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Vol. 249 - What Will Save The US Economy?
Dear member,
In the last 21 election years, since 1928, the market (S&P 500) has contracted only 3 times - none more severely than in 2008, when the market lost 37%.
What's in Store This Election Year?
The Obama machine knows it has more than tried the patience of the American public and will have to pull off an amazing comeback to be re-elected in 2012. As we stated last year, it will take an unemployment rate of below 8% to give Obama the victory. The Obama Administration has a plan for growth that is shaping the way our team at Pinnacle is investing; it is not just the loose monetary policy and the endless money printing that has us loaded up in commodity-based assets. As investors, it is invaluable for us not only to understand the Fed's motives but also political agendas in Washington, as they typically work hand-in-hand.
The administration's push to devalue the dollar in an effort to drive net exports and lift America out of the worst recession since the Great Depression is gaining momentum.
In the first quarter of 2011, US GDP was running at roughly $14.9 trillion. Consumption was 71%, investment was 12%, government spending accounted for 20% and net exports were -3%. Although investment has picked up slightly in recent quarters, what's wrong with this picture?
Manufacturing is dead, but with a weak US dollar, it can rise from the ashes.
In recent history, 71% consumption is bang on average for the US, but in years past, the US consumer wasn't in financial hardship like they are today. The US consumer now lives in the real world where the artificial value in their home is gone, the age of retirement is fast approaching and the unemployment rate continues to hover around 9% (while underemployment has stalled between 15% and 16%). The government can no longer rely on its faithful consumer to spend itself into bankruptcy. So what does this mean? An increased level of manufacturing and net exports is desperately needed.
In past recessions, the Federal Reserve, at the control of Greenspan and now Bernanke, would lower interest rates and consumers would start tapping credit lines. In so doing, the US would spend its way out of a recession: that's the consumption strategy. Those days are far behind us. The consumers can't save us. What about investment? We've talked for months about companies sitting on record cash positions. Why aren't they spending/investing to stimulate the economy? If the consumer isn't buying, who are the companies selling to? It is a vicious cycle.
So with the consumer down and little likelihood of large private investment, government spending had to step up - and it did. We saw, and continue to see, unprecedented intervention by the Federal Reserve and the ECB in attempts to stabilize our economies and promote growth. Though we did float through glorious periods of false hope and manipulated markets, government spending is not fixing the problem of unemployment. Furthermore, especially in Europe, government spending is not creating real growth or real lasting GDP. This REAL GROWTH (increased GDP) is paramount if the US or any of these western countries ever hope to dig themselves out of debt before interest rates rise and the candles are blown out. Increased exports and manufacturing is the way out.
Let's turn back to the pieces of the GDP pie. The consumer, both public and private investment and government stimulus have all failed. They make up 103% of our fledgling economy. There is only one aspect left. Our -3% of net exports.
The Obama Administration believes the only way out of this economic trough is through increased exports. They are right as it's the only sustainable strategy left. The only way to achieve greater exports is to create products the world needs, and more importantly, create products the world can afford. The US exports a substantial amount; but not nearly enough. It has lost millions of jobs and GDP dollars to wholesalers from China or other regions of the world that have significantly lower costs of production.
How can the US start increasing its exports and making them more affordable to countries and trading partners around the world? One thing in the short-term makes it all better - a cheaper US dollar. It just so happens that this plan coincides with the US' ultimate plan to inflate away its debt.
In the State of the Union Address, on January 27th 2010, President Obama announced the National Export Initiative. This initiative is intended to double US exports in 5 years. This has been long forgotten by the press, but our team has been watching the numbers closely.
We are of the mind that this initiative is unlike many of Obama's committees which ultimately do nothing but waste an inordinate amount of tax payers' dollars. This is a real plan that could save America.
How has the plan worked thus far?
As you can see, in the 2nd and 3rd quarters of 2011, net exports have been on the rise.
