The United States has tens of trillions of dollars of mineral wealth (oil, natural gas, tungsten, gold, silver, copper, molly, palladium, rhodium, scandium, yttrium, bastnaesite, etc...) trapped in the ground by a gordion knot of government regulations and bureaucracy.
By fully exploiting this mineral wealth, the US could not only pay off its entire national debt, but also generate trillions of dollars of surplus tax revenue, pay for universal health care, cut taxes, eliminate the federal income tax, and create tens of millions of American jobs.
Interesting Fact: The United States has more oil and natural gas than any other country in the entire world, including Saudi Arabia. These are the official findings of the United States Senate, page 23: http://j.mp/3HIfQi
We could more than offset our trade deficit with China by feeding their voracious appetite for natural resources.
Another interesting fact: if Nevada were a country, it would be the world's 4th largest producer of Gold.
On a per-capita basis, the United States is sitting on a mind numbingly huge resource of untapped mineral wealth.
The United States has more oil and natural gas than any other country in the entire world, including Saudi Arabia.
Incorrect. We have more fossil fuel in units equivalent to barrels of oil, if you include coal. Without, we have about 1/5th as much oil and gas in proven reserves, but about 50% more than Saudi Arabia in probably-but-so-far-undiscovered reserves. However, the cost of recovery for those estimated reserves is likely to be far, far lower in Saudi Arabia than it is here.
Of course Saudi Arabia has no coal and we have (literally) gigatons of the stuff. But it's also the dirtiest fossil fuel we have, containing more carbon than oil and about twice as much as natural gas, and that externality increases the cost. So yeah, regulations and bureaucracy are holding us back to some extent, but regulations and bureaucracy also go a considerable way to making sure you have clean air to breathe and your groundwater isn't toxic. The mineral exploitation industry has, shall we say, a decidedly mixed record on cleaning up after itself.
Or, more likely, prices would get so low every foreign corporation would buy huge amounts of mineral to stock, thus plummeting your country's economy to the ground. Demand wouldn't increase significantly, so most companies would have a hard time surviving until their stocks could give profits, likely plummeting the rest of the world's economy, and all the related miners' rage and stuff.
As capitalism self-regulates only when economical actors seek profit, you can't expect an instantaneous recovery.
Furthermore, as it is the standard of value, gold's regulation is at least reasonable. If you didn't regulate it, inflation would artificially rise worldwide.
Oh yes, the usual idiotic bullshit -- "if it wasn't those liberals with those environmental protection laws we would all be millionaires and have our own ponies."
Let me just tell you some of the more obvious ways you are wrong:
"Interesting Fact: The United States has more oil and natural gas than any other country in the entire world, including Saudi Arabia. These are the official findings of the United States Senate, page 23: http://j.mp/3HIfQi
This is simply wrong. And the very document you reference proves it wrong. If you see table 5 of the document you provided, the US is well below Saudi Arabia and many other countries in oil and natural gas. It has about 1/10 of the oil reserves of saudi arabia and about 1/6 of the natural gas of Russia. Even if you add oil and natural gas up, the US is not first -- saudi arabia and Russia both have more oil and nat gas than the US.
Now if you think the regulations are the problem, just look at Russia. Russia is notorious for having a corrupt government where environmental and other regulations are broken all the time. It also has about three times as much oil and about 6 times as much nat gas as the US. It is also less than half of the populations of the US. So, by your logic, Russia should be much richer than the US, because it has more mineral wealth and does not have the regulations that prevent its exploitation. But that is obviously not the case. The living standard of Russia is still much lower than the US.
What might have made you confused is that if you add up coal the US does become first. But of course coal has not made any country rich after the mid 20th century. It is too expensive to transport for export and it is dirt cheap because it is dirty, causes global warming and disease, and nobody wants to use it unless they have no other choice. Good luck basing our economy on coal.
The thing about Nevada may be right (I do not have time to check) but in global economic terms gold production is simply not a big deal.
Of course you face the more fundamental problem that you think somehow producing raw materials will get us out of a global recession. The problem with global recessions is that demand for everything tanks and that includes raw materials. The so called "voracious appetite" of China is only voracious because they use it to feed the voracious appetite of America for consumer goods. If Americans keep getting poorer that appetite of China will no longer be voracious and raw materials prices will keep falling.
