Panhandle (W.Va.) Grassroots for Democracy

The Panhandle Grassroots for Democracy is working to improve our corner of eastern West Virginia, our state and our nation.

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Friday, June 03, 2005

Big Oil, Big Price, Total Economic Collapse?

I found this article very interesting regarding our dependence on oil and the impact of a much higher price in terms of our ability to survive/commute/stay employed et al...I don't think this is a "chicken little " type concept. Link here.


At Friday, June 03, 2005 8:13:00 PM, Blogger Panhandle (WV) Grassroots for Democracy said...

There's some serious stuff going on with peak oil and we should be embarking on a national effort to come up with alternative fuel. We won't see that under this president because he and his cronies are the oil industry.

At Saturday, June 04, 2005 8:28:00 AM, Blogger John C. said...

The economy is such that I fear it's like a house of cards ready to collapse at any moment in time, hopefully after I've figured out a way to hedge against it. Problem is that some economists are not speaking out but rather support this insanity. Rumsfeld finally comes out and announces to the American public that China is building a strong military, no shit sherlock AND they have a strong position in our economy now that they've lent us all this money, blood money that they've saved from not paying their workers fair wages. I think we are in very serious doo doo here unless the powers that be (Democratic leadership) points it out and tries to alert the public and come up with get out of Iraq.

At Saturday, June 04, 2005 8:39:00 AM, Blogger John C. said...

I couldn't get the link to come up on my computer so I've copied parts of it as well as the address in case any of you are having similar problems....
$4 a gallon

America is over. America is like Wile E. Coyote after he's run out a few paces past the edge of the cliff – he'll take a few more steps in midair before he looks down. Then, when he sees that there's nothing under him, he'll fall. Many Americans suspect that they're running on thin air, but they haven't looked down yet. When they do ...

Former Federal Reserve Board Chairman Paul Volcker, a pillar of the Establishment with access to economic information beyond our reach, wrote recently: "Circumstances seem to me as dangerous and intractable as any I can remember. ... What really concerns me is that there seems to be so little willingness or capacity to do anything about it" (quoted in The Economist, April 16, p.12). Volcker chooses words carefully: "dangerous and intractable," "willingness or capacity." He's saying: The situation is probably beyond our powers to remedy.

Gas prices can only go up. Oil production is at or near peak capacity. The U.S. must compete for oil with China, the fastest-growing colossus in history. But the U.S. also must borrow $2 billion a day to remain solvent, nearly half of that from China and her neighbors, while they supply most of our manufacturing ("Benson's Economic and Market Trends," quoted in Asia Times Online) – so we have no cards to play with China, even militarily. (You can't war with the bankers who finance your army and the factories that supply your stores.) China now determines oil demand, and the U.S. has no long-term way to influence prices. That means $4 a gallon by next spring, and rising – $5, then $6, probably $10 by 2010 or thereabouts. Their economy can afford it; ours can't. We may hobble along with more or less the same way of life for the next dollar or so of hikes, but at around $4 America changes. Drastically.

The "exburbs" and the rural poor will feel it first and hardest. Exburbians moved to the farthest reaches of suburbia for cheap real estate, willing to drive at least an hour each way to work. Many live marginally now. What happens when their commute becomes prohibitively expensive, just as interest rates and inflation rise, while their property values plummet? Urban real estate will go up, so they won't be able to live near their jobs – and there's nowhere else to go. In addition, thanks to Congress' recent shameless activity, bankruptcy is no longer an option for many. What happens to these people? Exburb refugees. A modern Dust Bowl.


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