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High Energy Prices Are a Disaster for America

15 Jun.
Posted by taipan in Current Affairs | Comments Off

Energy prices are continuing to increase as the global demand for fossil fuels increases, the US Dollar falls in value, and our limited refining capacity is regularly disrupted by hurricanes and flooding.

A major part of America’s current predicament is that America has not taken energy conservation seriously and has not planned well for the future. For example, part of the problem with high gasoline prices in the US is the lack of refining capacity. It has been many years since a new refining facility has opened in America.

I believe that alternative fuels will only give a partial answer to high energy prices. Energy prices are rising fast all over the world. Even with such a strong incentive to move towards alternative energy there are important uses for oil that are difficult if not impossible to substitute. For example, no one has yet been able to find a substitute for jet fuel. Perhaps one will be created in time but with peak oil already here in at least a few important oil producing fields, like the North Sea field in the UK and Mexico’s Cantarell field, we don’t have much time.

Energy conservation offers the best short term solution to our energy crisis but no matter how effective energy conservation measures may be we can not completely conserve our way out of an oil shortfall. The obvious conclusion is that living standards will fall in America and other oil deficit nations as oil demand continues to grow globally and supplies remain tight. This will force prices even higher and drain off more precious resources just to pay for imported oil.

The kind of thinking that got us into this mess is not the kind of thinking we need to create our future. A weak dollar, unofficially pursued by the American government as a way of making it easier to service America’s huge foreign debt, only serves to push oil prices higher. The spot price of oil rises as the dollar falls in value.

This is followed in a few weeks, even a few days, by the pump price of gasoline. There will be a lot more whining by American government congressmen and people about OPEC and other “bad guys” in the oil picture, like big oil companies, but the injury to the economy is largely self inflicted and is a failure of US government policies over many years.

Increased costs are always a challenge for businesses. Increasingly, as we are experiencing an energy crisis, the weight of international diplomacy is moving towards the global warming advocate’s camp. More and more legislation is being passed at the global, regional, national, state and local level to drive compliance with carbon emission reduction standards. The tightening up of emission standards does increase production costs.

While this action is needed in order to attempt to slow down the effects of climate change, these actions tend to increase the cost of energy inputs, especially with coal. Mankind has created a catch 22 energy and climate change trap and there may be no good escape.

Refiners were once relatively free to use heavy crude to make transportation fuel. Today, environmental regulations make it difficult and costly. Refinery capacity is just too tight, and some argue that Saudi Arabian oil production has peaked. If the this is true, this will put incredible pressure on crude oil prices because growing demand is going to run head on into falling supply.

Even with the tremendous economic growth achieved by India and China over the past decade the amount of oil used by those nations citizens is only a fraction per capita of that used by US citizens. There is room for huge increases in oil consumption by those countries. There is a frightening possibility that it will take much higher prices for crude oil than $135 a barrel to cut into this demand.

Higher energy prices act like a tax. They reduce the disposable income people have available for other things after they’ve paid their energy bills. In America many families are now feeling the belt tightening effects of this “tax”.

Renewables are not developed enough to replace barrel for barrel our current US energy demand. Relying solely on renewables would mean that the US would have to severely restrict our current energy use. Renewable sources of energy are a growing part of the energy mix, and will become increasingly important in the years to come.

Although the amount of energy generated by renewable sources is presently small, investment in renewable technologies is increasing. Unfortunately, it is unlikely that renewable energy sources can be developed fast enough to prevent a considerable amount of pain as people are forced to reduce their standard of living. This is going to be a political minefield for the next US president, whether its Obama or McCain.

Consumers should feel outraged by the purposeful federal failure when they pay spiraling charges. The federal government’s inaction in promoting energy conservation and in putting forth a massive effort in developing alternative energy is inexplicable, inexcusable, and anti-consumer. Consumption is fundamental to underpinning a favorable business cycle in the U.S. With consumers now hurting from high energy prices, by being deep in debt, and by falling housing prices, a deep recession, even a depression, is all but inevitable.

