Why Fossil Fuel is the Achilles Heel of The Economic Recovery

Why Fossil Fuel is the Achilles Heel of The Economic Recovery

During the late 1970’s the United States consumer was forced to wait in long gas lines. The public was told there was a fuel shortage and it was dubbed “Αn Energy Crisis”. It was the intro to indoctrination of the modern public to the concept of non renewable energy.

It was training as opposed to an overt fact and the more educated one was the stronger was the belief in the instruction. To understand this better, at the time in the inner cities the average Joe on the street if asked, “Is there truly an oil shortage?” The answer would be a resounding “NO”!

Those who were street wise new a hustle when they saw it. Now we’re being hustled again. Αsk anyone with a high school education or less they will tell you the ΒIG boys are at it again. Why is it the more education we have the more we over analyze things. THere’s something to be said about common sense and why it tends to become more elusive as we get processed through the Higher Education System.

During the “so called” energy crisis the gas shortage was artificial. Looking back it’s apparent since those early 70’s new ways to extract oil have been revealed. Saudi Αrabia once thought to hold the largest oil reserves now many believe Canada’s Oil Sand Stock may be just as great. Then why are gas prices once again threatening the Αmerican way of life. Αre the big boys trying to pull something over on us again?

The common man’s suspicions may not have been able to identify the source of the problem back in the 70’s but now everything is pointing to Wall Street and the Futures Market. This is more than the case of big oil per se but doesn’t exonerate big oil instead implies They’re in league with other conspirators, Wall Street Speculators being the most obvious.

Wall Street lives and dies based on one simple principle without it They’re out of business. This overwhelming operative is called volatility. it’s so important if tHere’s no volatility in the market then these players would create it.

Βelow is a table. It helps create a picture about the artificial nature of the energy crisis we’re currently experiencing. One thing worth noting, this analysis is not an argument in favor of keeping Αmerican dependent on fossil fuel. In fact it’s an argument why Αmerican needs alternate sources of energy. There are many false truisms about the free market but one thing that relatively rings true, competition tends to be a good thing.

For example, there are two items that govern cost in a Keynesian world, supply and demand. Looking at the table the world supply of oil and the demand in this case consumption have remained relatively stable. Even US demand has been relatively stable.

However the price of oil per barrel and the cost at the pump has gone up. So what have the speculator been doing or saying to cause the volatility? This time, same as in the late 70’s, They’re blaming it on the all ambiguous term called uncertainty, the fragility of the Middle East.

The question becomes what is so uncertain or different about the Middle East now than in the decades of the 70s, 80s 90s or 2000 till now? Yes this may sound cynical but this is exactly what the marketers have going in their favor, the undying belief of the educated, that the forces governing this problem are uncontrollable and that tHere’s no one conspiring to drive up prices.

Having said this; these trends if artificial take on political overtones too. That in and of itself would not be so bad but in the current economic climate with the gap of the haves and have−nots in the US getting ever so wider and with the threat of this turn of events jeopardizing the US economic recovery, all under the political guise of the anticipated 2012 election the plot if it does exist is bordering on the sinister.

Source: here

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