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What is MDEF™ Investing? Strategy before tactics. Strategic investments dictate tactical actions in the Metals, Defense, Energy & Food sectors.

- Jeffrey C. Borneman

Cold Fusion, Dismissed and Scorned For Years, Is Coming After The Pivot

Jeffrey C. Borneman | October 15, 2014

Lockheed Martin Corp said on Wednesday "(I)t had made a technological breakthrough in developing a power source based on nuclear fusion," reports Reuters. Always a decade away it seems, but investors will note the major proponents of fusion Energy are Defense related.

Low energy nuclear fusion (LENR) has been the stuff of dreams since first proven in the 1980's by Pons & Fleischer under the name 'cold fusion.' After mild scrutiny and the inability to replicate the original experiments, it became clear that any professional association with cold fusion was sure to ruin a budding academic career, relegating any advancement of the technology to the sidelines.

Oil and natural gas, coal and nuclear (fission) have been the mainstay fossil fuels. The US spends 75% of its Defense budget keeping the ocean lanes open for its uninhibited trade (even to the benefit of political enemies). What a game-changer a LENR system would be. Imagine a world which required no fossil fuels for production, transportation or heating. Why, we'd have nothing to fight over but ideologies. But before investors dream of free energy, we must think through the consequences of such a disruptive change. This technology would negate millions of jobs overnight and bankrupt countries via currency destruction (those based on oil - like the US petro dollar).

I've closely followed LENR for years (even when it wasn't 'cool') and am familiar with Rossi's E-Cat bought by NASA which wanted to tinker with it for use in a possible Mars mission. Rossi is a strange fellow and the pundits lost no time relegating him to the basement of 'crazy uncles.'

However, and thankfully, scientists are a curious bunch. A new 54-page report published in ExtremeTech (yes, you have to look hard sometimes) details how a small E-Cat performed over a 32-day test. The device produced net energy of 1.5 megawatt-hours, or “far more than can be obtained from any known chemical sources in the small reactor volume. The researchers were also allowed to analyze the fuel before and after the 32-day run, noting that the isotopes in the spent fuel could only have been obtained by “nuclear reactions” — a conclusion that boggles the researchers."

Note the researcher's names are absent in the ExtremeTech quote as the legacy of ridicule is still present. Lockheed merely reported 'a technological breakthrough' with no supporting data and the ever-used 'decade away' hope for commercial use. Whatever name this technology will be given appears very real. 

This is my assessment: The world runs on fossil fuels. Wars have been waged for them, and lost for lack of them. The world needs massive amounts of Energy but War serves many key purposes. We (humanity) is a Waring creature and will be allowed this new technology only when and if it serves the purposes of those in power at the time - and that time is not now. 

The coming pivot will introduce a sizable enough shift in the balance of power and population to open the gates for the introduction of a free energy source like LENR. Until then, Energy from fossil fuels will continue to dominate geopolitics and the next leg up in Energy prices is shaping up to be huge. 

If you want to know more about how the MDEF™ Investing strategy is positioned in this, or other geopolitical possibilities, please contact us directly. 

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