Ben Bernanke and his partners in crime at the Fed are making a heroic effort to prevent a severe contraction of the US economy. The problem is that mismanagement of the American economy has taken place for many years. The US manufacturing base has been all but destroyed. If it weren’t for Boeing and a few other high tech manufacturers and American farmers there would be few products made or produced in America that foreigners want.

American energy policy is a complete failure. We now import over 65% of our energy needs and that high percentage is increasing. With a shortage of high value products to export and with extreme bills to pay for imported oil America is on a path to third world nation status. It will be a total disaster for the American middle class.

With billions flowing overseas daily to pay for energy imports, with 12 billion a month being spent on wars in Iraq and Afghanistan, with the US relying upon China, Japan, and other nations for funds to keep on going the future of the American Empire looks increasingly grim. By running up such a trade balance with China, they now hold some 1.4 trillion dollars in foreign exchange, most of it in Dollars, we have given the Chinese the power to bring down the American economy any time they chose.

All the Chinese would have to do is to start aggressively selling US Dollars on foreign exchange markets. The panic that would follow would quickly take the US Dollar down to levels that would create hyperinflation in the US as oil and all imported goods prices soared in Dollar terms. Yet, our government seems to not at all understand this. Our elected officials visit China and lecture the Chinese on how to run their own government. It is not wise to insult those that you depend upon for living money.

High energy prices and all of the complications that they bring are a disaster for oil deficit nations like the United States. For one thing we continue to borrow huge amounts of money from the Chinese and our financial institutions accept billions in investments from sovereign wealth funds and the like just to stay afloat. Giving so much leverage to foreigners over America’s affairs and assets can not possibly be good long term foreign policy for the US.

As long as America remains hooked upon oil and in spending more than we take in it will likely take more than an Obama or McCain to save us from a long downward spiral off the top dog heap.

“Taipan” Greene is a retired forex trader, portfolio manager who worked in Asia for over 20 years. He now writes for a number of financial, political and Internet business information related blogs. One of them is at http://www.investment-world-today.com/

Water Meters; Coming To A Street Near You

14 Jun.
Posted by prettyone in Current Affairs | Comments Off

As utility bills climb to unseen levels it is unsurprising that many people are starting to install water meters to their homes. This is because the old system of having a categorised water bill has become increasingly more expensive as water companies try to increase their revenue. As such, water meters are a way to not only reduce the prices of your bill but to also use less water in your home.

The move towards water meters is not just a result of a homeowner’s pursuit of cheaper bills. The government in the last twelve months has made it law that all new builds must be built with water meters as standard. These new regulations are supposed to ensure that those buying new homes have a greater respect for the environmental effects of being wasteful with water, as well the financial costs of wasting this precious resource.

It is not just new builds where the government is trying to introduce water meters in a uniform manner. This battle to conserve water is being fought in the cause of water conservation. With droughts seemingly becoming a regular, if not annual occurrence this move by the government, in conjunction with the amenities is unsurprising. These environmental policies were only a short time ago being championed by the environment minister.

In a statement he professed a desire to increase water conservation in drought prone areas through a variety of measures. Not only were meters at the heart of this conservation effort but points also raised in the statement included the introduction of more porous paving slabs in gardens to aid drainage as well as attempting to reduce the use of phosphates in washing powder to further reduce environmental harm.

Water meters for all homes are key to the government’s strategy over the next twenty years. With so many new houses being built it will not be long before a major water shortage occurs across Britain nationwide. It was argued that this would be a result of not only wastefulness of homeowners but also a result of climate change and economic growth.

The problem with an all encompassing water supply strategy is that regions are different and have different characteristics. As such, for any policies to be successful it is important to take a local approach taking into account factors that relate to that area directly. That said it is still possible to draw general policies that can be applied across the country. By 2030 the government wants average daily water usage to be reduced from 150 to 120 litres. Part of this reduction is to introduce water meters into homes so people are conscious of the water they are using.

Many homeowners however are not happy with the introduction of water meters wholesale. While those who live alone or in small families will benefit, it is those houses that have many residents that will feel the financial pinch of the usage of water meters. Thankfully government ministers are also researching the different charging policies to create a fair pricing structure that will suit all. One thing is agreed, that the existing pricing methods are not only archaic, but wholly unrepresentative. The hope of the research is to produce a pricing system that will actively encourage people to conserve water.

