America Motoring In direction of Financial Catastrophe
America has been motoring towards disaster ever since its financial system was structured around the automobile and low cost power provides.
Now that energy is not at all low cost catastrophe is imminent. Just like the airlines, with oil above $125 a barrel, and probably headed much greater as peak oil quickly kicks in with a vengeance, the American enterprise and way of life model is broken
Gasoline costs at $4.00 a gallon have began to power Americans to chop back on their driving. Even center class families are having a tricky time making ends meet with rising fuel prices, rising food costs, double digit increases in the price of well being care, stagnant incomes, and falling house prices occurring all at the same time. So some effort at energy conservation is finally underway.
Sadly, America and People have not but come to grips with the truth that massive modifications in the best way that the standard American lives are going to be pressured upon them. There isn’t one politician in sight who has the guts to inform Americans that lots of them face a long term reduction of their standard of living.
Driving a couple of less miles every week dongying shenqing petroleum equipment uk may help some but it surely isn’t going to make a dent within the dongying shenqing petroleum equipment uk hard actuality that the privileged place of The United States of America on this planet is in a state of transition. Issues won’t ever be fairly the identical as Individuals will be forced by financial events to regulate the wasteful life-style that they’ve come to know because the “American Manner of Life”.
American politicians, like John McCain, boldly declare that “the American means of life is non negotiable.” Nonetheless, they appear to miss the fact that the US is hopelessly dependent upon foreign oil for over 60% of its supplies.
The drain day by day of America’s wealth to pay for oil imports at $125 plus barrel oil is hundreds of millions a day. It’s not solely the outflow of money that’s the problem. It’s also the fairly unfriendly nations that plenty of these oil fee funds are being transferred to.
We are supplying a lot of nations that are outright hostile to the United States with enormous quantities of funds. This leaves the US extraordinarily uncovered to all types of potential challenges, including the financing of acts towards US pursuits utilizing what used to be our own cash for the funding of hostile operations.
Right here is oil import data from 2006 (latest accessible) provided by the US Power Data Administration. I dongying shenqing petroleum equipment uk count on that the numbers are far worse for the US now. Actually at $125 a barrel oil the total quantity that we pay has gone via the roof.
“The United States consumed 20.7 million barrels per day (MMbd) of petroleum merchandise during 2006 making us the world’s largest oil shopper. The United States was third in crude oil manufacturing at 5.1 MMbd. In addition to crude oil, significant contributions to U.S. petroleum supplies came from natural gasoline plant liquids, refinery achieve, and alcohol fuels. However, we nonetheless needed 13.7 MMbd of imported crude oil and petroleum merchandise to satisfy U.S. demand. The United States additionally exported 1.3 MMbd of crude oil and petroleum products during 2006, so our internet imports (imports minus exports) equaled 12.4 MMbd.
Petroleum merchandise imported by the United States throughout 2006 included gasoline, diesel gas, heating oil, jet gasoline, chemical feedstocks, asphalt, and other products. Nonetheless, most petroleum products consumed in the United States have been refined right here. Net imports of petroleum aside from crude oil were 17% of the oil consumed in the United States throughout 2006.”
Let’s do the math using the 2006 12.Four MMbd figure however at today’s costs. 12,four hundred,000 x $125 = $1,550,000,000 a day leaving the nation. How long can this go on Not endlessly, of that I’m certain.
When you consider different outrageous costs, such because the 12 billion a month we’re spending to battle the Iraq battle, you possibly can see that America is on its technique to turning into a poor nation in a rather big hurry.
It’s time for Americas to wake up and prepare themselves for a downsized future. The sooner that Individuals begin to get up and demand that politicians communicate the reality about such points the higher off we will likely be. Once we admit that we’ve a problem we will get on with the duty of discovering methods to raised deal with it.
Sadly, no American politician seems to have the guts to admit that America doesn’t have a particular proper to stay past our means forever. For Individuals, and for citizens of different highly developed nations, just like the UK and Spain, the day of reckoning is close at hand, like it or not.
Gerald “Taipan” Greene is a retired forex trader and portfolio manager who labored in Asia for over 20 years. The nickname was acquired in Hong Kong and is now used for numerous monetary, political, and Web enterprise associated blogs. Considered one of them is at Daring Messenger
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