Educations Future In Milford And Connecticut

We have all heard of the bailout for the auto industry, $4,500 credits, government stock buyouts and sweetheart loans that the average Joe could only dream to get. The big banks then labeled themselves as "too big to fail" and AIG, Fannie Mae, Freddie Mac and all its crones were bailed out. Today the taxpayers own 80% of AIG alone and another massive amount of GM stock who could have ever imagined thing would get so out of hand.

The bailouts in the last few years were numerous, $8,500.00 first time home buyer credits, extended unemployment benefits for months beyond what is normally allowed, 40 Million Americans on food stamps and stimulus package after stimulus package packed with shovel ready pork.

Sadly, when we think of "No child left behind" and local education we are continually reminded of unfunded mandates and what a burden to the taxpayers those mandates have become. Instead of the Federal Government valuing our children we are told yet again this year that the city of Milford will be denied 1.5M of Federal funds to our schools placing an operational deficit in 2011 that could be as high as 5 Million.

Every effort is being made to streamline and contain education costs, teachers are retiring early, raises skipped, schools are being closed and local Milford residents are living more conservatively than ever. After attending several Board of education meetings it became clear that all our energy at city hall is being focused on our little patch of land we call Milford, and few remember that our patch of land is contained within the boundaries of the worst economic global downturn since the Great Depression.

My high school New York Military Academy in Cornwall NY was established in 1882 and it survived the Great Depression, WWI, WWII, Vietnam, Korea and the energy crisis of the 1970's but this year its operational budget losses are so high, and its Alumni so impoverished that the school is expected to fail within the next year or so.

And these problems are symptomatic across the entire state of Connecticut where teachers from all communities are living with no job security, and are afraid of what they will do next if they join the growing ranks of the unemployed.

The reason we are in the situation that we are in is because of years of the Federal Reserve's "ponzi" style monetary policy whereby money can be printed at the whims of congress and the banks to fund the next popular war/invasion against an invisible tactic fear mongered as "TERRORISM."

While we all surrender our rights for our security and sit an awe over some person who lit his underwear on fire with a failed bomb, or the times Square Frizzler, our President, Obama makes jokes about the terror on the U.S. Arizona/Mexico border that has landed 17,000 people dead and murdered. Americans get kidnapped by Mexican drug dealers, they threaten and kill our nations police officers, and poison our people with the very drugs the U.S. troops protect for Karzai in Afghanistan and no one in the BS media covers it as terrorism.

The sooner we realize that Washington D.C. is no longer America's friend but rather it's enemy our mission will become clear. Our mission is to establish state sovereignty under the 9, 10Th Amendment dissolve all illegal treaties, break ties with all World Governments and start indicting U.S. Senators and Congressmen who willfully violated the Logan act and defied the U.S. Constitution. In other words Connecticut needs to start doing the Job the Federal Government is ignoring.

For those of you who still do not get it, you should be aware by now that Washington D.C. has been waging a war on the Middle Class while making the rich richer and you poorer. As we rebel against the Tyranny of Washington D.C. they have launched a police state against us whereby "lists" are being used to circumvent the Constitution and punish anyone who dare preach their inaliable rights in America.

All these problems are rapidly coming home to roost, right here in our state and our town. The message from Washington DC is clear we have trillions for war, now billions to bail out Greece but little to nothing to help educate America's kids. This message, by virtue of its priorities should beckon you to rise up and join Tea Parties everywhere.

Moving forward the structural deficits now being exaggerated by the federal government and the inevitable climbs in interest rates due to inflation in the next 24 months is expected to destabilize every grand list in America let alone Milford. Hartford is going to have a challenging time managing the take over of cities like Bridgeport, Hartford and Waterbury who have had structural deficits that bankrupted them long ago. Those problems are going to spread beyond the normal areas that they normally occupy.

