Lok Sang Ho

U.S. Hits Record Energy Efficiency

The financial tsunami is beginning to change commuting habits and forging a more energy efficient economy. But as Davewnmart says, much of the energy consumption and the pollution associated with American consumption has been offshored, to China in particular. We need to have an estimate of the energy efficiency for the goods consumed in America. Energy efficiency per $ of GDP produced is not very meaningful. GDP per capita tells us what we claim. A super-rich man sitting on prime land who reaps a lot of land rent claims high GDP. His lifestyle however may be extremely wasteful: huge mansions using up a lot of energy for heating and airconditioning; fancy yachts and private jets using up a lot of energy; etc.

Has the Dollar Topped Out?

The US dollar is too strong. The yen is too strong. Today's Nikkei plunge is almost certainly due to the excessively strong yen. Free floating with capital flows that swing with a life of their own could be hazardous to the health of real economies. Wonder why the Bank of Japan and the Fed tolerate the unrealistically strong currencies. Certainly their weak economies and heavy debt load do not justify such strength. Japan's current account surplus had shrunk by a huge amount, and it is so export-dependent. The US already suffering from a plunge in consumption spending, certainly cannot afford to have exports undercut by a strong dollar. What are the central bankers up to?