What’s the REAL problem with the energy crisis in the US?
Our dependency on foreign oil for our energy needs is going to completely destroy this country. We are in the midst of the LARGEST transfer of wealth in history. We, the United States, are losing ourselves to other countries. We are dependent on countries like Saudi Arabia and the rest of the middle east including Iraq (you don’t still think we went there to get rid of the big ‘ol bag dictator do you?), Japan and China. The middle East is an easy part of the equation to see. But you may be asking why China? Well, who do you think is giving us all the money we need to live? They’re buy our treasuries (t-bills etc.). Here’s a quote from the Market Oracle:
These securities are either sold on the open market or directly to the Federal Reserve. The U.S. public debt, as of July 17, 2007 stood at $8.887 trillion. In addition to the national debt, the State and Local debt at the end of 2006 stood at just over $2 trillion.
Some consider that all government liabilities, including those that the government has contracted for but not yet paid, should also be included in the national debt . Corporations must report such liabilities in their annual financial statements under GAAP (Generally Accepted Accounting Principles).
These “off-balance sheet” items include future payments for federal pensions, Medicare and Social Security. Inclusion of these obligations would dramatically increase the U.S. national debt to $59.1 trillion or 403% of GDP! On a per capita basis this amounts to $516,348 for every U.S. household! By means of comparison, the average American household owes $112,043 for mortgages, car loans, credit cards and all other debt combined.
You may not be aware of this but Japan holds the biggest note on the US (at the end of 2006) with over $600 Billion! Now I was a little shocked about that. Good thing we like each other on speaking terms. This one is chilling. China owns over $400 Billion!! Can you imagine if they decide to screw us and cash out? Realistically speaking that will probably never happen but it could. I guess we’re not exactly so unfriendly with the communist government as much of us might have thought.
Of the U.S. debt owned by foreigners, central banks own 64% with private investors owning nearly all the rest ( Analytical Perspectives - Budget of the United States Government, Fiscal Year 2006 p. 257 ). As of the end of 2006, U.S. treasuries made up 33% of Mainland China’s official foreign exchange reserves and 68% of Japan’s!
The magnitude of the foreign-owned portion of the national debt is nearly three times the total amount of currency in circulation! Official numbers released by the Federal Reserve for June 2007 show the volume of currency at US$755 billion .
The Department of the Treasury publishes The Debt to the Penny and Who Holds It . This up-to-date information divides the debt into two sections – Public and Intergovernmental Holdings. The former grouping includes U.S. citizens and foreigners. (The Market Oracle)
Did you read that middle part? Read it again… “The magnitude of the foreign-owned portion of the national debt is nearly three times the total amount of currency in circulation! Official numbers released by the Federal Reserve for June 2007 show the volume of currency at US$755 billion.” Can you now see why our dollar is worth crap these days? Our country is stuck in the exact same place as millions of Americans are with their debt. Everyone is stuck in a place that only some drastic change is going to make a difference and get us out of debt. You can thank China for that “economic stimulus check” you just got. Ironic thing is they lend us money/buy our treasuries, we are “given” a check for a few hundred dollars and then we spend it on products made in other countries - like China. The we have to foot the bill for all this nonsense!
Back to the oil and energy crisis. This is all interrelated. We as a country are abdicating the responsibility for ourselves to others. The US is selling itself off bit by bit to get some cash here and there and we have no where to go but down if we keep this up. This is a desperate move by our government. By the way, they’re ALL to blame. I don’t like George W. Bush in the least but it’s not all his fault. Except we can blame a huge part of the debt to this “war on terror” in Iraq. This clown sold us a bunch of lies and everyone bought it. I feel like puking just seeing his stupid face in the news. F*ing hillbilly loser. No offense to the respectable hillbillies in the US.
Now what is the REAL reason for the energy crisis in the US? This is going to sting a little and it’s something we all know but are afraid to admit to. The real problem is US! Not the U.S. but US… we the people as a whole. We all want what we want when we want it. Most people don’t give a rats ass about the rest of society enough to make a concerted effort to curtail their lives for the greater good. We leave more and more up to the government to do for us. The more we do that the more they stick their greedy fingers in our pockets and their noses in our lives. We complain about “too much government” yet we turn to them all the time to fix things for us. Yes, they have a role and are necessary BUT remember they work for us. They represent us internationally (that’s a sad thought with the current administration in office). But we have the power to make changes. Let me give you something to think about. Recently we’ve seen the gas prices go higher and higher. We see all the ‘pundits’ on TV telling us why this is so. The higher gas prices have caused us to drive less and even change cars in some cases. We have done these things out of necessity and we can see the changes nationally. Auto makers are beginning to discontinue production of the larger vehicles in their lines. Why? Because they’re not selling. Why? Because we’re not buying. Airlines are dropping their less fuel efficient aircrafts and cutting routes. Why? Because we’re not flying as much and it costs them too much to keep them up in the air. If we bought the tickets at the increased rates they wouldn’t care how much fuel costs. Those are just two examples of what WE can do if WE decide we want things to change.
Now what’s the answer to our energy crisis? Truthfully there is no short term answer. It’s going to suck and suck for a long time. We have to start changing the way we live our lives and do business. We have to make changes now for the future. We basically have to change the way we look at things. We need to be energy independent and the only way we’re going to get there is to start today.
Should we start drilling in the protected areas? Why not? The tree huggers tell you they want to preserve the natural setting and/or protect it from damage or something along those lines. Guess what guys. They don’t let the oil pour all over the floor and then soak it up with a paper towel ya know. The land and the spotted owl will live. On the other hand it’s also not the holy grail either. It won’t give us all that much, even in the future. The other thing to consider about drilling for our own oil is this. You don’t really think that oil we get from our ground is really going to stay here do you? It’s a business and when it’s out of the ground, those people who get it will sell it to the highest bidder. Don’t think so? Don’t be so gullible. The only way to ensure that oil stays here might be to nationalize the reserves. BUT do you really trust our government to handle it well? I mean look what they did with Social Security. Besides, there has to be a point in time when we do actually run out of oil. Unless it’s somehow renewed from within the Earth in some yet to be learned process.
Brazil started 10 years ago to convert to mostly ethanol and now they’re complete energy INdependent. Yes they still use oil but they drill it for themselves. Now they even have an export business model for the extra ethanol they produce. Don’t even start thinking we should “just” switch over to ethanol and buy it from them. Number 1 we can’t “just” switch anything and number 2 we’ll just be trading OPEC for Brazil.
If they can do it so can we. We just have to want to do whatever it takes to get there. Are you ready to do your part? Hell, keep driving your car but do the small things. For instance stop using the plastic bags from the grocery stores. Buy a few reusable canvas bags and bring them to the store with you. You can even buy ones made from recycled material. I’m selling bags here just trying to make a point that we can start with small steps first. Click here to see a report describing the impact of plastics bags. I’ve got my canvas bags already.
