Japan’s CPI up, Yen down – energy prices to blame

As Japan tries to put over a decade’s worth of economic deflation behind them, the country experienced a spike in employment and the price of consumer goods – the largest increase in recent memory.  However, Japanese households are struggling to come up with the 0.7% annual Consumer Price Index (CPI) increase amid stagnate wages.

What’s driving consumer inflation?

Look no further than energy prices. The cost of electricity rose 10.1% compared to last month. Natural gas rose 5.2% and gasoline rose 10.5% - and those numbers are all up from the month before!

"It's further proof that the Japanese economy is solidly recovering," says Norio Miyagawa, a senior economist with Mizuho Securities Research and Consulting. "The next challenge is how soon it will start pushing up wages."

July’s unemployment rate dropped 0.1% compared to June, while the jobs-to-applicants ratio—a way of evaluating how many jobs are available per person who applies—rose to 0.94, the highest in five years.

Industrial production numbers prove that Japan, the world's third-largest economy, is on the slow road to recovery. But as anyone who’s ever heard the fable of the tortoise versus the hare, slow and steady often wins the race.

The CPI increase is an example of "cost-push" inflation, meaning high global energy prices (and a weakening yen) have pushed the price of foreign imports way up.  Higher prices end up causing more harm than good on a micro level because, through all of this, Japanese wages have remained the same. Until companies are willing to adapt their pay-structures, consumers may not feel the benefits of their economy’s stabilization. And if the government decides to raise taxes next April, the situation will only worsen.

Why are governments always willing to force families to suffer in favor of national security?

The Bank of Japan is struggling to convince the population that it can bring about a 2% growth in Gross Domestic Profit (GDP) in only two years. The bank’s theory is that inflationary expectations will drive consumers to spend and invest more, lessening deflationary pressure in the process.

Wouldn’t it be great if you could detach yourself from this socio-political-economic mess, sit back and enjoy energy independence? NRGLab thinks so. That’s why we’ve developed a slate of green energy projects – in hopes of cutting millions of people around the world loose from the bonds of big government.

If you’d like to be your own power provider, be sure to read more about our carbon-free electrical generator, the SH-Box, by visiting nrglab.asia. Learn how you could be paying as little as $0.03 per kWh!

Trouble in Egypt spells trouble for global energy market

Although Egypt is hardly one of the Middle East’s primary producers of oil, now that the country finds itself in the midst of a political-military meltdown, we should begin to consider the short-term and long-term effects on neighboring countries and the global market.

Egypt controls the Suez Canal and Sumed Pipeline, two key sources of export/import. Luckily, experts are saying that a hiccup in the flow of oil through the country seems unlikely – good news for foreign investors.

However, those investors are keeping a close eye on Cairo, the Egyptian capital, where further violence could scare private equity right out of the country. What’s worse – violence could spread like a disease to neighboring countries, sending the entire Middle East spiraling out of control.

“In addition to the human toll, the violence and political turmoil in Egypt is beginning to affect investor sentiment," says Russ Koesterich, a chief investment strategist at BlackRock, the world's largest investment management corporation.

Investors are appreciative of the role Egypt’s $538 billion economy plays in keeping the volatile territory at bay. The worst case is a straight closure of the Suez Canal, which links the Mediterranean and the Red Sea. The canal transported 13% of the country’s liquefied natural gas (LNG) and 7% of sea-traded oil last year. A closure of the 101-mile long canal could send oil prices skyrocketing again - not only in the Middle East, but all across the world.

Another scenario involves terrorism. Sabotaging a single point along the 200-mile Sumed Pipeline, for example, would cut a strategic route for oil and gas exports to Europe and North America. The pipeline carries approximately 2.5 million barrels a day – that’s a lot of oil to just go missing from the global market.

The energy industry is also on the watch for terrorist plots against key instillations. Threats could force them to shut down and evacuate employees. That wasting time means wasted money. And who ends up fitting the bill? Why you, of course. Higher rates, premiums – you name it.

