diablo Canyon offline. It’s a nuclear power plant that provides about 10% of the power for the state. It was supposed to go offline by 2025. But it just got a reprieve. Governor Newsom introduced legislation that gives the option to keep it open for five more years. Now, what do all these places – Germany, France, Texas, and California – have in common? Well, all four are in some way participating in a green energy transition. Different policies, different places, different fuel mixes – but it's all happening. In some places, this works. And in some places, it doesn't. Let's start with the doesn't – and talk about Germany. Recommended Link [The Elites… they think we’re stupid.]( [image]( Certain wealth building strategies are deliberately kept hidden away from the average American. They say it’s “for your protection.” That’s a lie. It’s because the country’s Elites don’t want everyone to know how they generate billions of dollars in the markets. But today, one man is fighting back… and sharing this secret with you. [Click here to see his urgent communique.]( -- Germany Is Taking a Page Out of Enron’s Book Germany is neither a sunny nor a windy country. They've invested about €2 trillion in building out solar and wind and transmission capacity. By nameplate, all of those facilities should be generating 200% of Germany’s electricity needs. But instead, it's only 10%. Why so bad? Well, it's not just that the country is not windy. And it's not just that it’s not sunny. To be blunt, Germany is also doing some “Enron-esque” things with their statistics. For example, the kind of coal the Germans use is called lignite. It’s 20% water by weight. It is the least efficient fuel out there. And with the natural gas from Russia going offline, the Germans are mining and burning more of it. It is now their primary source of electricity-generating capacity. It takes 24 hours to spin up a lignite mine, because when the sun does come out in Germany, they unplug the turbines that are generating the coal-based power. And they only allow solar power into the grid. They then don't count the emissions from coal. But then, as soon as the sun goes down, they have to plug it back in. And we go back to where we were. [Featured: My exclusive trading method could make all your financial worries go away - Jeff Clark]( The Germans are just flat-out lying about their statistics. And honestly, not doing a very good job of it. But there are a lot of people in the green community who continue to praise the Germans as the model we should follow… Even though emissions have gone up in Germany since their commitment to the green transition. France is a different story – and it's a better story. France is a sunnier country. It's a windier country – not by a huge margin, but enough to make a difference. And they get a substantial portion – about 70% – of their electricity from nuclear power. They've got this base load that is green-friendly, at least from a carbon emissions point of view. (Although if you don't like nuclear in Germany, you're not going to like it in France, either.) Texas is where things get a little weird. More on that tomorrow… Regards, Peter Zeihan Author, The End of the World Is Just the Beginning --------------------------------------------------------------- Nomi’s Note: Nomi here again. As a longtime geopolitical analyst and strategist, Peter has immersed himself in the world of international affairs throughout his career. In his latest book, The End of the World Is Just the Beginning, he combines his unique understanding of demography, economics, energy, and politics to map out what happens next in our world.. Including in the energy transition. To order your copy of Peter’s book today – at a discount over the major retailers – [simply click here](. --------------------------------------------------------------- Like what you’re reading? Send your thoughts to [feedback@rogueeconomics.com](mailto:feedback@rogueeconomics.com?subject=Inside Wall Street Feedback). --------------------------------------------------------------- MAILBAG The conversation about nuclear power and uranium continues… [catch up on Nomi’s recent writings on the topic [here]( [here]( Your synopsis of the situation in Japan is correct. Just as the shutting down of all of Japan's reactors after the earthquake and tsunami put a major damper on uranium supply, the reverse is occurring. Uranium bulls have been waiting for the political winds to change there, as we knew they must if the Japanese economy was to survive. Even when fossil fuels were relatively inexpensive, Japan did not have the power plants to keep the lights on. It is politically very difficult for the Japanese Prime Minister to say they will be carbon-free by 2050 while building new fossil-fueled plants with a lifespan of 60 years! For Japan, there is only one solution and that is to restart its nuclear power plants and build new ones to replace those permanently taken offline. The additional uranium demand from the world's third-largest economy will be huge. – Malcolm R. Another reader has a suggestion for how the government could get [the spiraling national debt Nomi wrote about in last week’s mailbag edition]( under control… I read where you recently addressed our $30 trillion national debt. It is my understanding that the federal government holds approximately $130 trillion of assets. This includes land (largest landowner in the West) and buildings, which could be sold and leased back if needed. Big disappointment that President Trump, being a developer and real estate expert, didn’t start selling government assets to reduce our debt while he was in office. Why isn’t this possible solution ever talked or written about? – Deborah G. And lastly, this reader disagreed with some of Nomi’s ideas from her essay on “greedflation”… specifically what [she wrote about high CEO pay](. Nomi, you keep missing the leading cause of astronomical CEO pay. Corporations are barred by law from making political campaign contributions. So their C-Suite officers raise their own salaries, pay income tax on the money, then put the after-tax proceeds into Political Action Committees (PACs). As long as it's cheaper to buy subsidies from governments than to take actual risks investing money, this trend will continue. – Robert S. Were you surprised to read that Germany is not the model of excellence in the energy transition many believed it to be? What changes are you seeing in your own town as part of the transition, and do you believe they will work? Write us at [feedback@rogueeconomics.com](mailto:feedback@rogueeconomics.com?subject=RE: Electricity in Transition – Part I). IN CASE YOU MISSED IT… [Successful trader’s #1 Rule? Diversification is for dummies]( Market Wizard Larry Benedict’s debut on the financial research scene is already controversial. “Diversification is for dummies,” he said. And Warren Buffett agrees. Around two-thirds of Berkshire Hathaway’s portfolio is invested in just 4 stocks. Larry’s #1 rule is focus on one ticker. After 35 years of trading and 20 straight years of winning trades, he is sharing his secret to success. Watch [his debut video here.]( He even shares the name of the ticker and how to trade it. [Click here to learn more.]( [image]( Get Instant Access Click to read these free reports and automatically sign up for daily research. 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