Quote for the day – Nate Hagens. Food for economic thought?

This is lifted from the oil drum:

A third possible future which looks at the financial system as the driver of our current situation was shown by Nate Hagens of The Oil Drum (PDF1), (PDF2). Hagens disagrees with Kopits in calling this the first peakoil recession: “I do not think peak oil caused this financial crisis; peak oil is one of many symptoms of an exponential growth based system running into finite limits.” Due to continued exponential growth in our financial system that was not based on accumulating sufficient resources, we have accumulated so much debt that this can no longer be paid off under any scenario. “We have an amazing overshoot of debt, by my calculations the total amount of debt, not derivatives but total debt, is between 230 and 290 trillion dollars…That’s beyond the ability to pay back…Basically we have overextended the relationship between debt and real assets.” according to Hagens. He showed the amount of debt accumulation in the United States shown in figure 8 below, but it isn’t just the United States. “The whole world is around 300% to 400% in debt relative to GDP.”

So eloquently put!

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