Tag Archives: collapse

How Does the Economy Really Work?

The world economy is an amazingly complex, physics-based, self-organizing system. The three major elements are extracted resources including energy resources, human population, and demand coming through the financial system. All three of these elements tend to increase over time, but both population and extracted resources tend to hit limits because the world is finite. Continue reading

Posted in Energy policy, Financial Implications, Introductory Post | Tagged , , , | 1,844 Comments

When the Economy Gets Squeezed by Too Little Energy

When people forecast ever-rising energy prices, they miss the fact that market fossil fuel prices consider both oil producers and consumers. From the producer’s point of view, the price for oil needs to be high enough that new oil fields can be profitably developed. From the consumer’s point of view, the price of oil needs to be sufficiently low that food and other goods manufactured using oil products are affordable. In practice, oil prices tend to rise and fall, and rise again. On average, they don’t satisfy either the oil producers or the consumers. This dynamic tends to push the economy downward. Continue reading

Posted in Financial Implications, oil shortages | Tagged , , , | 4,563 Comments

The economy is moving from a tailwind pushing it along to a headwind holding it back

When the Crisis Stage occurs, there are fewer goods and service per capita to go around, so some members of the world economy must come out behind. Conflict of all kinds becomes more likely. Political leaders, if they happen to discover the predicament the world economy is in, have little interest in making the predicament known to voters, since doing so would likely lead them to lose the next election.

Instead, the way the physics-based self-organizing economic system works is that alternative narratives that frame the situation in a less frightening way gain popularity. Political leaders may not even be aware of how dependent today’s economy is on fossil fuels. Researchers may not be aware that their “scientific” models are misleading because they look at too small a portion of the overall system and make unwarranted assumptions. Continue reading

Posted in Alternatives to Oil, Energy policy, Financial Implications | Tagged , , , , | 3,874 Comments

Russia’s attack on Ukraine represents a demand for a new world order

Russia’s attack on Ukraine represents a demand for a new world order that, over the long term, will support higher prices for fossil fuels, especially oil. Such an economy would probably be centered on Russia and China. The rest of the world economy, to the extent that it continues to exist, will largely have to get along without fossil fuels, other than the fossil fuels that countries continue to produce for themselves. Population and living standards will fall in most of the world. Continue reading

Posted in Energy policy, Financial Implications, News Related Post | Tagged , , , , | 5,373 Comments

Is it possible that the world is approaching end times?

It is disturbing to think that we may be living near the end of the world economy, but there is an upside to this situation. We have had the opportunity to live at a time with more conveniences than any other civilization. We can appreciate the many conveniences we have.

We also have the opportunity to decide how we want to live the rest of our lives. We have been led for many years down the path of believing that economic growth will last forever; all we need to do is have faith in the government and our educational institutions. If we figure out that this really isn’t the path to follow, we can change course now. If we want to choose a more spiritual approach, this is a choice we can still make. Continue reading

Posted in Financial Implications | Tagged , , , | 6,123 Comments