muses of the moment

November 27, 2012

Peak Energy

Filed under: Peak Energy, Permaculture, The Banking Crisis, The Dollar Crisis — totallygroovygirlfriday @ 1:27 am

Groovygirl falls into the Peak Energy crowd. Groovygirl was in the peak energy crowd before the 2007 peak oil report came out, because she understood the cycle of the contraction of debt.

The entire energy economy (and thus the entire economy) is powered by debt. Debt to get it out of the ground, debt to build refineries to process, debt to buy trains, trucks, and pipelines to move it where needed, debt by consumers and companies to purchase it who use it day-to-day. When the debt machine contacts, even a little, the cost of energy goes up, because of the lack of debt availability. A drop in consumer demand will never be low enough to compensate for the lack of debt.

The fall in availability of energy and the petro-dollar only adds/accelerates to the main problem: energy must cost more in the future. This will affect everything from building to travel to food to military.

Here is an interesting conversation about how peak energy (not just oil) might affect your financial decisions.


1 Comment »

  1. Won’t we just move to a new/cheaper energy source? Seems like there are a bunch of ideas out there that could help (cold fusion, solar, etc.).

    Comment by MikePhila — November 29, 2012 @ 11:21 am

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