The Death of the Petrodollar - Liberal Resistance

The Death of the Petrodollar

Scotland is now creating twice as much electricity from wind power than it needs to power Scotland.  They have enough energy to start exporting to other parts of the UK.  This is just one example of how the green energy revolution is happening.  Meanwhile, the United States is still clinging to an almost 50 year old idea that if we make everyone worldwide purchase barrels of oil in USD then we can back the dollar with that demand for oil. That almost 50 year old logic has one major fallacy: at that time the worldwide need for oil was a certainty to maintain energy production, now, the writing is on the wall that oil for energy production is not required.  If a country like Scotland is running a green energy surplus, why would they want to purchase any dirty oil?  For example, it seems like they would be far better off powering vehicles with electricity. Or they could use any surplus energy to split water molecules and create hydrogen fuel to power vehicles.   

The US Government keeps throwing good money after bad to subsidize big oil.  That plan is already falling apart and has been for some time now.  Imagine where we would be if we used some of that big oil corporate welfare to encourage green energy manufacturing in the United States.  

So what will back or create demand for the United States dollar in the future?  Well, if we continue down the same path very little to absolutely nothing will because worldwide demand for oil will diminish.  

In a previous article I wrote entitled “The Green Skyscraper” I wrote more about how The United States could re-industrialize and become a world leader in producing green energy devices/hardware and parts.  That would help rebuild our economy and also help alleviate some of the pressure on our economic system from the long term decline of oil.  Currently, big oil and the worldwide sale of oil in USD is the drug The United States economy is totally dependent on. We’re so addicted to it we even continue to throw money at that planet killing industry just for the sake of throwing taxpayer money at that industry.  While that had helped suppress green energy in the past, it will no longer continue to work due to the basic economics of it is now cheaper to create energy in a green way than to pump oil out of the ground and have to ship it. 

Less worldwide demand for oil and thus demand for the US dollar means that the value of the dollar will drop.  Theoretically, this could make American goods more attractive to other nations.  That same weak dollar will make it more expensive for us to purchase foreign goods as well.  However, that can be an incentive to produce more thing at home when buying foreign goods is relatively expensive.  Large holders of US debt would not like to see a weak dollar, but the dollar can only be strong if it actually has something to back it up. 

If the current president wasn’t already running a trillion dollar defect, we could actually invest in our nation and our currency by increasing our gold and silver reserves.  That alone would help back the value of the dollar. However, we have no ability to purchase tangible assets when we don’t even have the resources to run our own government due to tax cuts for the uber wealthy and American corporations.  

It is very clear to me that we need to be taking active measures to ensure we can transition off our nation’s dependency on oil sales and oil for fuel.  Green energy is clearly the future and oil is very clearly last century. 

 

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Chris Madsen is a writer and activist based in the great state of Hawaii. He frequently writes from the unique perspective of his Pacific home. His opinions are his own.

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