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Tag Archives: Seneca cliff
Spike in energy prices suggests that sharp changes are ahead
Now, through several iterations, the economy has become increasingly complex, with less and less redundancy to provide stability. The energy price spike that is being experienced today is a warning that something is very, very wrong. As I see the situation, the trend toward complexity has gone too far; the economic system is starting to break down. Sharp changes appear to be ahead. The world economy is shifting into contraction mode, with more and more parts of the system failing. Continue reading
Posted in Financial Implications
Tagged collapse, complexity, economic models, high oil prices, Seneca cliff, stability
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The Physics of Energy and the Economy
I approach the subject of the physics of energy and the economy with some trepidation. An economy seems to be a dissipative system, but what does this really mean? There are not many people who understand dissipative systems, and very … Continue reading
