Debt Rattle Boxing Day 2014

 

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  • #17835

    Marion Post Wolcott “Center of town. Woodstock, Vermont. Snowy night” 1940 • SF Fed Warns US Stock Values Will Be Cut In Half In Next Decade (Zero Hed
    [See the full post at: Debt Rattle Boxing Day 2014]

    #17836
    SteveB
    Participant

    I had been wondering along the lines of JMG’s piece with regard to the net energy of oil extracted since 2005. Anyone know of an attempt to quantify it in those terms?

    The logic of the Mises Inst. piece breaks down where they equate “unease” with “the possibility of poverty”. Kind of like how we think ourselves into believing that money is necessary when it isn’t. Until we stop just going along with the illogic, we’ll continue to keep going along with it.

    #17837
    rapier
    Participant

    I’ve seen 4 to 1 on net energy return for tight oil.

    I reject the generational change as a force to drive stocks lower. The amounts that will be liquidated by retirees is not that big a part of the whole anymore as the super rich own ever more of all stocks.

    The great thing about central bank money printing adherents is that they always say it hasn’t succeeded because it isn’t enough. Kuroda just boosted the monthly amount from the $70 billions $100bn and it barely was noticed. The efficacy is not in doubt anywhere in the mainstream. One thing about Japan is the thing about all developed countries now. It isn’t about their people its about their corporations. Almost literally all the people of Japan not working directly for multi national corporations could disappear tomorrow and it would not matter to the ‘markets’ at all. Well it would be good for the Yen I suppose.

    #17838
    technocrat
    Participant

    “the net energy of oil extracted since 2005. Anyone know of an attempt to quantify it in those terms?”

    On a country by country basis the increasing energy used for oil extraction is some component of the internal oil usage of the export land model.
    https://en.wikipedia.org/wiki/Export_Land_Model

    Surprisingly that wiki page shows very little editing over the past few years. It seems usual to the attribute the increase in internal usage to rising standard of living, air conditioning, etc. and not to falling EROEI.

    Another consideration, if country A has10:1 EROEI then it can extract 11 barrels and export 10 to country B. Country B can run that through its 2:1 fields to produce 20 barrels, using 5 of those internally and exporting 15. So country B gets the effect of 15 barrels of consumption on GDP and is a net exporter to boot. But this all falls apart without the high EROEI imports from country A.

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