Category Archives: News Related Post

Advanced Economies Are Being Pushed Toward Financial Collapse

The US and many other Advanced Economies are likely heading into a worse and longer lasting financial crisis than the 2008 crisis, starting as soon as this summer. The problem will likely not start out as a full financial collapse. Instead, various leveraged borrowers will encounter difficulties. Gradually, the finances and very structures of many government organizations are likely to be threatened. Continue reading

Posted in Financial Implications, News Related Post, peak oil | Tagged , , , , | 1,987 Comments

Energy limits are forcing the economy to contract

My analysis indicates that our expectation of what goes wrong with inadequate energy supplies is wrong. Strangely enough, it is the finances of governments that start to fail, early on. They add too much debt to support investments that do not pay back well. They add too many programs that they cannot be supported for the long term. Continue reading

Posted in Financial Implications, News Related Post | Tagged , , , | 1,771 Comments

The world economy needs to simplify

Economic growth and added complexity sound like they would be good, but at some point, the combination gets to be too much–simplification is needed.

Too much of the world’s income starts going to non-working individuals and to high-earning workers in privileged fields. Continue reading

Posted in Financial Implications, Food issues, News Related Post | Tagged , , , | 1,651 Comments

The bumpy road ahead for the world economy

The path ahead looks very bumpy. The US is likely to be kicked out of its role as global hegemon. Rival countries may choose to attack the US with nuclear weapons, or the US may lash out with nuclear weapons as it sees its hegemony fail. Continue reading

Posted in Financial Implications, News Related Post | Tagged , , , , | 4,101 Comments

The Fed Cannot Fix Today’s Energy Inflation Problem

I expect that the rich countries of the world, including the US, Europe, and Japan, are in line to be adversely affected by high interest rates this time. With their high levels of complexity, they are among the most vulnerable to disruption when there is not enough oil to go around.
The problem I see is that rich countries expect to maintain service economies that are fed by huge streams of manufactured goods and raw materials from poorer countries. This pattern appears unsustainable to me, in a world with falling exports because of energy problems.
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Posted in Financial Implications, News Related Post, oil shortages | Tagged , , , , | 4,007 Comments