8%

8%
First off, thanks for the heads up on the "corn" dilemma. I should ask stupid questions more often. That one had been bugging me. Next, watch Wal-Mart. They've been bothering me for some time. Too many rumors and little problems. They start cutting back on items. Then, they start running out of items. They keep less of everything on hand. They cut hours, not only a year or so ago with the new computerized model to match peak shopping hours but in the last few weeks after they have been taking others stores business. Last week it was reported that they are going from monthly to quarterly sales reports. This morning, I hear at another store that vendors have been getting paid immediately rather than the usual 90 day invoice. That one has me confused, since you would think it would benefit a store to wait on paying for items til after they sold it to a customer. I'm told that K-Mart did the same thing right before they started closing stores. Now, if something weird is going on with Wal-Mart, consider that they alone have been keeping the entire retail sectors numbers up and not looking a lot worse. Last, I would like to rant against "60 Minutes". Normally, I don't watch it anymore. I used to enjoy it but now that I ration my watching it didn't make the cut. Well, last night I turned on the glass tit an hour early and watched it. Sell out! Whores! I can't believe yet another icon and trusted name brand has prostituted itself and become just another corporate shrill with no integrity. I shouldn't be surprised, but I am. I really used to think highly of that show. Maybe I had just been naive. I couldn't believe the snow job of an interview with Helicopter Ben. They weren't even lobbing softball questions, more like Nerf Balls. Pure propaganda that must have a lot of ears burning at Pravda. That's right, USA! Number One! We have beat Pravda at its old game of totally fabricated news and massive whitewashing. I can't even get into details for fear of blowing a gasket.
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Today's topic is the ongoing eight percent decline in oil imports. I don't know if I just mentioned this in passing or already did an article on it. But it is damn important and it needs to be repeated so you can apply another coat of K-Y and try to extract your cranium from your rectal orifice. Not saying you are not paying attention, just that you have not even begun to sufficiently panic yet. Before you quit right now in disgust, I promise this week to give you an article on how to successfully farm with all the dangers I've already warned you about. I know this is a favorite subject, judging by the mean reactions to my attempts at tipping over your sacred cows ( hell, I wasn't even trying to slaughter them, yet ). If you have been paying attention to www.americanenergycrisis.blogspot.com like I had been advising you know that our energy import decline is steady and has gone on too long to merely be a fluke. In 2007, our total oil imports declined by 8%. In 2008, our total oil imports declined by another 8%. In 2009, I believe the figure so far is a bit over 4%. So the entire year might see nine percent rather than another eight. Are you panicking yet? Why not?
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Our oil imports were seventy percent of our oil use. Those went from twenty million barrels a day to eighteen over two and a half years. And, no, ethanol did not replace all of them. I grant you that we absolutely do not need to use twenty five million barrels of oil a day. The rest of the world combined only uses twice that and they actually do all the manufacturing ( close enough that our meager contribution won't change the figures much ). But it must be understood that our economy depended on wasting all that energy. Less energy, less economy. Less and less energy used every year means less and less economic activity. And the way our economy is contracting, I seriously doubt we will invest in either energy efficiency or alternate energy. Oh, the consumer will replace his light bulbs. But I don't think we have industry wide change to look forward to because of the credit contraction. The bank bailouts are getting more money than the entire "green" imitative.
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If, every year, we see less energy coming in, our economy will continue to contract. Cheap and abundant energy is over, and that is what kept our economy growing. The last thirty to forty years of decline were directly tied to our falling energy production. The printing presses, bubble manias, banker intrigue, etc., helped things along but the ultimate cause was declining energy availability. This means that long term, unemployment will keep getting worse. Inflation will get worse. Any long term plan such as a mortgage or retirement is doomed. Taxes will rise, services will fall. This is the beginning of PODA. The last thirty years saw an increase of global oil. We were in slow decline but cushioned it with cashing in our previous accumulated wealth. Due to a global peak in production and an increase in exporter domestic need, the last two and a half years saw a real contraction in availability. Less real wealth saw our economy hurt. We will eventually reach the point of decreasing supplies that will cause serious consequences. As in, we are slowly floating towards the falls. It is bearable until suddenly we tip over. I don't know when, but at 8-9% a year it won't take that long.
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