Tuesday, July 8, 2014
Benefits of Coal in a Christmas Stocking
The Benefits of Coal in a Christmas Stocking Fears that the US Dollar is Going to Become the Victim of a Massive Government Printing Binge Can Be Averted with American Coal Reserves? Lex Loeb Contributor Network . The United States has many natural resources including the world's largest coal reserves. Coal has been targeted by environmentalists as the number one public enemy of the natural world. There is more evidence that what they don't like about coal is mining and particularly low cost strip mining of coal than there is evidence that global warming has anything to do with green house gases. With Chinese coal reserves tight as coal is used to fuel much of their economic development in electric energy production, US coal reserves are worth a fortune at international spot prices. Much of the American Coal safely sits under federal ownership land. Coal has value and that value is dependent on the cost of retrieving it by mining. Unlike printed dollars or the more US treasury computer random number assigned debts and credits from the US Treasury, Coal is a relatively scarce commodity. There maybe as much as 500 years of coal in the ground assuming it were feasible to dig all of it out. Reserves could even be larger as there are unexplored areas. It would be reasonable to back US Treasury dollar issue debt with government owned coal instead of gold if the US government came to it's senses and decided to back the US dollar with real asset value so as to prevent the next unnecessary and dangerous devaluation everyone knows is coming. Coal could help prevent inflation and moderate deflation by giving a secure base value to the US dollar. World history tells us that resources like coal may be made illegal for harvest today because of fad environmental politics but when the country runs out of other fuel options , coal will be mined and supplies, especially easy to get at supplies will be depleted. Coal has other industrial uses besides energy production feed stock. Where petroleum might be scarce in the future coal can be basis for plastics, synthetic fabrics and even for drug manufacturing. Putting coal in the national Christmas stocking to put a stop to all the nonsense that the US government and private US is over it;s head in international debt with no ability to pay it can be instantly put to rest Immediately. Dollars don't have to be backed by actual coal or mineral rights just potential to convert dollars if need be to ownership of a mineral rights lease for a specified number of years. I think it was JP Morgan that said "never sell the land" The US does not have to sell land to back the dollar. Coal, Fresh water in the great lakes, grazing rights, continental shelf drilling rights and timber harvest rights are fair game to back up US debt immediately. I am not suggesting wholesale destruction of the natural environment by transferring assets like these to China or US mining and drilling interests, no I am only suggesting putting them on the market so we do not end up with hyper inflation as the government goes on its next devaluation of the dollar spree. Putting these things on the market as collateral for the dollar allows the big environmental groups to start putting their money where there mouth is. Instead of paying attorneys to gum up us courts with endangered species BS like more nonexistent spotted owl species fictions, They get to buy the coal reserves and hold them until they feel like converting back to us dollars, They can do this after the BS about global warming blows over and maybe even help appreciate the value of the dollar that way. Environmental groups have lots of money . if they and their members want to prevent, logging , grazing, rights to put co2 in the atmosphere, coal mining , water rights, they will have an equal opportunity to participate in the open market for government owned natural resources that might be converted from dollar swaps. The solution makes the US dollar the strongest most reliable printed currency on earth, settles existing debt and gives the conservationist direct access to buy up the thing they say they really want to preserve, conserve, protect , or exploit. The nature conservancy got caught trying to develop retirement homes on golden pond. Talking about exploitation in the name of saving the environment.. The question has always really been why environmental groups think that they can trust putting conservation lands into federal ownership when very often they do not like who runs the country. No one exploits the natural resources on federal lands more than does the government. Congress can take land and put it in a Wilderness area for perpetuity one day and a few days later can end the perpetuity. Sooner or later the secretary of agriculture is going to be another Earl Buttz. Governments are governments if they need to sell assets to pay off debts they will. Environmental considerations are meaningless when the government is insolvent and people are starving. Coal is likely to be seen as an economic resource in the future at some point when the need for it might be critical and by then the environmental fad of saving the earth, which is a preposterous kind of arrogance to think humans can save anything, will expire. The market crash of 2008 is definitely tied to a US dollar devaluation that caused the huge run up in commodity prices prior to the crash. It should have been prevented. It is about to be repeated if the rhetoric of restoring home values goes on the way it is. It is impossible to predict in advance what negative effects may result from a devaluation beyond the present one because US Labor can never compete with Chinese or Vietnamese, labor so it is a fallacy to attempt competitiveness by devaluation means unless we really want to destroy the higher standard of living enjoyed by Americans. I like the idea of coal because a 400 to 500 year reserve supply means it is sufficient to be a large part of the national GDP / GNP for 400 to 500 years if it became a more primary means of keeping the economy going. Coal , again is just one thing that can be put in the US Dollar's Christmas stocking. I also suggested scrutinizing NASA which has become an international effort and it has great symbolic ownership properties to back lots of dollars. NASA funding bonds can even be sold in a market with certificates that might become as collectible as minted coins. There are also possible real financial returns from NASA since there is essentially free energy from the Sun outside of the earth's atmosphere. The space elevator proposal is intriguing because it is possible that a high voltage current line can run down to earth with it or modules with gyroscopic fly wheels could be energized with solar energy up there and returned to earth to generate electricity without loss of energy to transmission friction.as a sort of industry. Proposals to beam microwave energy down to earth from solar energy collectors is another possibility but with some potential atmospheric side effects. Coal might be one of the immediate dollar backing issues just because the Chinese covet it and they are seen as a US creditor that is something of a threat to US security even though the notion is absurd it is popular with the populist movement. If everyone feels better with the dollar backed with something of ultimate trade value coal sounds better than risking our grain supply just because the coal is there as a reserve commodity and not necessarily an active production good. This is as far as a good idea probably goes. People miss the easy credit of the last two financial bubbles and generally like the idea of catapulting the economy into the next greater fool theory festival of easy money. It would be just like getting coal in your Christmas stocking. When the phrase coal in you Christmas stocking was first coined Coal was the means most homes in places like London were heated. Having Coal in your stocking was a lot better than having nothing in the stocking. The word "utility" might even be derived from what coal is considering we call our electric coal plants companies utilities. Maybe a stocking full of coal will be worth more in the long run than a stocking full of freshly printed hundred dollar bills with noting but a vague promise to honor them as the national tender. Tender for what? Having Utility is better. The politicians and lawyers who get brownie points for buying votes with popular sentiment for saving the environment can allow their environmental fad fab friends to go into an open market and buy up dollar backed US assets at face value or market prices that would save them the legal costs of always going to court to prevent the government from making determinations about what resources are available for the public goods for industrial exploitation. If the fab fad environmentalists really believe burning coal is destroying the whole planet they can put their organizations' money to work buying all the dollar backing resource areas they can. It really is only reasonable that if they really believe what they say they do that they put a lot of money where there mouths are for a change. .