American expert: Humanity has outgrown its resource base

The world is dealing with a situation that economists, policy and central banks are unable to cope. Higher interest rates could further wipe out a huge share of economics, which is already "beyond". But now she's only getting worse. The global economic system is likely to change dramatically for the worse in the coming months and years. Gail Tverberg, an American expert in in-depth financial analysis, writes about this in an article for the OilPrice resource. As usual, the analyst sticks to the pessimistic scenario and predicts a collapse.

After the researchers of global processes have invested a huge amount of time and effort in one direction, they cannot even consider the possibility that their approach may be very incomplete, superficial. The population of the Earth has outgrown its resource base, raw materials are depleted too quickly. Simply put, today's energy crisis means disaster is approaching for the global economy. But experts are marking time, Tverberg believes, caring about their authority.

In the very near future, humanity is waiting for several shocks:

• The price of energy has been too low for producers in recent years, while the cost of extraction has risen, all of which has reduced the global economy.

• As the economy transitions from growth to recession, the rate of decline in countries' GDP will become faster than the rate of decline in energy consumption.

• As interest rates rise, energy supplies will become even more limited, leading to shortages in the production of goods, potentially intensifying conflicts, and rising external debt in many countries.

The expert believes that when the energy supply is reduced, it does not fall because the reserves "dry out". This level has declined globally as citizens cannot afford to buy goods and services produced using energy raw materials with a high cost and low profitability.

By now, depletion has made the extraction of fossil fuel resources increasingly expensive. One problem is that the resources that were easiest to mine and closest to where they were needed are extracted first, while the highest value resources are left to be mined later. Another problem is that as populations grow, oil-exporting governments require higher tax revenues to meet the general needs of their nations.

So the extractive industry is indeed demanding higher fuel prices to make up for the changed mining landscape.

– summed up Tverberg.

In this case, the vicious circle will completely close, and the predictions described above will come true.
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  1. Bakht Offline Bakht
    Bakht (Bakhtiyar) 2 August 2022 09: 13
    July 28 is Ecological Debt Day, by which point people have consumed all the resources that the Earth can recreate in a year. writes about this with reference to data from WWF and the Global Footprint Network (GFN)
  2. Bulanov Offline Bulanov
    Bulanov (Vladimir) 2 August 2022 09: 16
    This level has declined globally as citizens cannot afford to buy goods and services produced using energy raw materials with a high cost and low profitability.

    Everything goes to the fact that soon high-quality goods that serve for a long time and reliably will again be in demand, and firms that produce one-day goods will have a bad reputation and go bankrupt.
    1. rotkiv04 Offline rotkiv04
      rotkiv04 (Victor) 2 August 2022 09: 40
      They got ahead, too, such an idea has been spinning in my head for a long time, before the thing served for years, and now everything is disposable, the intensity of production is correspondingly higher, which means the use of resources is higher, in general, whatever one may say, and K. Marx with his Capital is still relevant today
  3. Expert_Analyst_Forecaster 2 August 2022 10: 34
    In this case, the vicious circle will completely close.

    It's already scary. With the formation of the vicious circle is already completely closed.
  4. Jacques sekavar Offline Jacques sekavar
    Jacques sekavar (Jacques Sekavar) 2 August 2022 14: 21
    Geological exploration does not cover the vast territories of Africa and South America, the Russian Federation, Antarctica and Greenland, and thousands of discovered deposits are not developed for one reason or another.

    The available traditional sources of energy resources are many times greater than the needs for centuries to come.
    In addition to the traditional ones, there are new ones - nuclear, cold and hot thermonuclear fusion, the transfer of solar energy from space to storage devices on Earth, Neutrino Energy Group made a discovery on the use of cosmic radiation
    The main thing today is not energy sources, but its wireless transmission to consumers. It will be a real revolution in all spheres of life. Billions of kilometers of wires entangled the planet and metallurgy, cars and other transport, everything that consumes energy.

    GDP is a plaything in the hands of politicians and the economists who serve them, who include figures sucked from the finger in GDP to show the growth of the economy and the merits of the ruling elites.
    An increase in interest rates is the main tool to fight inflation, and inflation is man-made and depends on an overabundance of money supply as a result of quantitative easing and financial obligations, the species diversity of which is great.

    Transnational monopolistic associations have become international, i.e. got out of the subordination of states and became the determining factor in their foreign and domestic policy, while strengthening and exacerbating the negative aspects of pre-monopoly capitalism, and the law of uneven political and economic development leads to a change in the balance of power and predetermines the endless struggle for spheres of influence and the redivision of the world in a variety of ways, including terror and military force.