Few people even care to consider what happens if the Middle East goes completely crazy. Think Hollywood apocalypse. First the collapse of domestic governments. Ripples across the global market. Food and gas shortages. Terrorism the likes of which we’ve never seen. Nuclear retaliation.

Sure, you might think this all sounds a little paranoid, but in the globalized 21st Century, a single falling domino can topple the entire chain. Hopefully Egypt won’t prove to be that first domino.

India: economy up, but at what cost to the environment?

India’s economy has been steadily growing over the past decade, but at a significant cost to the environment. The population is now exposed to tainted water supplies. Polluted air. Depleting resources and unstable ecosystems. These problems are only exacerbated by a growing gap between the wealthy and poor. So, what exactly does the country plan on doing about it?

According to the World Banks’ most recent report, environmental degradation is costing India approximately $80 billion per year. That’s 5.7% of the country’s total economy! At that rate, how much longer can they continue to grow and remain competitive on a global level?

Not very long, is the answer you’re looking for.

India, a country known for being a cultural melting pot, needs to start swaying its policy makers of the importance of appreciating natural resources.

A recent survey ranked India 126th out of 132 countries in overall environmental quality, and dead last in the air category. The survey concluded that India has the worst air pollution in the WHOLE WIDE WORLD, narrowly edging out China, Nepal, Pakistan, and Bangladesh.

A whopping 13 of the world’s 20 most polluted cities can be found in India, where poverty is both a cause and effect of environmental degradation. Under-producing crop yields. Deforestation. Disease and famine. They’re all linked to the Earth. In order to survive, the poor are reduced to mining and pillaging the natural resources available to them, creating a cycle of degradation and destitution.

Since 2000, India's economic growth has reduced unemployment, allowing millions to make better lives for themselves. The country is not expected to veer from its current growth trajectory, meaning environmental sustainability is going to become the next hot button issue.

The report begs an interesting question: "Does growth so essential for development - have to come at the price of worsened air quality and other environmental impacts? Green growth is necessary. With cost of environmental degradation at 5.7% of GDP, environment could become a major constraint in sustaining future economic growth. Further, it may be impossible or prohibitively expensive to clean up later."

Muthukumara Mani, a senior economist at the World Bank, claims that "while the overall policies focus should be on meeting basic needs and expanding opportunities for growth, they should not be at the expense of unsustainable environmental degradation.”

There has to be a better way.

That’s why NRGLab has invested years and millions of dollars into developing highly-efficiently, environmentally-conscious methods of converting agricultural waste, natural gas, and even recycled crude oil into useable fuel. For more information, visit nrglab.asia. Learn what you can do to prepare for the future of energy independence.

An economic time bomb lurks under the icecaps

According to a joint-study conducted by a group of polar scientist and economists, the melting icecaps could prompt an “economic time bomb” to go off, costing the global economy TRILLIONS of dollars.

The common theory for the last two decades has been that melting icecaps would result in an economic “boom” of another kind. Companies would finally be able to exploit untapped reservoirs of natural gas and crude oil which had been trapped underneath thick sheaths of ice for centuries.

The Arctic ice, which melts and refreezes on an annual basis, is shrinking at an unheralded rate. Last year, “it collapsed to under 3.5m sqkm by mid-September, just 40% of its usual extent in the 1970s”. And since the ice is also becoming less thick, some scientists predict the Arctic Ocean will be largely free of summer ice by the end of the decade.

The growing concern is that, as the icecaps melt, the warming of the sea water will trigger offshore permafrost to release greater quantities of methane. “A giant reservoir of the greenhouse gas, in the form of gas hydrates on the East Siberian Arctic Shelf (ESAS), could be emitted, either slowly or catastrophically fast over a shorter time frame,” the researchers claim. “And that could result in “a $60 TRILLION global price tag.”

