Quote:
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Shaping up as the worst drought since white settlement more than 200 years ago, the "big dry" is likely to cut agricultural output by 20 percent and GDP by around 0.7 percent, government officials say.
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From P's Australian article,
The article goes on to describe how the effects of this draught is putting a heavy strain on austalias ecomony.
http://news.bbc.co.uk/1/hi/programme...ma/6113218.stm
UK is on the end of the pipeline that originate in Russia and Borax's homeland and last winter the rest of Europe weren't selling the reserves they keep to the UK and the UK doesn't keep any reserves as it relies on the matkets.
The UK economy is very fragile at present supported during the last several years not by manufacturing production or raw material wealth but by record debt and consumerism rates. These rising fuel prices affect all fuels as electricity is mainly made from gas (the reason the UK CO2 emissions have reduced since 1990 not less use of energy just more use of gas, the UK is th emost energy wasteful country in the EU).
This insecurity in the gas supply will mean a new source will have to found or allow the UK (the end of the pipe) to be open to the vagaries of the prices of the gas supply not only open to market forces but political motivation also. All this implies the gas prices will continue to go up.
This has already put buisness out of buisness in the UK and as current rates of mortage repossesion and solvency in the UK are at there highest ever sort of implies that the UK is heading an ecomonic rough patch and interest rates are rising meaning those debt bills will also grow rapidily.
The housing market is currently still inflated due to buy to let purchasers and property investors hiking up prices in the name of profit even these people however will feel the pinch soon as no one will be able to afford the rent, the heating bills and the other debt they carry as consumerism marches on.
What alternative fuels are there oil, and coal both associated with higher GHG emissions and will make the UK pledge for 70% reductions by 2050 a farce or nuclear power (never mind the bomb on your back door).
UK is not unique and China's fuel demands and domination of world markets will make it almost imposible to compete against in the fuel markets of the near future.
Seems market forces on fuel are going to change the ecomonics of the world shifting the power to countries that have the raw materials, and those who are the primary manufacturues for the world Russia, China and the middle east. N
NO wonder America 's fighting wars over there.
Maybe this fuel insecurity due to in part to the fact the UK allowed the market to extract all its gas already at cheap prices for profit ont he 1980s and 1990s will be more of an inspiration for the people of the UK to save energy in all ways possible.
Money does talk after all.