I am of the opinion that a major factor in the downturn of our economy was the excessive cost of gasoline and diesel (see my discussion in "ENERGY PARTY" titled "The cost of transportation in the US...") and because of this the excessive cost of transporting EVERYTHING in the US.
Our economy in the US depends upon cheap energy. 70% of all oil consumed by the US is devoted to transportation... the moving of goods, services, people... essentially TRANSPORTING our GNP, Gross National Product (or the total of everything that is sold). It depends on cheap energy because we are excessive with our luxuries... our way of life! If we do not have cheap energy, this way of life we have become accustomed to CRUMBLES!!!
An important FACT is the rest of the world DEPENDS on our way of life as well... this is evident in the crumbling economies in Japan, China and Taiwan. If we do not excessively purchase... stuff... these countries do not excessively EXPORT... stuff. The balance is the landslide of companies over the last several years that have moved manufacturing out of the country and... CHEAP ENERGY!
So, why do I see 2009 as not being so bad? 2 reasons:
1) There has begun a re-thinking of companies over the last several months to re-establish the manufacturing of their products to the US... the costs of US labor has re-adjusted because of the high unemployment. Essentially people are willing to work for less.
2) We once again have cheap energy... cheap gasoline and I believe diesel will continue to fall... therefore, cheap transportation.
This economic collapse swept upon us relatively quickly. The meat of the collapse occurred between Aug. and Nov. I believe the re-structuring and the bottom will be realized within the first quarter of '09 and because cheap energy is now becoming available... the wheels are already turning :)
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