Taxes alone will not solve our problems in education because equilibrium will be reached relative to tax collection and the maximum attainable mill rate. There comes a point under the immutable laws of the Bell shaped Laffer curve that dictate a collection threshold. Once equilibrium is reached less taxes are collected, and sadly that threshold is also under assault as the Federal and state government also add to the tax burden of ordinary CT citizens.

The best course of action we can take to alleviate the pressure of these problems is to rebuild our school district under the principles of the New Urbanization Initiative, and Smart Growth while interest rates are low. Once those rates rise our window of opportunity will be closed and Hartford will have to beg the Federal Government to fund our schools. The alternative is over taxation and the fostering of one of the largest underground economies America has ever seen.

A Novel Solution To The State Deficit

Some time ago about a year ago today to be precise I said that the economy and local businesses would falter. As our clueless leaders balk at the balanced budged amendment to the state constitution, they shutter at the thought of eliminating yet another 3 billion dollars from our state economy.

The impossible mission is to balance the budget and still have friends show up to your party at the local club. With the new legislature expected to arrive into session in the coming weeks, baptism by fire is apropos in lieu of the burgeoning budget catastrophe. But perhaps there is hope, and in times of turmoil it is always good to think "outside the box" something I think I may be good at.

But here is the big idea, and this idea is based on all the technology that I find so annoying. These include texting on your cell phone, X-Box, and like gaming consoles, dollar menu garbage food, game shows, Facebook, Myspace and of course the I-Pod and all those annoying musical devices that cloak people into the matrix of technology.

Safe to say that these technologies have become, in my opinion, as irritating as people who smoke near others, and drink until they have no friends and a reputation for drunkenness. This brings me to the point, how many people would object to being ejected or "taxed out" of the technology matrix.

The countless hours people and kids spend disconnecting from reality is really a disgrace, and on occasion I could personally say that I have witnessed the "looneyness" of texting friends and relatives in the same house. The cellular companies are getting wealthy with this trend alone, and the music industry is cashing in a good sum by selling 99 cent songs, the video game industry is already in "hot water" and is being forced to label their games, and even have recalled some like "San Andreas" a version of a killer road rage game called "Grand Theft Auto."

With our state leaders calling for a "balanced budged" i.e. Gov. Rell and Cafero, who wish to achieve this without raising taxes, should at least consider implementing a win/win tax approach to the financial malaise now at hand.

Nothing would give me more pleasure than to see a new tax implemented against the digital matrix of society. This in my opinion would be a blessing, a tax that makes gizmo's more of a luxury than a commodity. This of course could be thinly disguised as the lifeline our state so desperately needs. Why not tax it into the abyss? And as a last note stop sending "weed" smokers to prison for years and years shorten their sentence these people are "stoned" and the punishment does not fit the crime 3-6 months is plenty. Lots of savings there at $55,000.00 P/Y per prisoner.

Rocco Frank

Chris Dodd Offers An Alternative Solution To Banking Crisis

Chairman Christopher Dodd of the Senate Banking Committee offered an alternative Monday to the financial rescue plan of the administration of President George W. Bush aimed at giving the U.S. Treasury an equity stake when it helps companies burdened by debt.

Dodd, a Connecticut Democrat, was circulating a draft of his bill as Congress sought to deal with a financial crisis that has been called the worst for the United States since the Great Depression.

The Bush administration is proposing a $700 billion plan to buy devalued assets from investment firms to keep the financial system from coming to a halt.

Democrats have pledged to act quickly on the measure, even as they seek to create an oversight structure, limit the compensation of executives at the companies benefiting from the rescue and provide mortgage relief for struggling borrowers.

"We cannot just turn over $700 billion in taxpayer money and not insist that that taxpayer is going to be protected in this," Dodd told reporters Sunday.

"We need this to be clean and quick, and we need to get it in place," Paulson said Sunday in an interview with ABC News.

The legislation would require Treasury to take an equity stake equal to the purchase price of the assets being bought. If the company is not publicly traded, the government would take senior debt instead, placing it in the front of the line of debt holders for repayment in the event of a bankruptcy.

