Economics, Growth, Disparity of Wealth
Wealth inequality in America: what Americans think is their country's wealth inequality and what is the ideal wealth distribution in a capitalist society are far different from shocking reality. Click on the link to see the video.9 Out of 10 Americans Are Completely Wrong About This Mind-Blowing Fact November 11, 2015, Utrend.tv
Commentator John La Grou writes: ". . . debt service requires economic growth in proportion to the size of the debt. Today's industrialized debt is at its highest 'real dollar' value in human history. Personal debt, corporate debt, government debt - all are at or near historical highs, and growing at historically unparalleled rates. Hence, the level of economic growth required to sustain such debt is at an all time high."
People take out a loan with the expectation that there will be more money available in the future than there is now, not realizing that money is really just a symbol for oil, and there will not be more oil available in the future than there is now and they will have to default on their loan. If many individuals, businesses, or nations begin defaulting on their loans at roughly the same time - as they will once the economy begins to contract due to skyrocketing energy prices - the banks will be unable to make new loans without spiraling the economy into a hyperinflationary meltdown.
An overall "financial collapse" will further devastate our ability to implement alternative systems of energy since the capital needed to develop these alternatives will not be available. In June 2005, the Bank of International Settlements (BIS), aka "the central banker's central bank", said that oil prices may well remain high for a prolonged period of time and that further rises may have more severe consequences than currently anticipated . . . Everyone needs to commit to some unpleasant compromises now, in order to avoid even more unpleasant alternatives in the future . . . The US current account deficit means that a further slide in the dollar was "almost inevitable", while the BIS sounded a warning that the deficit could yet lead to "a disorderly decline of the dollar, associated turmoil in other financial markets, and even recession."
Warren Buffet, the world's second richest man, recently warned of "mega-catastrophic risks" and "investment time bombs" currently threatening the global economy. High energy prices, destabilizing resource wars, less than inspiring leadership, a possible currency collapse, - all will add to that. It is not enough to focus solely on the price at the pump, more fuel-efficient forms of transportation, or alternative sources of energy.
A report commissioned by Cheney and released in April 2001 said: "The most significant difference between now and a decade ago is the extraordinarily rapid erosion of spare capacities at critical segments of energy chains. Today, shortfalls appear to be endemic. Among the most extraordinary of these losses of spare capacity is in the oil arena.
In May 2001, George W. Bush said: "What people need to hear loud and clear is that we're running out of energy in America." A Bush energy advisor, energy investment banker Matthew Simmons - regarded by the energy and banking community for his nonpartisan, heavily documented, and virtually infallible research & analysis - said in an August 2003 interview with From the Wilderness publisher Michael Ruppert when asked about the impending natural gas crisis, responded: "I don't think there is one. The solution is to pray. Under the best of circumstances, if all prayers are answered there will be no crisis for maybe two years. After that it's a certainty." For more information on an excellent website, see http://www.lifeaftertheoilcrash.net/ (click on above headline link)Economic Consequences of An Oil Shortage June 28, 2005, Life After the Oil Crash website http://www.lifeaftertheoilcrash.net/