Here is the graph that I promised
onlooker. TinyBics is out of business, like so may others, and the oil industry is soon to follow. I'll put it up the old fashion way for now.
The velocity of money is going down in lock step with the debt which is going up. World debt is presently growing exponentially at about $47 trillion a year. The debt is following petroleum depletion almost perfectly. It looks like things broke at petroleum's ERoEI of 8:1, or during August of this year. 6.9:1 is oil's "dead state", or the point where the "average" barrel is no longer worth taking out of the ground.
As the velocity of money falls, so also does the available liquidity in the monetary system. That will result in a failing economic system as the world's $323 trillion in debt succumbs to cascading defaults. Exponentially rising debt, the falling velocity of money, and the subsequent decline in interest rates, that include a large amount of negative yielding debt are indicators of a failing monetary system. ERoEI falling close to its "dead state" is an indicator of a failing petroleum production system.
We can expect major economic, political, and socioeconomic disruptions in the very near future. The world will appear to be going off the rails even faster than it already is!
