Energy Boom a Wild Card for Upcoming Wiedemer AfterShock Economy


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).

 

http://news.investors.com/economy/020813-643799-us-energy-boom-fuels-trade-advantage.htm

 

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

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About economics501

1 - free market Capitalist; 2 - Fitness Entrepreneur; 56 years old, VP at an Investment Bank in NYC, ex Venture Capitalist, happily married with 2 girls. Education: Rutgers and NYU. I allow Ted Hruzd, my friend to blog at will here. He has many posts here. I have known Ted since we were both students at NYU. Ted also works for an Investment Bank as a VP in Equity Global Markets. ------------------------- I was very very Socialist leaning as a 22 year old. I then strongly believed in Gov role in helping the poor. However, as a USDA Child Nutrition Programs, I personally accounted for millions of fraud, abuse, and waste of tax payer money. I came to believe that the poor would be best served with less Gov programs and more with direct aid via tax system. Then after 5 years I became a free market capitalist, was a venture capitalist in 2007 and helped start 2 high tech companies. I dedicate this site to champion free market capitalism as the best road to Prosperity. Please join in. If you disagree, fine, but please post with dignity and class and be civil. Argue with facts always.
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One Response to Energy Boom a Wild Card for Upcoming Wiedemer AfterShock Economy

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