Real exports of goods and services increased 4.7 percent in the third quarter, compared with an increase of 3.6 percent in the second. Real imports of goods and services increased 1.2 percent, compared with an increase of 1.4 percent. The US actually produced and exported more than it consumed through imports in the third quarter of 2011.
The US is still not even close to where it needs to be, but if this trend continues, and Obama is successful at doubling US exports within 5 years (or whichever administration is at the helm), it could add more than 1% to the GDP. That would take America's very low GDP of 1.8% (third quarter 2011) to over 3%, safely out of the recession threat zone.
This is an interesting tactic which is being discussed by very few economists. The way in which this tactic is implemented is what you need to be concerned with. It is also the foundation of our investing principles as we move further into 2012.
The traditional and quickest way to increase exports has always been to lower the value of the currency.
The dollar has strengthened in recent months (deflationary trend) - a trend which cannot continue if the US hopes to pull itself out of this recession. Its exports depend on a cheaper US dollar. At the end of 2010, and the beginning of 2011, the dollar was weak and exports were on the rise. The Fed and the Obama Administration are working to get back on that track.
What this means is that the US has to devalue its dollar if it wants to rebound out of the great recession. It will attempt to devalue its dollar by 15 to 20% against its competing peers within 3 years. We are buying gold (equities included), buying commodities (equities) and sticking to our guns. The US dollar will not continue to be a safe haven investment - the US government simply cannot allow it to.
All the best with your investments,
PINNACLEDIGEST.COM
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Re: Vol. 249 - What Will Save The US Economy?
Yes,but the attention span of the majority of Americans is poor. The only candidate for President that has a definitive plan to change our future debt liabilities and hold onto our personal liberties is beginning to be marginalized. His age was the reason many would not vote for him but now even his ideals are being deemed too radical.Wait a few years, Ron Paul's enlightening breath of fresh air political theme will only be the history we should have made.
Re: Vol. 249 - What Will Save The US Economy?
The next 2-3 years hold potential for being the most disruptive since the world wars. A third world war triggered by some event in the Middle East is not beyond comprehension. Neither is a complete meltdown of the Central Banking system of unrestrained money printing leading to hyperinflation.
Riots, food shortages, general civil unrest could easily lead to martial law and in the U.S. in particular, detention camps for anyone considered a threat to the status quo. Merely opposing government policy could get you arrested without charge or access to a lawyer or trial, held at the President's whim indefinitely under draconian new laws.
thinker70
Re: Vol. 249 - What Will Save The US Economy?
I think most investors linked to Pinnacle and most hard asset sites agree ,the end will come to the current system, but to what end? Will there be war? ,or some form of international wash? The strangest thing about countries and private entities from other countries, around the world, buying up U.S. treasuries ,is that they are in full knowledge that they are literally backed by nothing,not gold and not land.Nothing. Obviously they (China and Japan ie) want the current system to continue.They want us to live within our budget,in a governmental way ,which means a much lower standard of living. They really don't want us to be fiscally responsible in our private lives . They want our credit to continue so we continue to buy their products. It's really short sighted, in a global sense ,imo. I think all the political posturing about all of a sudden being fiscally responsible is really shallow and the debt holders will eventually have to step in ,with suggestions and then...
Re: Vol. 249 - What Will Save The US Economy?
Answering the question more directly, I don't think anything can save the U.S. economy without a drastic change in our present fractional reserve monetary system of fiat currency borrowed into existence as DEBT. The present DEBT PYRAMID is far too large to be able to be serviced even with growth that exceeds that of the Chinese roughly 10%, and trying to achieve that kind of robust growth would require the printing of trillions more worthless dollars that will ultimately trigger run away inflation so that the growth figures would become meaningless.
Thats the problem, if you have what amounts to "counterfeit money" created out of thin air with no intrinsic value then government statistics are misleading and essentially worthless and can be used to mislead people into fall assumptions that everything is fine when in actuality we are going broke like a snowball rolling down a mountain that will fly apart when it hits the first tree.
thinker70
Re: Vol. 249 - What Will Save The US Economy?
