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Re: Ameros ??????

Posted by Carol on October 22, 2008, 10:07 am, in reply to "Re: Ameros ??????"

The value of the US currency, now that it is not underpinned by gold, is, to a large extent, backed by several things. One is the ability of the US government to repay its debt, as it becomes due. Another is the value of US assets. We do not normally think of the US government/us as having assets, but we do, and they are substantial -- far exceeding even the unbelievable debt we are shouldering. One example, is the oil reserves on unleased public lands. There are many others. Recently, it has been suggested that rather than leasing the oil shale reserves in Colorado and Utah (estimated at a 300 year supply of oil), the US government take a zero emission's approach to excavation and refining, using the oil produced to then stabalize oil prices, finance the greening of America to reduce CO2 emissions, using the balance of the oil as a foreign policy tool. The theory is that the current resistance to non-petroleum based production, products, etc. is the cost of the switch to corporate American -- not the lack of viable green alternatives. Because of the cost, corporate executives align themselves with the oil industry, shunning green alternatives and supporting the oil companies in their quest to produce more oil and to keep oil profit taxes low (since the assumption is that the taxes would end up being a bill footed by consumers.) Corporate shareholders, who would otherwise have to take huge hits to the bottomline, it should be remembered, are represented by corporate executives who would rather put up with incremental increases in oil prices then taking the chance of further eroded bottomlines in hard economic times and the resulting loss of their jobs. Since Canada is refining oil shale at about $60 a barrel, adding $10 per barrel for zero emissions and land restoration, would appear viable. Profits could then be used to finance (probably through long term loans to corporate America) the changeover, finance or purchase new cars, home heating and cooling equipment, etc. Since there are currently 250 million oil-guzzling vehicles on the road to replace or retrofit, since production of green alternative equipment at a national scale will produce jobs far exceeding what the tech industry did, etc., the outlook for the US economy would change almost over night. The debt, calculating the foreign exchange debit for oil, would also be substantially changed. While it would not totally eliminate the trade imbalance, the shift over 5 -10 years would be substantial. Another aspect of "us" gringos, through our government, becoming oil producers, is that the fact of our oil production can be used, while there is still time with authoritarian Middle Eastern regimes and Russia, as a major foreign policy tool. I would imagine that a conditional agreement not to dump oil onto the foreign markets would be quite the carrot to insure that the funds for Islamic radical schools and terrorists are terminated. It is unlikely that Russia would be too interested in invading countries like Georgia if NATO countries, who are now at the mercy of Russia because they need her oil, would have another supply.


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