A broader look at our economic future
If you think the financial crisis was created by the housing bubble in the US, then you should probably think better, says Jeff Rubin.
He takes a much broader view of what's happening in the world right now, and besides the housing market, he points out that the real cause of the financial crisis is the ever increasing cost of energy. If we accept his view, then the political solutions to the problem should be very different from the kind of fixes we have been trying to apply to our broken economies.
Comments
Good analysis, not so good conclusions
Mr Rubin provides us with a very clear and accurate analysis of the energy supply crisis. He may be very wrong in his conclusions: I'm not that sure of a very good future for the US economy, for two main reasons.
1) it is far from certain that China and the other developing countries will accept a carbon tax system until the US accept to cap its pro capita carbon emission to the world average, or until China reach the US pro capita level;
2) the analysis does not address the other problem of the actual crisis, and its link to an oil based economy: the Dollar and the financing of US economy trough T bonds. This second crisis that will blow in the next few months will be far worse than the first one for the US.
some interesting links about geopolitics and global trends:
http://www.europe2020.org/spip.php?article630&lang=en
http://www.voltairenet.org/article163566.html
Olivier Lassoie
Yes, not really easy for the
Yes, not really easy for the US to come out of the mess, but not really easy for EU either. Theoretically the US is a more flexible place, though, and we will need a lot of flexibility ...
-marco