It is the denial of our energy situation that assures the certainty of the outcome.

For years now, the American people have been misled by the collective denial, and outright lies, of our political and media establishment.

“The Hydrogen Economy”, “Electric Cars”, and “Clean, Environmentally Friendly Ethanol” each controlled the headlines for about 2 years each since 2001. Today, ethanol made the front page of The Wall Street Journal as the evidence overwhelms the folks in charge of the propaganda for denial that this bio-fuel is not so environmentally friendly and provides little more energy to the end user than was consumed during its production. What’s next, solar powered bicycles?

I was actually fairly impressed with the WSJ for having the temerity to make this a front page article. When the idea of the “Hydrogen Economy” fizzled, the mainstream media did not report on its demise, leaving the great unwashed to assume that “they” were still working diligently on our George Jetson future. I think that perhaps, this time, the WSJ recognizes that further (complete) denial is not in their best interest, any more than putting their fingers in the proverbial dyke. Witness, in the span of 2 weeks, “Peak Oil” and “Ethanol Craze Cools as Doubts Multiply” make the front page headline. Amazing. Perhaps a little late, yet still amazing. When was the last time you heard a politician admit they were wrong?

The jaw boning in the financial media remains deafening, despite the WSJ’s newfound affection for the facts. Two days ago, the financial media was abuzz with reports that OPEC was going to increase their output of crude oil to bring down the price of oil and thus save the world economy from recession. This morning, OPEC is scrambling to get to the microphones to reign in any unrealistic expectations.

“Crude oil was little changed in New York as OPEC ministers said the group is doing all it can to control prices, countering reports of a plan to raise output.

The Organization of Petroleum Exporting Countries currently has no plan to raise oil output when it meets next week in Abu Dhabi because the market is well supplied, Qatar's oil minister said today. Libya's top oil official said the group is unable to increase production any further.” Bloomberg News, November 26, 2007

Folks, none of the available data supports any suggestion of a rapid increase of oil supplies from the exporting countries. Actually, all of the available data suggests that their exports are heading into inexorable decline. Pay no attention to the man behind the curtain! The Wizard of Oz can no more “stand in front of an oil well with a check book”, or an army, and demand that that well produce more.

Oil is slowing the world economy, not the other way around.

Yours for a better world,

Mentatt (at) yahoo (d0t) com