I've followed the career of Boone Pickens for 30 years. I read his autobiography and believe his approach, is always a little ahead of the mainstream.NG will pick up and his prophetic style of business will continue on a bumpy road upwards ,imo. New pipes are being layed throughout the countryside.In Colorado ,Williams Company (WMB) on the NYSE, is expanding a pipeline .I own shares in Dejour Energy which has a huge undeveloped reserve of NG ,which will definately be hooking up to that pipeline .The pipeline should be ready in Q3 this year. DEJ also has NGL ,which sell for a premium to NG .These are the type of companies that people investing in NG should concentrate on , fields that are the liquid rich and where a pipeline is accessible. NGL's can be bottled and shipped .A huge field out in the ocean is all very impressive but the cost to market is not.Especially for a junior ,economic viability is unlikely. NG as an industry, can and I believe will take the pressure off oil , as we strive towards energy independence. (just as Boone predicts) He's always right ,just a little early ,which has cost him greatly,but if not him making a big move ,then who?
Re: Vol. 249 - What Will Save The US Economy?
thinker, glad to see I'm not the only one around that seems to like the lithium prospects. I see your investment strategy is to spread your interests around between a few lithium companies.I will only be involved in 1 at a time ,mainly because of not enough ready cash to diversify in one area .Nemaska seems to have better grade than everybody ,except Talison.With their end user in place and financing for the mine to be done (possibly in part by the Quebec Gov't),I just don't see anything better,for the under a dollar. The mine plan is simple and the share price is waiting for the final feasibility to be done.The capitol costs through discussions I have had seems to be about 80 million.( a lot cheaper ) than costs of rare earth mines,by a country mile.Too many good prospects in so many sectors of the resource industry are making our investment in companies smaller,imo Anything related to energy seems to be good .
Re: Vol. 249 - What Will Save The US Economy?
Responding to the original essay, postulating that "unemployment will have to get below 8% for Obama to get re-elected" the way the government fudges the numbers that should not be difficult for them to manipulate public perception with all their half truths if not outright lies.
What the U.S. has plenty of and is dirt cheap is natural gas and T.Boone Pickens is promoting switching from diesel (and gas to a lessser degree) to natural gas fueled vehicles. The problem is a "which came first, the chicken or the egg" question. People will not switch to natural gas unless it is readily available, oil companies will not build the necessary infrastructure unless they know there is sufficient demand to justify the investment!.
A deal has been inked between Pilot Truckstops and Shell to make natural gas available at truckstops nationwide and the main beneficiary so far is Westport Innovations WTPL which has a J/V with Cummins to build engines that will burn the much cheaper natural gas which will reduce America's crude imports significantly when fully implemented. Once the trucking industry has made their switch, and natural gas fueling is readily available nation wide, then there is a reasonable chance that automobiles will follow. Certainly makes a lot more sense than the present economics for hybrids and short range electrics.
thinker70
Re: Vol. 249 - What Will Save The US Economy?
Southpen: I was early to the lithium and rare earth spaces and I agree with you that Nemaska is a good bet, but I would also suggest that you take a good look at Orocobre ORL-V which is being partially financd by Toyota with an off take agreement in place. I also hold Lithium One LI-V and Rock Tech RCK-V bought 11 months ago @ .365 that has allowed me to get my original investment off the table before the summer sell-off. Another one in my portfolio bought in Oct/10 @ .465 is Rodinia Lithium RM-V. I also still hold some free trading shares in Talison Lithium TLM-V, luckily I got my money off the table BEFORE the sell down, and may consider buying back in at todays prices.
thinker70
Re: Vol. 249 - What Will Save The US Economy?
Do you think people today would listen to him?
The John Birch Society is gaining some momentum www.jbs.org.
