Forum Replies Created
The actions are “human” and yet our minds are described as “reptilian”?November 28, 2014 at 9:29 am in reply to: The Price Of Oil Exposes The True State Of The Economy #16927
Oil price is falling because of economic slowdown.December 24, 2012 at 2:27 pm in reply to: Obama Has Once Last Chance To Become A Great President #6661
There is nothing that can be done because we are looking at a reserve-currency economy. With that, borrowing and spending leading to a weakened economy are inevitable.
Total money supply is more than a quadrillion dollars, and much of it consists of “shadow” derivatives and future government liabilities.
Most of that money isn’t created by central banks but by commercial banks, and comes in the form of numbers in accounts.
Almost all of money supply has no value. As for gold and other precious metals, there may be only around 150,000 metric tons of such, or less than one troy oz. per capita. What makes matters worse is that gold and silver have little practical value.
Given that, there is no relationship between money and energy and resources worldwide. There is too much money but not enough resources and energy to maintain global economic growth. There is no money system that is not “fraudulent” as money is nothing more than debt or something durable and pretty to look at, such as gold. And something like a “gold standard” won’t help either, as the issue works both ways (i.e., you have assurance that your paper currency is backed by gold, but at any point, you should be able to redeem your paper currency, which the one who has gold won’t like!).
Ultimately, what we face is a debt-ridden global capitalist economy that requires increasing credit to support increasing production and consumption of resources, with some making more profits from financial speculation. What we are seeing now is the effect of increasing financial speculation masking a resource crunch.
And that resource crunch coupled with the long-term effects of environmental damage (including climate change) will make a global financial crisis look like a walk in the park.
The problem isn’t that there is not enough money. Rather, there’s too much money: more than a quadrillion dollars, much of it consisting of unregulated derivatives.
The problem, then, is far larger than Bernanke and the Fed. It is a global capitalist economy run by a few powerful global banks.
Oil production has not been able to catch up with demand, which is why other sources of energy, including biofuels, has been used:
and in terms of biofuels likely contributing to higher food prices.
Thus, what should not be happening in our lifetimes took place five years ago. And if you consider per capita oil production, that likely peaked in 1979:
Meanwhile, world oil demand is still going up:
probably with demand destruction in OECD countries now being offset by oil demand for necessities in non-OECD countries.
Given that, it is possible that demand destruction and more economic problems will affect OECD countries, with large amounts of money supply vaporizing, but smaller quantities of money either injected into BRIC and emerging markets or from forex reserves will be used to buy resources (including oil) for necessities.
Given that, we face a combination of a credit crunch and a resource crunch.
And then there’s climate change….