Category Archives: Economic Instability

Capitalism is a credit/debit system of borrowing money and pay it all back, plus interest. As energy declines, people will realize that loans can’t be paid back, that the principal is at risk. Stock markets worldwide will crash once Peak Oil (everything) is acknowledged, and social chaos won’t be long after that. On a separate but related track, the corruption and greed of the financial system is on course for crashing it all irregardless of energy.

Why Deleveraging is so painful

Why a recovery is at least 7 years away: Economy Falling Years Behind Full Speed 6 Apr 2009. Louis Uchitelle. New York Times. As the recession grinds on, more and more of the nation’s means of production — its workers, … Continue reading

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Mercury pollution

August 9, 2014. Missing mercury pollution is enough for mass poisoning. NewScientist. New data suggests that we still don’t know where our emissions of toxic mercury end up. Somewhere out there are tens of thousands of tons of missing mercury. … Continue reading

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Money – what is it?

The following are good articles to read about what money really is The supply of money in an energy-scarce world  2011. Richard Douthwaite. Summary of this article: Money has no value unless it can be exchanged for goods and services … Continue reading

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Money versus Credit or Hyperinflation versus Hyperexpansion

I’ve put in several articles by Nicole Foss here on these topics. Resurgence of Risk – A Primer on the Develop(ed) Credit Crunch The Inverted Pyramid – Money versus Credit (or Hyperinflation versus Hyperexpansion) Money and credit are not the … Continue reading

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Dailyreckoning

Preface. Bonner & Wiggins at the dailyreckoning called the 2008 housing crash in 2002 and the 2000 dot.com crash in 1999. They’ve got a lot right, a lot wrong, and are always entertaining to read. A few random excerpts are … Continue reading

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The congressional report on “The Financial Crisis” and what happened

The Financial Crisis Inquiry Report. Final Report of the national Commission on the Causes of the Financial and Economic Crisis in the United States 2011. Phil Angelides Chairman, Brooksley Born Commissioner, Senator Bob Graham Commissioner, etc. This is the best … Continue reading

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A financial crash would stop new oil production, sending us over the net energy cliff with a 10% decline rate per year

Gail Tverberg’s March 4, 2014 “Reasons for our Energy Predicament – an overview” gave me this sudden insight: There is the potential for a sudden drop of 10 to 30% in oil production.  That magnitude of world-wide oil shocks would … Continue reading

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Experts who aren’t worried about Inflation

Paul Krugman: The Inflation Obsession. March 2, 2014. New York Times. [modified: both paraphrased and cut] Recently the Federal Reserve released transcripts of its monetary policy meetings during the fateful year of 2008. And, boy, are they discouraging reading because … Continue reading

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Why cash is better than gold

Why people buy gold To protect against inflation That’s a good reason, but the next crash will be deflationary like the 2008 crash, when stocks, homes, oil, gold, and everything else plummeted in value. Trillions of dollars vanished overnight.  The … Continue reading

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Wall Street Journal FDIC Faces Balancing Act in Replenishing Its Coffers

FDIC Faces Balancing Act in Replenishing Its Coffers August 21, 2008.  Wall Street Journal. As financial institutions continue to fail, the Federal Deposit Insurance Corp. is under pressure to decide how to replenish the fund that insures consumer deposits. The … Continue reading

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