Whats startling is that he was very accurate in his predictions of what was to come and that makes me ever more fearful of the ultimate consequence... a New World Order in which our civil liberties are destroyed by the handful of elite. Perhaps The Occupy Movement would find some organization and direction if they were to associate themselves with JBS.
Re: Vol. 249 - What Will Save The US Economy?
Thanks very much scottie. Welch knew ,probably before Vietnam,that this military-industrial complex could be the death of us.Wonder what he'd say today? Do you think people today would listen to him?,if he were say ,a congressman. Great idea looking that up.
Re: Vol. 249 - What Will Save The US Economy?
Totally uncanny
http://www.youtube.com/watch?v=nOPFMHu3uJ0
Re: Vol. 249 - What Will Save The US Economy?
Lithium man, Canada Lithium has 33 mt @1.19 where Nemaka Lithium has 25mt@1.54 . Are those figures M&I?
Re: Vol. 249 - What Will Save The US Economy?
Talison is too far out from production
What makes you say that Lithium Man? If I recall correctly, they already supply something like 70% of China's lithium demand and have the largest hard rock lithium mine in the world.
Re: Vol. 249 - What Will Save The US Economy?
Talison is too far out from production. Are you aware of Canada Lithium ? They had an impressive news release in mid Dec that went unnoticed.
Canada Lithium Corp. (TSX: CLQ) (U.S. OTCQX: CLQMF) announced today an updated National Instrument 43-101 ("NI 43-101") compliant Mineral Resource estimate for the Québec Lithium Project that indicates Total Measured and Indicated Mineral Resources have increased to 33.2 million tonnes grading 1.19% lithium oxide.
http://www.alphatrade.com/news/stories/AM/2011-12-06/CNW/201112061705CAN...
Re: Vol. 249 - What Will Save The US Economy?
A virtual unknown named Nemaska Lithium NMX in Canada and NMKEF on the OTCQX. about .35 /share .I think it has potential to be a 10 bagger.
Re: Vol. 249 - What Will Save The US Economy?
Ugh, another highway. Wrong direction IMO.
Are you talking about Talison Lithium? Theres a lithium supply glut so I dont know how quickly TLH will turn around although they are the best of breed of high quality lithium. I think that market needs a catalyst, namely improved lithium technology, for the company to really springboard to success. A listing on major US exchanges would also help get some exposure. The good news is that the team behind making Molycorp a huge PR success is also behind TLH.
Re: Vol. 249 - What Will Save The US Economy?
Yes,I agree fuel efficiency and public transportation. I am invested in Lithium,hoping the use will begin to climb but in truth the company already has an agreement (20%) shareholder,to sell the product to and they are Chinese. I am also invested in a company developing a NGL field in Colorado .NG liquids sell for over 2 bucs a mcf more than NG (about 5.70) Much to the disappointment and anger of many Floridians ,our high speed rail project has been shelved by our Governor.Florida is a great place to showcase American ingenuity and clean energy transportation for a state who's economy is based on tourism..He is, however building another highway through a busy corridor.Not exactly high tech construction but he promises to be dilligent about all the labor being legal,LOL
Re: Vol. 249 - What Will Save The US Economy?
Point taken, Southpen. Still, now is not the right time to shift away to expensive domestic oil. We are still a recovering economy and everything plastic to asphalt requires petroleum. What we need is more leverage to diplomatically negotiate favorable terms with the OPEC members. Right now were using military presense and petrodollars as leverage and that has somewhat backfired. Whatever we can do to minimize the cost to consumers for now, so that we have a window in which we can build an oil independent future. Cars in Europe are 50% more fuel efficient than the US (I think European cars average around 32 mpg while US cars average something like 22 mpg).. the administration must take real steps to wean us off of foreign oil and it starts with mandating fuel efficient cars and developing the public transportation system.
Re: Vol. 249 - What Will Save The US Economy?
