Sand from the upper Midwest is coveted for hydraulic fracturing. It is the right size, shape and cleanness (almost pure quartz). It is also highly resistant to crushing under immense pressure, acting as a network of pillars (think of the Parthenon) keeping open the tiny fissures made in the rock in the process of hydraulic fracturing, allowing the oil and natural gas to flow up from the rock deep underground.
Two technologies—hydraulic fracturing, also known as “fracking,” and horizontal drilling—have transformed the United States from an also-ran into a frontrunner in terms of energy production. These breakthroughs allow scientists to tap previously uneconomic reserves of oil and natural gas, making the United States the world’s largest producer of both vital energy sources.
For more than a decade, now, Federal Reserve policy has been guided by the fear of one economic bogyman: the presumed danger of “price deflation.” The fear is unfounded and the inflationary “solution” only leads to disaster.