Mar 1st 2011, 22:06 by R.A. | WASHINGTON
IF YOU'RE looking to invest for the long term, consider helium:
In 1996, Congress passed the Helium Privatization Act, which directed the Secretary of the Interior to sell off the entire Helium Reserve by 2015. Of course, this was at a time when there were more uses for Helium than ever. But here’s the problem: the price that the helium is being sold at in order to deplete the reserves by 2015 is incredibly below market. It’s practically a liquidation sale. But the low prices are necessary in order to meet the Congressional directive to eliminate the helium reserve.
What’s more, not only is helium being sold below market, but getting rid of the helium reserves is creating a temporary glut in supply. As a consequence, helium is too cheap. Far, far, too cheap. So there’s no incentive to recycle it (possible in industrial applications). Right now, once it’s used, it’s gone.
As a result, it’s estimated that the world could actually run out of helium in as little as 30 years. It’s because of this that the National Research Council recommended that helium reserve prices be set to market, rather than an arbitrary price, and that some reserves are kept in place. If they’re not, the NRC estimates that the United States could become a net importer of helium, a dwindling resource, within a decade.
Let me remind everyone again: once the helium is gone, the cheapest way to get more is to get it from the Moon.
Sadly, the helium never seems to stay in the balloons for very long. Otherwise, I'd have a basement full.
In this blog, our correspondents consider the fluctuations in the world economy and the policies intended to produce more booms than busts.
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So you're telling me my (hypothetical) grandchildren may never know the joy of getting a funny voice after sucking helium out of a balloon?
What a dark, depressing world we're "building."
If we start filling balloons with hydrogen childhood will become much more exciting.
We are #$%#$%#$ retarded. The US is to helium as China is to rare earths, and here we have Congress ordering divestiture. As my police friend says, if you see something that doesn't make any sense at all (e.g. white man dressed in a suit walking about a blighted neighborhood), first try to add heroin or crack cocaine and see if then it makes sense. In the case of Congress I gotta think it's something far more pernicious than drugs at work.
On the other hand, maybe in 30 years time, we'll have fusion power and all the Helium we want ;)
So why does the US government have this policy? Is it just to subsidise businesses that use helium?
I thought government intervention was supposed to manage business interests that cause external or future damage. And that economic nationalism was supposed to do good for your own country at the expense of others. The US government seems to be achieving neither with this policy . Its just subsidising wasteful business, home and abroad.
I suppose when the helium is finished other investors could mine the moon or explode hydrogen fusion bombs to help us with helium supply. As long as there is a return, lets not worry about collateral damage.
Is there anyone sensible in the US government? Where is the leadership?
Its similar to the story about the proposal to pump sulphur into the atmosphere to stop global warming. Seems to be favoured by people who want to make a short-term dollar and those who are scared about taking a hit on the economy for the greater good...its just too bad for anyone else or for the future.