Monday, February 23, 2009

The Greening of America part 2

On my last blog, I briefly commented on the greening of America. This is a very special time for our future, since we finally, as citizens have felt the cost of dependency of scarce resources such as fossil fuels. When gas prices reached $4 + dollars per gallon, people started to conserve, indeed we did collectively. Why, because it hurt the bottom line, our earnings. This created a surplus on supplies that resulted in prices decreasing for a period of time. As a economist, we always refer to supply and demand, when demand decreased and oil production remain constant; it provided a surplus and thus lower commodity prices. Since then the OPEC group have decreased production thus lowering supplies to level fuel prices. It takes time to balance the supply and demand as the mechanisms take take to adjust to either side. One fact is that the more we conserve the better will be eventually. As green innovations and green government driven programs it will come with a price. Mostly, with any innovation requires time and money to make it profitable for companies creating new green products. (hint, invest in green research) Remember, Cells phones, computers, and televisions, these have gone through this process. We can get free cell phones, laptops for $300 or less and so on. The solar and wind industries will go through this phase; there is no free lunch in this life. So we all have to pay for it sooner or later. My take on the greening of America is to welcome innovation and support change. Going back to the Cuba peak oil crisis in the mid 1990's. This greening will be worthy news in the papers as the current financial market is nowadays. Future oil prices will be astronomical (scarce commodity) and commodities will be valued at imaginable prices. A good example of a scarce resource is gold; breaking the $1000 a troy ounce barrier (again). Oil prices for barrel will be approximately the same. Learning from the community spirit of the Cuban people during the 1990's as a micro example to what will happen to us; we can prepare smartly.
Suggestions: Buy land that you can use to grow crops, for personal and for profit. Utilize wind or solar power eventually, while converting existing energy use. Learn to farm with organic soils and products suitable to your area. We should go back to the traditional farming techniques. the soil will provide its own nutrients and greener harvests. This microeconomics philosophy is to help one's community. If you have children; propose degrees in agriculture economics. These will be the best paying jobs in America and the rest of the world. Currently there are only about 2 million farmers in the U.S. Remembering the philosopher Abraham Maslow and his Hierarchy of needs pyramid; the core elements are shelter, food, security, clothing at the bottom of the pyramid. Food will be paramound, who will be able to grow and produce food for commerce or consumption?. (locally) It may not come in 10, 20 or even 30 years, but it will come nonetheless.
Happy harvesting
Hannibal Chinchilla

Sunday, February 15, 2009

The Greening of America

The new administration on passing some legislature on green initiatives. They are a bit late; but it will be said that they try to reverse the course of our existance. It will take more than 8 years and perhaps decades to reverse or change the damages done by all of us. The greenning of America can somewhat reverse the decades of damage we have cause on the environment and the land. The biggest question we should all think about is what are we doing to help our future generations. What are we leaving behind: Scarcity, depleted or non-existent natural resources, polluted rivers, waterways, air pollution, trash and pestilence. One scary thought is that we all know that we are going to run out of oil; the predictions of when the OIL PEAK will happen varies; 15, 20, 40 or 50 years; nobody knows for certain. One certain thing is that it will happen. Maybe not to us but to our future generations. Sadly, this has happened once in our life time, many do not even know it happened; It happened to the island of Cuba when the Soviets (Russia) ended all supplies and financial help. Fuel, cooking oil, food, insecticides were not delivered to the island. This happened in the early 1980's. The average Cuban lost 18 lbs of weight in the first year. Food supplies were not available because there was no gasoline to run transportation trucks from the farmlands and agricultural areas. Imagine when this starts happenning in the US. Think of all the trucks that go 24 hrs a day taking, bringing food supplies to all the cities in the United States from their distribution centers. When, we run out of gasoline, how are we going to get our food? Great question. Well, the Cuban people aswered this question for us already. Stay tuned for next week's blog to find out. In the meantime think of ways to resolve this future change.

Sunday, February 8, 2009


Many people always wonder about the current situation; not knowing what to do and perhaps pointing the finger at others for decisions previously made. Buying that house, getting twelve credit cards, not saving for the emergency fund just in case you get lay off; procrastinating and again pointing the finger and blaming everyone else. I recommend taking ownership and responsibility. One that I do not understand is taking care of the families. I have been introduced to a more somber part of life, death. I experienced what families go through when someone dear dies suddenly and the sad part is that they have to ask for a collection to pay for the funeral and final expenses. This is very sad. On the other hand, I have experienced families that possesses an emergency fund, life insurance for the family and when someone dies they can cope with the loss more respectably and keep the family afloat. Only 30% of the population possesses some form of life insurance. Most have only a skimpy group insurance for $10,000 death benefit. That only covers final expenses, how about if you have young children and a spouse? what are they ought to do? For one start with a financial plan. this will help you analyse, how much you will need, but essentially what happens if you do not get up the next morning, how this protection will be used to fund your family's future and well being. No one likes to think about death. It is inevitable and it will happen. I have learned of a product that provides a triple solution to family planning. 1. it provides protection for all the members. 2. it provides a cash accumulation just in case an emergency happens (emergency fund) and 3. it can be used to fund a retirement account that provides tax-free benefits, now I like that. It covers three essential needs and it protects your love ones. It is sad that many learn this to late and when they become uninsurable. Goals without a plan are just plain dreams and wishful thinking.

Sunday, February 1, 2009

Getting through the bad news

This blog is more about personal inventory. Previously, I talked about the power of positive thinking. During current times one ought to take a personal inventory of what is important personally and financially to stay positive. One step to deal with negativism is to steer clear of it. Spend one day listening to others, on the radio, TV, friends, colleagues etc. How many times do you feel drained after a listening session from these sources?. One ought to be able to block negativism and dwell on intangible issues. Everyone needs a paradigm shift; positioning yourself to be able to capture these opportunities are very important nowadays. I have been able to turn off negativism by doing more reading, researching and spending time with positive thinkers and alike individuals that perform and excel under any circumstance. Where do you find these individuals? well, if you listen and pay attention you will find them. I am engrossed in a book about peakers, people who peak at their own individual endeavors no matter what; they do not throw in the towel easily, in contrary, they analysed and focus on intangibles that of course are more rewarding and long lasting. We live in a short-term return on investment type of society. We like prompt rewards and easy ways to get what we want, when these expectations do not perform people jump ship and try other ways to get quick satisfaction. I am being vague about this rationale because you can suit it for your own reading and situation. Getting through the bad news is about changing and transforming one's expectations to focus on what is important; not what everyone else is doing about it. Be a leader not a follower; Take a personal inventory on the physiological needs, then your safety and protection (emergency funds), get involved in community services to build your self esteem and lastly work on your self actualization needs, what really makes you happy?