Best of the Week
Most Popular
1. Dollargeddon - Gold Price to Soar Above $6,000 - P_Radomski_CFA
2.Is Gold Price On Verge Of A Bottom, See For Yourself - Chris_Vermeulen
3.Dow Stock Market Trend Forecast 2018 - Nadeem_Walayat
4.Gold Price to Plunge Below $1000 - Key Factors for Gold & Silver Investors - P_Radomski_CFA
5.Why The Uranium Price Must Go Up - Richard_Mills
6.Dow Stock Market Trend Forecast 2018 - Video - Nadeem_Walayat
7.Jim Rogers on Gold, Silver, Bitcoin and Blockchain’s “Spectacular Future” - GoldCore
8.More Signs That the Stock Market Will Rally Until 2019 - Troy_Bombardia
9.It's Time for A New Economic Strategy in Turkey - Steve_H_Hanke
10.Fiat Currency Inflation, And Collapse Insurance - Raymond_Matison
Last 7 days
Golden Sunsets in the Land of U.S. Dollar Hegemony - 20th Sep 18
5 Things to Keep in Mind When Buying a Luxury Car in Dubai - 20th Sep 18
Gold Price Seasonal Trend Analysis - Video - 20th Sep 18
The Stealth Reason Why the Stock Market Keeps On Rising - 20th Sep 18
Sheffield School Applications Crisis Eased by New Secondary Schools Places - 20th Sep 18
Precious Metals Sector: It’s 2013 All Over Again - 19th Sep 18
US Dollar Head & Shoulders Triggered. What's Next? - 19th Sep 18
Prepare for the Stock Market’s Volatility to Increase - 19th Sep 18
The Beginning of the End of the Dollar - 19th Sep 18
Land Rover Discovery Sport 'Approved Used' Bad Paint Job - Inchcape Chester - 19th Sep 18
Are Technology and FANG Stocks Bottoming? - 18th Sep 18
Predictive Trading Model Suggests Falling Stock Prices During US Elections - 18th Sep 18
Lehman Brothers Financial Collapse - Ten Years Later - 18th Sep 18
Financial Crisis Markets Reality Check Now in Progress - 18th Sep 18
Gold’s Ultimate Confirmation - 18th Sep 18
Omanization: a 20-year Process to Fight Volatile Oil Prices  - 18th Sep 18
Sheffield Best Secondary Schools Rankings and Trend Trajectory for Applications 2018 - 18th Sep 18
Gold / US Dollar Inverse Correlation - 17th Sep 18
The Apple Story - Trump Tariffs Penalize US Multinationals - 17th Sep 18
Wall Street Created Financial Crash Catastrophe Ten Years Later - 17th Sep 18
Trade Wars Are Going To Crash This Stock Market - 17th Sep 18
Why Is Apple Giving This Tiny Stock A $900 Million Opportunity? - 17th Sep 18
Financial Markets Macro/Micro View: Waves and Cycles - 17th Sep 18
Stock Market Bulls Prevail – for Now! - 17th Sep 18
GBPUSD Set to Explode Higher - 17th Sep 18
The China Threat - Global Crisis Hot Spots & Pressure Points - 17th Sep 18 - Jim_Willie_CB
Silver's Relationship with Gold Reaching Historical Extremes - 16th Sep 18
Emerging Markets to Follow and Those to Avoid - 16th Sep 18
Investing - Look at the Facts to Find the Truth - 16th Sep 18
Gold Stocks Forced Capitulation - 15th Sep 18
Hindenburg Omen & Consumer Confidence: More Signs of Stock Market Trouble in 2019 - 15th Sep 18
Trading The Global Future - Bad Consequences - 15th Sep 18
Central Banks Have Gone Rogue, Putting Us All at Risk - 15th Sep 18
Gold Price Seasonal Trend Analysis - 14th Sep 18
Growing Number of Small Businesses Opening – and Closing – In the UK - 14th Sep 18
Gold Price Trend Analysis - Video - 14th Sep 18
Esports Is Exploding—Here’s 3 Best Stocks to Profit From - 13th Sep 18
The Four Steel Men Behind Trump’s Trade War - 13th Sep 18
How Trump Tariffs Could Double America’s Trade Losses - 13th Sep 18
Next Financial Crisis Is Already Here! John Lewis 99% Profits CRASH - Retail Sector Collapse - 13th Sep 18
Trading Cryptocurrencies: To Win, You Must Know Where You're Wrong - 13th Sep 18
Gold, Silver, and USD Index - Three Important “Nothings” - 13th Sep 18
Precious Metals Sector On a Long-term SELL Signal - 13th Sep 18
Does Gambling Regulation Work - A Case Study - 13th Sep 18
The Ritual Burial of the US Constitution - 12th Sep 18
Stock Market Final Probe Higher ... Then the PANIC! - 12th Sep 18
Gold Nuggets And Silver Bullets - 12th Sep 18
Bitcoin Trading - SEC Strikes Again - 12th Sep 18

Market Oracle FREE Newsletter

Trading Any Market

Can Germany Support The Eurozone Without Nuclear Energy?

