Friday, December 13, 2019

Autosprawl Meltdown in Massachusetts

Monday, December 9, 2019

If energy prices fall, and debt rises, the economy should boom, right?

We already seem to be on the road toward a new crisis; this crisis is likely to be much worse than the Great Recession of 2008-2009. This time, a major problem is likely to be energy prices that are too low for producers. Last time, a major problem was oil prices that were too high for consumers.

The problem is oil. Since 2005, every day more joules of energy are needed to get a joule of oil out of the ground and into service. The oil industry cannot tolerate low oil prices. This is not a future thing, this is right now. The only thing keeping the economy going is massive debt.

Even though natural gas is plentiful, oil still moves the cars, trucks, trains, and ships. No transport, no economy.