Actually, the problem is that any system that is based on the exploitation of nonrenewable resources is by definition unsustainable and will eventually end. The game is almost over.
What should upset you the most about high gas prices
by free2beme 47 Replies latest jw friends
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PrimateDave
Some interesting comments on this thread. I especially appreciated those of garybuss and Mincan.
This article just in this morning on James H. Kunstler's blog, http://www.kunstler.com/:Event Horizon
With the death of the IndyMac Bank last week, and the GSEs (Government Sponsored Enterprises) Fannie Mae and Freddie Mac laying side-by-side in the EMT van on IV drips, headed for the Federal Reserve's ever more crowded intensive care unit, there was a sense of the American Dream having passed through the event horizon that denotes the opening of a black hole.
What would happen if the US Government acted to bail out these feckless enterprises (and what if they don't)? Either way, it's not a pretty picture. If Mr. Bernanke does start shoveling loans into the GSE black hole, he'll further undermine the soundness of his own outfit and do nothing, really, to repair Fannie and Freddie's structural problem of having securitized too many loans that will never be paid back. If instead Fannie and Freddie are flat-out taken over entirely by the US government (and remember the Federal Reserve is not the government), then the national debt will roughly double overnight -- which will pound the US dollar down a rat-hole.
Meanwhile, the foreign holders of those decrepitating dollars might not rush to the redemption window, but they certainly would use them to buy up every oil futures contract on God's not-so-green Earth as fast as possible -- they'd be dumb not to -- which would leave American Happy Motorists with gasoline prices north of $5 a gallon, and possibly north of $10. (In that case, say goodbye to the airlines. In fact, say goodbye to what passes for the rest of the US economy, including especially the vaunted retail sector that supposedly counts for 70 percent of the action.)
....This process is really out of control now....
Visit the blog for the complete article.
Sounds like a perfect storm: Peak Oil, inflation, and speculation. I am so unprepared for this, but I guess I'm in the majority as far as that goes. I agree that all restricted areas should be opened up for drilling. I really believe that oil exploration and extraction can now be done in an environmentally responsible way. I don't think that there is all that much to be found, though. And once those "reserves" are used up, then what? Even if we were sitting on another "Texas" full of oil, why should we act like it would last forever? The hurt we are experiencing today is a direct result of that kind of thinking from the 1950's.
Dave -
sammielee24
Bush is apparently set to issue an executive order today that will open up all the offshore drilling - so now the run will be on, production increases, oil dives back down to 65 bucks and the Republicans will blame on the economic woes on the Democrats - sammieswife.
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PrimateDave
sammieswife, it could take several years or even a decade to get any appreciable supply from these areas. There won't be any net increase in oil production overall. This is because other areas are experiencing significant declines in production. Drilling may only offset the declines, thus buying us time to make hopefully better arrangements. Only a major drop in demand will have any significant effect on price, and inflation will still prevent the price from becoming "affordable" in the way we once knew it. Believe me, I hope I'm wrong, because demand destruction entails a whole lot of hurting for a whole lot of people, myself included.
Dave -
Mincan
Primate Dave, they just don`t understand...
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sammielee24
sammieswife, it could take several years or even a decade to get any appreciable supply from these areas. There won't be any net increase in oil production overall. This is because other areas are experiencing significant declines in production. Drilling may only offset the declines, thus buying us time to make hopefully better arrangements. Only a major drop in demand will have any significant effect on price, and inflation will still prevent the price from becoming "affordable" in the way we once knew it. Believe me, I hope I'm wrong, because demand destruction entails a whole lot of hurting for a whole lot of people, myself included.
I realize that - I don't support drilling in Anwar or other area's where they haven't already drilled and know there is oil. There is no need. There is enough shale and sand oil that can be extracted with a little effort and less profit if it was so desired in this country. At any given time Bush could simply open up the oil reserves driving down the price but he won't. I don't advocate any further increase in drilling in unchartered territory - I am all for shutting down every single loophole that currently exists in the commodities market that I, like half of all people, believe is a major factor in the rising price of oil. That would be my first start. The other half as I evidenced on Fox this morning still maintain its all supply and demand - only now it's diesel demand that is sending the cost upward. The USA has drastically reduced consumption and is selling off it's excess diesel ...as I've said many, many, many, many, many times before - pathetic leadership kept the ball rolling long after it should have stopped and now that same pathetic leadership is destroying the economy of it's country by doing nothing but talk.
Sorry to disappoint you Min but we actually 'do' get it. Oil is not renewable, change is necessary - but many of us understanding that, also recognize that movement on alternate energy sources can be achieved without going into free fall. Change in the mass that is needed, cannot be achieved overnight - relief for people can be. Not by drilling but by government intervention of regulating the markets. Fuel is only one of the changes, infrastructure is another - mass transit, urban sprawl, education, medical, housing - those sectors all require extensive planning and development on a grand scale. Transportation is only one of all the connecting dots and without a firm plan for one, you cannot hope to achieve the others. Overpopulation of specific geographical locations should be of equal concern during the planning stage since just as with oil, so are food and water not going to be easily accessed resources. We do get it - but in the end, life is what life is - some of us will move along and ride it out but others less fortunate won't...the guy fuelling up his Hummer, flying his private jet or parting on his yacht isn't going to hurt...he won't wince...he doesn't now. The guy fuelling up his little second hand Honda so he can make it to his 9.00 an hour job will. Those little guys are the ones that do get it - they are hostages of an unregulated free market economy. sammieswife.
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donny
Bush is apparently set to issue an executive order today that will open up all the offshore drilling - so now the run will be on, production increases, oil dives back down to 65 bucks and the Republicans will blame on the economic woes on the Democrats -
Bush is full of Bushshit. You cannot drill your way out of this issue. The U.S. should have been looking at alternatives, especially renewable ones, back when the first crisis hit back in 1973-1974. The oil companies have climbed so far into the bed of U.S. politics that it's going to be extremely difficult to get them out. I am still waiting for the folks around here in Northern California to figure out that driving 85+ on the freeway and then complaining about how much gas costs might be connected.
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free2beme
Just an FYI on what Bush did today.
Accomplished ... He lifted the executive ban on offshore oil drilling
Why it is useless ... the law to prevent the drilling is still in place and Congress (you dumb ass Democrats!) have said they will not reverse the law. FIRE THE WHOLE MESS OF THEM!