For the first time in history, the possibility of a global economic meltdown is starting to emerge. In the past, each countries economy had it’s ups and downs. While some were up others were down, but never all down at the same time. However there is one common element that all countries share and that is the hunger for oil. With oil going up daily, sooner or later something has to give across the board.
If you can visualize the global economy as a tree, each branch of that tree is a different country. As each branch is more or less independent from the others if one is in trouble the others suffer minimally. However the one common point on the tree that feeds all the branches is the roots as they draw sustenance from the ground. In this case the sustenance is oil. When the oil stops the entire tree starts to wither.
Countries like the USA that have huge dependancies on oil to feed the independent nature of Americans will be the first to feel it, and that is already in the news. Just connect the dots and you will see the same again and again in each country as the people can no longer afford to by oil.
This is different than has ever been seen before. The rapid rise of oil prices is moving far too fast for economies to assimilate. People are using their disposable cash to pay for necessities like food and transportation to work. It is that disposable cash that feeds the local economy. Not having money to spend kills the economy.
There is only one type of industry that is bullet proof to this. In fact that industry could survive a nuclear war. That industry is the food industry, because the survivors must eat. The further from the food industry an industry is, the sooner it will fault and fail.
It is important that every person starts now to get ready for this worldwide economic hit. It is very obvious the tipping point for oil has been past and the earth can no longer produce enough oil to feed the human hunger for it. There is no other answer for such volatility in the market. Even when Saddam Hussein invaded Kuwait oil peeked around $37.00 per barrel and then dropped as other sources picked up the slack. Simply that ability to pickup the slack is gone.
There is no doubt disinformation is in the news that there is still plenty of oil and that some price fixing may be underway. However in 1998 it was predicted that the tipping point would come around 2011. However China was not growing as fast then and because of China’s sudden increase in hunger for oil, that the tipping point was moved to around the start of 2007. When the worlds most populous country gets hungry, stocks deplete quickly.
Governments will not have time to react to the rapid rise, the best they will be able to do is put in place short term stopgap measures. So simply don’t count on your governments ability to bail people out. Even the strongest and richest governments will be overwhelmed. The only answer is drastic change and each person must deal with this in their own best way. Change from oil to some other source of energy as soon as possible be is solar or whatever would be the first step. Point in note, this is not an option anymore.
This is Part 1 of a periodic series.