Current RBA cash rate is at .85% and is still extremely low.
The reaction of the markets based on interest rate 'hikes' is really a interest rate 'hype'.
Fuel and energy has gone up, because of restrictions on imports by the western world from Russia.
However Oil refiners in the US are working at maximum capacity, because of holiday season.
They really haven't built new refineries for a while, too difficult in todays environment.
And who is prepared to invest money in refiners while we are at the cusp of a change to EV's?
And in Australia?
How many of the large refiners have closed down and how many new refineries have been built to replace them?
So what do we do in Australia?
Send Crude oil to Singapore and import refined products back from Singapore.
And what do these tankers use for propulsion?
They are not wind or solar powered, I can guarantee you that.
Further the believe that we can shut power stations down, without building new ones, while simultaneously phasing ICE vehicles out and promoting the use of EV's, plus increasing the population by immigration, doesn't require an Einstein to work that equation out.
The Electrical Load has and is going up, while the Electrical Generation Capacity has gone down.
Normally when supplying the electrical market, there has to be sufficient spinning reserve to cope with changes in generation capacity, as well as changes in usage.
Currently very obviously on the Eastern market of Australia that spinning reserve is insufficient.
So what is the solution??
Sure as hell having talkfests with a lot of finger pointing, backslapping and coffee drinking will not solve this problem, but only generate hot air.
Until such time that people say: we have to build more generation capacity pretty quick smart.
You don't have to be a rocket scientist to work out that we currently live in an electrically powered world.
Building massive solar and wind farms, with massive storage systems is one step forward.
I saw somewhere a new factory will be starting to produce super thin solar cells in Queensland for a fraction of the cost of solar cells produced in China. Another step in the right direction.
Gas turbine generated power to fill gaps is another solution.
At this stage we have to be practical and work towards zero fossil fuel.
Switching fossil fuel off in a big way is just not smart, there has to be a transition period.
So can AVZ play a role in the solution of this problem worldwide?
Of course it can.
