At first glance it is hard to see how oil, interest rates and debt are connected. Two of them are human constructs while oil (fossil sunlight), a gift from Mother Nature, took tens of millions of years to process.
Articles: debt (22)
There are many who believe that the use of energy is critical to the growth of the economy. In fact, I am among these people. The thing that is not as apparent is that growth in energy consumption is dependent on the growth of debt.
In this post, I show some longer-term time series relating to energy growth, GDP growth, and debt growth–going back to 1820 in some cases–that help us understand our situation better.
The legitimacy of a given social order rests on the legitimacy of its debts.
...[T]he transfer of wealth that has been created, that has been taken from the saver and from the taxpayer to “mend the financial system” or to keep it from falling off the cliff is extraordinary.
Anyone with any sense for global economic trends ought to be worried. The signs are everywhere of a serious deflationary crisis.
The cast of heroes and villains in Greece’s ongoing battle to save its economy varies depending on who’s telling the story.
We all know one thing that Greece, Cyprus, and Puerto Rico have in common–severe financial problems. There is something else that they have in common–a high proportion of their energy use is from oil.
Humanity is approaching a time when philanthropy will be more needed than ever, to address proliferating environmental and humanitarian crises. Yet our existing philanthropic model depends upon growth, via returns on financial investments.
Lifting the oil export ban would only perpetuate the problem of over-production. That is no solution to low oil prices, lost jobs or lower oil-related spending.