Why The Pickens Plan Is So Important to America
July 20, 2008. "The U.S. economy will collapse. Repeat. The U.S. economy, and probably the world economy, will collapse because of the United States' exponentially-increasing trade deficit." Robert E. Powell, Ph.D., M.B.A.
Most economists agree that "increase in foreign debt cannot go on forever. If the Americans do not begin reducing their trade deficit, there will come a time when foreigners will become less willing to hold dollar denominated assets. This in turn will weaken the US dollar. Consequently, once this happens the United States will be forced to increase interest rates (maybe sharply) to continue to attract foreign investments. Higher interest rates in turn will plunge the economy into recession ... It would appear that the trade deficit is a major economic problem that must be urgently addressed in order to avoid serious economic disaster." Frank Shostak, adjunct scholar of the Mises Institute and chief economist of M.F. Global (2006).
"“A country that is now aspiring to an 'Ownership Society' will not find happiness in – and I’ll use hyperbole here for emphasis – a 'Sharecropper’s Society,'" Warren Buffett.
"You are probably aware that the United States has been experiencing a substantial trade imbalance in recent years, with U.S. imports of goods and services from abroad outstripping U.S. exports to other countries by a wide margin ... one commonly hears that the U.S. [trade] deficit is the product of a precipitous decline in the U.S. national saving rate, which in recent years has fallen to a level that is far from adequate to fund domestic investment ... Basic economic logic thus suggests that, in the longer term, the industrial countries as a group should be running [trade] surpluses and lending on net to the developing world, not the other way around ... To repay foreign creditors, as it must someday, the United States will need large and healthy export industries." Ben Bernanke, 2005 (before he became Chairman of the Federal Reserve).
The growing US trade deficit is unsustainable. Everyone in the world knows it. Half of our trade deficit (or more) will be due to oil imports during 2008.
The Pickens Plan is a large part of answer to this economic crisis which awaits us if we do not act now. It requires investment by businesses in alternative energy of a domestic nature. It requires individuals to support that investment, by purchasing the electricity generated by wind and solar power and driving natural gas, hybrid, and (when available) electric cars. And it will require all of us, collectively, as a nation through our elected representatives at the national, state and local levels, to embrace and facilitate a dramatic, rapid transition to the solutions offered by the Pickens Plan.
There are other parts of the equation, which are needed to forestall economic disaster in this country. Reducing the federal deficit is essential. As is increasing the national personal savings rate, and using some of those personal savings for investment in the businesses which support domestic solutions to our energy needs.
Henry Ford once said, ""Coming together is a beginning keeping together is progress working together is success." Let us come together, stay together, and work together - small action steps at first, then larger ones as time goes on. Inspired by an old oil man, together we can succeed to reduce our dependence on foreign oil. Thank you. Ron
Most economists agree that "increase in foreign debt cannot go on forever. If the Americans do not begin reducing their trade deficit, there will come a time when foreigners will become less willing to hold dollar denominated assets. This in turn will weaken the US dollar. Consequently, once this happens the United States will be forced to increase interest rates (maybe sharply) to continue to attract foreign investments. Higher interest rates in turn will plunge the economy into recession ... It would appear that the trade deficit is a major economic problem that must be urgently addressed in order to avoid serious economic disaster." Frank Shostak, adjunct scholar of the Mises Institute and chief economist of M.F. Global (2006).
"“A country that is now aspiring to an 'Ownership Society' will not find happiness in – and I’ll use hyperbole here for emphasis – a 'Sharecropper’s Society,'" Warren Buffett.
"You are probably aware that the United States has been experiencing a substantial trade imbalance in recent years, with U.S. imports of goods and services from abroad outstripping U.S. exports to other countries by a wide margin ... one commonly hears that the U.S. [trade] deficit is the product of a precipitous decline in the U.S. national saving rate, which in recent years has fallen to a level that is far from adequate to fund domestic investment ... Basic economic logic thus suggests that, in the longer term, the industrial countries as a group should be running [trade] surpluses and lending on net to the developing world, not the other way around ... To repay foreign creditors, as it must someday, the United States will need large and healthy export industries." Ben Bernanke, 2005 (before he became Chairman of the Federal Reserve).
The growing US trade deficit is unsustainable. Everyone in the world knows it. Half of our trade deficit (or more) will be due to oil imports during 2008.
The Pickens Plan is a large part of answer to this economic crisis which awaits us if we do not act now. It requires investment by businesses in alternative energy of a domestic nature. It requires individuals to support that investment, by purchasing the electricity generated by wind and solar power and driving natural gas, hybrid, and (when available) electric cars. And it will require all of us, collectively, as a nation through our elected representatives at the national, state and local levels, to embrace and facilitate a dramatic, rapid transition to the solutions offered by the Pickens Plan.
There are other parts of the equation, which are needed to forestall economic disaster in this country. Reducing the federal deficit is essential. As is increasing the national personal savings rate, and using some of those personal savings for investment in the businesses which support domestic solutions to our energy needs.
Henry Ford once said, ""Coming together is a beginning keeping together is progress working together is success." Let us come together, stay together, and work together - small action steps at first, then larger ones as time goes on. Inspired by an old oil man, together we can succeed to reduce our dependence on foreign oil. Thank you. Ron
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