Dodd's proposal also would create a five-member oversight board to supervise the Treasury secretary's purchase and sale of distressed mortgage debt.

It would consist of the chairmen of the Federal Reserve, Federal Deposit Insurance Corp. and the Securities and Exchange Commission as well as two members from the financial industry designated by congressional leaders.

The board would be authorized to set up a so-called credit review company consisting of Treasury employees to study the soundness of the purchases. Under the plan, the government would be required to obtain an equity stake equal to the value of the debt that is purchased from the companies, including those whose shares are not publicly traded. The Treasury secretary would also be required to issue weekly public reports on the amount of assets bought and sold by the U.S.

Dodd is proposing to penalize executives who take "inappropriate or excessive" risks. The executive compensation and severance packages could be reduced if that is "in the public interest," the proposal says. It would also force executives to give back profits they earned that were based on company accounting measures that are later found to be inaccurate.

The Republican presidential candidate, Senator John McCain, who has supported giving shareholders a bigger say in executive compensation in the past, said Monday that taxpayers should not pay for "golden parachutes" for officers of companies that have crumbled in upheaval on Wall Street.

"The senior executives of any firm that is bailed out by Treasury should not be making more than the highest paid government official," McCain said at a campaign event in Scranton, Pennsylvania.

The president is the highest paid federal official, with a salary of $400,000 a year.

(This Story Is a NYT Reprint)

Economy Gives Mixed Signals

Connecticut resident, Glenn Beck often expresses great concern over the national economy. While many view Beck as a "Drama Queen" or an alarmist, that group is becoming the minority.

There is nothing more difficult, for any political official running for office, than to have to constantly address the negative elements of our great country. Our nation has always been the envy of the world with massive wealth, the worlds largest banks, and the highest standard of living.

Today our Federal government is now reaping the comeuppance of over 30 years of bad decisions. The punishment, unfortunately is not only theirs to bear but ours as well. How does main street affect your street? Well it is not hard to see, all you have to do is ask your neighbor what is going on with their stocks, 401K's, the value of their home, and the purchasing power of their dollars. We could then also pose the question has your income kept up with inflation? The answers are almost always somber and sobering, yet our citizens are correct when they say these problems are now so great they are beyond what our local or state leaders can repair.

Former governor Ventura on a GCN radio show told his listening audience that in his opinion and in the opinion of the economists he spoke to the only way we could begin to rectify our economy is to restore faith in the U.S. Dollar. This can occur by first addressing our national debt now estimated at 9.6 trillion dollars, ending our costly wars, and next (in my opinion) raising interest rates to attract foreign investors who have dollar wealth.

The weakening dollar has been blamed for the high cost of everything, while our Federal Leaders in Congress are blaming speculators on Wall Street for driving up energy prices, the reality is that this is only part of the problem. The weak U.S. dollar now fetching a record low of 1.60 Euro is as responsible for its loss of purchasing power as the Wall Street speculators.

America has now sadly reached a point where manufacturing has shrunk to less than 10% of all jobs, our banks are failing or are in serious trouble, Americans finding it difficult to afford their homes, health care is all but affordable, a nursing crisis exists, we import 70% of our Oil creating a disturbing transfer of wealth to foreigners and our capitol is paralyzed by global corporations who has a vested interest in eliminating our national sovereignty in favor of global trade agreements.

Television, and our American news reporters are nothing more than the spawn of "puppet masters" who report trite that fails to connect with the true nature and gravity of our nations peril. While the media calms the public, and often outright mocks our national issues with hundreds of channels of game shows, soap opera's, music video's, reality shows, and slanted feudalistic opinion shows we are in a state of our greatest national crisis since 1930.

There was a time when our national prosperity was so great that we, as a society became victims of our own complacency, we made a public oath never to discuss religion or politics... absolute lunacy for anyone who knows that the founders of America built our country with the moral foundations of religion and every citizen was either a minuteman or a freedom fighter vying to break the death grip of British occupation.

