R
Ridgerunner
Guest
One needn’t worry about the next trillion dollar war. Even if China invades Canada, we probably won’t do anything about it. It’s one thing to throw missiles at feeble and divided Libya. It’s another to actually have a full-scale war.I’m not one that says we should advance “new” energy sources via subsidies and I oppose things like the hybrid tax credit and similar. But I also think that costs related to oil dependancy should be reflected in the cost of OIL so that the free markets DO eventually favor alternatives when they become viable. Our current approach artificially suppresses the cost of oil dependency and that can’t last much longer (we can’t afford the next trillion dollar war).
There was oil in Libya. None in Afghanistan, of course. So, if one attributes all the wars to a desire for cheap oil, we’re two for one in recent years. In Vietnam, of course, we didn’t know there was oil in the South China sea in any quantity. There was none in Korea, and none in Germany or Japan.
In talking about how war costs should be incorporated into the cost of oil, one has to ask just who should be paying it. Should OPEC be encouraged to raise the cost of oil so the Germans are obliged to pay more for oil? Or should the U.S. forces in Germany simply take over the Bundesbank and take the money by force of arms? Or should our government simply tax Americans so our cost of oil is the highest on earth?
War or no war, OPEC charges what it thinks the market will bear. So does non-OPEC Canada, one of our major sources. So does non-OPEC Mexico, our other one. I don’t think any of them consider the cost of wars the U.S. has been in.
It can also be considered that in 2007, when the tax take was about the same as now, the deficit was about 1/10 what it is now on an annual basis, with two wars going full bore.
In thinking about that, one might consider other possibilities regarding the cost of petroleum, like perhaps inflationary overspending by a government that runs unprecedented deficits even when one war was shut down.