Monday, July 14, 2008

Can we Avert a Global Depression

Many voices are now indicating that a perfect storm is brewing leading to an imminent global depression. The causes are not hard to spot. They include the mortgage crisis, the war in Iraq, tensions over Iran's race to secure nukes, China and India's vociferous and growing energy appetites, America's runaway foreign debt, the purchasing of massive amounts of US assets by foreign sovereign wealth funds and on and on.

We here at PetroZero, feel that the near total reliance on foreign oil for the transportation sector is the primary enabler for all of the above.

As legendary oilman T. Boone Pickens has said (and folks from before him), "We are financing both sides of the war on terror". The $700 Billion that we send to foreign governments for oil has brought our country to its knees. As a result of all of these factors, most notably the noose of our oil addiction (We import 70% of our oil, which means we spend $1 Trillion annually on petro), we are on the verge of financial collapse. If left unchecked, our current course will lead to a global depression that will see communist China emerge to take over the void left in our wake.

But its not all gloom and doom. We see many positive trends in the works and $4 gas has appeared to have woken the sleeping dog of US energy policy. American ingenuity and strength, when called to a great challenge such as we now face, will emerge. The question "Is it too late"?