ElephantFlea
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Oil is also a major factor. If not THE major factor
A lightning fast lesson in the macroeconomics of boom to bust. Good on you Rob.
The American economy is totally based upon oil, and cheap oil at that. This will change, as the demand for oil worldwide continues; whilst the supply side of it fails to keep up. Peak oil has pretty well happened.
The American economy and public has to cut it's oil consumption drastically. It has no choice on this. Not from an environmental standpoint (which many feel is arguable), but from the international security perspective too.
The politicians that pretend this is not the case have extremely vested interests in the oil industry. They habitually hold the short term view, which is coincidentally not much more than the time to the next election. They will paint any picture of false hope in order to get elected. And every time the public find out about such lies, it is quickly forgotten. And yet somehow the public seem mesmerised by them. The power of the media I guess.
In case any of you readers doubt how important oil is to the current US economy setup, take a look at the how much the administration has spent attempting to control the middle east. Almost half a trillion dollars. To gain control of an area which does not have the most dangerous weapons or the most despotic political regimes. Unfortunately, it was not quite as easy as he hoped. He mortgaged the entire country to finance the adventure, and all he got was sand kicked in his face. Even now he's pretending that the "big surge" has finished the war. Nothing is further from the truth.
At the start of 2007, I publicly predicted we would have $80 oil, and got laughed down. As it happens I was being unduly conservative.
My prediction is that the current sub $100 oil price will seem very cheap before the decade is out. Perhaps as much as $500, but a lot of that might well come from the declining value of the dollar.
Is there a solution to this that will save the American economy? It's far too late for that. Get ready for a rough ride.
Flea
A lightning fast lesson in the macroeconomics of boom to bust. Good on you Rob.
The American economy is totally based upon oil, and cheap oil at that. This will change, as the demand for oil worldwide continues; whilst the supply side of it fails to keep up. Peak oil has pretty well happened.
The American economy and public has to cut it's oil consumption drastically. It has no choice on this. Not from an environmental standpoint (which many feel is arguable), but from the international security perspective too.
The politicians that pretend this is not the case have extremely vested interests in the oil industry. They habitually hold the short term view, which is coincidentally not much more than the time to the next election. They will paint any picture of false hope in order to get elected. And every time the public find out about such lies, it is quickly forgotten. And yet somehow the public seem mesmerised by them. The power of the media I guess.
In case any of you readers doubt how important oil is to the current US economy setup, take a look at the how much the administration has spent attempting to control the middle east. Almost half a trillion dollars. To gain control of an area which does not have the most dangerous weapons or the most despotic political regimes. Unfortunately, it was not quite as easy as he hoped. He mortgaged the entire country to finance the adventure, and all he got was sand kicked in his face. Even now he's pretending that the "big surge" has finished the war. Nothing is further from the truth.
At the start of 2007, I publicly predicted we would have $80 oil, and got laughed down. As it happens I was being unduly conservative.
My prediction is that the current sub $100 oil price will seem very cheap before the decade is out. Perhaps as much as $500, but a lot of that might well come from the declining value of the dollar.
Is there a solution to this that will save the American economy? It's far too late for that. Get ready for a rough ride.
Flea