I don't get that your not on board.Everything you just stated is correct,OPEC is squeezing us for every bit they can, largely due to our dependency on them and their dependency on oil sales.Cut the cord! Our gov't can MAKE our so called Oil giants do exactly what the consumer here in the U.S. wants and NEEDS. Oil at 85 /barrel or less with NO need to spend any more taxpayer dollars on protecting the American Industrial Complex.It's not rhetoric,it's very real. The energy industry in N.A. could explode.We could be NET exporters of many forms of energy .All we need to do is cut the cord with OPEC ,permanently.They will of course try and entice markets, a global surplus showing up on our exchanges ,easily created ,which can be countered by our gov't just as easily.The problem is always ,the will and that will has to come from the people to INSTRUCT our President and our Congress to do the will of the people .As I have mentioned before,Carter ,the smartest of all President's in the last 50 years knew that waste of defending the Persian Gulf was a very real ,long term problem.He did not have the backing to enact energy independence in the late 70's and lobbyists turned quickly against him ,thereby helping to destroy his Presidency. He tried to tell people there was an energy crisis.There was!,but it wasn't a World energy crisis ,simply an American one. Question; How much decline in Nuclear power plants,Oil refineries and Energy Research has happened since anti-Carter language begun? .I really don't care who's in the White house or who controls the House or the Senate,we simply need people to understand that our economic future is largely dependent on the Energy industry and all that energy from all avenues has to be homegrown ,or we are going to suffer long term quality of life issue's. No need to worry about the OPEC nations .They have customers.Let the Chinese and the Indians have their oil. It's time.We are 30 years late but maybe enough people realize the extent of our problem by now. .
Re: Vol. 249 - What Will Save The US Economy?
Southpen, I still think you're missing my point. I understand that Saudi's "NEED" $85 to meet their social welfare programs but that just supports my argument in that Saudis are marking up prices and artificially inflating oil prices. It only costs them $6-$10 at most to produce a barrell of their oil, the infrastructure for which was built by the west - in deserts with no water, no roads, no nothing. Have we audited this proposed "NEED" for $85?? What about Nigeria saying they "NEED" $110 a barrell? The point I'm making is that with OPEC in control of middle eastern oil, they have been artificially inflating this oil prices for years, using "social spending" as their excuse. Meanwhile, their "social spending" has lead to a wealth gap in which the elite are amongst the richest and most powerful in the world while their poor are revolting against their governments. Nigeria while having some of the best quality of oil have one of the worst economies... where is all the "social spending" going???
This all at the expense of global consumers and especially the American consumer who know oil is the lifeblood of the economy. Put those consessions back in the hands of multinationals and western governments and i am certain oil will be back below $65 a barrell. Under OPEC, oil will be at a minimum of $85 a barrell, just so that OPEC can squeeze just enough out of us without the western world going ape s#!t on the middle east.
The only reason why OPEC is setting this "floor" is to ensure their crony buddies like Venezuela dont get run out of the market. Meanwhile, Saudis are currently pocketing $90 of every $100 barrell of oil sold.
Re: Vol. 249 - What Will Save The US Economy?
Doesnt the US have one of hte largest oil reserves in the world from Alaska to the Bakken oil shale and Texas. The US purposely imports. If its dollar collapsed it would be forced to use its own oil. So the trade deficit might look pretty good then!
Re: Vol. 249 - What Will Save The US Economy?