"This massive methane boost will have major implications for global economies and societies. Much of those costs would be borne by developing countries in the form of extreme weather, flooding and impacts on health and agricultural production," says Professor Peter Wadhams of Cambridge University, one of the authors of the study.

The poorer economies of Africa, Asia, and South America are expected to be impacted the most by all this. But since we live in a global economy, like a stone cast into a pond – the ripple effects can stretch across oceans.

"Neither the World Economic Forum nor the International Monetary Fund currently recognize the economic danger of Arctic change. [They must] pay much more attention to this invisible time-bomb. The impacts of just one [giant "pulse" of methane] approaches the $70-tn value of the world economy in 2012,” says Professor Gail Whiteman of the Rotterdam School of Management, another author involved in the study.

Shipping companies are preparing to deploy a record number of vessels across the north of Russia later this year in order to tap into the natural gas and oil preserves. The new Northern Sea Route uses the Bering Strait between Siberia and Alaska and is only passable a few months out of the year with an icebreaker. This shorted trip slashes travel costs up to 40%!

It’s only a matter of time until one of the drilling operations opens up a massive pocket of methane gas and releases the “pulse” scientists are waiting for.

NRGLab would prefer if we didn’t have to trek all the way up to the artic for a fuel that could wind up costing us TRILLIONS in oversight. That’s why we’ve developed a number of alternative energy programs that are not only cost-effective, but renewable and reliable as well. For more information on NRGLab, visit nrglab.asia.

Mexico to finally end energy monopoly

The Mexican government is poised to finally open their energy industry to foreign investment, but in order to do so, they’ll have to amend their constitution first.

According to a board member for Petroleos Mexicanos, a government owned Oil Company, the country needs “very deep” legislative reform in order to attract private equity investments in crude and natural gas fields.  The proposed legislative is set to take effect by this Fall, claims Hector Moreira, a former official in Mexico’s Energy Ministry.

The Institutional Revolutionary Party - Mexico’s ruling party - is in the position to open the energy industry to foreign investment. Theoretically, this should stimulate domestic growth – an essential step to ensuring a stable and sustainable future for the region’s second-largest economy.

Representatives from Grupo Financiero Banorte and JPMorgan Chase & Co. are optimistic that President Enrique Pena Nieto will take the necessary steps to ensuring that the legislation passes.

“This administration doesn’t only have the willingness, but the political power and political capital to enact the changes,” says Gabriel Casillas, Banorte’s chief economic advisor.

A sluggish economy is putting added pressure on President Pena Nieto. Analysts predict that the proposed legislation and heightened taxes will boost the economy 6%.

Obviously, the world is slowly transitioning away from centralized energy infrastructures to independent, diverse, and interconnected alternatives.

NRGLab saw this transition coming long ago. That’s why we’ve spent the past decade developing a number of clean, renewable energy projects. Our goal is to make electricity universally available. No matter where you live or how much money you make, everyone deserves to plug-in to the world. Everyone deserves the chance to make something of themselves.

So, if you’re tired of relying on a public power provider, if you’re tired of bills you have no control over, and if you’re tired of contributing to the staggering level of carbon in our atmosphere – look no further than NRGLab. Visit our website at nrglab.asia for more information on any number of our projects. From the emission-free SH-Box to energy-efficient gasification processes – we’re working towards a better tomorrow. A greener future.

Join us.

Europe fights inflation even as energy costs drop

As the European Union makes headway on energy, inflation in the food and services industries offsets any real economic progress.

In April, Europe’s inflation rate increased from 1.2% to 1.4%. Sure, that may not sound like much, but when you consider how many transactions the average consumer makes on a daily basis (fill up the gas tank, coffee break, lunch, etc.) – it adds up. The inflation rate has been under the European Central Bank’s 2% cap since February, and as long as it stays there, economists don’t foresee any catastrophes on the horizon.

However, with Europe stuck in an 18-month long recession, politicians are seeking ways to boost economic growth. President Mario Draghi has already said he’s willing to reduce lending rates if the economy continues to deteriorate. That would allow more small business to open, and hopefully stimulate consumer spending.

