Yet, printing more of that unbacked money will increase inflation and that will hurt the economy again.
..............
Man if you’re from Texas like your moniker says — you better take a second thought about the meaning of “unbacked”.
Its not just gold that backs a currency. Its also oil and future economic growth.
So the fed is printing fiat money to the tune of a trillion a year for the last couple years? Guess what the oil industry in Texas just figured out how to get the other 90% of oil in the ground byo fracking. They have just added 50-100 trillion dollars worth of oil/gas reserves to the US economy. Every year for the last three years US oil production has increased by just under 1 million barrels of oil@ day. Same thing will happen this year and next year and the next. Citibank projects the USA will become energy independent by 2017.
This is very big.
There are no energy independent countries with weak currencies.
To cap it off. Oil is causing the US industry to grow this year at about 2-2.5%. This filling state & federal government coffers...fast. real fast. federal & state borrowing is falling off a cliff.
Man you really need to take a trip to west texas or south texas. The energy and excitement of those areas is just like you read in books about texas oil in the early days.
Texas is the biggest and best of the oil regions in the USA but the not the only oil/gas region. There are oil and gas zones all over the USA. They’re all ramping up production in a big way using the new technology.
You don’t have to lecture to me about the oil boom in Texas, I have my finger in that pie. No doubt, the US economy is optimistically riding on the coattails of our oil-based prosperity. Nothing but government meddling could stifle it. However, the paper coming off the mint’s presses is not directly backed by gold, oil or anything else tangible. The only thing that gives value to fiat money is the public’s confidence in the government. How much do you trust them? That confidence can be extremely ephemeral. Ours would not be the first government that printed itself into hyperinflation. Ever hear of the Weimar Republic, or Zimbabwe?
Man if you’re from Texas like your moniker says — you better take a second thought about the meaning of “unbacked”.
Its not just gold that backs a currency. Its also oil and future economic growth.
So the fed is printing fiat money to the tune of a trillion a year for the last couple years? Guess what the oil industry in Texas just figured out how to get the other 90% of oil in the ground byo fracking. They have just added 50-100 trillion dollars worth of oil/gas reserves to the US economy. Every year for the last three years US oil production has increased by just under 1 million barrels of oil@ day. Same thing will happen this year and next year and the next. Citibank projects the USA will become energy independent by 2017.
This is very big.
There are no energy independent countries with weak currencies.
To cap it off. Oil is causing the US industry to grow this year at about 2-2.5%. This filling state & federal government coffers...fast. real fast. federal & state borrowing is falling off a cliff.
Man you really need to take a trip to west texas or south texas. The energy and excitement of those areas is just like you read in books about texas oil in the early days.
ok. I agree with the above and in fact have heard many other economists and money managers say that.
however, answer this one question for me.
I firmly believe the following:
barack Obama, having spent his formative years in Indonesia, hates the usa and does not want to see it prosper as above.
barney frank, and the like, see another great American Christian middle glass as a danger.
and people like john Kerry are empty vessels that will go along with the two above for self gain.
granting me that, aren’t they going to do everything they can to make fracking and the like difficult/expensive/illegal?