Today we have a population that polls 70% against the war in Iraq and yet one of the top Republican contenders John McCain vowed to keep us in Iraq for 100 years if necessary . Things are strange, and reality is often stranger than fiction. The future is posing challenges that have been all but forgotten but thoughts of preparedness, and survival are increasingly on peoples minds.

What you decide to do for yourself and family are entirely up to you, but during these hard and unpredictable times we can take nothing for granted. We need to be proactive and preemptive in our future plans for our families. Not being prepared for an economic anomaly can severely impede our quality of life.

My Thoughts on Gayle's Latest Effort to Fight UI

Gayle Slossberg recently sent out an update regarding a demand for public action on alleged energy increases, mainly the DPUC granting permission to United Illuminating to reopen their rate case. To me this was no surprise as it was exactly what they said they would do in their last investor conference call. Unfortunately, for Ms. Slossberg on the same day her card arrived in my mail box, UI issued a press release announcing that the DPUC "nixed" the decision to reopen the rate case. This marked a partial victory for consumers and consequently makes her card a bit confusing to those who received it after this fact.

One thing to point out about Ms. Slossberg is that she allegedly voted in favor of UI's decoupling bill House Bill 7432. This bill deceptive in its name and according to Rep. Robert Megna "If a gas or electric customer conserves and uses less energy to reduce their bill or if consumption drops for other reasons then customers must pay the profits earned during the prior rating period, provided it was higher. Historically profits normally fluctuate based on consumption of gas and electricity. This scheme will cost consumers an estimated additional $25 million per year." Why she voted in favor of this bill is questionable to me and appears to be contradictory to her current position to protect consumers. I would ask that Gayle be crystal clear to the public about whose side she is on.

Personally, (and that one issue aside) I would like to publicly thank Ms. Slossberg for now speaking out in favor of us "the consumers." I would like to also thank her for recognizing that our rates have nearly doubled, and as such I would expect that her future votes reflect more consumer advocacy and less rhetoric. As a candidate for State Representative myself I will be watching exactly how all our local legislators vote, rarely do I listen to their happy jolly words.

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Update:

DPUC Rejected UI's request to re-open their 2006 rate case. UI then followed up by submitting a new request to raise our electric rates, this request can be granted, (although, this can be complicated and hard to follow) Gayle's request for us to complain to the DPUC is "spot on". Follow her links to take action.

Gov. May Suspend The Increase In The Gas Tax

The tax in Connecticut is known as the Gross Receipts tax, and Governor Rell has called its timing "not good." The increase in this tax was proposed some time ago before the current energy crisis and seemed like a good idea. The money was supposed to be used to make improvements to the public transportation system that is now reaching full capacity during peak hours.

The tax was expected to go up from 7% to 7.5%. This would have marked an increase of yet another 3 or 4 cents per gallon. Governor Rell who told the legislature that she cannot control the price of oil or what goes on in the world market, has merely relayed our concerns to federal leaders in Washington.

The problem now becomes what will the state do to address “the Office of Policy and Management who advised Governor Rell that the next fiscal year - which begins July 1 - was projected to face a shortfall of about $150 million." The increase on the gas tax was expected to regain 25 Million of that loss.

There were few critics of the Governors plan, except for one person. According to Christine Stuart a reporter at the state capitol "Jonathan Pelto, a former state legislator turned public relations specialist, said in an email that already the gross receipts tax is bringing millions more into the state than initially anticipated in 2007 when the current state budget was passed.

He said when the legislature passed the budget it expected to bring in $287 million in 2008 and $311 million in 2009 on the gross receipts tax. Because the tax is a percentage of the wholesale price of gasoline, the budget estimates were based on the wholesale price of gas at $2.41. He said today the wholesale price of gas is $3.40, which means it will bring in at least $53 million more than expected this year.

