Energy Boom a Wild Card for Upcoming Wiedemer AfterShock Economy
What is new about prospects of Aftershock economy and how the US will respond to it? Please read energy – economic analysis from Investors Business Daily (Mon Feb 11 edition).
Main point – our increasing petroleum production and exports have decreased our energy imports and expanded our exports resulting in shrinking of our monthly (Dec 2012) trade deficit to $38.5 billion by 21% to lowest level in 3 years. At current rates my quick calculation is that this adds 3/10 of 1% to GDP (likely more if this trend increases). Perhaps a US energy boom may be a wild card regarding the Aftershock economy. Increase energy production, increase GDP and tax revenues, decrease debt. Hence an energy boom may lessen the impact of the onset of expected AfterShock economy whereby the US dollar will decline substantially and US will be forced to restructure its debt, very likely with foreign investor influence. The better shape the US is at time of Aftershock economy the quicker we can recover and prosper, as Wiedemer stresses in this 3 recent books. (Wiedemer is no all gloom and doom).
Other estimates have US potentially increasing GDP by 1 ½% a year with its energy boom (if allowed to the fullest). It is unlikely though that Obama will allow this. Note that hydraulic fracking can significantly add to an export boom – IF Obama allows fracking on public land in addition to private – and allows more oil drilling in public land and off our coast. However let us not give up. Tweet to our naïve anti capitalist legislators to support the expansion of our energy boom.
Please subscribe to Economics501.wordpress.com and follow me on Twitter @Economics501. I continue to keep alive various perspectives regarding Wiedemer’s analyses and predictions. I keep in touch with him on Twitter. We both follow each other. One important point from approx month ago (where he confirmed my belief) is that European fiscal woes are likely delaying a US Aftershock economy.
Twitter @Economics501 Feb 9, 2013