Weather Report: What Seems to Make Sense Right Now — In The Economy, In Oil

‘RIGHT NOW’–IN THE ECONOMY: ‘The Limits To Growth Have Arrived” is the title of the October 27, 2008 article by Mike Folkerth-King of Simple (mikefolkerth.com). Believe us here at PrudentHome, that while Mike Folkerth may be king, he certainly isn’t simple. Mike observes, “…the U.S. economy has matured,…It has grown to the allowable size of our environment…the U.S. will fail to increase REAL annual GDP (adjusted for inflation) above our current $14 trillion.”

Taking into account the inevitable competition for resources between the billions of world inhabitants and the U.S., the “King” notes: “If you believe our salvation is in accelerated growth and free trade with the most poverty stricken nations on earth, the you are probably a politician, an economist, or a Harvard MBA.”

Check out Survival Acres @ survivalacres.com for one of the most interesting and informative pieces on our economy written recently. The article is entitled, “Death of the American Empire” and it’s written by Tanya Cariina Hsu (an analyst and political researcher). The article begins with a quote by Thomas Jefferson, “I believe that banking institutions are more dangerous to our liberties than standing armies”, then moves up to the beginning of the 20th century and gives some interesting banking/economic history to present day. It is very much worth your read as is Survival Acres (on a regular basis).

RIGHT NOW–IN OIL: At www.Kunstler.com, within the 10/27/08 article “ Easthampton Burning”, James Howard Kunstler notes : “…the temporarily cheap prices at the gas pumps, (are) because this is purely a function of the compressive deleveraging that is going on right now, as contracts and positions held in energy markets are being dumped…The current falling price of oil has little to do with the real supply and demand fundamentals. It’s simply a function of markets being in near-total disarray.” Mr. Kunstler is the author of “ ‘The Long Emergency’ ” and just about anything he writes is both important and worth your read.

At the end of the week, we hope to discuss more on food and agriculture along with some good, basic gardening tools with appropriate sources. Until then, keep your eyes on the horizon.