The Empires Strike Back
The theme of this post was suggested by this article in The Times by Gerard Baker, which is entitled Karma has come for Mark Carney — and Canada.
This is the sub-heading.
This embodiment of globalism finds himself championing national sovereignty just as Trump eyes a North American union
These are the two introductory paragraphs.
Mark Carney is the very embodiment of the globalist ideal that ruled the world for a quarter-century after the end of the Cold War. Born in the mid-1960s in the far Northwest Territories, he grew up in Alberta in the kind of place previous generations would never have left. But the brilliant kid from a large Catholic family won a scholarship to Harvard and then took a masters and doctorate at Oxford.
Marked out as a member of the intellectual elite of his generation, he followed their well-worn path and joined Goldman Sachs, working in the US, the UK and Japan. As international borders came down, goods and capital flowed around the world like water, and rootless young men and women feasted on the pot of gold at the End of History, Carney jetted from capital to capital, developing bond issuance strategies in post-apartheid South Africa and helping deal with the consequences of the Russian debt crisis of 1998.
Mark Carney has done very well!
I have a few thoughts.
Energy Production In Canada And The UK
I have just looked up how Canada produces its electricity.
- 17.5 % -Fossil fuel
- 14.6 % – Nuclear
- 8 % – Renewables
So how does Canada produce the other sixty percent?
Hydro! Wow!
As I write, the UK is producing electricity as follows.
- 10.7 % – Fossil fuel
- 37.7 % – Low-carbon
- 51.6 % – Renewables
Changes To Energy Use In The Next Ten Years
Three things will happen to energy generation and use in the next ten years.
- Our use of renewable and non-zero carbon sources will converge with Canada’s at about 75 %.
- The use of energy storage will grow dramatically in Canada and the UK.
- Green hydrogen production will increase dramatically to decarbonise difficult and expensive-to-decarbonise industries like aviation, cement, chemicals, glass, heavy transport, refining and steel.
Canada and the UK, together with a few other sun-, water- or wind-blessed countries, like Australia, Denmark, Falkland Islands, Iceland, Japan, Korea, New Zealand and Norway, who share a lot of our values, will be in the prime position to produce all this green hydrogen.
Conclusion
It does look like all the old empires of the Middle Ages are reasserting themselves.
Hence the title of this post!
Mark Carney is now in the right position to use Canada’s and a few other countries hydrogen muscles to power the world to net-zero.
Is Mark Carney A Lucky Governor?
Napoleon is reputed to have said.
I know he’s a good general, but is he lucky?
Mark Carney may or may not be a good central banker, but he certainly seems to have arrived in his new job, just as the recovery in the economy seems to be starting. It’s reported here in the Independent.
So it would seem that Cameron and Osborne, might have been influenced by Napoleon’s words, as Mark Carney does appear to have the luck to inherit good figures. Perhaps tough, Mervyn King should be given more credit, as it would seem that things got going under his stewardship of the Bank!
But we’ve seen this economy inheritance before. Tony Blair inherited a good economy and then proceeded to waste it all, so that his successor left us in the mess we are today.
It’s not that we have boom and bust, we have had a succession of governments in this country of generally a pretty good one followed by one that isn’t that good at all. I’m not going to play party politics here, as you can find bad governments of both left and right. And good and bad periods of governments that were in power for a long time. Find me a man or woman, who says that everything Margaret Thatcher or Tony Blair did was good, and I’ll show you a liar.
Perhaps we need to have more of the country run by independent organisations like the Bank of England and the BBC. Why for instance, isn’t the NHS, totally removed from the meddling of politicians? After all, how many politicians could successfully run a whelk stall?
To return to the economy, Mark Carney has said that interest rates could possibly rise next year.
They already are!
My Zopa figures are showing that their five ear loans, which were about 4.5% earlier in the year, have been rising slightly in recent weeks and now sit at 4.8%. I haven’t had a major bad debt for six months and the only blot is that my true returns are still stuck between 4 and 4.5% before tax, and are marginally down on last year.
As I believe Zopa is a stable system, where the sensible, savvy lenders, provide loans for canny borrowers of good credit, it could be a good marker as to the way the market is going.
The Anonymous Widower 