GLOBAL RESOURCES ANALYSIS
EFFECTS | DRAINED ECONOMIES
The USA destroys/exports (by the current price level of average $ 90 per barrel crude price and a total price of approximately $ 117 by including refining, storage and distribution) an $ 1.825.000.000.000 (the USA uses 25% of the yearly global energy budget) of own earned or borrowed capital a year by their addition to oil to other economies (own production not deducted because it could be exported). When putting the Pentagon budget on top of it (is their any other reason than energy supply/security for these offence/defense structures after the end of the Cold War?) with it $ 624.000.000.000 budget, this amount is $ 2.449.000.000.000. When we also add the hidden costs/damage of defense, war and less export by the global image damage caused by offensive politics and calculated them on $ 551.000.000.000 (the Iraq War is partly financed by extra Pentagon created special purpose budgets) we get an enormous (yearly!) US economy capital drain figure of $ 3.000.000.000.000. A further increasing to $ 200 per barrel oil price, will put an other $ 1.500.000.000.000 to this leak, bringing it up to above 35%. Energy over-consumption was possible by low energy prices, but by high energy prices, it drains even the most powerful economy of the world to severe dire straits. And as extra burdening facet: This figures are without the interest cost of both government and companies for borrowing their part of this figures, where by it not only burden current economic year, bit also the years to come by its interest payment demands. These three (with the interest rate facet: four) huge capital drains are not an economic problem; they are an economic disaster/drain for the US. This capital could stay within their borders if they start other energy generation programs and other economic models. Buying fossil energy is getting more poor. Fossil energy doesn't give prosperity anymore, it drain prosperity these days. Fossil energy has become a completely unnecessary economic power loss/drain. And the worst facet: It's a short way. Fossils are running out. Leaving the US with debt, no new energy and a damaged international economic and governmental image. Also threatening there fossil energy supply needed for energy transition to renewables when the granting distribution model will be replaced on top of the demand/supply generated market price based distribution model. Blaming George W. Bush for this is short sighted. All global economies still totally on the to a dead end leading fossil energy track. George W. Bush is one of the first global leaders who had the courage to admit this in public as early as January 2006 in his State of the Union, will other politicians where still asleep concerning this matter. Never the less a nation that leaks 25% of its GDP to energy related expenses to foreign countries doesn't act wisely, and yes only a nation with a huge trade and budget deficit funded by the global hegemony of its currency can survive such a capital leaks. The bright future perspective: picture the strong vital US companies and economy without these huge continuous energy caused capital drain: it will maybe become as vital as it was several times after the Second World War.
Author: Gijs Graafland
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