Falklands : WORLD ECONOMIES REPORT GAINS REGARDLESS OF HIGHER CRUDE PRICES
Submitted by Falkland Islands News Network (Juanita Brock) 25.07.2010 (Article Archived on 08.08.2010)
Thankfully, in the Falklands we are putting our wind farm to good use but we weathered the financial crunch fairly well.
WORLD ECONOMIES REPORT GAINS REGARDLESS OF HIGHER CRUDE PRICES
An Editorial by J. Brock (FINN)
FINN has often said that national economies tend to suffer when the prices of hydrocarbons products increase. Thankfully, in the Falklands we are putting our wind farm to good use but we weathered the financial crunch fairly well. In the US the population needs transport to conduct business as well as to use it for leisure time. When fuel prices increased many businesses fell over the edge and people lost their homes on “feel good” mortgages with a sting in the tail. When fuel prices reached $39.00 per barrel people began to hope that they could get back on their feet again.
But now prices for heating fuel and transport are climbing up again – beyond the reach of individuals and businesses felled by the No. 1 punch levelled at them during the financial crisis of 2008/09. It is time to face punch No. 2 as the hydrocarbons focus is placed on the Gulf of Mexico and the largest oil spill in US history.
The optimum price for crude should be between $55.00 and $65.00 per barrel but now they hover around £80.00 and the sometimes unpredictable and severe US winter is approaching and it is America’s unemployed and on fixed incomes affected by punch No 2 the most. Food prices – the other factor – also contribute to the misery caused by higher energy costs. All of this is in the face of figures showing economies growing – but who are they growing for?
Any nation with populations becoming poorer will find welfare budgets to cater for them inadequate to meet demand.
Much of the solution is found by increasing the use of alternative, renewable energy and allowing the low income earners of national societies benefit from it first. There are more of them than there are of those who caused the problem and it makes sense to give them some hope for the future. Who knows, bright sparks from that group could get educated to the standard to help the others to prosper instead of always taking losses.
Bail-outs only benefited those who were in the financial industry or the hydrocarbons’ related auto industry and a few others who are adept enough to realise a profit from the misfortune of others. They drove home in their vehicles and will be warm in the winter. There was little that “trickled down” to people willing to work hard to keep out of debt. They also have to put up with punch No 2.
Should crude reach $100.00 a barrel again I see desperation and trouble ahead for low income and unemployed who can ill afford any more financial burdens.
We look to governments to provide poor people with bread and the circuses but what baffles me is a stretch limo driven CEO whose bail out money exceeded the welfare budget of a medium sized state in the US. We need to get people on their feet again by keeping crude prices low and helping the hard-working people who didn’t cause the crisis in the first place. They deserve to benefit from alternative, renewable energy.
Rewards granted to a nation by content low income earners are priceless.