Darrell

What U.S. Needs Is Long-Term Comprehensive Energy Policy

I don’t think President Obama has yet developed a comprehensive energy policy that will define how our nation will meet it energy needs for the foreseeable future. Certainly president Obama has set clear guidelines on energy independence: renewable energy (wind, solar power, etc.) reliance on domestic production; but these are guidelines not a policy.

President Obama has not claimed he or his administration has all the answers, his energy task force is open to suggestions and comments, but he is committed to an energy policy that will define our sources of energy for the foreseeable future so that we can proceed with our lives knowing how we will obtain our energy sources and plan accordingly.

I think China, Russia and other countries are buying commodities because they want to reduce their dollar holdings, as they think the dollar will lose value over time. As long as people are willing to exchange their goods, services and/or assets for dollars, why not stock up on things your economy will need no matter the usage rate of said commodity?

Energy, Inflation and Gold

Mkreisel evaluation of the US strategy on currency is correct: the world’s central bankers accept the dollar as legal tender for commercial transactions within their country. This means that Americans can go any where in the world and exchange the dollar for goods, services and/or assets.

Our politicians have developed into moralist and passed laws that prevent oil exploration on offshore California, in the Rockies, and other areas of the country where damage to the environment could occur if exploration activities took place,

Meanwhile the world central banker’s are stockpiling dollars at a rate not seen since the beginning of currency exchange system. What are they going to do with this currency hoard?

One thing is for sure our government will not allow the central bankers to use their dollar stockpiles in a way that would damage the US economy. So yes, buy commodities, but be sure that mines are in friendly countries.