<DrumBeat: May 27, 2009 The Oil Drum The Oil Drum BookCollage -#2 of 3 - "Human Capital", How-to Books, etc.>

185 comments on Financial Collapse and Energy - Something Other than a NINJA Problem

Comments can no longer be added to this story.

| Show without comments | PDF version

BMW on May 27, 2009 - 11:41am Permalink | Subthread | Parent | Comments top

I am pretty much in deflation camp, but I acknowledge that TPTB probably can delay/prevent it if so they choose (before lowering interest rates, now QE, etc..).

Of course, they are cautious not to overheat the system, as they too know that oil has peaked and life $200 oil would kill the economy again.

The article itself is good, one just has to bear in mind that it is prety much impossible to defend against TPTB. Our JIT economic system will function until it won't and when it fails it is likely that no hard assets will be of any help, farming land included.

Comments can no longer be added to this story.
xeroid on May 27, 2009 - 5:09pm Permalink | Subthread | Parent | Comments top

it is prety much impossible to defend against TPTB

I agree with that, I live in the UK, we have a saying "as safe as the Bank of England" which is meant to imply 'as safe as you can get'.

The Bank of England issues our currency, the 'Pound Sterling' - the pound it refers to is one pound in weight of Sterling Silver (an alloy of 92.5% Silver and other metals).

Our paper currency is a receipt for this silver, so a twenty pound note is a receipt for twenty pounds of silver that was once deposited with the bank (in those days it maybe represented twenty years wages). Today, twenty pounds of silver is worth somewhere in the region of £3000 (about two months wages, such inflation!), but a twenty pound note will only get you around two OUNCES of silver, not twenty pounds.

Somebody has stolen 318 ounces ( >99%) of the original silver that was deposited, as it was deposited in the Bank of England it must be somebody in there! Does the Bank of England sound safe to you? Have faith in our Banking system!

Comments can no longer be added to this story.
Grautr on May 28, 2009 - 8:45am Permalink | Subthread | Parent | Comments top

"Our JIT economic system will function until it won't and when it fails it is likely that no hard assets will be of any help, farming land included."

This would seem to go against the thinking of many Peak Oilers who believe that a piece of farmland, the Doomstead, is going to save them. Why dont you think farming land will be of help?

Comments can no longer be added to this story.

185 comments on Financial Collapse and Energy - Something Other than a NINJA Problem

Comments can no longer be added to this story.

| Show without comments | PDF version