Chris Martenson from Peak Prosperity points out that “any fourth grader will tell you, a finite system will not yield unlimited resources. But that perspective is not shared by those controlling the printing presses. And so they print and print and print, yet remain flummoxed when supply (and increasingly, demand for that matter) does not increase the way they expect. Is this any way to run an economy? Or a finite planet for that matter?”
He interviews energy and environmental expert and author Kurt Cobb who warns that our current economic policy suffers from a fatal degree of magical thinking: sufficient new resources will emerge if the price is high enough.
I think you put your finger on it: people who run our central banks and run our government policy think that money manufactures resources. If we just put enough money out there, it will call forth the resources. There is a little bit of truth to that, because very cheap finance made it possible for us to lift this $100 barrel oil out of the shale formations of North Dakota, Texas, and other places. That is not endless, and the high price puts pressure on the economy. I think this is where we are going to have problems.
We cannot sustain those high prices in the long run. We have structured an economy for cheap energy and that is not what we have. It has resulted in a slowdown that I think is the beginning of that transformation from a high growth economy to a low growth economy. In fact, we probably already began that in 2008.
Peak oil? The world is swimming in it. And when the economy collapses people won’t be driving much anyhow. The price of about everything is climbing “inflation”to the point that energy and transportation is getting out of reach for many.Housing also. I am still waiting for Hydrogen powered cars. People here still drive gas guzzler pickups to work each day.
So oil hasn’t become an issue yet.
I have heard and read about peak oil since the mid 70’s when people ditched v8’s and went to higher mileage cars like Japanese cars. The decades long mid east conflicts apparently isn’t effecting oil. I have heard about America’s collapse since the late 70’s and here it is forty years later, which is why I only do three months of preps. If nuclear power plants melt down after a long term power outage, those anywhere near a plant will be dead in weeks or days regardess of how much preps they have.
peak oil ASSumes no new technology will ever come along to discover new ways??