Tuesday, 16 June 2009

What the world needs now is ...

On June 11, 2009, Dmitry Orlov gave this stunning presentation at the New Emergency Conference in Dublin. On Peak Oil, there's no one like him by far.
However, I wouldn't sync with Sharon [Astyk], who felt inclined to "do Orlov" because of it, but yet, in a way, we're raking the same bed.

It's all about the gooey stuff.
When there was enough oil for everybody, world GDP kept growing steadily. But now production of the stuff is stalling, even declining, which means world GDP must fall, as it has been doing for the past year. As the economies of the developed nations consequently prepare for a nosedive, banks will not lend, how ever much the Central Banks are trying to slosh their funny money into their near-empty vaults. And why should they, if world trade has been dropping off a cliff, as is housing, and default risks are soaring? Liquidity is not the problem, the problem is a dearth of creditworthy borrowers.
As Colin Campbell, founder of the ASPO News Letter, so aptly explained as early as in 1998, crude is the root of all economic growth. No more oil, no more growth; no more growth, a systemic financial crisis, with in its wake, eventually, desintegration of society.

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