“Even if gas prices don’t increase at all from this point forward—the most basic simplistic assessment reveals that in FY 09, the General Fund will not receive the $311 million (that was projected last June) but will actually receive well over $410 million,” Pelto said in an emailed statement titled, “Reality Check on Gas Tax Issue.”

The people of our state are already burdened with the highest gas prices in America, Connecticut is losing business and trucking companies are going under. The entire recreational boating industry has also been impacted negatively and there appears to be no relief in sight.

The federal government appears to be imposing new energy and greenhouse gas regulations that are only going to impede the price of gas further. The quagmire we are now in is so desperate that analysts at "Goldman Sachs" are expecting oil to reach as high as $150-$200 a barrel.

Congress thus far has threatened a lawsuit against OPEC, ostracized the top executives at the big oil companies, is attempting to bar speculative investors in oil, and in a chilling cliche imposed strict environmental standards that prevent the exploration of oil in our own country. Clearly our country appears to be paralyzed by its own internal strife between consumers and environmentalists.

The question here remains is whether or not our state truly did receive all that extra cash, or did Connecticut just break even due to people driving less? I have no knowledge of Peto's assessment relative to consumer driving habits in this high price environment. If consumers are like the typical people I know, then they have indeed cut back on driving, as many local gas station operators have also suggested has happened. The immutable laws of supply and demand also apply to the state and Connecticut should be aware that raising gas prices will push consumers into energy conservation that will result in even less sales revenue and higher future taxes.

All it takes is for one to look out their own window and see the surge in 30+ MPG cars, and the decline of the SUV now worth less than ever before. Ford has even indicated that their gas guzzlers, like bad mortgages are "upside down" time to pay attention to the big picture, and not "band aid" holes in the budget.

The problem is difficult, but solvable through innovative means in these troubling times, including a serious effort to eliminate government waste and questionable jobs and departments.

UI Intends To Seek Another Rate Increase

United Illuminating just had its conference call to its investors this week. The electric that they sold showed yet another double digit increase in their profits, however UI's CEO Mr Torgensen complained that they sold too little electric and was disappointed so many people were "turning off the lights." He also was not happy with the level of uncollected receivables and told the shareholders that he planned on recouping their lost profits through yet another Decoupling Bill.

Mr. Torgensen and crew will be up in Hartford lobbying the DPUC, who regulates the cost of electric, with the written Decoupling request to help restore their, yet again lost profits. Last time such a bill was introduced, no one in the legislature even read it, actually it was introduced one hour before it was voted on. That bill was H.B. 7432, introduced earlier last year.

Rep. Megna of New haven opposed that bill citing that concessions were in order as energy was increasing faster than people could afford to pay. Should UI succeed in this latest decoupling bill it may push our electric bill has high as 100% in eight years.

To hear the entire UI Conference call scroll to the end of the audio clip listed below.

Click HERE to start the UIL earnings Call.

Chronology Of The Recession Of 2008

There is no doubt, and all respected economists agree, that we are in a recession that is likely to last for the next several years. The question on my mind is what led up to this recession? The answer comes simply as 9/11 combined with a "sub prime crisis," or a policy of lending money to people with marginal credit. This type of lending became a generally accepted practice because banks believed that home equity would grow according to the historical trends of the late 1990's. Risk was also minimized because the loans were sold off on Wall street and often conspicuously re-packaged in investment funds that small investors owned as part of their stock portfolios.

Mortgage brokers had a banner year due to Alan Greenspan's (Former FED Chief) keeping U.S. interest rates very low, loans were also restructured to allow high "loan to value ratios" and "interest only" payments. This made it possible for Americans with the most limited incomes be able to purchase a home of their own. The real estate market started to tumble after the questionable attacks of 9/11.

This was the first massive loss in real estate due to the free-fall collapse of five Manhattan buildings hit by two planes. The losses paralyzed the economy and sent stocks plummeting on Wall Street. 9/11 resulted in massive increases in all types of insurance, from home owners to car insurance to many other types of insurances netting billions in additional revenue to the insurance industry.

