It’s all happening…..
Anyone who has been following this blog long enough will know that I predicted 2020 was crunch time and that we were heading into the mother of all energy crises. As I write, the UK is in deep turmoil, Germany is making contingency plans for blackouts, Lebanon has turned power off, China’s rationing electricity and India is doing the same. Low rainfall in Scandinavia has resulted in diminished hydroelectric power output (that will probably impact the UK if Norway is unable to send electricity down the new North Sea cable), and this is happening in South America and the West of the USA where speculation of the grid going down this winter is going rife. South Africa is also in trouble….. It’s hard to not feel like it’s all happening…..
So why are all these crises happening all at once…? Read on, this article is from SURPLUS ENERGY ECONOMICS, one of my favourite sites, which explains the predicament the whole world is seemingly in the grips of…..
THE ARRIVAL OF ECONOMIC CONSTRAINT
Some of us have long understood that the economy is an energy system, and is not – as orthodox economics insists – wholly a financial one.
We’ve identified credit and monetary adventurism as futile efforts to deny this reality, efforts which, whilst not ‘fixing’ low and reversing “growth”, have exacerbated financial risk by driving a wedge between the ‘real’ economy of goods and services and the ‘financial’ economy of money and credit.
We’ve highlighted relentless rises in ECoEs (the Energy Costs of Energy) as the process by which expansion in economic output peters out, and prior growth in prosperity goes into reverse.
…click on the above link to read the rest of the article…
