Bank Inquiry will draw Blank

Why?   Because all of them – and that includes the Greens – are still failing to address the finite nature of resources, the ‘doubling time’ of exponential growth, and the need for the current (global) fiscal regime to grow.

That’s all hitting the ceiling now, no growth means no underwriting of the global fiscal system. Some in my on-line circles, think that even the ability to repay the current cumulative global debt, is not there.

It needs real resources, particularly real energy supplies. We are also noting that the Hubbert Curve may well not be a uniform bell-curve. The EROEI (energy return on energy invested) of future oil sources will be worse that hithertofore – we’ve understandably picked the low-hanging (read – easiest pumped) fruit first.

Interest rates, in that light, are a populist waste of time. We think (see ‘the oil drum’ for more) that the money injections may cause hyperinflation, but the jury is out. Other civilisations have gone this way, in miniature, but the bloggers were understandably stressed, and have left incomplete records. For instance, the Greenland Norse died starving but with coins – did they value the coinage at the end?

We need a post-oil fiscal regime that addresses a reduction in activity rates, meaning a reduction in growth. How you assuage greed, aspiration, envy in that scenario, I have no idea. Which is why I pick a big scrap (probably China vs USA) soon. Always, too many people and too few resources make for a fight, and for survival of the fittest.

Where are those bar-bells?


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