I’m preparing an ‘upside’ post right now to balance all of the ‘downside’ stuff that I’ve published here on this blog over the past year or two. I recognise the need to shine some light on how we’re supposed to respond to what I argue is a steam train coming down the tracks towards us, economically and socially. The ‘upside’ post is coming along nicely. However, there’s an endless stream of leading indicators of transformational change ahead, albeit little known or understood by the mainstream media, or just simply ignored by them; perhaps on the grounds of “always keep a hold of nurse, for fear of finding something worse.”
Why not reflect for a moment on just two indicators of change ahead:
On the Monetary System
The global financial system almost collapsed in 2007/08. It was “saved” when governments like in the US and in the UK stepped in and started printing money as “emergency measures” to prop up insolvent banks. Prior to the near-collapse of the global financial system, the US monetary system comprised circa $800 billion in circulation – some 200 years’ worth of money creation; that’s $0.8 trillion. Today, every month, the Federal Reserve is printing and pushing $85 billion in to the US monetary system; that’s over $1 trillion every year. In other words, every single year, the US is printing more money than was created in the 200 years before the near-collapse of the global financial system 5 years ago. Where’s this one heading? You decide, but hyper-inflation and currency collapse both come to mind. The only serious question is, “When?”
On the UK’s Energy Infrastructure
The British political class is nowadays chasing votes under the heading of “Energy Prices”. The British political class is utterly clueless as to how to tackle the global energy crisis which is now snapping at our heels. Clueless. So, whilst the politicians work feverishly to figure out how to win votes under the heading of “Energy Prices”, the UK’s energy crisis moves up from snapping at our heels to setting its sights on gripping us around our necks. Over the past 10 years, the UK’s capability to provide energy indigenously, in other words to provide ‘home grown energy’ so to speak, has dropped by 53%. In that period, the politicians, being clueless as they are, clearly saw no votes, no votes whatsoever in the subject of “Energy Security” (which is all about the reliability and resilience of energy supplies) and, therefore, pretty much ignored the nation’s energy infrastructure. No votes in that. Of the national energy capacity that remains, a further 33% is likely to disappear by 2020 (Hat Tip to Dr Tim Morgan, ‘Surplus Energy Economics’), by which time energy output will meet just 37% of our current consumption. Where’s this one heading? Again, you decide, but either we need a truly massive investment in energy production (bearing in mind that the EU is already manoeuvring to prevent the UK from developing new nuclear power facilities; itself a political panic measure), or we need to invest heavily in candle-making factories. That said, I think I’m right in saying that our genius political class intends to invest heavily in a quite-fast train, doesn’t it? Final thought on this one: we could start being really, really nice to the Russians and other gas producers so that they keep selling us the energy we need to keep the lights on. That should work.
Facts like the two above emerge daily, and some. There’s no end to the evidence that we’re staring transformational economic and social change in the face. Meantime, the best the BBC can do is to wheel out Robert Peston to write the sort of superficial drivel that you can read in the link below. Bear in mind too that you can go to jail if you don’t make your contribution (aka the TV Licence Fee) to Peston’s salary.
‘So How Much Will Energy Bills Rise?’: http://tinyurl.com/q8e33n7