Janet Henry, primary economic adviser at HSBC Holdings, has hope for the future. “As long as the European Central Bank’s baseline scenario of some recovery in the second half of the year remains in place, I would be very surprised if they cut rates again over the next couple of months,” she says. “They need to see a further deterioration from where we are currently rather than the stabilization they expect to see around the middle of the year.”

The recession is expected to come to an end in Europe’s second quarter. According to a survey performed by Bloomberg, their economy should see a return to growth in as little as three months.

However, as the price of energy drops (0.2 % this month after a 0.4% drop in April), food, alcohol, and tobacco prices are on the RISE - 3.3% to be exact. The service industry has suffered from inflation as well. They saw an increase of 1.4% compared to last month.

So although Europeans may be paying a fraction of a penny less for energy, they’re making up for it at the market. Unless you expect people to give up drinking beer, smoking cigarettes, and gorging on junk food, which is even less likely than an immediate solution to the climate crisis.

NRGLab is helping people save as much money as possible. With the SH-Box, a light-weight, carbon-free generator, you could be paying as little as $0.03 per kW for all-natural electricity. Forget about your allegiance to the utility company. Break free, and gain energy independence with the SH-Box.

Plus – you’ll have more money in that “rainy day beer fund.”

NRGLab and the global energy imbalance

For years, the United States has been one of the biggest energy hogs and contributors to global warming. Accounting for less than 5% of the world’s overall population, Americans consume 20% of our available resources! This imbalance has sent a tidal wave across energy markets and foreign trade. Will the global economy ever be able to recover?

The U.S. congress is considering passing the Energy Savings and Industrial Competitiveness Act, a piece of legislation that would create incentives for companies willing to make energy-efficient renovations.

Last winter, President Barack Obama proposed a similar $200 million state-run program intended to raise green-energy awareness throughout the industrial complex. The National Association of Manufacturers and the U.S. Chamber of Commerce were two of several groups that supported the bill. The Senate estimated that consumers would have saved roughly $23 BILLION by 2030. But unfortunately, the bill didn’t receive the necessary votes, and slowly suffocated in red tape.

Sarbjit Nahal, Head of Sustainability Strategy at the Bank of America/Merrill Lynch, has been studying the effects of the power imbalance since the financial collapse back in 2008. He predicts that the rise of the middle class in countries like India, China, and Brazil will increase the U.S. consumption demand, up to as much as 30% of the entire world’s energy, by 2035.

"End-use energy efficiency offers the greatest potential to lower both energy demand and CO2 emissions,” says Nahal. “It offers considerable low-hanging fruit given that two-thirds of the economic potential to improve energy efficiency remains untapped.”

Nahal estimates that for every dollar invested in energy-efficient upgrades, a company can expect to yield between $2 and $4 annually in savings. Not only are upgrades fiscally responsible, they’re environmentally responsible as well.

"Energy consumption within buildings is the single largest component of global energy use and CO2 emissions, at 40 and 30%, respectively," says Nahal. “[But] little of this has been captured. 80% of the economic potential of energy efficiency in buildings remains untapped."

According to Pike Research, a consulting firm that provides in-depth analysis of global technology markets, U.S. investments in green energy are up 750% from 2005, and are expected to exceed $200 BILLION by 2016.

Now the question is: how are you going to profit from all of this?

Companies like NRGLab are giving individuals, families, and manufacturers the opportunity to gain energy independence with the emission-free SH-Box, an electrical generator that weighs next to nothing! Yes, you could be paying as little as $0.03 per kW for 100% clean electricity. Join the wave of investments in the energy industry before somebody else soaks up all the profits!

Visit nrglab.asia for more information on the SH-Box and other green energy projects.