As volunteers at "Ground Zero" were heroically working in an environment full of pulverized concrete and the airborne Asbestos that insulated the lower floors of the World Trade Center Buildings. The Real Estate calamity was already set in motion.

The first warning came a few short years later on February 8, 2007 when HSBC - Europe's biggest bank blamed the U.S. sub prime defaults for its first-ever profit warning.

On April 2, New Century Financial Corp. filed for bankruptcy, their stock plummeted under 35.1 Billion in debt. The company was liquidated with court approval sending a "Red Alert" on Wall Street.

July 30, HSBC loses $6.35 billion due to bad U.S. loans in the first half of the year, up 63 percent from $3.89 billion in the same period last year.

October 15, CITIGROUP, the largest U.S. bank, says Q3 profit fell 57 percent due to sub prime losses. Their income down to a mere $2.38 billion from $5.5 billion the previous year.

October 19, WACHOVIA CORP - The fourth-largest U.S. bank posts a 10 percent decline in Q3 profit, to $1.69 billion from $1.88 billion a year earlier, having suffered $1.3 billion of write downs due to credit market turmoil.

October 24, MERRILL LYNCH stuns Wall Street by writing down $8.4 billion in bad investments related to sub prime lending.

December 19, MORGAN STANLEY posts a $3.59 billion Q4 loss and $9.4 billion of mortgage-related write downs.

January 15, 2008 CITIGROUP - The largest U.S. bank posts its first quarterly loss since Citigroup's creation in 1998, hurt by $18.1 billion of subprime-related write downs.

Jan 17, MERRILL LYNCH reports its worst-ever quarter, revealing around $16 billion in mortgage-related write downs.

February 14, UBS says it is writing down $18 billion in bad loans.

February 19, CREDIT SUISSE marks down the value of asset-backed investments by $2.85 billion.

October 26, U.S. mortgage lender Countrywide Financial Corp posts a $1.2 billion third-quarter loss after writing down $1 billion in sub prime loans.

Jan. 16, JPMorgan Chase boosts its provisions for loan losses by $2.54 billion during the third quarter.The investment bank's profit plunges 88% to $124 million.

March 3, HSBC's investment banking arm takes a $2.1 billion write down on assets tarnished by the sub prime crisis.

March 17, Bear Sterns collapses without warning or provocation. Federal reserve rushes to organize an emergency merger with J.P. Morgan to avoid bankruptcy.

April 1, UBS doubles its write downs to $37.4 billion.

April 8, Washington Mutual Inc, battered by mortgage delinquencies and defaults, obtains a $7 billion capital injection from private equity firm TPG Inc and other investors, but projected a $1.1 billion quarterly loss and set plans to eliminate 3,000 jobs.

April 15, JPMorgan Chase & Co.'s profit fell 50 percent in the first quarter after the bank took a provision of $5.1 billion to strengthen its reserves by $2.5 billion and account for $2.6 billion in losses in its loan portfolio.

April 18, 2008 Citigroup Inc. said it will eliminate about 9,000 more jobs, after poor bets on defaulting loans and the tumultuous credit markets lopped $14 billion in value from its investments during the first quarter.

So far the Federal reserve has created an estimated three Trillion in new currency to bail out the global economy. This creation of money is called M3 and is the worst economic indicator for inflation and the devaluation of the dollar uder the simple premise of "supply and Demand."

These losses also do not take into consideration those incurred by banks overseas, nor due they reflect the true nature of derivative losses, or losses based on real estate assets being worth less than what they are stated as being worth in a big banks portfolio.

The Federal Reserve Chairman Ben Bernake has grappled with the doomed economy by once again following in the footsteps of his predecessor Alan Greenspan and lowering interest rates accelerating the demise of the U.S. dollar.