Raw materials only drive economies when they are relatively small economies that can hitch themselves on larger consumer spending economies that are booming. Thus, for example, Russia was able to improve their economy by selling raw materials to booming US, Europe and China. But a major economy like the US simply cannot rely on raw materials or it will quickly become a minor economy.
[+] [-] unknown|16 years ago|reply
[deleted]
[+] [-] eserorg|16 years ago|reply
By fully exploiting this mineral wealth, the US could not only pay off its entire national debt, but also generate trillions of dollars of surplus tax revenue, pay for universal health care, cut taxes, eliminate the federal income tax, and create tens of millions of American jobs.
Interesting Fact: The United States has more oil and natural gas than any other country in the entire world, including Saudi Arabia. These are the official findings of the United States Senate, page 23: http://j.mp/3HIfQi
We could more than offset our trade deficit with China by feeding their voracious appetite for natural resources.
Another interesting fact: if Nevada were a country, it would be the world's 4th largest producer of Gold.
On a per-capita basis, the United States is sitting on a mind numbingly huge resource of untapped mineral wealth.
We could literally dig out way out of debt.
[+] [-] anigbrowl|16 years ago|reply
Incorrect. We have more fossil fuel in units equivalent to barrels of oil, if you include coal. Without, we have about 1/5th as much oil and gas in proven reserves, but about 50% more than Saudi Arabia in probably-but-so-far-undiscovered reserves. However, the cost of recovery for those estimated reserves is likely to be far, far lower in Saudi Arabia than it is here.
Of course Saudi Arabia has no coal and we have (literally) gigatons of the stuff. But it's also the dirtiest fossil fuel we have, containing more carbon than oil and about twice as much as natural gas, and that externality increases the cost. So yeah, regulations and bureaucracy are holding us back to some extent, but regulations and bureaucracy also go a considerable way to making sure you have clean air to breathe and your groundwater isn't toxic. The mineral exploitation industry has, shall we say, a decidedly mixed record on cleaning up after itself.
[+] [-] lolcraft|16 years ago|reply
As capitalism self-regulates only when economical actors seek profit, you can't expect an instantaneous recovery. Furthermore, as it is the standard of value, gold's regulation is at least reasonable. If you didn't regulate it, inflation would artificially rise worldwide.
[+] [-] hristov|16 years ago|reply
Let me just tell you some of the more obvious ways you are wrong:
"Interesting Fact: The United States has more oil and natural gas than any other country in the entire world, including Saudi Arabia. These are the official findings of the United States Senate, page 23: http://j.mp/3HIfQi
This is simply wrong. And the very document you reference proves it wrong. If you see table 5 of the document you provided, the US is well below Saudi Arabia and many other countries in oil and natural gas. It has about 1/10 of the oil reserves of saudi arabia and about 1/6 of the natural gas of Russia. Even if you add oil and natural gas up, the US is not first -- saudi arabia and Russia both have more oil and nat gas than the US.
Now if you think the regulations are the problem, just look at Russia. Russia is notorious for having a corrupt government where environmental and other regulations are broken all the time. It also has about three times as much oil and about 6 times as much nat gas as the US. It is also less than half of the populations of the US. So, by your logic, Russia should be much richer than the US, because it has more mineral wealth and does not have the regulations that prevent its exploitation. But that is obviously not the case. The living standard of Russia is still much lower than the US.
What might have made you confused is that if you add up coal the US does become first. But of course coal has not made any country rich after the mid 20th century. It is too expensive to transport for export and it is dirt cheap because it is dirty, causes global warming and disease, and nobody wants to use it unless they have no other choice. Good luck basing our economy on coal.
The thing about Nevada may be right (I do not have time to check) but in global economic terms gold production is simply not a big deal.
Of course you face the more fundamental problem that you think somehow producing raw materials will get us out of a global recession. The problem with global recessions is that demand for everything tanks and that includes raw materials. The so called "voracious appetite" of China is only voracious because they use it to feed the voracious appetite of America for consumer goods. If Americans keep getting poorer that appetite of China will no longer be voracious and raw materials prices will keep falling.
Raw materials only drive economies when they are relatively small economies that can hitch themselves on larger consumer spending economies that are booming. Thus, for example, Russia was able to improve their economy by selling raw materials to booming US, Europe and China. But a major economy like the US simply cannot rely on raw materials or it will quickly become a minor economy.
[+] [-] citrik|16 years ago|reply