Monday, October 31, 2011

How the US is getting fucked by oil.

thesis:  increased global oil demand has put the United States on an irreversible path to stagflationary hell.

if emerging market growth and booming world populations are given;
if the United States continues to exist under the economic model of Western Financialism;
if every consumer good, from food through end-use products like buildings are touched by oil;

then the emerging markets will demand more oil causing its value to increase;
then the United States:
  • will import more than it exports,
  • aim to continue growth through middle class consumerism,
  • do nothing to stem the flow of its citizens onto welfare programs,
  • kowtow to the extortionist practices of its industrial unions,
  • and devalue its currency and exacerbate the effects of inflation in the cost of basics;
then every consumer good will cost more;

therefore middle class Americans will experience inflation at the daily level against a backdrop of declining job growth;
therefore corporations will be squeezed between Americans who can't afford to spend and the rising cost of inputs, causing GDP stagnation;

until serious effort is made to move away from fossil fuels;
until serious effort is made to return the United States to an export economy (without tricked up devices such as Yuan legislation, shoddy DoL suits against multinational producers [Boeing re:  Washington, SC])