The economy has reached an inflection point where everything that is unsustainable finally starts unraveling.
Our economy is in a crisis that’s been brewing for decades. The Chinese characters for the English word crisis are famously–and incorrectly–translated as danger and opportunity. The more accurate translation is precarious plus critical juncture or inflection point.
Beneath its surface stability, our economy is precarious because the foundation of the global economy– cheap energy–has reached an inflection point: from now on, energy will become more expensive.
The cost will be too low for energy producers to make enough money to invest in future energy production, and too high for consumers to have enough money left after paying for the essentials of energy, food, shelter, etc., to spend freely.
For the hundred years that resources were cheap and abundant, we could waste everything and call it growth: when an appliance went to the landfill because it was designed to fail (planned obsolescence) so a new one would have to be purchased, that waste was called growth because the Gross Domestic Product (GDP) went up when the replacement was purchased.
A million vehicles idling in a traffic jam was also called growth because more gasoline was consumed, even though the gasoline was wasted.
This is why the global economy is a “waste is growth” Landfill Economy. The faster something ends up in the landfill, the higher the growth.
Now that we’ve consumed all the easy-to-get resources, all that’s left is hard to get and expensive. For example, minerals buried in mountains hundreds of miles from paved roads and harbors require enormous investments in infrastructure just to reach the deposits, extract, process and ship them to distant mills and refineries. Oil deposits that are deep beneath the ocean floor are not cheap to get….