Corruption and economic instability in the news

[ I can’t keep up with the flood of news about corruption, fraud and economic instability, which is just a symptom of the real problem: the end of growth. In a credit/debit system, lenders won’t lend if they think the money won’t be repaid. That hasn’t been a problem for the last 100 years as we exponentially produced more oil, coal, and natural gas.  But that ended in 2005 when peak conventional oil was reached and it is likely we’ve reached global peak coal as well.  

If we have another crash, there goes to the credit for oil companies to explore and drill for more oil, and there goes the ability of the rest of society to grow businesses and repay creditors. It’s already happening, only 2.4 billion barrels of oil were found in 2016 but we burn 30 billion barrels a year. In fact, we’ve been using more oil than’ we’ve found for decades. This is why the financial system is included in the Fast Crash category, even though it’s obviously peak energy and resources limiting growth.  Also, to most people it will appear that the financial system was at fault, not lack of energy.

Below are links to just a few of the “crash coming” articles I run across, just like I did long before 2008. This time we’ll be in much worse shape since the central banks can’t keep printing money forever.

Alice Friedemann   www.energyskeptic.com  author of “When Trucks Stop Running: Energy and the Future of Transportation”, 2015, Springer and “Crunch! Whole Grain Artisan Chips and Crackers”. Podcasts: Derrick Jensen, Practical Prepping, KunstlerCast 253, KunstlerCast278, Peak Prosperity , XX2 report ]

Fraud, corruption, and economic instability

Crash coming   Also see posts in category Crash Coming Soon

Wall Street

Banks

2016-04-09 Wells Fargo “Admits Deceiving” U.S. Government, Pays Record $1.2 Billion Settlement

Fracked oil and gas “tight” bubble

Housing Bubble

Auto loan bubble

Student debt bubble

2016-04-07 Shocking statistic: Over 40% of student borrowers don’t make payments

Debt

Distribution of Wealth

Tax Havens

Money

Unemployment

2016-12-2 What ‘are so many of them doing?’ 95 million not in US labor force

Capital controls and the war on cash

Negative interest rates

Helicopter money to keep economy going

2016-04-07 JPM, ECB Hint at Arrival of “Helicopter Money” in Europe Following Next “Significant Downturn”

Economists are idiots

The new astrology. By fetishizing mathematical models, economists turned economics into a highly paid pseudoscience

Defense Department

2015-04-21 F35, The jet that ate the pentagon ($1.5 trillion so far)

Pensions

China

China produces 99% of some of the rare earth metals essential for computers, cars, wind, solar, and electronic gadgets.  And cheap products that the U.S. and other nations depend on.  If their financial system crashes, it will take the world down with it.

 

 

 

 

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2 Responses to Corruption and economic instability in the news

  1. Weogo Reed says:

    Hi Alice,

    India is attempting to crack down on ‘black money and corruption’:
    http://www.bbc.com/news/business-37906742
    Seems small-scale to me, but maybe it will bubble up to the rich.

    Years ago a friend proposed a world currency based on Salt.

    A) Salt will always have value – there are only a few places in the world that you can just pick it up.
    Mining and evaporation both take effort and energy, and even if you are carving salt blocks out of a formation, this takes effort, and still requires transportation.

    B) Salt can’t be hoarded. The price per kilo would not have to go very high for a bunch of folks to set up their own salt evaporator pans at the beach.

    C) One kilo of salt = one dollar/rupee, yuan, peso, etc.
    With every currency in the world based on salt, every country could have their own paper bills and coins, that would be equally exchangeable.

    D) All forex traders would have to get real jobs.
    No more currency wars.
    Get some smart people to set this up so it works long-term.

    Thanks and good health, Weogo

    • energyskeptic says:

      Guess that will depend how far we fall, and how far in the future. I expect currencies will reflect what’s available locally. If you look at the history of money you’ll see obsidian, cattle, clay tokens, coins, etc. The local Indian tribe that used to live in the San Francisco Bay Area, the Miwok, used abalone shells. Only a few coastal tribes could make them. They cleverly excised round pieces from the shell and punched a square hole through it so many coins could be strung on a leather cord worn as a necklace or belt. At a Rainbow Gathering a few years ago in a national forest, snickers bars became the currency (like burning man, nothing is supposed to cost anything, but..) . Salt will always be very valuable, but it would an awkward currency, heavy and hard to protect from rain once the last tupperware container is gone, too bulky to store in vaults. The one sure thing is that some form of currency always evolves because barter doesn’t work.