[From the John Mauldin report forwarded by Joel Gagnon:]

| As a quick aside, if we would start a project to build a massive
| nuclear infrastructure, such as in France, which produces 80% of
| its energy from nuclear, while at the same time pushing ahead in a
| Manhattan-type project the development of electric cars (or some
| hybrid), we could reduce our dependence on foreign oil and lower
| travel costs by the middle to the end of the next decade.

Uh, no.  The petroleum problem is a liquid fuels problem.  You
can't run a car or a truck or a train or an airplane on nuclear
energy.  The idea that we can replace any meaningful portion of
our current liquid-fuel-based infrastructure with electric
equivalents within the next seven to twelve years is a fantasy.
We couldn't physically accomplish such a task if we had all the
money in the world to spend on it -- and we don't.  And aside from
the impossibility of replacing a significant part of our consuming
infrastructure in that time, it takes a minimum of five to ten
years to put a nuclear power plant into operation.  This just
ain't gonna happen.

But I can guarantee that enough people want to believe this that
we will engage in a huge effort to develop nuclear energy in this
country.  You can bet on it.  Just look at how many went for the
palpably absurd idea of hydrogen fuel (which hardly any of the
former cheerleaders are pushing any more -- not even GM, which
just a few years ago was positioning hydrogen as the basis of its
entire future product strategy).

Too bad, because the money we're going to blow on nuclear power
could more effectively be spent on rebuilding our railroads.  But
people don't want to hear this, and our politicians don't want to
tell them.  Not even Mr. Change.

There's general agreement now that what *will* happen within the
next seven to twelve years is that the physical supply of oil will
finally fail to meet demand.  Even the major oil companies are
starting to acknowledge this.  When that happens, you'll see price
increases that will make the current run-up seem trivial.  And our
national response to that won't be "Manhattan-type projects" --
it'll be good ol' rationing.

Jon


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