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Government's Ongoing Incompetence with Energy

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June 28, 2009 – Comments (4)

Government's Ongoing Incompetence with Energy

DavidKretzmann.com

4 Comments – Post Your Own

#1) On June 28, 2009 at 11:29 PM, AdirondackFund (< 20) wrote:

Hi David.  Ok, your youth and inexperience are showing here, as well as my own incompetence, no doubt a result of being out of school too long.  How is Hemp an energy source?  I have no idea what you are referring to.

Governments intervene when markets break.  That is the sad and storied History of all people at all times.  Get used to it.  That is why we have Government to begin with.  It is the backstop, it is not the Catcher.  In the 70's, all of the Railroads went broke, except for three that I can think of, Burlington Norhern and Santa Fe and Union Pacific.  Everyone else went broke.  In came AMTRAK.  This was supposed to be the Government boondoggle of the millenium, except for one thing.  It actually worked.  Rail service was maintained, service was curtailed in certain regions for a lack of traffic, and the business was contracted artificially in order to insure it's survival.  In boom times, which did arrive, the Government sold off pieces of AMTRAK, other pieces are still Government run to this date.  But we now have a thriving rail industry, one which would only do better if there was more to ship.  This also occurred at a time when FedEx and UPS were ramping up their growth and seemingly didn't impinge upon AMTRAK operations.  But I can assure you, it was much easier to travel by Bus in the 70's than it was by rail.  That has all changed in my lifetime and we have Government to blame for the success.

It is my hope that Government will do as well in Energy, which is a witches brew of special interest.  The plain fact is that some economies in the world, the MIddle East being the prime example, simply have nothing to offer in trade if it weren't for Oil.  It is that simple.  Go to the MIddle East and you will see nothing there.  The land has been inhabited for 6,000 years and everything that existed there has been ruined and depleted over that time.  There are mountains, but no trees or soil on them.  There are rivers, but there is no water in them.  Like the Old Testament Locusts, everything in sight has been consumed.  Yes, it is amazingly that bad, I assure you having seen it myself.

The plain fact of the matter is that Oil requires maximum utilization in all industries in order for it to thrive.  Oil needs 100% market share in energy in order to be efficient to scale.  Having said that, I want to see them put out of business.  Oil is simply too inefficient a producer of energy to be considered a modern commodity.  It is instead an ancient commodity and it's demands for ever increasing market size is what is bankrupting the world.  It is also that simple. 

To my mind, the quickest and easiest transmutation of markets will be the mass introduction of ELECTRICITY as a substitute for Oil.  Once Americans understand that electricity is portable, whereas Oil is not (see Caspian Sea Exports and Trade Routes), a full fledged effort can be made to maximize and really ramp up electricity production.  There isn't a single reason why any home, any office and any factory in america even needs Oil as an energy source.  The MRTS Curve assures us of that. 

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#2) On June 29, 2009 at 12:05 AM, DaretothREdux (43.62) wrote:

AdirondackFund,

Hemp seed is a natural source of oil (both motor and cooking oil). You can the oil from hemp seed and pour it straight into a disel engine and it will run just fine.

My blog on the further advantages of hemp.

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#3) On June 29, 2009 at 12:54 AM, AdirondackFund (< 20) wrote:

Is it just the seed that produces oil, or can you use the rest of the plant as well?  Nice vid you got there from the US Dept. of Commerce.  Very informative.  Maybe you're on to something here.  In Brazil, they are coverting sugar cane into gasohol, so anything we could do in the same light would be helpful, not only for balance of payments concerns, but also for the future profitablility of our farming communities. 

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#4) On June 29, 2009 at 1:22 AM, WiseChoice4u2 (68.15) wrote:

Well spoken.  Government rarely uses taxes efficiently.  Let the markets work to fix the problems.  Our energy issues can be solved through use of technology, wind, solar, and nuclear if our government promotes these sources through tax breaks and propaganda. It would also help to use taxes on import of fossil fuels to off-set the tax breaks offered.

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