BBC: Is the world facing fundamental changes?

[UndercoverElephant]

http://www.bbc.co.uk/news/business-14583201

Recent events, including stock market falls, the escalating sovereign debt crises, US credit rating downgrade and a near-stalling of growth in the developed world is leading increasing numbers of experts to wonder if the world is facing some fundamental changes.

Mainstream media almost catches up with reality...

[Little John]

http://www.bbc.co.uk/news/business-14583201

Recent events, including stock market falls, the escalating sovereign debt crises, US credit rating downgrade and a near-stalling of growth in the developed world is leading increasing numbers of experts to wonder if the world is facing some fundamental changes.

Mainstream media almost catches up with reality...

They still won’t or can't face the unpalatable truth, though. Instead, all analyses are couched in economic/political terms.

This is not a financial crisis. It’s not even an economic crisis, primarily. These are both merely symptoms of what is, fundamentally, a resource crisis. In particular, energy. The most important resource of all in our industrial civilisation.

The reason our debt ridden economies fell over in 2007 is because debts became too expensive to service. They became too expensive to service because of a hike in all the other costs of living. The reason all of the other costs of living increased is because oil hit over $150 dollars per barrel.

The reason our economies won't grow out of this slump either is for the same damned reasons.

Oil.

One way or another, the vast majority of humanity is going to get a lot poorer. Either it will be a poverty of empty pockets, or it it will be one of pockets bulging with pieces of worthless paper.

In the end, it makes no difference.

[ujoni08]

Agree wholeheartedly.

The three Es (economy, environment and energy, Chris Martenson TM) are inextricably linked, but the media haven't got it yet.

Jon

[kenneal - lagger]

A major factor is growth in the BRIC countries, although Russia much less. Should really be BIC countries. With a seven year doubling time for ALL resource use in countries which make up almost half the world's population, is it any wonder that resource costs are rising. Even the BOE Monetary Policy Committee has realised that it can't do anything about inflation because it is being driven by factors outside our control, i.e. resource price inflation driven by world shortages or tight supply.

We have to share the world's rapidly diminishing resources with many more people which will result in us having less. The transition to this new state will involve an major economic adjustment, a period of stagflation. We will have inflation as world commodity prices rise and deflation as we become relatively poorer.

This will have a major impact on the banking sector as both countries and individuals will be unable to repay loans. Countries will be unable to devalue their currencies, one of the traditional remedies for debt, sufficiently as all the major western currencies will want to do that at the same time. Inflation will take its toll but it will be difficult to control as much of it will be driven by external forces.

[Bill Hicks]

I often find that the news media uses questions in their headlines whenever they are too squeamish to be declarative about a sensitive truth. In this instance the headline SHOULD obviously read:


The world IS facing fundamental changes

[adam2]

Not only has oil production almost certainly peaked, but it could be argued that oil production PER HEAD rather than total volume is more important.
That peaked many years ago, and was arguably already having an effect on the world economy, before the present crisis.

[ziggy12345]

Nobody mentioned EROIR so I had better. Oil and gas is getting more and more energy intensive to produce. Even if production remains constant the useable energy reduces

[madibe]

Unfortunately the responses from the public still seem to go along the thread of:

63.suchan104
19th August 2011 - 11:27
The current hysteria is shocking until you realise there were newspaper and magazine articles in the mid-1890's recesssion, the 1930's depression and the mid-1970's slump all predicting the end of capitalism. It was rubbish then and it's rubbish now...

and

101.insidestories
19th August 2011 - 14:09
since we need a Solution I do think we need to scrap the existing system and start something new. Those operating the Wir in Switzerland are not affected by globalised financial system collapse. In operation since 1936, it turned over about 2 billion last yr. We need similar schemes in the UK and new generation web based currencies (in development) can protect the future

Soooo.... afair way to go yet

[snow hope]

Well the first quote was obviously written by RGR. Don't know who wrote the second one, but needless to say they are right and we are all (obviously) wrong.

[UndercoverElephant]

I often find that the news media uses questions in their headlines whenever they are too squeamish to be declarative about a sensitive truth. In this instance the headline SHOULD obviously read:


The world IS facing fundamental changes

Welcome to PowerSwitch, Bill.

If ever the world needed Bill Hicks, it is now. Shame he's not here to enjoy it.

[UndercoverElephant]

http://www.zerohedge.com/contributed/gr ... ally-begun

I’ve been warning of this for well over two years. My primary warnings were:

1) That 2008 was just a warm-up
2) That the REAL Crisis had yet to unfold
3) That the REAL Crisis would make 2008 look like a picnic

Well, the period I’ve been warning of is now here. What’s happening right now is not just a market crash, bear market, deflation, or any other item related to just one asset class.

Instead, this is a collapse of the entire US monetary and political system and the mentality of spending one’s way to wealth.

In simple terms, we’ve now entered the Real Crisis, the END GAME, for our current monetary system. Before the dust settles on this mess, the US and its political, economic, monetary structure will look very very different.

I agree with this. I think we entered the endgame for our monetary system in the last two or three weeks.

[Bill Hicks]

I often find that the news media uses questions in their headlines whenever they are too squeamish to be declarative about a sensitive truth. In this instance the headline SHOULD obviously read:


The world IS facing fundamental changes

Welcome to PowerSwitch, Bill.

If ever the world needed Bill Hicks, it is now. Shame he's not here to enjoy it.

Isn't that the truth. Everything Bill used to crab on about has gotten exponentially worse since he died.

I remember the bit in which he just excoriated the no-talent musician Billy Ray Cyrus. Yep, Billy Ray was a horrible waste of space, but he was John Lennon compared to his daughter, Mylie.

Anyway, thanks for the welcome.

[Mean Mr Mustard]

Yep, Billy Ray was a horrible waste of space, but he was John Lennon compared to his daughter, Mylie.

No worries.

The Onion - Entertainment Industry Warns Miley Cyrus Will Be Depleted By 2013

http://www.poetv.com/video.php?vid=38720

[frank_begbie]

We are all about to be saved!

http://www.bbc.co.uk/news/business-14625918



If at first you don't succeed, try try try try try try, again.

Only a certain cure for AIDS could out do this news.

[DominicJ]

UE
The big question now is Germany.
Will it kick the can down the road, or self immolate in the bizare morality tale it thinks this all is.

Even if Germany does lose it and forces the iPigs to default on the debts they owe to, well, Germany, the rest of the world can still can kick for at least another year.

UK QE was about 15% of GDP, we're still nodding along.
US GDP was only 5% of GDP, they can do double what they already did and only reach where we are.

Although what that will do to China is anyones guess, Sterling devalued 25%, which put the price of cheese and petrol up a bit.
If the dollar falls 25%, and the Yuan follows.

Not that an EU meltdown wont be bad, but without a gold standard, its possible to print out way out of banking losses, at least superficialy..