Your example was from 2008,things are changing .Heavy oil is abundant in N.A..Technologies change .Why is Chevron over in Saudi Arabia teaching them how to extract and refine their heavy oil? A= It's cheaper for Chevron but ... It's not cheaper for the American consumer.What you don't seem to realize is that OPEC countries usually follow the Saudi lead and the Saudi's have publicly said many times 75-85 dollars a barrel is their comfort zone.So long as we let OPEC in the picture ,American majors (like Chevron) ,have the OPEC price gage as their own.The Saudi's NEED 85 dollars a barrel avg . over the year to meet their enormous social welfare responsibilities.That fact is getting worse as the gov't must appease the people .All the Arab-Persian states are in the same situation,so my response is that N.A. has the oil,has the technology ,the prospects of American-Canadian companies meeting or exceeding Saudi prices are very good. Their is little of any savings now for the consumer by buying OPEC oil and that gap is closing or to be exceeded with cost saving measures like the Keystone pipeline,furthermore N.A. has abundant other sources of energy ,readily available ,NG and NGL for two. This is the time to change attitudes .Chevron teaches heavy oil extraction technique to the Saudi's ,then expect American taxpayers to keep protecting their investments. with a costly military presence .Absolute garbage.! Time to say goodbye and good luck. We don't need THEM anymore and the fact that Chevron wants to do business with them is entirely their own affair.Maybe they should hire private security to protect their overseas investments ?,or they can become a more substantial force here at home and use all that "human energy" they postulate about to make N.A. truly energy independent.We should be a net exporter in so many area's but the lobby group's work very hard for the American people to believe otherwise.No offense ,but your a product of their success.
Re: Vol. 249 - What Will Save The US Economy?
Again, moving away from ME oil would virtually lock in a permanent energy tax on the consumer. ME oil is at least 50% cheaper to produce than Canadian oil, regardless of exchange rates. See the link below:
http://www.grist.org/article/saudi-oil-cheaper-than-american-oil
As Jon Stewart clearly demonstrates in my previous post, its not like energy independence is a new idea... it just never had legs because We The People, want cheap abundant oil.
As for military involvement, I would argue alot of this was opportunistic as arraged by SOFA (Status of Forces Agreement) i.e. Japan, South Korea, even Saudi Arabia and Iran invited us to build bases in their countries as a deterrant to the growing Communist sphere of influence. When they were done with us, they simply kicked us out.
Re: Vol. 249 - What Will Save The US Economy?
No ,I'm not advocating any such thing.I know my posts are hard to read ,void of paragraphs,sorry but ...if you reread you'll maybe see that I am trying to say that only products that have no beginning or end in this country from raw to finished would cost more. If food is grown and sold in the U.S. and our dollar is down ,the cost stays with supply and demand. The groceries only go up IF they are imported.Oil's a bit trickier.If the oil originates in Canada (NAFTA free trade) and IF the Canadian dollar was up ,yes it would cost more but the refining will be done here and remember all these intregated oil companies are as much American owned as Canadian though their deposits be in the Athabasca. I also pointed out that the Canadian dollar will/does mirror that of the U.S.. The two countries have agreements and the decline in both our dollars is mutually beneficial for a while.This is NOT a permanent solution.I too, am a gold bug of sorts but I believe that G&S mines are needed for eventual currency collateral.We can't sit around for EVERYTHING to collapse before doing anything.It could take years for the fiat money system to end.The defense budget in the United States could be cut in half and it is possible to make the country safer than it is rather than spreading our selves to thin all in an effort to protect American PRIVATE interests .. A bad deal for American citizens. You say we must defend the dollar,OK but the best way to do that is to let it's value diminish ,if only for a while in order to have GDP growth thereby paying debt easier and eventually using a more sound balance sheet to develop into a new currency collateralized by PM's and GDP per capita. and structured through Internationally agreed upon standards.That's what's coming ,imo
Re: Vol. 249 - What Will Save The US Economy?
http://current.com/community/92499280_the-last-eight-u-s-presidents-promised-energy-independence-nobody-did-it.htm
Re: Vol. 249 - What Will Save The US Economy?
Maybe this chart illustrates the real problem with the US economy... why is it that corporations are making record profits yet real wages have yet to recover?
This may be a function of policies like Obamacare and increased regulatory hurdles. Or maybe corporate profits are exaggerated because while profits are privatized, debts/losses are socialized especially in the case the banks thanks to the government bailouts. I think the solution isn't in monetary policy... I firmly believe debasing our currency will only add to our problems.
