Is the world economy suffering from ‘high
Cr7 superfly highpriced fuel syndrome mercurial 2017 has a number of symptoms:
Slow economic growth, or contractionPeople mercurial 2017 in discretionary industries laid off from workHigh unemployment ratesDebt defaults (or huge government intervention to prevent debt defaults)Governments in increasingly poor financial conditionDeclining home and business property valuesRising food cr7 superfly pricesLower tolerance for immigrantsHuge difficulty in funding retirement programs, programs for disabled, and regular pension plansRising international tensions related to energy supplyThe countries with the most problem with highpriced fuel syndrome are the industrialized countries that are big importers of oil. This is the case because oil has been a particularly highpriced fuel in the past few years. Importing highpriced oil adds challenges of its own, since funds used for imported oil flow out of the country.
While oil is the biggest culprit in highpriced fuel syndrome, highpriced fuels of other sorts can play a role as well. Natural gas is recently highpriced in Europe and Japan, but not the USA. The higher natural gas price contributes to a higher average energy cost level for these countries. Highpriced renewables, such as offshore wind and solar photovoltaic, can be expected to act in a similar fashion, because they add to the price challenge customers face.
RELATED: 8 steps to US energy securityAt this point, Europe is hardesthit by highpriced fuel syndrome. In part this is because Europe is a big importer of both oil and gas, and both are highpriced. European countries have also encouraged the use of highpriced renewables, adding to their difficulties.
While many people have laughed at the issue of the world “running out of oil” (or natural gas, or some other substitute fuel), it seems to me that they have basically missed the point. There is always lots of fuel in the ground, or available through devices mercurial 2017 we create that produce “renewable” fuel. The major issue is cr7 superfly that the fuel becomes too expensive for the economy to afford.
The United States, Europe, and Japan were industrialized back when mercurial 2017 fuels were cheap, in the pre1972 era (Figure 1, above). The cost structure of government welfare programs (such as Social Security, Medicare, unemployment) also assume that the economy will continue as it did with lowpriced fuels. Substituting ever moreexpensive fuels can be expected to push a country toward economic contraction, reduction in programs that cr7 superfly the economy can no longer afford, and the symptoms listed above.
Why We are Encountering Rising Fuel Prices
When companies begin extracting oil (or natural gas, or coal), they start with the easiest, cheapesttoextract first. In Figure 2, oil (or natural gas or coal) extraction starts at the top of the triangle, and gradually works down the triangle.
As we require more and more fuel, we gradually seek out lessdesirable sources of fuels. These fuels tend to be slower to extract, and are more expensive for what we get. They are often more polluting as well cr7 superfly.