A couple of quotes, and a thought….

Here’s Kunstler, pontificating……

“What Next?”

The Peak Oil story was never about running out of oil. It was about the collapse of complex systems in a world economy faced by the prospect of no further oil-fueled growth. It was something of a shock to many that the first complex system to fail would be banking, but the process is obvious: no more growth means no more ability to pay interest on credit… end of story, as Tony Soprano used to say.

….The last desperate act of the banking system in the face of Peak Oil’s no-more-growth equation was to engineer species of tradable securities that could produce wealth out of thin air rather than productive activity.

And Thomas Friedman in The Inflection Is Near?

Let’s today step out of the normal boundaries of analysis of our economic crisis and ask a radical question: What if the crisis of 2008 represents something much more fundamental than a deep recession? What if it’s telling us that the whole growth model we created over the last 50 years is simply unsustainable economically and ecologically and that 2008 was when we hit the wall — when Mother Nature and the market both said: “No more.”

We have created a system for growth that depended on our building more and more stores to sell more and more stuff made in more and more factories in China, powered by more and more coal that would cause more and more climate change but earn China more and more dollars to buy more and more U.S. T-bills so America would have more and more money to build more and more stores and sell more and more stuff that would employ more and more Chinese …

We can’t do this anymore.”


So some of them are getting there. I have come to the conclusion, now, that even when it falls over completely, most of them won’t ‘get’ what just happened to them. We are mathematically stuffed now – ’08 was the ‘big heave’, and it is looking increasingly like we can’t get back there. When economists like Rod Oram don’t get it, nobody else will. I think Cameron Bagrie may actually be the sharpest of the bunch, just listening, but he can’t say it even if he tumbled – he’d be out of a job.  It is clear now that we won’t educate them in time, so we must expect a little angst at the lifeboats. What a sod – it’s so easy to get.  Why don’t they?


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