Busted: Bankers and The Global Economy

June 8, 2008

Oil: Business as Usual

You’ve heard the recital before, but now in concert. Leading energy-consuming nations urged oil producers to boost their output to counter soaring prices threatening the world economy, while they pledged to develop clean energy technologies and improve efficiency. This is like promising to be a good boy for a stick of candy. The only problem is the general store is all out of candy.

The gathering of national ministers vowed to diversify their sources of energy, invest in alternative and renewable fuels, ramp up cooperation in strategic oil stocks in case of a supply shortage, and improve the quality of data on production and inventories available to markets.

If anyone, including the United States, was really serious about energy problems, half of the vehicles being driven today would be electric or hybrid, with heavy market emphasis on phasing out ordinary petroleum dependent vehicles. Bankers would cast a suspicious eye on anyone that continued to invest in the outdated iron horses, thus weaning the system from oil. The bottom line is that nobody is interested until the future becomes entirely blackened by economic troubles based in part on high energy costs. As it is, this country and the world is years behind on shifting fuel technology gears because of subsidies and reliance on business as usual.


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