Gail Tverberg writes: We are experiencing a world economy that seems to be reaching limits, but the symptoms are not what peak oil groups warned about. Instead of high prices and lack of supply, we are facing indirect problems brought on by our high consumption of energy products. I have called it a double pump problem.
Chris Martenson writes: The data seems to confirm this: Humanity is not going to painlessly wean itself off of fossil fuels. Instead, we will hit some sort of a wall: a food/population crisis, a climate crisis, or a debt/fiscal/economic crisis. Each of those candidates has its roots in our global society’s addition to fossil fuels.
Financial bubbles arise when asset prices inflate above what incomes can sustain. The mathematical reality is that the current over $200 trillion in debt and perhaps another $500 trillion of un(der)funded liabilities really cannot ever be paid back under current terms. In order for these obligations to be reset to a reality-based level, something has to give.
Colin Todhunter writes: There is a notion that we can just continue as we are, with an endless supply of oil, endless supplies of meat and endless assault on soil, human and environmental well-being that intensive petrochemical agriculture entails. Given the statistics, this is unsustainable, unrealistic and a recipe for continued resource-driven conflicts and devastation.
Gail Tverberg writes: We are about to see a substantial disruption to the economy, as oil limits, as well as other energy limits, cause the economic supercycle to contract. Whether its Peak Oil, the Limits to Growth, or the Debt Supercycle, the underlying problem is the same – we’re reaching the limits of a finite world.
The Economic Times reports: The Central government has unveiled a new Crop Insurance Scheme with the premium to be paid by farmers as low as 1.5 per cent of the sum assured for all rabi crops and 2 per cent for kharif crops. The scheme comes without any cap on overall premium rate to ensure full claims.
Gail Tverberg explains the correlation between rates of GDP growth and growth in energy supply. For decades, energy has been becoming more costly to obtain, but instead of accepting lower GDP growth, we have been using debt to fund further energy extraction. That strategy has diminishing returns, and we are close to the moment of reckoning.
The oil industry’s fake abundance story From Kurt Cobb’s Resource Insights blog We now have nearly an entire population in the United States and nearly an entire media establishment that believes that oil is abundant–not because of the objective facts, but because of the oil industry’s highly successful public relations campaign, a campaign that is