Re: Vol. 249 - What Will Save The US Economy?
Basically what youre advocating amounts to an employee going into work and voluntarily agreeing to a 25%+ pay cut while also agreeing to work more hours. Granted there are some that are this selfless, the majority of people would prefer to make more money and work less hours. By deflating our currency, and thereby inflating dollar denominated commodities like energy and food, you're reducing purchasing power - hence the pay cut. To make up for the lost purchasing power, Americans will need to work harder than ever. 40 hours a week wont cut it. While this may translates to increased productivity (in select sectors), I'd argue that it does not create wealth for any marginal increase in wages would be wiped out by inflation (which everyone will suffer). This is the message that the gold bugs and inflation hawks are trying to bang home.
We simply must defend the dollar.
Insisting on developing our own oil reserves, while it gives us energy security, would virtually lock in high energy prices. As you and I both know, producing oil in Canada or Mexico or Brazil or anywhere other than the ME and maybe Nigeria is much more costly. While funding the war machine is a costly tax on the american people, a permanent tax on energy would be even costlier.
Re: Vol. 249 - What Will Save The US Economy?
No argument there,that's why they positioned their man in the White House
Re: Vol. 249 - What Will Save The US Economy?
I am also familiar with the stories of the Seven Sisters .Glad someone else is and you sharpened a lot of old history for me. Military supremacy was necessary when we were building the American Industrial Complex. We had to expand our economic might after WW2 and the military was a very real threat to any nation or group that wanted to disturb our Corporations. That's principally what military is for ,"to protect property rights". Protecting freedom or our personal liberties is a stretch but even so property rights has always been #1 from the time of Pharoahs to present. The point of all this ,is that if we don't need oil from the ME ,why protect the Persian Gulf? It is NOT cost effective.All our Gov't has to do is call in the CEO's of the remains of the SS ,whomever they be,sit them down in the White House and tell them that as of X date,all your interests around the world are going to get a little lonely,because your gov't won't be there ,other than in a diplomatic fashion.Your gov't strongly suggests you invest your resources ,human and financial into energy production in the U.S. or Canada. The loss of treasury to protect agreements with Saudi's that were made post WW2 is no longer valid.It should have ended after OPEC was formed.We made a lot of agreements after WW2 ,because at the time it was the right thing to do ,not just for us but for the World. Vietnam was a consequence of the American Industrial Complex gone too far. Every time there is proposed violence on American interests ,there is the suggestion of the military.Why? Some of these multi-national American Corporations are not even HQ in the States anymore.Why would the American taxpayer pay for their properties protection.? They ask for protection ,then look for ways to lessen their financial burden (taxes).This country is being raped by it's own. Going around like some do saying, buy American is a completely incorrect phrase ,since the financial and trade infrastructure here is not built to accomadate it..We have little incentive in this country to buy our own ,but ,if the cost of buying here became better than buying elsewhere ,we would have great success without the shallow and unwise statements of buy American.It would happen. We have to create the arena for greed to work in our favour for a change. Incidently ,the Saudi's now say with their extensive social network,( needed in their country to keep the King in power), they must have a break even price of 85 dollars a barrel.The most cost effective oil,gas ,uranium and coal and all the energy technology we can muster is here in North America. I 'm not saying,never have said I want the dollar to collapse but I do want it lower in order to rebuild our manufacturing base.We really have no option's.It this way or war and bankruptcy.,imo
Re: Vol. 249 - What Will Save The US Economy?
"Iraq posesses huge reserves of oil and gas -- reserves I'd love Chevron to have access to."
- Kenneth T. Derr, CEO, Chevron, 1998
"We hope Iraq will be the first domino and that Libya and Iran will follow. We don't like being kept out of markets because it gives our competitors an unfair advantage."
- John Gibson, CEO, Halliburton, 2003
We should know what's coming. These guys did more than a decade ago...