Wednesday, March 29, 2017

Coal Ahoy!

Pres. Trump has trumped another of Obama's high cards. After Obama Care Mr Trump has rolled back Obama climate action plan. The core idea is to reinstate cheap coal as the main source of energy. Save and create jobs for the coal miners. Obviously, coal lobby was at work during elections. Mr. Trump is a businessman and he, like anyone of his clan, believes money could buy everything, even immortality.

Unfortunately, Mr. Trump's act is spontaneous, prejudiced and political.

Until recently, USA has been leading the fight against Global warming, which is more of a proven fact than a myth. A step back by USA may unleash China & India, the two leading aggressors and violators. However, the renewable energy technology has now gathered enough momentum and has become potential competitor of the fossil fuels by virtue of low prices. Slacking of regulations on the production and use of dirty sources of energy would put downward pressure on their prices thus making them less profitable and the mine workers less prosperous.

Moreover, it wont be a smooth drive to furnace for Mr. Trump and the lobbyists. Environmentalists will be major road block and the diggers will have to go through lengthy law suits before they could get permission to smoke the world.

Nevertheless, in short run, its a good news for dry bulk shipping markets, a sector which turned lifeless after Obama climate action plan came in force. Now we will see more coal on water and the dry bulkers cranking to life once again.

On the macro screen, the movie would continue as scripted after a minor glitch because only the technology holds the trump card to future. 


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