Oil already above £100, barely 2 years since the financial crash.
So, on this basis, I suggest that the following is likely, much sooner than we realise...
1) Gulf unrest hits Saudi Arabia, big time, sending oil prices into the $200 - 300 range.
2) a severe collapse in confidence of the US bond market/dollar
3) Bailout needed for Spain, leading to 'contagion' of the rest of the Eurozone and/or the collapse of the Euro as Germany and its allies withdraw.
4) Bailouts will need further injections of liquidity, e.g. QE, e.g. printing money, leading to hyperinflation. This results in civil unrest spreading towards the developed world and China.
5) Desperate states in an oil market in collapse resort to ever bigger military interventions.
Or, to put it anather way...
http://www.sublimeoblivion.com/2010/01/ ... tatorship/The end result will be similar to the same Malthusian-era collapses analyzed by the cliodynamicians. An era in which surplus per capita draws to the level necessary for mere subsistence, characterized by dearth and famine in the bad years, and limited recoveries in the good years; a plateau that increasingly slopes down, until a series of severe perturbations (climatic disasters, resource wars, etc) so disturbs the world system that negative feedback loops take over and the entire system collapses into a prolonged Dark Age.
Ever more human effort will be mobilized or requisitioned by ever more coercive “hypertrophied states” to compensate for the effects of declining emergy availability (peak oil, exploitation of lower-EROEI energy sources, diminishing returns to energy efficiency, and the effects of credit collapse, resource nationalism, and geopolitics), falling agricultural productivity (fertilizer shortages, heatwaves, rivers and fossil aquifers running dry, rising sea levels inundating coastal farmlands, etc), and other costs accruing from exponentially rising climate chaos.
Those regions which collapse first, nowadays called “failed states”, will be taken over by neo-colonial industrial powers to contain the chaos and acquire resources to buy just a little more time for their industrial civilization. Physical output will plateau and stagnate, while real living standards begin to degrade at an accelerating rate. Eventually, a series of shocks – climate catastrophes like the conflagration of the DODGY TAX AVOIDERS or a “hydroxyl collapse”, poor harvests resulting in global famine and pestilence, perhaps even a final, total war of late global industrialism – will finally make the Machine give up the ghost. The collapse of fossil fuel availability will render usless most modern technology, everything from microchips to electric cars and photovoltaic panels. This will result in a political-demographic collapse of unparalleled severity that reduces the human population to below one billion souls within a few decades, ushering in a post-industrial “Rust Age” on a polluted, desertifying, and drowning planet.
My idea of collapse is NOT a collapse into anarchy, but a collapse of the BAU system we have today... the idealogical belief in growth, the free market in key commodities and to a certain degree of globalisation. What we will see is the permament collapse of the bond markets, of freely tradable oil, of the multilateral systems of governance and international law itself.