Reply #24: Which is why...... [View All]

[rustydad]

I think TPTB are not attempting any sort of realistic "fix" other than throwing a few billions at their cronies that are milking the "hydrogen economy" nonsense or ADM and the bio fuels ripoff. I think those in the power know there is no profit in fixing the system, at least not for them. So they will ruthlessly gut our system as fast as they can and take the money and run. Either that or they are insane. And by my standards they are both insane and ruthless.

As far as oil pricing goes whether it is priced in dollars or another currency, a devalued dollar will buy less per dollar as is the case today. Oil priced in Euros has gone up only slightly compared to the rise in dollar prices. While it is true that a weak dollar should curb imports and aid exports two things must be considered. One is that we have little that the world wants at this point no matter how cheap it becomes. Also our labor costs are simply too high for us to reduce production costs to those of China and India. And given that the average American is up to his/her eyeballs in dept any income reduction will bring on economic collapse. Second oil is an essential ingredient in our economy, cheap oil that is. We simple cannot do without it in the quantities we now use. Sure, raising the CAFE standards, shipping by rail, and other efficiencies could reduce our need for imports, a little perhaps. But it will take years to reshape our transportation system. It is highly unlikely we have the time this time around as we did in the late 70s early 80s. And remember the bush slogan 'our life style is not negotiable'? Most Americans buy the BS lock stock and barrel. So reducing our needs to a sustainable level is politically out of the question.

I truly hope that a "new technology" will come to the rescue. But I seriously doubt it will. Going from vacuum tubes to transistors to chips was an example of technology at work. With oil we simply have nothing even on the drawing boards that could replace it. We have burned half of the most valuable resource we were gifted on this planet in a century of so, most in the last few decades. Our children and grandchildren will never forgive us. Bob