My Plan to Solve All the Problems
In order to solve the Social Security problem, we need to find a way to invest without issuing more debt or overwhelming the equity markets.
In order to solve the CO2 problem, we need to keep the cost of fossil fuels high enough to make alternatives economically attractive.
The obvious solution, which, through the magic of hindsight, we should have started implementing in 1945, is to run a surplus and buy lots of oil with the Social Security money for the Strategic Oil Reserve. The real lock-box could be under Teapot Dome and wherever else we can store the stuff. It's not too late to start. The one thing we know about oil is that it will become more valuable. If you are able to buy in significant quantities, you can effect the market, and drive up sagging prices. High prices will extend the oil horizon and slow down the burn, reducing annual CO2 contributions. Our Arab allies would love us, and the Chinese would not, which can't be all bad. Moreover, nobody could jerk us around.
6/23/2005 2:07 AM