This is CBSI in the world. I'm John Bashler. Energy, the energy bill at the gas pump,

the energy bill in electricity, the energy bill for heating oil, the Biden administration

proposes a plan. Lowering the cost of gas and energy and achieving energy independence,

bluntly impact of Putin's price hike. Lowering energy bills, building real energy independence.

Richard, these are all very good ideas. However, what we have right now is gas pump shock

and people are receiving their electricity bills worldwide, but we're speaking to what

is to be done at home. You have written extensively about energy and the what you'd have to

say, the paradox of the Biden administration. In using this word lowering or blunting

or building, are they answering that paradox?

What's happened here is they simply do not know how to deal with the question of

an exogenous shock. There's no question that Putin would be quite happy to pump all

this oil and gas to the west and natural gas, so long as he's paid a very pretty penny.

But people do not want to use the gas to fund the war in Ukraine, which is right. So if

you want to do this to pick up the pipelines and to quarantine him. At that particular point,

it turns out that the supply is diminished, and so you have a short-term problem and

a long-term problem. The short-term problem is who's going to get this, and the only

system that we can possibly think of that could even work is a system of bidding. So those

people who happen to have supplies will get a win-full gain as it were, as the price

starts to go up. But the advantage of this is the highest bid is on average the people

who are most likely to make good use of this stuff, and so that it's better to have high

bids in the sound allocation than low bids giving the thing away to people who will not

make as much use of it as other things. But the dynamic effect is every bit is important.

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