There is little doubt that water meters will become a large part of the water charging and measuring system in the UK. This can not only be seen as a good thing for homeowners’ wallets but also for the environment that will benefit from the reduced amounts of water being used and processed.

Current affairs expert Thomas Pretty looks into the different legislature surrounding water meters and how the governement is intending their widepsread use in the future. To find out more please visit http://www.pipestock.com/water-meters/

The Record High Price Of Gasoline Is A Good Thing

13 Jun.
Posted by mlittles23 in Current Affairs | Comments Off

There is a new way to get cheap fuel that is good for us all. How we have gotten to this new discovery is no secret.

The truth is that the United States accounts for about 44 percent of the world’s gasoline consumption. We drive more cars, more often and we’ve become dependent on fossil fuels about as stubbornly as a drug addicted is dependent on his or her next fix.

In 2003 The United States consumed over 119,000,000,000 gallons of gasoline which is an absurd amount of fuel to consume my any standard. Each day that equates to about 360 million gallons. The U.S. used about 138 billion gallons of gasoline in 2006. That’s when the pain and expense of our addiction began to rear its ugly head and the search for a cheaper alternative fuel source began to grow.

Fuel prices began to spike in 2006 but have been rising steadily since the start of 2008, especially in western countries such as Canada and the USA. From that time forward the words Cheap Gasoline or Cheap Gas became extinct like the dinosaurs.

From the mid 1980s to September 2003, the inflation adjusted price of a barrel of crude oil was generally under $25 per barrel. During 2004 the cost increased to more than $40, then $50 per barrel. A sequence of events pushed the price of oil to exceed $60 per barrel by August 11, 2005, and yet we still continued to consume gasoline at a gluttonous pace.

The price for a barrel of oil, for a short time, exceeded $75 in the middle of 2006, then fell back to $60 per barrel by the early part of 2007 only to jump steeply to $92/barrel by October 2007 and went to $99.29 per barrel for December 2007. All the way through the first half of 2008, oil frequently reached record high prices. On February 29, 2008, oil prices peaked at over the century mark at $103.05 per barrel for the first time in history despite there not being a gas shortage, but the price also for the first time in history was based not on consumption but on speculation of future markets.

It was reported that a barrel of oil was priced at $110.20 on March 12, 2008, which was the peak of six consecutive records in seven trading days. The most current price per barrel cost ceiling of $138.83 was set on June 6, 2008. Consumers no longer look for cheap gas, but are settling for cheaper gas, meaning it’s outlandishly high everywhere and saving .03 gallon has become a marvel to behold and be apart of in our economy.

Alternative fuel sources research, such as on Hydrogen as a fuel for cars and trucks has reached all time highs. The use of hydrogen fuel as a supplement to gasoline to run your car or truck is matching the rate of gasoline prices. Hydrogen is really the last true cheap fuel source because it is so abundant and the technology to separate it from water has become very fundamental and inexpensive to acquire.

Our enormous appetite for fuel, or addiction to big cars and trucks has seemingly met its match because for the first time in decades, due certainly to the highest costs of gasoline in the history of the world, Americans are now using less gasoline. In the United States, gasoline consumption dropped by 0.5% in the first two months of 2008 which was even higher than the .4% drop in consumption back in 2007.

Alternative cheap fuels such as ethanol and Hydrogen hybrids can be and are being built right at home. The one good thing about the higher prices of gasoline is that its forcing us to use a cleaner, a more reliable and a more abundant fuel sources that is better for our planet. After all, our planet is about 80% water and technology is finally able to tap into this cheap source of fuel just in the nick of time.

Michael Littles is a big supporter of the continued development of Hydrogen as a fuel source and provides a free video for all those who want to learn more about this technology in order to save 35% to 50% on your fuel costs. Get your free video by visiting: http://www.H2O-n2fuel.com

Alternative Ways Of Dealing With The Fuel Crisis

13 Jun.
Posted by sparta in Current Affairs | Comments Off

Car drivers have been suffering of late due to the ludicrous prices of fuel and people’s lack of keenness to be driving anywhere. Information has been issued on the way to drive as economically as possible, (which if you ask me involves a push bike) but still drivers are under the impression that if they drive faster they will get to their destination before their fuel runs out. This is idiot thinking as a car takes more fuel to drive at speeds (whereas a pushbike uses the same amount of energy whatever speed you wish to ride it at). So, what are the alternatives?

