Why Do We Owe 10 Trillion?
Part 3: The Trade Deficit
In addition to buying cheap products from China and cars from everywhere but the United States, we also consume about 25% of the world's petroleum. The problem with this rate of consumption is that we produce less than half of what we consume. Result: approximately half a trillion dollars of our trade deficit in 2008 was the result of importing petroleum.
Is there a coincidence between our massive dependence on oil and the following trend:
RONALD REAGAN: first trip abroad as President was to Canada in March of 1981.
GEORGE H.W. BUSH: first trip abroad as President was to Canada 20 days after his Inauguration.
BILL CLINTON: first trip abroad was to Canada in April of 1993.
GEORGE W. BUSH: First trip abroad as President was to Mexico. Second trip was to Canada.
BARRACK OBAMA : First trip abroad was to Canada.
One theory is that jet fuel for Air Force One is expensive and our Presidents are trying to minimize trips to the pump by staying close. But there is another more likely explanation. You guessed it... the real power player in the oil game from the perspective of the United States is not Iraq, not Saudi Arabia, not Venezuela, not Nigeria, its Canada. In fact, we import more oil from Canada than from the entire Persian Gulf combined!! A significant item on Obama's agenda for his Canada trip was the oil sands in the Alberta province because those oil sands represent the biggest oil reserves outside of Saudi Arabia. Problem is that getting to that oil is extremely damaging to the environment. Canada's oil reserves make our relations with Canada extremely important and it is part of why Canada is so financially solvent (in addition to their infinitely more sensible banking practices). My guess is that as we try to achieve energy independence from the OPEC nations our relationship with Canada will tighten.
Sooner, rather than later, we will need to get serious about alternative energy because it is not economically feasible to indefinitely incur this much debt to drive cars that get less than 20 miles per gallon. The 2007 Energy Act could reduce U.S. petroleum consumption by 4 million barrels a day by 2030. But over the last 20 years, petroleum consumption has increased by about 5 million barrels a day, despite all of the improvements in mileage standards, automobile technology, and conservation. Obviously we need to do more.
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LOL - Laughs OnLine
"I hate this new Free Home Delivery policy!"
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What's The Big Idea?
Celebration of the Toaster Oven
I fully acknowledge that the respect and admiration the microwave has enjoyed over the years is well deserved. Not only will it quickly reheat both solids and liquids, but you can actually use it to make scrambled eggs and bacon. An appliance has "arrived" when it becomes a built-in appliance and clearly the microwave has deservedly achieved this stature. My issue is the total lack of respect for the toaster oven. I happen to believe in and will steadfastly defend the superiority of the toaster oven with respect to any meal that involves bread or dough. Pizza, for example, tastes horrible when reheated in a microwave as compared to a toaster oven. Chicken quesadillas reheated in a toaster oven come out much better. The Indian staple naan bread with tandori chicken simply cannot be restored in a microwave at all, which is critical for someone like me who loves Indian food. I do not expect immediate converts, but I do demand recognition of the toaster oven's role in the life of those who suffer from culinary challenges. A final point-I actually burned rice in a rice cooker which I did not think was possible. Am I entitled to a refund?
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Share If You Care
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Sincerely,
Kwame J. Granderson
Equinaire
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Free Educational Webinar
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When Should You Walk From Your Property?
Learn About...
1. The cost of reentry
2. Short sale vs. foreclosure
3. Primary vs. investment property
4. Personal considerations
Date: Tuesday, April 7, 2009
Time: 7PM - 8 PM
Register by clicking here
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Did You Know
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The airplane Buddy Holly died in was called "American Pie." (Thus the name of the Don McLean song.)
Did you also know that under the Emergency Economic Stabilization Act the amount of loans you can take against a 401(k), 403(b), or 457(b) retirement plan was increased from 50% of the account value to 100% of the account value, up to $100,000? In addition, loan payments can be deferred up to twelve months.
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Upcoming Webinars
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Be on the lookout for upcoming webinars on the following subjects:
· 2009 Market Trends
· How do I know when the market has bottomed out?
· The Granderson Composite Index
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