Category Archives: Financial Implications

Why Oil Shortages May Bring Lower Prices–and Recession

Rather than high prices, my major concerns are recession and the disappearing availability of goods and services that we rely on. This might be similar to the empty shelves that many stores experienced in 2020 and 2021. There may also be new government restrictions, intended to work around the reduced oil supply. Continue reading

Posted in Financial Implications, News Related Post, oil shortages | Tagged , | 387 Comments

Losing the Iran War May Be the Best Outcome for the World

At this point, the world economy needs to make a major transition in order to deal with the inadequate level of fuels available for long-distance transportation.
It is ironic that the world economy cannot make a change such as this without a war to focus our attention in this direction. Continue reading

Posted in Energy policy, Financial Implications, News Related Post | Tagged , , | 3,760 Comments

A New Explanation for Tariffs and Bombings

Because of energy-related shortages that are already being encountered, national economies are beginning to act like the players in a game of musical chairs, with one too few chairs. Leaders have taken to building up armies, cutting off exports of critical minerals, imposing tariffs, and bombing other countries. Continue reading

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Understanding Deglobalization: The Role of Diesel and Jet Fuel

While international trade grew as a percentage of GDP between the 1960s and 2008, it has been basically flat since then. Now the shortages of diesel and jet fuel are forcing the international trade percentage to start falling to a lower level. Continue reading

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2026: Expect a very uneven world economic downturn

The Maximum Power Principle strongly suggests that even as limits are hit, the world economy cannot be expected to collapse all at once. Instead, the most efficient producers of goods and services will be able to succeed as long as resources are available, while less efficient producers will tend to fall by the wayside. Continue reading

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