Economics of Crude Based Federal Revenue
Bob Stevens: Posted on Friday, December 12, 2014 3:11 PM
Hello and Welcome Back Everyone!
Today, and again based on an article parts of which I'll quote, I want examine the connection / symbiotic relationship of federal revenue:crude oil revenue. Article title - " The real reason Saudi Arabia can afford a price war against US shale."
I would like to show 2 graphs from above article, unfortunately they will not copy & paste. In first graph, "Oil Revenue as a share of government revenue," several countries including USA are depicted. USA is lowest by far (< 5%), with Iraq at about 90% followed by Saudi Arabia at about 85%. Russia is at approximately 50%.
Second graph shows "Oil price necessary to balance fiscal budget" highest being Libya at $186 / barrel; Iran at $130 and Saudi Arabia at $86 / barrel. Russia is not shown.
Saudi Arabia over past several HIGH priced oil, was able to "save" hundreds of $Billions thus can "wage war" against American shale oil. Other countries such as Iran & especially Russia cannot.
The point I make is any economy and / or federal revenue tied to price of the barrel crude always ends in economic hardship exposing economic vulnerability or "national security."
Now we turn to PPP EVs (Portable Power Plant Electric Vehicles) with Prosperity for all via residual revenue streams.
PPP EV manufacturer not only recoups 70 - 90% of existing working capital along with increased price of PPP EV (& profits), they also get small residual from grid supply over life of energy generation (grid supply contracts).
While some may argue putting large numbers of PPP EVs on the road for transportation "endanger" conventional internal combustion engine powered vehicle sales therefore crude oil revenues, actually quite the opposite is true. Who would "unplug" their "retirement income" from the grid just to lose money driving their PPP EV around? Answer- no one! Instead they would go out and purchase a gas guzzler / gas powered / or electric vehicle making monthly payments on new car loan from grid revenue checks & likely directly from grid supplier paying check to car dealer (who is also include in PPP EV residual revenues as well as all time profits selling PPP EVs. This illustrates a consumer driven economy on steroids!
Federal government gets continuous revenue streams- again from grid revenues; customer gets residual "retirement" along with "free" residential utilities, local banks share in prosperity financing PPP EVs from grid supply contracts as loan guarantee - in short Prosperity introduced & implemented on all levels.
It gets even better - when any country bases their currency on domestically produced sustainable green energy from PPP EVs, currency becomes invincible - no longer vulnerable to price of the barrel crude "wars" as the world currently experiences.
Based on the number of worldwide visitors to this site, I think the word is beginning to "trickle" out.
I realize this article is brief, but as usual I will return with more.....
Renewed American Spirit ~ Catch It then Pass It On