One of my former (and future, no doubt!) professors from Eastern Michigan University, Dr. David Victor, posted this morning about a possible future oil boom for Iceland, noting that a recent survey and discovery shows Iceland sits on a *LOT* of the possible undiscovered oil reserves in the world, estimates place it at 13%. With the thawing of the northern ice cap, and the North Atlantic Current keeping ice from marring up the major ports of the island nation, all of these things could conspire to bring a well-needed boon to it’s economy.
However, another follower on Facebook of Dr. Victor, the Chair of CitrinGroup, also threw in his two cents, stating that while the Chinese are courting and betting on future oil producers, such as Iceland, the United States, already suffering an anemic economy, is wasting it’s time on policy matters that in the grand scheme of things, don’t really matter. I tend to agree.
The United States’ economy is JUST starting to gain traction, while sitting fairly stationery and spinning it’s wheels, begging to move forward since the crisis began in the Subprime Mortgage market in 2007. We’re finally starting to see forward momentum beyond the familiar numbers of “0.04% gains.” People are beginning to feel confident in the economic system again.
However, when people see the Government itself can’t get it together and pay it’s OWN bills, that’s when people begin to hold onto their OWN money, going “What if I find myself right back in 2008 again?” I admit, I found myself thinking twice when I made a relatively small purchase this morning, because the well-being of MY household budget is determined by the fiscal health of the Federal Government.
When recessions and slumps hit the nation, the Government is there to provide relief, to buffer the blow with benefits, stimulus and other some-such capital, by pumping money into the system. However, if that money is cut off too soon, the economy can slump again. Bad news breeds bad feelings. Bad feelings breed either a binge on spending, or a lack of spending, more often, the latter. When people stop spending, the economy grinds to a screeching halt — as we saw starting with the credit freezes of 2008. While one can argue the merits of policy on both sides of the aisle, the latest budgetary and policy debate is doing nothing but killing consumer confidence, and indeed, making foreign markets question the stability of the American economy.
While Obamacare is certainly an expensive program, so was the F-35 Fighter — which estimates have the cancelled fighter costing as much as a trillion dollars — a number often attributed to the cost of Obamacare. Oddly enough, I haven’t heard it mentioned once by Republicans on the Hill, even though it is now essentially a great waste of capital and expenditures.
Who’s right? Who knows. One thing I do know is — #2013Shutdown can be a death knell for the fragile traction the American economy took years to get.
- US shutdown starts hitting business (bbc.co.uk)
- US says shutdown hurting business (skynews.com.au)
- Here’s What the House Voted on to Avoid a Gov’t Shutdown – and How It Could Affect Obamacare (theblaze.com)
- A Depressed Bank Of America Predicts “Agreement Is Almost Impossible As Long As Obamacare Is On The Table” (wchildblog.com)
- Glenn Beck on Why He’s ‘All for’ the Looming Government Shutdown (theblaze.com)
- Shutdown Hitting Private Sector As Defense Contractors Furlough Workers (outsidethebeltway.com)
- Three Cheers the Shutdown (rinf.com)
- Shutdown to harm American economy: Obama (news.in.msn.com)
- Iceland On Cusp of Oil Boom? (blogs.the-american-interest.com)
- Three Cheers the Shutdown (counterpunch.org)