The Wealth and Power Of the US Is Being Transferred.....Solution?

Discussion in 'Economics' started by libertad, Jul 12, 2008.

  1. http://www.businessweek.com/managin...?chan=top+news_top+news+index_news+++analysis

    The wealth and power of the US is being transferred to other countries that have low cost energy.

    Furthermore it is not likely that the US will have a lower cost of production even if it uses the oil within its own borders. The larger ME producers can lift oil at less than $5 per barrel, with the US lifting cost substantially higher, thus always leaving protectionism the only way out.

    Thirdly, the non oil options are not ready, or the time table of change is too long. It would take over 20 years to replace the car fleet alone. However auto conversions would take less time, perhaps.

    Thus is it in fact inevitable that over $10 trillion will simply have to be transferred over, and perhaps a lot more over just the next 10 years alone?

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    What is the solution for not having to pay out over $10 trillion and most likely more over the next 10 years?

    The solution is to create energy that has a cost of production cheaper than ME oil.

    Ok, so how does this happen ?
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    In order to view what the lowest cost of fossil fuel could be domestically in the US, one could explore what would be the costs of production if one removed all fossil fuel taxes and legal largesse.

    The question is, would the production cost be less than that of the ME ?

    If not, then what strategy can be employed such that a domestic energy replacement would be less in cost than that of the ME ?

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    Category 1 Mature energy....

    oil
    coal
    hydro
    nat gas

    Category 2 energy

    nuclear

    Category 3

    batteries
    ethanol
    biodiesel
    wind
    solar

    ............................................................................................

    What energy can be cheaper to produce than ME energy, and take far less than 10 years to replace ME energy ?

    First take out all the laws and taxes which prohibit any form of energy development and review the prospects.

    If the cost of production is more than ME production of energy, then a tariff has to be defined such that US wealth is no longer being transferred to other countries.
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    Just look at how wonderful the globalization of enegy really is for the US and its citizenry. What is very telling is that if all taxes and laws were removed from energy production, the energy would be sold to the world not just the US.

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    Another method.

    Just have the US miltary take ME oil for its citizenry. The question is can this happen in less than 10 years. This would keep the US from having to pay nationalized premiums of over 50% which cause rediculously high prices. After all this is a natural resource, and the country who owns the real estate has done nothing to create it other than just being lucky to be where it is.

    Even with the Iraq/Iran wars sitting on top of the lowest cost of production oil reserves in the world, the cost of the wars has to be factored in, which by default make the cost higher than that of SA in the ME.

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    Ok so over $10 trillion leaving the US in 10 years is a given, which leaves the question, how can the US pay the freight and remain competitive to other countries ?

    And just how is the US going to become energy independent in a cost effective manner?
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  2. Are not our elected "leaders" (cough, cough) supposed to be looking out for the kind of mess we've gotten ourselves into?

    Why haven't they acted in the country's best interest? What have they been doing as this sore festered over all these years?

    What the HELL good are they anyway?

    US Gummint... I PISS ON YOUR SHOES!
     
  3. Xuanxue

    Xuanxue

    National and trade debt, and the devalued purchasing power of the dollar contributed to a decrease in industrial goods and services and a lag behind other industrialized countries; in large part because a standard other than intellectual worth was placed on higher education. Once it was no longer profitable waging war on Labor Unions or participation in the so-called civilized slave trade in sub-prime factory or mill conditions wasn't en vogue, the .com craze came, and went. Suddenly it's 2001, and an economic disaster, it was hoped, would be curtailed in two stages, by relying on late 19th century reconstructionist rhetoric. That's right: the war plan since before the Iran-Iraqi War came to fruition.

    It back-fired. The FED would essentially be the sole driving force to save the American economy. Certainly a losing proposition from the onset, since the policy of the FED has always been to create more money out of the dollar to nonsensical proportions, manipulate the bond markets when it suits and print money out of thin air.

    Interest rate cuts; interest rate hikes. Superficial discounting of prices out of false hope with no real demand.

    The problems mount and fester.

    Bubble to hedge here. Crunch there. Crash in the mortgage industry first, then everywhere.

    We're destined to be invaded. Don't bother to revolt, it'll be done for us.
     
  4. But who is going to invade you and for what reason.

    regards
    f9
     
  5. I doubt there will be an invasion.

    1. We are powerful enough militarily that it would be suicide for any invader.

    2. Invasion isn't necessary. The wealth of America is being squandered by politicians and the Fed. Its effects are being reflected in the value of the $USD.

    In about 30-50 years, the Dollar will be totally "3rd-world", and foreigners whose currencies have not been destroyed will be able to scoop up US assets on the cheap.

    America has some of the best grain growing land in the world... highly desirable by anyone. We also have the world's largest coal reserves.

    America will not go away... it will just be owned by somebody else... and we Americans will be cleaning their houses and doing their laundry. :mad:
     
  6. Gotta love all of the economists on this site...
     
  7. Don't need economists. The economy isn't the real issue. It's the Gummint.
     
  8. Xuanxue

    Xuanxue

    Like think tanks occupied by arm-chair pencil necks bottom-feeding off of fourth generation old money and American tax payers has done the economy and our Country any good up to this point. Why not posture wearing one's rectum for a hat with the notion that any solution is attainable. After all, it's a good intellectual exercise, and the path to ruin is often paved by dogmas and the men who create them.

    The currency is shit, just like Mao, and Lenin before him, said it would be.

    Leave it to Euro Dem. Socialists to fix when they're ready to move in for the kill; or better yet leave it to the Chinese who have a few hundred million of their own to sacrifice while the U.S. is inching closer toward raping China's 40% import of crude from Iran.

    Have a cigar, a scotch and the smell of your ass, asshole.
     
  9. You're retarded!