rajendra kakodkar wrote: It is lerarnt that $ 44 tn worth Venezuelan crude oil, which earstwhile was shipped to the US, is now contracted to be exported to China on long-term basis.
China which had defeated the US in a major oil negitiations in Afghanistan last year, is now poaching right under the US nose. Result: the West would be starved for oil leading to another price spiral in oil riding the liquidity created by $ 600 bn quantitative easing. Chinese stratgy: Divert a portion of the money printed by the US (to stimulate productive economic activities like manufacturing, which create employment) to oil speculation. This could be a counter offensive blow from China in reply to Obama's campaign against trade imbalance created by undervalued Yuan. Bitain has already deserted Obama on the Keynesian path and has embraced austirity. --------------------------------------- Rajendra, You have taken a simple issue and made it seem complex. The simple fact is that the US embarked on two wars that it could not afford. It funded the wars, like all wars are funded, by borrowing money. The difference this time is that instead of borrowing the taxes from the citizens who have not yet started working, the US borrowed money from the Chinese. Iraq was where the US blew up their money in "shock and awe." Afghanistan, is where they blew up their soldiers. As usual, Afghanistan did what it does best. Just like the Russians, the British and every invader since Alexander the Macedonian, the US will eventually come to its senses, declare victory, turn around, and leave. The poor US tax payer and those who are not yet US tax payers, will then be shafted with the bill for George Bush (43) and Obama's most unexcellent adventures. As far as oil is concerned, Canada and every other country is willing to supply the US with as much oil as it wants. The US also has a lot of untapped reserves near its shores. Oil is not the USA's problem. The problem with the US is the type of capitalism it now practises. The capitalism of the USA today is one that can declare a company too important to fail. These 'declared' companies are then given taxpayers money to operate. Let me make this clear, the companies that are making losses are given tax payer money to continue doing so. A second peculiarity of the current US system is that it now pays .25% interest to those who save their money. Since inflation is at more than .25%, in today's USA, you now get penalized for saving. Another prime example of how messed up the US is in is seen in the guy that runs their economic policy. He still insists that dropping money from a helicopter is an acceptable economic solver. Even Bob Mugabe did not go that far...... To answer the question in the heading of your post, yes, the US is heading towards economic doom. This does not mean a quick collapse. As an example, Great Britain began its economic doom in the 1960's and yet their standard of life (fifty year later) is far superior than say, the life lived in India today. Lastly, in all but the last 250 of the past 2,000 years, India and China have had the biggest economies in the world. As indigenous people in both countries wrestle the economy back from the central govts, look forward to an upswing in economic activity in both places. The increase in prosperity of both these countries will cause a downturn in the economies of others. Pure and simple. Mervyn1650Lobo _/_/_/_/_/_/_/_/_/_/_/_/_/_/_/_/_/_/_/_/_/_/_/_/_/_/_/_/_/_/ _/ _/ tambdimati: the Goa review is a community blog of original _/ art, writing, music, news and commentary from and about the _/ smallest state in the subcontinent. check out the newest _/ member of the Goanet family daily at _/ http://www.tambdimati.com. _/ _/_/_/_/_/_/_/_/_/_/_/_/_/_/_/_/_/_/_/_/_/_/_/_/_/_/_/_/_/_/
