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Deutschland (EWG) is taking
the wrong road again. It is a decision that is political
and irrational motivated
in response to the Green Party. It makes one wonder what some politicians
do to try to get elected.
The leaders of German
Industry have written an
open letter stating that the ending of German Nuclear Energy with such
“unprecedented haste” gives us increasing worry.
Germany has been the crown industrial jewel maintaining a profitable economy
in the heartland of an otherwise
deficit ridden Europe.
The Chief Executive of
Daimler Motors voiced fear
about Germany’s abrupt about face in nuclear policy.
The huge
power requirements of Germany’s
heavy manufacturing companies which are the flower of the European economy, will now be dependent
on power sources from France and Russia. Could this be a potential
black swan?
Germany’s electricity
prices which has more than doubled in the last ten years, now
become a sensitive issue for German
Industry. This nuclear
transition is forcing an increased
reliance not only on coal (KOL) but nuclear energy from France (EWQ) and natural gas (UNG) from Russia.
This is no way to run a modern industrial nation.
Angela Merkel,
the current Prime Minister
is running scared and scuttling Europe’s (FXE) most advanced modern industrial machine.
It is
important that readers be aware that
the left socialist based anti-nuclear movement in Germany was strong long before Fukushima.The Japanese tragedy provided the ammunition needed by the anti-industrial left. The nuclear plants (NLR) were growing old in need of revamping.
Chancellor Schroder
who preceded Merkel was sympathetic
to the Green Party and committed to a nuclear(URA) phase-out plan by 2022. Merkel’s
response in late 2010 was to attempt to extend the nuclear exit by 12 additional years.
Many riots and demonstrations occurred in response to Merkel’s
move. She was under pressure to give in to Socialist demands when Fukushima provided the immediate excuse for Merkel to
reverse her policy and decide to close all of Germany’s
Nuclear Plants. Now you know the rest of the story.
We see that Germany’s decision to forsake their nuclear reactors was a long time coming. This is despite Merkel’s statement which was misleading when she said,
“After what was an unimaginable disaster at Fukushima, we had to reconsider
the role of nuclear energy.” She announced the decision at a news conference
in the presence of several
of her cabinet ministers
to close all of the reactors by 2022.
This is a sharp policy reversal that will make
Germany (EWG) the first major modern industrial
nation to abandon nuclear power (NLR). Merkel’s move is in contrast with the U.S.(SPY), China(FXI), India, Russia (RBL) and many other countries who are continuing full speed ahead with safe and up to date nuclear power plants.
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 (EWJ)
among many others that have elected to continue turning on nuclear power (URA). In fact,
uranium is fast approaching a supply-demand deficit and a
possible shortage in uranium ore(PKN).
There are 443 operating reactors, which does not include new plants coming online, which need over 180 million pounds of uranium annually. The world produces
only 130 million pounds a year.
Already there is a shortfall of 50 million
pounds annually which is being filled
until 2013 by the Russian
Highly Enriched Uranium
Agreement. The Russian’s have made it clear that
they will not renew this agreement after 2013, as they will need the fuel for their own needs.
Meanwhile, the Nuclear
Regulatory Commission which
oversees nuclear power in
the U.S. has been conducting special
investigations into nuclear
reactors. The Chairman of the NRC has expressed confidence in the safety
of the American Nuclear Reactors
and U.S. utilities are purchasing all available supplies of ore.
Additionally the French Prime Minister
recently said, “We think nuclear
energy is the solution
for the future.”
One must always
be aware that the German decision is politically
driven. The move to end nuclear
will increase energy prices and imperil German competitiveness.
Gold Stock Trades
is focusing a strong eye on the most promising uranium miners in the U.S. which may soar as the Russian HEU Agreement concludes
in 2013 Some low cost in situ uranium miners appear to be forming bases while the higher cost miners are hitting new lows.
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