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Letter From The Universe...

Dear Humanity...

In 1913 British coal production peaked and began to decline. The decade that followed was indescribably horrible for many in Europe. (See WWI for starters)

In 1971 US oil production peaked and began to decline. The decade that followed saw two energy crises and economic catastrophe.

In 1987 oil production in the Soviet Union peaked and began to decline. By 1991 it had became The Former Soviet Union due to a violent economic and political collapse.

In 1998 Argentinian oil production peaked and then began to decline. A year later the country experienced a violent economic and political collapse.

In 2006 the global production of conventional crude oil peaked and is now declining. Since then we've seen a global recession, resource wars and social unrest.

Now US oil production is going up thanks to tight oil wells.

Here's a little information about these wells that are being called a, "miracle."

Each costs from $6,000,000 to $10,000,000.

Each has a max lifetime of about 30 years.

In that 30 years a single well will produce between 500,000 and 1,000,000 barrels of oil.

The World consumes that much in less than 20 minutes.

So... $10,000,000 and 30 years to get 20 minutes of oil out of the ground.

That is ridiculous and is resulting in oil prices that have a very negative effect on economic growth.

The US economy is teetering on the brink of collapse and is holding itself together because...

1) The Federal Reserve is printing more than $32,000.00 per second to buy bad investments from the banks they're calling, "troubled assets."

2) Oil production in the US is going up due to unprecedented effort in the Bakken and Eagle Ford plays.

1) can only happen successfully while 2) is happening. Once production in these plays begins to decline (which is inevitable) then the money printing will no longer be effective in making sure the US Dollar is the global reserve currency.

The next peak will be the beginning of the end of the US as a super power.

Plan Ahead - Plant A Garden

Sincerely,

The Universe

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