This time around, however, the situation is unique and unprecedented.

We shall not be able to reduce debt relative to GDP, because we’ve reached the end of mankind’s era of cheap energy. GDP growth is directly related to the abundance of cheap energy. Have you tracked the oil price over the past 5 years, and over the past 6 – 9 months in particular? We’re in a global recession; energy demand is down; but the price is going up – because we’re finding it excruciatingly difficult to find and extract the cheap stuff.

As and when economies pick up momentum, they’ll be suffocated and stumble as the oil price rises exorbitantly.

Few commentators have yet twigged that we’re now entering a new and very different and difficult era. On my worst days when I investigate this matter and reflect on the liklely scenarios before us, I conclude that the future looks very bleak; very bleak indeed.

For what it’s worth, my advice to my fellow citizens is to learn everything you can about local community cohesiveness and self-reliance as quickly as possible; and be prepared to take practical steps now and over the next year or so. Right now, we’re observing a patchy and phony recovery. But, believe me, there’s a whirlwind coming – like nothing we’ve ever experienced before.

- Mark

Related Posts:

• China’s data are suspect.
• U.S: Borrowing $1 doesn’t add to $1 of GDP growth
• How about no recovery for a decade?
• We are now in a era of ‘common sense prevails.
• The real 3Q GDP growth is ONLY 0.75% (without Cash For Clunkers)

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