Friday, March 20, 2009

Lithium: Peak Oil, Obama, Electric Cars and Mobility. OIL, OIH, TNR.v, GOOG, WLC.v, CLQ.v, SQM, GM, F, TMT, AAPL, RIMM, GDX, FCX

If you were busy watching the crash in US Dollar this week and were trying to comprehend meaning of Quantitative Easing, we have another news for you: there is no cheap oil left and will never be. Gold, Silver, Copper and Oil has shown us direction of trend this week with debasing of US Dollar. Oil became a matter of strategic reserves and will be priced prohibitive for any amusement purposes like driving an SUV and paying less then 2 USD per gallon. If you are still in doubt buy a ticket and go to Europe or even better to England: you will be able to question people in almost native language why they are not on a barricades yet with petrol prices at 1.3 USD per liter?

Have a glance on the chart, while all Wall Street and paid Talking Heads on Bubble Vision are convincing you that normal "Wall Street professional" can not even wake up in the morning for less then 1 mil per year, somebody is buying Oil. 75 mark is not as far as you would think in the future and when Oil gets be there things will get hot again.

Lithium could become a hot commodity which will preserve the right for mobility in the future. You can hardly fight the war with heavy armored vehicles on Lithium-ion batteries or assure Chinese that your IOU are perfectly fine for them to keep with couple of inflatables. You need tanks, fighters and battle ships - you need Oil.

In order to understand the future we should look at Japan: they do not have any Oil already and are importing the precious staff. Technology and economy are advanced, as well as population culture, in order to understand that they will not survive as a nation with housewives driving kids with Oil at 150 dollars per barrel.

"The nation that leads on energy will be the nation that leads the world in the 21st century. That’s why, around the world, nations are racing to lead in these industries of the future. Germany is leading the world in solar power. Spain generates almost 30 percent of its power by harnessing the wind, while we manage less than one percent. And Japan is producing the batteries that currently power American hybrid car"
In our hungry and entertaining quest for the land spot where Ben's helicopters will unload all those Trillions, we have a strong feeling that a new trend in solid things and Hard Assets is emerging. We are not so close connected to get taxpayers money or any smart to make a better bet on a particular start up as John Doerr, so our pasture as usual: rocks, mud and precious staff in it. We will be happy to dig it out once necessary and price will make us wake up in the morning.
If Tim and Ben are so generous with money we are happy to share too:

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