Sunday, August 4, 2013

Oil Limits Reduce GDP Growth; Unwinding QE a Problem

Click here to access article by Gail Sverberg form her blog Finite World

Although I can't always agree with her reasoning from the data she presents, still I believe that she is making a very good effort to understand what I believe are insoluble issues facing the system of capitalism as it comes up against resource, especially energy, limits. She is no anti-capitalist in her political outlook, but she is thoroughly dedicated to examining reality using scientific methods. This is very unusual among people well-connected to capitalist institutions.

She begins her examination of evidence with the following statement (note: her use of "model" actually refers to the capitalist system):
This model “works” fairly well, as long as the economy is growing fast enough–population continues to grow and resource extraction continues to grow as planned. In a finite world, we know that this model cannot work forever. At some point, we can expect to start reaching limits.