Commodities / Uranium Oct 25, 2011 - 02:41 AM GMT

By: Jeb_Handwerger

Commodities

Best Financial Markets Analysis ArticleGermany (EWG) has taken the path away from nuclear following Fukushima by shutting down their reactors and importing natural gas from Russia (RSX) and nuclear energy from France(EWQ). This move away from nuclear is no way to run a modern industrial nation which has heretofore been the strongest economy in the Eurozone area continuously bailing out their debt ridden neighbors. After this move we hear news that the once burgeoning German economy is grinding to a halt due to a "sharp drop in energy production after the government shut down eight nuclear plants after the Fukushima reactor disaster in Japan."


This is not a surprise we were aware of this potential black swan. Merkel buckled to the demands of environmentalists run amok by halting nuclear power generation thereby causing a large drop in domestic energy production causing rising prices in other energy venues. Industries closed up shop as Merkel abandoned economic growth for a few votes. Germany's leading companies have been protesting as they are being strangled by increasing costs that has consistently risen for the past decade.

Germany was the first major country to abandon nuclear power following Fukushima. Merkel's move is in contrast with the U.S., China , Turkey, India, Russia and many other countries who are continuing full speed ahead with safe and next generation nuclear reactors.

China (FXI) just concluded a nationwide safety inspection following Fukushima of nuclear plants and will begin approving new reactors as they seek to multiply their energy capacities. China finished the inspections post Fukushima one month ahead of schedule indicating their eagerness to satiate increasing energy demands from its growing economy. China will likely adopt the AP 1000 design being the first to adopt next generation standards that are safer, economical and efficient.

Germany must understand that a modern industrial nation must utilize nuclear power to satisfy its energy needs. Now we are witnessing the consequences of Merkel's move away from nuclear and how it may be a serious blow to future of the Eurozone. Germany, the once industrial giant has become a client nation as domestic energy production dropped in the second quarter impacting negatively their GDP.

Eurozone banks are in serious danger of collapsing. Unfortunately Germany is involved in financing these troubled entities. The question arises, how will the Eurozone survive with Germany's economic future in doubt?

Deutschland's experiment is a failure and now the world has observed the economic consequences of abandoning nuclear. Months ago the leaders of German Industry wrote an open letter stating, "that the ending of German Nuclear Energy with such unprecedented haste gives us increasing worry." Merkel may have destroyed Europe's most advanced modern industrial machine as the only country supporting the Euro finally succumbs self destructively.

Germany is swimming against the tide as the rest of the world says, "Yes" to nuclear energy. There are 443 operating reactors, which does not include new plants coming online. There are currently 62 modern and efficient power plants being built all over the world including 27 in China, 5 in India, 11 in Russia and even 2 in Japan among many others that have elected to continue turning on nuclear power. In fact, uranium is fast approaching a supply-demand deficit and there is a possible shortage in uranium ore which may benefit uranium miners(URA).

The prolonged basing period in uranium is rapidly approaching its conclusion. Last year we saw major demand in uranium as prices soared and many nuclear miners made large gains during the fourth quarter. Now many of the uranium miners are drastically oversold reaching long term support. This year we are experiencing a prolonged basing period due to the aftermath of the millennial tragedy in Japan and The Western Sovereign Debt Crisis. An extended consolidation leads to powerful up moves. There are signs the rise in uranium miners may begin shortly. There is a nuclear renaissance globally especially in North America. Witness the recent announcement by Rio Tinto (RIO), who is making a "Friendly" offer on top of Cameco's (CCJ) "Hostile" bid on Hathor (HAT.TO).

The feeding frenzy for Hathor is only the beginning of major mining interests who recognize that nuclear is a logical and economical energy source for America's future electricity. Expanding nuclear into the energy equation will diversify our power demand and produce inexpensive electricity for our nation far into the future. Our homes, businesses, and environment will be the beneficiaries.

By Jeb Handwerger

http://goldstocktrades.com

© 2011 Copyright Jeb Handwerger- All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2018 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules