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Page added on October 26, 2014

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Energy Economics

The reason why growth will be more scarce in the future…

The central point to this latest video is this: as we’ve shown in previous chapters of the Crash Course, our global economy depends on continual growth to function. And not just any kind of growth; but exponential growth.

But in order to grow, it must receive an ever-increasing input supply of affordable energy and resources from the natural world. What I’m about to show you is a preponderance of data that indicates those inputs will just not be there in the volumes needed to supply the growth that the world economy is counting on.

In short, on top of all the debt and other economic messes we’ve made for ourselves, constraints from the natural world will increasingly place limits on economic growth in a way we haven’t had to deal with over the past century.

This is why I’m so confident in the claim that the next 20 years will be completely unlike the past 20.

So understanding the dynamics at play here is key to forecasting what the future will be like. Since energy is the master resource, that’s where we’re going to start.

For those who simply don’t want to wait until the end of the year to view the entire new series, you can indulge your binge-watching craving by enrolling to PeakProsperity.com. The entire full new series, all 27 chapters of it, is available — now– to our enrolled users.

The full suite of chapters in this new Crash Course series can be found at www.peakprosperity.com/crashcourse

And for those who have yet to view it, be sure to watch the ‘Accelerated’ Crash Course — the under-1-hour condensation of the new 4.5-hour series. It’s a great vehicle for introducing new eyes to this material.

 



5 Comments on "Energy Economics"

  1. JuanP on Sun, 26th Oct 2014 6:59 pm 

    I always enjoy watching Chris Martenson’s Crash Course. I highly recommend it. Total 4.5 hours.
    http://www.peakprosperity.com/crashcourse
    And the accelerated one is very good, too! Total 1 hour.
    http://www.peakprosperity.com/crashcourse/accelerated

  2. Kenz300 on Sun, 26th Oct 2014 7:02 pm 

    Too many people and too few resources…..

  3. Makati1 on Sun, 26th Oct 2014 7:51 pm 

    JuanP, I agree. Worth the time invested.

  4. rockman on Sun, 26th Oct 2014 8:45 pm 

    “…our global economy…”. Just to play a bit of the

  5. rockman on Sun, 26th Oct 2014 9:16 pm 

    …a bit of the devil’s advocate: there is no such thing as a global economy. There are hundreds of different economies. Some closely tied to others and some completely independent of others. So what would be the “global economy”? An average? A weighted average? The average of developed economies? Of developing economies?

    When oil ran from $30/bbl to $100+/bbl some economies boomed and others sucked. So where do folks here fit… sucker or suckee? LOL. Of course the dynamics change over time for each economy (energy producer and energy importer) but each does need growth to accommodate population increases. So perhaps those with very slow to no population growth need less economic expansion? OTOH even if population growth is zero if the population is trying to achieve a better lifestyle greater growth would be required. Thus even if China’s one child policy had fully worked the effort to improve the lives of its citizens would have required strong growth. Which is exactly what we’ve seem them achieve… so far.

    Which is a round about way of getting back to another silly acronym I coined: MADOR: Mutually Assured Distribution Of Resources. A play off the old Cold War MAD concept. Simply put the amount of energy the world produces isn’t relevant to a particular economy let alone the “global economy”. What’s relevant is whether that economy can continue taking an ever larger share of the pie to allow itself to expand.

    I doubt many US citizens appreciate that fact since as consumers we’ve done pretty good at gobbling up a very disproportionate share of the global energy output. But with the expansion of China and other developing economies will the US maintain that share? But even if it can at what cost?

    And that’s where I’ll stop for now.

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