The Great Transition
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The Great Transition
Policy news & blueprints for the transition to a new Sustainable and Social Economy
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Degrowth, expensive oil, and the new economics of energy

"Expensive oil ... does appear to be suffocating the debt-ridden, global economy, just as it is trying to recover ...

 

Unfortunately, mainstream economists, including those in government, seem oblivious to the close relationship between energy, debt, and economy, and this means they are unable to see that expensive oil is one of the primary underlying causes of today’s economic problems. Consequently, they craft their intended solutions (e.g. stimulus packages, quantitative easing, low interest rates to encourage borrowing, etc) based on flawed, growth-based thinking, not recognising that the new economics of energy means that the growth model, which assumes cheap energy inputs, is now dangerously out-dated. When growth-based economies do not grow, household, firms, and nations struggle to repay their debts, and quickly things begin to unravel in undesirable ways."

 

Excellent analysis by Dr Samuel Alexander of the links between global energy descent, rising commodity prices, the end of growth and the Great Depression.

 

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Commodities Look Set to Rocket Higher

Commodities Look Set to Rocket Higher | The Great Transition | Scoop.it

"The supply-and-demand argument rests on the time-tested notion that with increased demand, new supplies are brought to market. ... The point ... is that the usual supply and demand argument falls apart in the presence of limits."

Investor and financial expert Chris Martenson explains why commodity prices will keep rocketing higher even in a period of economic crisis

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