The Next Crisis
As the financial/economic catastrophe continues to abate and focus shifts toward healthcare reform, the seeds of a forthcoming crisis have quietly been germinating in the background. Oil, under $35 a barrel as recently as the end of 2008, has more than doubled in recent months.
Sadly, virtually nothing has been done to prevent or significantly lessen the probability of another major shock. In fact, the contemplated carbon tax would only exacerbate the situation.
For those who believe that $147 oil and $5 a gallon gasoline are a thing of the past, think again.
Those days are coming, and sooner than most think.
Of course, much/all of this could be avoided if Congress and the President were to be proactive and sensible in addressing this eminently avertable disaster-in-waiting.
It doesn't take Carnac the Magnificent to foresee how this will play out. Prices will continue to rise as the global economy rebounds. Our elected representatives and their enablers in the media will articulate their strong contempt for those evil speculators and greedy oil company executives who have caused this to happen to the poor old U.S. of A. Then, all sorts of draconian measures (e.g. taxes, regulations, etc.) will be proposed/implemented that will further inhibit the "free" market and make the problem even worse.
It doesn't have to be that way. There are many, many reasonable solutions available to the non-ideological.
Consider the following as one of the innumerable possibilities.
As of 2005, roughly 19% of domestic electricity was produced by nuclear power plants. That percentage has remained relatively constant since. Today, there are 104 commercial nuclear power plants in the U.S., virtually all of which were built well over 30 years ago. 70% of our emission-free electricity is the result of nuclear power.
Imagine the economic stimulus and boon to national security (via greater energy independence) if our legislators/regulators would simply rationalize the mountainous restrictions that make it all but prohibitive to construct new plants. The private markets would respond with hundreds of billions in investment dollars. The number of plants could be doubled in 5 to 10 years, if not sooner. New technology actually enables plants to be constructed in as little as 3 years now. And, it could be accomplished without a dime of government money.
For those of you who are more Big-Government-inclined Keynesian's, envision what could have been accomplished with a fraction of the $787 billion "stimulus". New nuclear plants, depending on size, generally cost between $1 billion and $5 billion. For, the sake of argument, say the average cost would be $2.5 billion. Obama and Congress could radically increase our electric grid capacity; create well over a million construction, plant operation, and other related jobs; dramatically reduce emissions; and greatly improve our energy independence and national security for the low, low price of less than a third of what they spent on short-term, non-stimulative projects with little/no structurally sustainable benefits to the economy.
Reagan had it right. Government is not the solution to our problems. Government is the problem.
Remember this months from now. Our politicians fiddled as a preventable crisis was allowed to smolder and eventually burn out of control. Don't let their ideology block what is prudent and logical. According to a Zogby poll, 67% of the population are behind the construction of new nuclear power plants, with nearly half indicating strong support. Those figures will only increase as the situation intensifies.
Renewable energy is the future. However, the country needs to bridge the gap between now and the time when those renewables are viable/scaleable. We have proven, safe, clean technology available to prevent a potential economic/security shock that could make the last couple years look like a walk in the park.
We have nobody to blame but ourselves if we don't vote out those who act so politically and irresponsibly. Guess that's redundant.
I just pulled an envelope with a card in it out of a hermetically sealed mayonnaise jar on Funk & Wagnalls' porch.
It says, "The answer is: Benedict, Bob, and the American Voter."
Carnac, in his infinite wisdom, divined the question to be..."Name a Pope, a Hope, and a Dope."
Wouldn't it be nice to prove him less than omniscient?
Sadly, virtually nothing has been done to prevent or significantly lessen the probability of another major shock. In fact, the contemplated carbon tax would only exacerbate the situation.
For those who believe that $147 oil and $5 a gallon gasoline are a thing of the past, think again.
Those days are coming, and sooner than most think.
Of course, much/all of this could be avoided if Congress and the President were to be proactive and sensible in addressing this eminently avertable disaster-in-waiting.
It doesn't take Carnac the Magnificent to foresee how this will play out. Prices will continue to rise as the global economy rebounds. Our elected representatives and their enablers in the media will articulate their strong contempt for those evil speculators and greedy oil company executives who have caused this to happen to the poor old U.S. of A. Then, all sorts of draconian measures (e.g. taxes, regulations, etc.) will be proposed/implemented that will further inhibit the "free" market and make the problem even worse.
It doesn't have to be that way. There are many, many reasonable solutions available to the non-ideological.
Consider the following as one of the innumerable possibilities.
As of 2005, roughly 19% of domestic electricity was produced by nuclear power plants. That percentage has remained relatively constant since. Today, there are 104 commercial nuclear power plants in the U.S., virtually all of which were built well over 30 years ago. 70% of our emission-free electricity is the result of nuclear power.
Imagine the economic stimulus and boon to national security (via greater energy independence) if our legislators/regulators would simply rationalize the mountainous restrictions that make it all but prohibitive to construct new plants. The private markets would respond with hundreds of billions in investment dollars. The number of plants could be doubled in 5 to 10 years, if not sooner. New technology actually enables plants to be constructed in as little as 3 years now. And, it could be accomplished without a dime of government money.
For those of you who are more Big-Government-inclined Keynesian's, envision what could have been accomplished with a fraction of the $787 billion "stimulus". New nuclear plants, depending on size, generally cost between $1 billion and $5 billion. For, the sake of argument, say the average cost would be $2.5 billion. Obama and Congress could radically increase our electric grid capacity; create well over a million construction, plant operation, and other related jobs; dramatically reduce emissions; and greatly improve our energy independence and national security for the low, low price of less than a third of what they spent on short-term, non-stimulative projects with little/no structurally sustainable benefits to the economy.
Reagan had it right. Government is not the solution to our problems. Government is the problem.
Remember this months from now. Our politicians fiddled as a preventable crisis was allowed to smolder and eventually burn out of control. Don't let their ideology block what is prudent and logical. According to a Zogby poll, 67% of the population are behind the construction of new nuclear power plants, with nearly half indicating strong support. Those figures will only increase as the situation intensifies.
Renewable energy is the future. However, the country needs to bridge the gap between now and the time when those renewables are viable/scaleable. We have proven, safe, clean technology available to prevent a potential economic/security shock that could make the last couple years look like a walk in the park.
We have nobody to blame but ourselves if we don't vote out those who act so politically and irresponsibly. Guess that's redundant.
I just pulled an envelope with a card in it out of a hermetically sealed mayonnaise jar on Funk & Wagnalls' porch.
It says, "The answer is: Benedict, Bob, and the American Voter."
Carnac, in his infinite wisdom, divined the question to be..."Name a Pope, a Hope, and a Dope."
Wouldn't it be nice to prove him less than omniscient?
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