You could sell your car and buy a motorbike. These are more economical on fuel and quite speedy but Saturday afternoon shopping with your granny is going to be a hair-raising experience for both of you. You could get a moped which, while cheaper still on fuel and insurance, is still going to struggle taking granny shopping or the kids to school.

A pushbike is always going to be the cheapest option as once the initial outlay is over with, there is virtually no more maintenance. You can get up to quite a tidy speed on one of these, they require no fuel, no insurance, no road tax, they incorporate no speeding fines and no MOT’s.

If this doesn’t suit you and you still want the comfort of a car like we are all so used to, you can still make the options cheaper for yourself. Start by selling your own car (don’t panic, I’m not done yet). This immediately deprives the government of the revenue from your car tax, the garages with windows large enough to see you coming of the maintenance and MOT stings and the greedy oil giants of the fuel prices that beggar belief. Feeling better already?

Now you have a little cash in your pocket, call in the professionals. Use car hire, chauffeur driven. The one off payment means that you can budget your money without the worry that prices are going to increase in the blink of an eye as with petrol. It means you can get as drunk as you like whenever you go out as long as you are using car hire that is chauffeur driven without the fear of losing your licence.

On top of that, car hire that is chauffeur driven will impress your friends no end, especially if you use something like a hummer or a limousine. It does rather defeat the object somewhat but what the hell – if you don’t spend your hard earned then the government will just find another way of taking it off you, so go for it. Your granny will be pleased when it comes to the shopping trips, the kids will be the envy of all their friends on the school run and if you’re single, the girls will be falling over themselves.

If you have been lucky enough to invest in limousine car hire that is chauffeur driven and you cannot afford your mortgage, like so many hundreds of thousands of people in the UK every year, you could always camp out in the back of your car. After all, these vehicles are the size of the modern houses that are currently being constructed.

Transport expert Catherine Harvey looks at the way to use car hire that is chauffeur driven to get over the cost of running your own car. To find out more please visit http://www.vennards.com/

Are Telemarketers Driving You Crazy

12 Jun.
Posted by zenmistress2002 in Current Affairs | Comments Off

Have you recently been plagued by telemarketers pestering you at all hours of the day and night? Well, if you have been you are definitely not alone. These sales people have become a big thorn in the sides of a lot of people because they call us at home, uninvited, many times by folks that we can not even understand, about some product or sales package that we have never heard of, and usually are not remotely interested in.

Some of the items that telemarketers like to try and sell us are things like cruise ship vacations, special telephone packages, insurance of some kind, or any number of other things. Where do all these people get our phone numbers when we had them unlisted specifically for this reason when we had our phone installed?

For the most of us it is not because we are rude people, but rather that we are busy people. It is difficult to sit down to dinner or to relax when the phone is ringing off the hook. It can be distracting and annoying enough sometimes when it our friends or relatives that we know we have to talk to even if we are not in the mood, but when it is a complete stranger trying to sell you something two or three times a day it can become very intrusive in your private life.

Even when you put your name on the supposed do not call list, it seems that the calls may quiet down for a few months and then they can start all over again. It is a problem that so many of us are really tired of having to deal with. Getting unsolicited junk mail in our box or receiving spam email is bad enough, but we can delete the emails and throw the junk mail in the trash. If you choose not to answer the phone, you still have to listen to it ring and ring until they give up and go away. We can take the phone off the hook, but then we might run the risk of missing an important call. We should not have to be put in this position.

What is the world coming to when complete strangers are able to call you repeatedly even after you have asked them not to? It is like having that annoying neighbor that comes over that you have to put up with everyday like it or not. Someone really needs to set some new ground rules for telemarketing before they drive us all crazy.

Rachel Yoshida is a writer in many fields.

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