Interest rates, the price of oil, the anticipated rate of inflation, consumer debt, government spending and government borrowing, and consumer confidence in the economy, all play their role as we move through the coming year. And, as I have said before, if there was one piece of the equation I would single out for change, as having an impact that would effect every other segment of our economy, it is the price of oil. Every single person in the United States is effected by the price of oil. Whether you walk or drive, take a bus, a train, a cab or a subway, oil is involved.
In 1973, we experienced the first Oil Embargo from OPEC. At that point, our leaders should have recognized our vulnerability and taken steps to decrease our dependency on foreign oil. If we would had set a modest national goal, to reduce the amount of oil we import by 2% per year cumulatively, how much foreign oil would need to import 34 years later each year? Unfortunately, our leaders are not about leadership and leading. The situation we find ourselves in today with regards to the price of oil, is the result of no national plan towards self sufficiency.
The geopolitical situation in the world today and the uncertainties that we are experiencing today in the Middle East are directly related to the price of a barrel of oil. With so much of the world’s oil supply coming from this region of the world, the tensions and uncertainties in this region, and the problems with the flow and transport of oil from this region, are all factors that get inputted into the price of oil.
More should have been done before we reached this point. Unfortunately, while we all are in the same boat, those least able to pay the price for a gallon of gas at the pump are hurt the most. The nation as a whole, can not continue to spend on consumer durables and non-durables at the same rate as when gas was half the price it is now. The present gas prices are like a tax on the consumer, and it is falling heavily on those least able to pay. My remark yesterday, “you can not take the air out of the ball and expect the game to have the same bounce” is what I was driving at.
The leadership in this country, with regards to our energy policies over the last 34 years, is a blatant failure. Those interested in reading a good book that will shed light on this subject should read Sleeping With The Devil: How Washington Sold Our Soul For Saudi Crude by Robert Baer, 2003. That is enough for today, have a safe weekend. Stay tuned.
Posts
3 comments:
I'm not an expert.
However, I think that developed countries don't get coherent energy politics.
In my advice, they should invest much more in alternative energies, such as the waves and solar, because they are inexhaustible and much more clean.
The eolic one is also inexhaustible and clean, too, but modify to worst rural landscapes.
I liked very much your blog and I'll come back.
Now I'll link you to mine.
Regards
Ruben
Hi, thank you for visiting my blog! I'm not an expert either but I agree with Ruben. More money should be invested in alternative energies. I live in France but I'm German and I can say that both countries invest differently in alternative solutions. Germany is far ahead in research and implementation, their budget for this is biggger than in France.
I don't know how far gone you are in theUS with this.
Interesting blog, I'll come back
Andrea
Thank you both for visiting my blog. I agree we need to be using alternative energy sources. The design of the stamp "United States Hostage: Energy Policy 1973-1991" is in the style of United States postage stamps of the 1920's. My point being, that our energy policies are not current with the times. But to compound that, we are held hostage in our policies because of this.
Again, that you for your comments, I appreciate your interest.
Post a Comment