As of today, the devalued U.S. dollar has created high inflation in food and energy, and quietly taxed the investments of every American whose savings are being depleted by way of its loss in purchasing power.

Tent cities trends of displaced Americans have propped up in Southern California, Florida, Detroit, and many other cities around America as top investors continue to flee the falling dollar.

The situation is becoming increasingly dire, and as the value of the dollar continues to plummet it will eventually set off an "alarm." This will result in more major Dollar holders like China, and Japan to make the dreadful decision of having to divest from it to limit their losses.

In the near future, America could be facing a crisis that combines both the public hardships of high interest rates seen in the 1970's, inflation, and the bank failures and joblessness of the great depression.

In conclusion, it is important to note that the American founders pegged the value of the dollar to gold and silver because they knew central banks, through abuse of their authority, would do exactly this to our economy. When Richard Nixon took America off the gold standard in the 1970's he doomed the entire country to exactly this kind of malaise.

A short Video Documentary for your review.

A Crude Awakening Oil is expensive.

The price of gasoline has gone up over the weekend and is expected to go a even higher, even though the price per barrel dropped today. My quest to get to the truth about our local oil shock always drives me to research and find answers.

This drive of mine increased when my local gas station at the corner of High St, and the Post Rd. dropped his franchise and became an independent operator. His gas station is now called "USA Fuel" and shortly up the Post Rd. there is yet another patriotic gas station called "Patriot" fuel.

The frenzy to compete on gasoline is causing these gas stations to dump their franchisers with the result of lowering the price per gallon. My first impression was that these gas stations are making a lot of money with the high price of gas, but in reality the price hurts the local station because it reduces demand for the gasoline and most franchises only pay the stations for a fixed profit per gallon.

Wanting to know more I went to the Post mall and bought a documentary called "A Crude Awakening." This was the best thing I ever did in truly understanding the energy and oil situation not only here in Milford but in all of America.

The overall message of the movie is that Americans believed our oil would never run out, that it would be here forever. This is proving to be the biggest mis-perception of the century. Every nation on earth is now copying the great consumptive life we have built for ourselves in America. China, India, and Europe all aspiring for individual ownership of a car, a home, and the countless cheap plastic products we have come to enjoy so much.

There is only one problem, and that is that our oil reserves cannot reasonably sustain the good life we have in America spanned across the globe. The worlds new found thirst for oil is causing all the major oil regions of the earth to peak pressuring more outrageous political pressures and competition for oil.

Every industrial government wants to fuel their energy needs, but the supply of oil is not capable of sustaining the rate of growth that the world economy demands. Oil dubbed as the black devil has been the subject of wars, including most recently the gulf war and Iraq's invasion of Kuwait. According to the "A Crude Awakening" documentary the only place left on earth that has not peaked in its oil production is the "war torn" Middle East.

America has no energy plan should our energy demands begin to wane below our needs. The consequences of not having a cheap source of energy are unthinkable, and too upsetting to even think about. Richard Branson of the Virgin Industries has called this problem "serious" and invested several billions of his own money to start "Virgin Fuel" of which I personally hope he succeeds.

The very embarrassment of the energy crisis has led to our political leaders not being honest, just reassuring the public that everything is under control while they know otherwise. This dire energy situation coupled with politics is akin to you or me making up a lame excuse for why our failure to afford our electric bill resulted in the lights going off. Even though America has not had its lights shut off, it has been served with a "shutoff notice." Unfortunately the 9 Trillion charged to the national credit card is now "maxed out."

Politicians cannot and do not want to campaign with bad news. The people of America are perpetually hopeful that America will remain the greatest nation on earth forever and are diseased with "selective reception" and "selective perception" and as such only lying politicians are getting elected. The sooner America wakes up the sooner we can soften what otherwise may be an abrupt crash caused by global energy competition. One last point to note is that, despite this documentary, the CEO of Exxon Mobil is of the opinion that we have plenty of supply to meet future deamand.

CNBC Video:



Who is telling the truth?