Friday, January 25, 2008

Example: Ramifications of an Energy Shortage.

South African Mines Halt Production on Power Shortage - Bloomberg

AngloGold Ashanti Ltd., Gold Fields Ltd. and Anglo Platinum Ltd. shut their South African mines as the nation's power shortage worsened, threatening growth and investment in the continent's biggest economy.

"Power is like oxygen, it's essential for any half modern economy," said Goolam Ballim, chief economist of Standard Bank Group Ltd., Africa's biggest lender. "If you're shaving growth, then earnings generation, stock market potential and wealth creation is being eroded."

I see that right now Gold is at $921.20/oz, up $15.40.

Just goes to show, if you've got Energy, you can produce wealth. If you've got no Energy, you stop.

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