Wednesday, May 05, 2010

Unenviable Solutions

Everyone has their own view of the Oil Spill, though this is a good portrayal of the options available. My main Question remains what happens if the leakage cannot be stopped. I am reminded of the Coal Mine Fire in Penn. It has been burning now for almost 50 years. I would like to know what the outliner may be, if the leakage has a relatively permanent aspect. My fear is that the wellhead is not only a Smackover (think Gusher), but the initial damage was incited by a tectonic plate shift which produced a Blowout, and following increased pressure in the Oil reserve itself. This could mean that We have an artisan Oil spill which can pollute the entirety of the World’s oceans. The real threat will be that if there is heightened Oil pressure in the reserve, then drilling in a blocking hole will only cause another Blowout.

Here is another case of a Solution being turned into a worsening of the problem, with Banks buying Treasuries instead of lending Money to businesses. There is Risk in business lending, but none observable in Government securities. The efforts of the Government to restart the economy are simply being gamed by the Banks. The Question is again what do We do next? I know this one will be well-received, but the Answer is higher Taxation. Is it not fun to be a Preacher foaming at the mouth in a Red Light district? I await the thrown Stones.

Read this thing, and ask if I am being overexcited. Here is the fact which I expect has not been adequately evaluated. World debt has been exploding, with every Government in search of added revenue. There are Those who state that World Governments are Too Big to Fail, but I imagine We could reach a Point where Currency could be traded as Toilet Paper (imagine it would be stiff and forbidding in such usage). It remains fact that Currency and its solvency rests on a popular belief in that Currency. What happens when the Public generally loses faith in the viability of the paper? It stands as a consideration I do not want to contemplate, and one which is also a possibility–the Solution set is filled with undesirable outcomes. lgl

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