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Forums - General Discussion - Global Economy Crisis Chatroom

The chances of the economic crisis, the real one anyway, ending any time soon is quite unlikely. The real fundamental issue is that the world runs on fossil energy and not only is the cost to extract that energy rising in monetary and EROEI (energy return on energy invested) terms, the world also needs increasing quantities of energy just to maintain the status-quo. Given that oil production has remained stagnant in recent years, the only growth has come from coal and natural gas production and exploitation, soon even that will end and the world crisis will only deepen from there.

Given the fact that growth is likely to not be sustainable in the near future one of two things is going to happen. Either the debtors will default on their loans because they take an ever increasing proportion of their money supply away at the expense of the net savers or the savers keep the majority of their money at the expense of further increasing hardship for the net borrowers. I believe the former scenario is the more likely one and I suspect that a large proportion of the paper wealth in the world which was expected to finance the future retirement and prosperity of many people will evaporate like liquid nitrogen in the mid day sun.



Tease.