Carnegie Management Forecast 5

The assets of foreign sovereign wealth funds will exceed the net capital of the U.S. banking system in less than five years.

The assets of sovereign wealth funds are soaring because of exported U.S. dollars. At current rates of growth, Charles R. Morris, author of “The Trillion Dollar Meltdown,” says the assets of foreign sovereign wealth funds will exceed the net capital of the U.S. banking system in less than five years.

IMPORTED OIL FROM OPEC
FINANCES GLOBAL TERRORISM

The U.S. spends $700 billion ($700,000,000,000) annually to import oil from OPEC and other oil-producing nations that are dedicated to the destruction of U.S. economic power. This figure continues to rise annually. Foreign countries place a substantial portion of our exported dollars into sovereign wealth funds and invest the money in U.S. assets, such as Citigroup and, most recently, the GM and Chrysler Buildings in New York City. In addition, OPEC countries build state-of-the-art cities in the desert, financed by revenues from the U.S.

President Bush rescinded the first President Bush’s executive order banning offshore drilling because China is drilling for oil 60 miles from Florida’s coast. The four-dollar-a-gallon gasoline we experienced recently has dramatically rearranged the spending priorities of American consumers. Automotive sales have plunged to the worst levels in decades. Ford and GM are caught with 8-cylinder cars and SUVs they cannot sell to U.S. consumers. Bankruptcy rumors persist for both firms.

On the other hand, Toyota and Honda can’t produce their 4-cylinder and hybrid vehicles fast enough. Toyota is building a new Prius plant in the U.S. and converting its Highlander SUV plant to Prius production. Record fuel prices destroyed the airline industry and decimated the profitability of the transportation industry; $147-a-barrel oil destroyed the global boom.

Southern Europe is already in a recession, while Northern Europe is reporting slowing growth and profitability. None of the emerging market stock indexes are currently showing a profit. Oil production is 85 billion barrels per day and declining, while demand is 86 billion barrels and rising 1.4 percent annually.

In the U.S., there are 750 autos for every thousand people. In China, there are two autos for every 1,000 people. The average American consumes 25 barrels of oil annually. Japan consumes 14 barrels per person, India consumes two barrels per person, while China consumes one barrel per person. China is searching the world for every barrel of oil, while also building 200 nuclear plants to produce electricity.

Energy production is a “Manhattan type” top-priority project in China, whereas the U.S. Congress is out-to-lunch with the lobbyists.

There is over one trillion barrels of oil under the Rocky Mountains in the form of oil shale. The U.S. has more oil reserves inside the U.S. and offshore than all of OPEC combined. “In addition, the U.S. has vast reserves of natural gas and 27 percent of the world’s recoverable coal. The coal in the ground in Illinois alone has more energy than all the oil in Saudi Arabia. (Source: The New York Times)

“America’s coal reserves are equivalent to 20 times our proven crude oil reserves. Liquefied coal could solve our liquid energy needs for the next two centuries. An energy department report indicates that the “Green River” formation, underlying parts of Wyoming, Utah and Colorado, contains as many as two trillion barrels of oil, trapped in porous rock close to the surface. Two trillion barrels is seven times the Saudi reserves.” (Source: Investor’s Business Daily, July 15, 2008, www.investor.com)