92 online
Most Popular Choices
Share on Facebook 5 Printer Friendly Page More Sharing
Exclusive to OpEd News:
OpEdNews Op Eds    H3'ed 6/2/08

Oil and Money; No Easy Way Out:

By       (Page 1 of 2 pages)   5 comments
Message Mike Folkerth

The subject at the coffee shop, the office, down at the garage and around the kitchen table these days is oil; more correctly, the cost of oil. But most of the information being passed around is incorrect. Just yesterday I was told that there are more than 200 years of oil left in Alaska alone. That all of the oil from the Alaska Pipeline goes to Japan. And, that every oil container and tank in the world is so full that there is no place left to store it. I was also told that once the election is over, “they” will do something about these oil prices.


I figured that I may as well join in the conversation, so I threw in that Santa Clause was coming twice this year and the Tooth Fairy is cornering all of the world gold reserves. I expect my input to be repeated by tomorrow as the gospel and coming directly from an undisclosed, but reliable source.


During the conversation, I never heard anyone say that oil is finite and that using 86 million barrels per day could potentially create a shortage. Nor that we have been warned about an energy shortage for more than 50 years and failed to plan.


My personal opinion of why I don’t hear the truth being bantered around nearly as often as the fables is that the thought of oil running out in a country that runs on oil ain’t something that most folks care to ponder for any length of time. Doing so gives a body the same kind of headache as trying to determine how the universe could be infinite. And thinking about that is what made Albert Einstein’s hair stick out.


Over the years I have observed that anything that appears to be life altering is side stepped like a coiled rattler. Our government is no different in that respect and our method of planning has therefore become known as “The Advanced Method of Crisis Management.”


Our monetary system is in every bit as much crises as oil. The Federal Reserve was a bad idea in 1913 and isn’t getting any better. Our physical system (that of matter and energy) must be balanced with our monetary system to operate long term, but it’s not, printing money is infinite.


I often refer to M. King Hubbert, the American geophysicist (October 5, 1903October 11, 1989), who pointed out as early as the late 20s that, “A reasonable co-existence (between our physical system and our monetary system) is possible [only] when both are growing at approximately the same rate.” In other words, as resources and population stabilize or go into decline, we can’t continue to print more money…but we do.


Mr. Hubbert also pointed out that charging interest at any rate above zero automatically creates the necessity of exponential growth in the money supply. We call it inflation.

Next Page  1  |  2

(Note: You can view every article as one long page if you sign up as an Advocate Member, or higher).

Rate It | View Ratings

Mike Folkerth Social Media Pages: Facebook page url on login Profile not filled in       Twitter page url on login Profile not filled in       Linkedin page url on login Profile not filled in       Instagram page url on login Profile not filled in

Mike Folkerth is the author of "The Biggest Lie Ever Believed" and is not your run-of-the-mill author of finance and economics. The former real estate broker, developer, private real estate fund manager, auctioneer, Alaskan bush pilot, (more...)
Go To Commenting
The views expressed herein are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.
Writers Guidelines

Contact AuthorContact Author Contact EditorContact Editor Author PageView Authors' Articles
Support OpEdNews

OpEdNews depends upon can't survive without your help.

If you value this article and the work of OpEdNews, please either Donate or Purchase a premium membership.

If you've enjoyed this, sign up for our daily or weekly newsletter to get lots of great progressive content.
Daily Weekly     OpEd News Newsletter
   (Opens new browser window)

Most Popular Articles by this Author:     (View All Most Popular Articles by this Author)

Will Our Economy EVER Recover?

Fox News on Georgian Invasion; Not Exactly What They Wanted:

Paradigm Shift; Change Your Life:

U.S. Auto Industry is in Recession:

Housing Predictions:

Treasury and IRS Agree; Pension Freezing is Legal!

To View Comments or Join the Conversation:

Tell A Friend