My answer to an angry letter

Recently, I received an angry letter from an investor. He said NRGLab could cause a massive drop in the share price of one of Australia's most well-known gas companies, which he also happened to be invested in. This investor wanted us to sell him our shares at an outrageously low price in order to protect the gas company from future loss, in case our company were to grow too quickly. His fear was that gas prices would slip significantly once we introduced our SH-boxes to the market.  

Every gas company in the world is invested in the exploration, production, refining and marketing of oil products. These companies go out of their way to protect their market share and subdue competing technology. After all, no investor wants to lose their money. Really -- who does?

One way companies protect themselves is through the use of intellectual property rights. Intellectual properties yield profits, not only to the patents, but to the resource companies as well. This way, the average consumer allows these companies to develop new technology simply by purchasing food at the grocery store, music on the Internet, or leasing a car from a dealership.  All the proceeds, through a network of intellectual property patents, give companies a sense of security, which allows them to expand into NEW properties, and NEW relationships. 

During the recent economic crises, a drop in demand lead to significant losses in intellectual properties. Gas industry investors had been sensing this threat for some time.

Back to our angry investor, who is not longer certain of the security of his investment. Before the crises hit, people had easy access to “cheap” money: credit available at an ultra-low rate of interest. Typically, if the government wants to stimulate job creation, they lower the gold-reserve requirement for banks, who are then able to lend more money at lower interest rates to potential entrepreneurs. However, the well of cheap money ran dry after so many start-up businesses failed, and people could not repay their loans.  But since intellectual property investors got accustomed to “cheap” money and the influx of spending that was feeding into their web of patent rights, they aren't ready to give it up. Voluntarily, at least.  

In 2013, investors should expect serious competition. People will begin tapping all available resources in order to produce cheap energy and then distribute it, at a profit, to private markets. It will be incredibly hard for huge gas corporations to compete, in terms of price point, in the coming age of new technology. First, these large companies will resist; but sooner or later they will be forced to relinquish their monopoly privileges  and the web will finally become untangled. 

Similar situations will occur across other industries, including IT. Consumers will hold onto software longer.  They will use predominantly free services, and will have access to a growing range of services with the ever-expanding independent app market. National governments will support private competition, while motivating their own IT-manufacturers via budget spending.  One should expect national Internet segments and national payment systems to emerge within the coming years.

Let me reiterate: the modern intellectual property system only exists because of the access to “cheap money”. As soon as this resource is depleted, intellectual properties will long longer be able to be protected, or renewed. This angry investor -- his stake in the gas industry will be worthless, and fairly soon, I suspect.

Unfortunately, I won’t be able to help him then, and I certainly have no intention of selling him my technology, or my know-how, for cheap.

Sustainable capitalism & new tech

The United States of America enjoys two great freedoms: democracy and capitalism. These systems are designed to distribute wealth, control supply and demand, and ensure every citizen's voice is heard. But what happens when those voices turn hostile? What happens when those very systems designed to keep people safe, do the opposite?
In the last American presidential election, there was a lot of talk about the 1% and the uneven distribution of power in the United States. With the economic crisis that swept the globe, that percentage continues to dwindle. When will it be enough? When the entire nation is poor and only one or two financial monarchs control all of the resources?
There is one resource that can never be stolen, or bought, from us: and that's innovative thinking. The human mind is capable of great things. History is proof of that. From understanding how big our universe is, to how small the building blocks of life are, innovative thinking drives progress.
Researchers at NRGLab live by this code. Working tirelessly day in and day out to perfect energy-producing technology, NRG is at the forefront of innovation. If their vision of the future comes true, electricity will not only affordable, but universally available. Sustainable energy is the key to sustaining other systems, like capitalism and democracy, for ourselves, and spreading it throughout the rest of the world. It levels the playing field. Keeps them safe. Creates new opportunities. Motives people to think, and test accept norms. Above all, new technology ensures equality.
Thanks to companies like NRG, the world is on the verge of experiencing shared freedom and peace for the first time in our planet's long history. The question remains: which side of history will you find yourself on?