Meltdown: Devastating Demand Destruction
source: http://theautomaticearth.blogspot.com/2011/03/march-29-2011-meltdown-devastating.html
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- Schnookums
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While the assumption that supply and demand forces set market prices in the modern financial world is extremely flawed, it becomes a relevant consideration in a capitalist system with limited capacity for financial speculation. This is exactly the world we will be living in over the next ten years or so. Many so-called economists ignore the fundamental reality of limited resources (such as peak oil), and therefore overestimate the ability of producers to generate supply or find substitutes to these critical resources. Many peak oil theorists, on the other hand, believe that we will eventually be living in a supply-constrained world for energy, food and other material resources, and therefore many people will be priced out of the market for them.
They often cite official projections of increasing energy demand in "emerging markets" such as India or China as support, and there is no doubt that such has been the dominant trend in recent years. Even in the wake of the global financial crisis in 2007-08, many of these countries have continued to increase their levels of domestic energy consumption [1], as their industrial sectors have grown and governments around the world have backstopped financial markets. If there is one thing we should be very skeptical of in this discussion, however, it is official projections that extrapolate past trends into the future......
Continue at:
http://theautomaticearth.blogspot.com/2011/03/march-29-2011-meltdown-devastating...
They often cite official projections of increasing energy demand in "emerging markets" such as India or China as support, and there is no doubt that such has been the dominant trend in recent years. Even in the wake of the global financial crisis in 2007-08, many of these countries have continued to increase their levels of domestic energy consumption [1], as their industrial sectors have grown and governments around the world have backstopped financial markets. If there is one thing we should be very skeptical of in this discussion, however, it is official projections that extrapolate past trends into the future......
Continue at:
http://theautomaticearth.blogspot.com/2011/03/march-29-2011-meltdown-devastating...
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- tags:
- Climate Change, Depression, Peak Oil
