Gold and Oil work for USA rather than Against


Petro_Gold

John R. Houk

© February 14, 2013

 

Not long ago I posted on how OPEC controls the global economy which of course affects the U.S. economy through a monopolizing bloc controlling oil. The theme of the post ran something like if the USA developed alternative fuels for motor vehicles it would eliminate the OPEC stranglehold on our economy. Here is a quote for thought:

 

If you follow our email alerts you know that last year we actively supported a bill called The Open Fuel Standard Act. Simply put, this bill would break up the liquid fuel monopoly that now exists. This monopoly guarantees that the only fuel you can buy for your car or truck is gasoline (or, at most, gasoline containing a small percentage of ethanol).

If we are to ever really break the back of the OPEC price-fixing cartel, we must break the gasoline monopoly. The first step is ensuring that cars can actually run on other fuels such as methanol, which can be made from natural gas, coal, even waste such as grass clippings.

Did you know that, with just a few minor alterations to your car, it’s possible to run it on methanol—at a significant savings over the cost of gas?

 

I was excited about this visionary thinking.

 

NOW I just finished reading an article about Russia and China hoarding gold as a medium of exchange by eliminating U.S. dollars as the global currency thus ending the power of petrodollars. You have to realize that Russia and China are friends with the OPEC giants.

 

The implication of the article is gold-currency will replace petrodollars thus placing a coffin nail in the U.S. economy.

 

I am just thinking out loud here. What if Russia and China succeed in replacing petro-gold for petrodollars? Essentially the fall of the dollar would again bring back a gold standard as the foundation of the global economy. I think that is a good thing.

 

Yes adjustments would have to be made for the U.S. dollar. A forced global gold standard could force America back to a gold standard because of the global oil economy. AND STILL the USA can use innovation to develop alternative fuels to at least end any American dependence of OPEC oil. Russia and China might succeed in supplanting the dollar with gold, but a transformed fuel economy free of fossil fuel from OPEC would also stimulate the U.S. economy. Suddenly America might become the exporter of alternative fuel competing with OPEC fossil fuel.

 

So here’s the thing. Gold replaces debt as the standard for the U.S. economy. A new industry involving alternative fuel for motor vehicles will effectively compete with OPEC but also place a huge crunch in their profits which in turn might actually drive down the price of fossil fuel again.

 

Essentially folks this is a win-win for the U.S. economy in placing the dollar back on a market economy rather than a debt economy while at the same time innovating a globally competitive industry again strengthening America as a financial giant.

 

Like I said I am just thinking out loud because I certainly am no economist. Nonetheless, grass roots Capitalism will benefit all Americans over the Eco-Marxism that fearless leader President Obama supports.

 

JRH 2/14/13

Please Support NCCR