Wednesday, November 10, 2010

One more problem

In the previous post, I enumerated a brief list of why our current economic situation is far worse than the Great Depression; the fact that we are completely dependent on foreign manufacturing precludes the possibility of us recovering from our current economic predicament the way we did during the Great Depression. But despite that this was no small list, I was kicking myself because I didn't mention 1 particular thing, which happens to play a huge role in our ability to recover. And that is oil, just as we are industrially dependent, so are we energy dependent, big time. History suggests that economic hardship is met with increased conflict. If this is the case, then we can suspect that more contentions and wars will take place. If the middle east is not an ally, or even if our enemy wipes our oil pipe lines out, we are done for. But not only will oil scarcity and dependence have execrable ramifications for a war time economy, but in a peace time one has well. As oil gets scarcer, and the populations of the world increase, the price of oil will increase, very dramatically. This will EVISCERATE the economy. Ladies and Gentlemen, the seriousness of our situation cannot be overstated. The culmination of downturn factors is far too strong for anyone at this point to stop. Something unrealistically dramatic has to happen. Its a brave new world, folks. And the scope of our degeneration only underscores this.

Even if one is skeptical of our economy's Great Depression-like nature, one cannot credibly deny that it will be longer and a more drawn out recovery, given our current inability to refresh past growth levels.

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