Chris Gardener, “10 Reasons Not to Invest In Nuclear Energy”, Center for American

Progress, July 8, 2008,

http://www.americanprogress.org/issues/2008/07/nuclear_energy.html

The American nuclear industry has benefited from $100 billion in direct and indirect
subsidies since 1948, and nuclear power provides 20 percent of electricity in the
United States. The technology behind nuclear power is fully developed, so nuclear
energy is unlikely to get much cheaper. Continued subsidies would be necessary to
make nuclear cost-competitive with other energy sources, but will not lower the
overall price of nuclear power.

Deloitte Research—Global Economic Outlook for 2007, Pg. Online (Is a Crisis
Imminent, or are things better than we thought)

To begin with, a basic fact: The US invests far more than it saves (its current
account deficit) and the rest of the world saves far more than it invests (a current
account surplus). This is the big imbalance in the global economy. It involves a
massive flow of capital to the US from the rest of the world. The magnitude of this
transfer is unprecedented in recent history and probably cannot be sustained
indefinitely. Therefore, when it ends, it could have a destabilizing effect on the
global economy, if only because of the shifting of gears. Some pundits argue that
financial market participants recognize this fact and will ultimately move exchange
rates and interest rates in a direction that will lead to a gradual decline in the
imbalance. Yet the imbalance has persisted far longer than anyone expected
without onerous consequences. Perhaps we have entered a new era in which
massive one-way capital flows can take place for long periods without any serious
consequences. So were the pundits wrong, or is the terrifying hard landing
imminent? Well, consider the possible explanations for the imbalance. This may help
predict the likely future scenario. The imbalance will become unsustainable once the
rest of the world becomes reluctant to finance America’s largesse. At that point, the
dollar will drop and interest rates will soar, pushing the US into a recession and
wreaking havoc on the global economy. Research has warned of this outcome in
past publications. Moreover, there is a historical precedent for this scenario. In the
late 1970s and again in the late 1980s, a large US current account deficit was
ultimately unwound through large dollar depreciations, rising interest rates, and
recessions. This was followed by financial crises in emerging markets. The
pessimists believe that this could happen again, but possibly on a larger scale.
Thus, the global imbalance is the result of a “perfect storm of exceptional situations.
Perhaps the world is currently in the eye of the storm. As with real storms, things
get pretty ugly after passing through the eye.
Orszag Rubin and Sinai in 04, http://www.brookings
.edu/views/papers/orszag/20040105.htm

As CBO notes, these various effects of an unsustainable fiscal policy could become
extremely costly: “Taken to the extreme, such a path could result in an economic
crisis. Foreign investors could stop investing in U.S. securities, the exchange value
of the dollar could plunge, interest rates could climb, consumer prices could shoot
up, or the economy could contract sharply. Amid the anticipation of declining profits
and rising inflation and interest rates, stock markets could collapse and consumers
might suddenly reduce their consumption. Moreover, economic problems in the
United States could spill over to the rest of the world and seriously weaken the
economies of U.S. trading partners. A policy of higher inflation could reduce the real
value of the government’s debt, but inflation is not a feasible long-term strategy for
dealing with persistent budget deficits….If the government continued to print
money to finance the deficit, the situation would eventually lead to hyperinflation.
One a government has lost its credibility in financial markets, regaining it can be
difficult.
Foreign investors are critical now; otherwise the US won’t sustain its economy

Joespeh Biden, “US troubles are truly global”, Forbes.com, July 7, 2008

At a minimum, it will be another reminder that no matter how hard we pull on our
own oar, we will not get through these challenges without coordinated effort. We
are no longer the sole engine of the global economy, nor can we solve our own
problems in isolation.

John Sterlicchi, “Microbe Economies”, The Guaridian.co.uk, June 27, 2008,

http://www.guardian.co.uk/business/2008/jun/27/green.fuel.algae

Being careful, according to Metcalfe, is not making bad investments. Just as in the
heyday of internet start-ups, Metcalfe predicts that "charlatans" will roam the
alternative energy space, making outrageous claims for unproven technologies.
They will receive millions from gullible investors and then never be heard of again.
Drying up of foreign investors will push the U.S. into a recession and wreak havoc
on the global economy