Drought Stock Market and Economic Impact:
Lifestyle Changes

If you have not evaluated your stock portfolio in light of the Oil Drought discovery, you should. A rule of thumb is what industries will be affected because

• the rest of the world cannot come up to America's level of CO2 production and pollution (sixteen times the world average)
• the rest of the world is not going to allow America to maintain the energy-wasting lifestyle destructive of the human eco-system.

History may well judge America as having committed the greatest tragedy of the 2nd Millennium: Destruction of the 3rd Millennium:

• As there would not be any social, economic and political troubles in the drug producing countries if Americans were not the biggest market for illegal drugs,
• so would there not be the same troubles from droughts throughout the world if Americans were not the biggest abusers of fossil fuels.

The droughts may be caused by distant oil-fields, but the wells would not be working overtime if it were not for the empty oil tankers waiting to steam another fix for America's addiction.

Of course, all projections are off if the Texas Oil Cartel gets us into a war with an energy-confused and energy-demanding China--DOE report.

1. Energy stocks (production, marketing, exploration and equipment) will plummet as
   • people realize that oil production has to be drastically cut and
   • class action suits becomes a reality with fines in equity, not inflationary cash--the dilution of share ownership will drive the stock price down. Smart people will get out be for the avalanchal capitulation.
   • Energy dependent companies will suffer rising prices eating severely into profits.
2. The workweek will be shortened as escalating unemployment means either
   • fewer people over-working over-time in a more stressful, crime-ridden world with higher taxes and insurance, or
   • all work shortened workweeks to personally buy basic needs rather than go on the dole provided by those stuck in forty-hour workweeks with higher taxes to support those on the dole. Of course the politicians can always start running the money and bond presses which will, like fast tax cuts (Bush tax plan) merely show up as inflation.

   By better employing our human resources we can have a 24 hour workweek in 4 years with more disposable money and time for self, family, and community in a safer, saner world: 24 in 4.

   • In general, the stock markets will decline because of the growing cost of and rationing of energy.
   • National energy costs will rise as a result of the Texas Oil Cartel letting OPEC tax us rather than educating us to why and how we could tax ourselves--Tax Me Please.
   • Projected corporate revenues will consistently come up short. Why? Economists do not take into account that Mother Nature is defaulting on our environmental debt. It's like LTCM all over only it is not the Russians defaulting on bonds but nature defaulting on carbon dioxide.
   • Complimenting the rising energy prices that erode dwindling profits will be tort reform in which fines are paid in equity, not inflationary cashflow.
3. If you want a more pessimistic projection than the above optimism conclusions, read Necronomics: The dying laws.
4. Exxon Mobil and Royal Shell will never complete the $25 billion gasification in Saudi Arabia from which they expect to increase income by 16%-18%.
5. Saudi Arabia's oil exports will decline. Its past subsidies of the world's highest birthrate will come back to haunt it. The decline in per capita income and lifestyle will fuel internal upheaval as the world without restricts movement of Saudi nationals because of their increasing terrorist acts. Islam will self-destruct as new generations see the self-serving hypocrisy of secular and religious leaders in using and abusing the Koran.
6. Japan will become more militaristic for the reason that it launched its naval invasion of the Dutch East Indies as part of WWII: Oil. Japan will become less and less of a factor in global economic considerations as its energy costs increase as a percentage of GNP. Russian oil deals will not be the answer.

Stocks prices will be lucky to tread water. Stocks stay afloat becuase people have money to invest and the stock market seems the lesser of all evils.

If you would like to be prioritized on the list of another discovery to be shared, email timism. First come, first shared. The next discovery will be emailed on a Monday morning before the stock market opens. The discovery will not be shared until sufficient people have emailed Timism.com with valid email addresses.

The author has comprised a "Marshall Plan II" to deal with the rapidly declining and changing economic reality to prevent the political and social chaos that General George Marshall sought to prevent after the World War II.

• Workers don't have to worry about employment.
• Investors don't have to worry about inflationary bubbles.
• Homes don't have lose value.
• College loans are affordable not indentured servitude.

Notes:

1. Intel, burnt toast
2. East Asia oil fields
3. Saudi gas plan
4. Maggotsoft: 1:10 vs 10:1