Peak oil the Federal Reserve and the Economy

Economic growth requires energy growth. The 2%-7% increase every year in economic activity that we are all accustomed to requires more and more energy to power all the things that the extra money is spent on (cars, houses, factories, highways, etc…)

When Wall St begins to understand this fact you'll see "mountains of capital wiped out" to quote one peak oil researcher.

Only 1% know what economic growth really means. It is debt based banking and how it keeps working.

There isn't enough money in existence to pay back all the old loans outstanding plus the interest. So, you have to introduce more money every year out of thin air. This is done by writing new loans a.k.a economic growth. Without these new loans, all the money would start finding its way back to the lenders and there would be none left for us to live on. You know that when you borrow $100,000 for a house you end up paying back $300,000! So you have removed $200,000 of money that goes back to the bank.

This system was given to us by the infamous Rothschild’s, and was passed into existence in a shady manner by congress.

The Federal Reserve gets to collect interest on all the money it prints every year.

Not only does the current system require energy growth, but population growth, increase use of resources, more houses, cars, etc.

I know people in the real estate "biz" and they are expected to tow the party line; of this being just another "market cycle or correction" (it isn't) and that everything can return to normal after a few months or a year of market adjustments or government interventions (it won't). Unlike economists, I realize at some point growth must stop. You all no the reasons. It's pretty fundamental... like gravity. Of course it's pointless to take on the mantel of no-growth activist unless all you want to do is get beat over the head as a whack-job.

All the forces now coalescing-energy cost and scarcity, climate change, mortgage/ housing crisis, financial markets meltdown, will create the perfect storm that will plunge us into one of those once-in-a-century turning points that we haven't seen since the Great Depression.

The basic manner in which the economy functions will be called into question and the people we depend on to explain situations and comfort us in times of crisis will be discredited and discarded. We now have the beginnings of a loss of faith in the entire way of life we've taken for granted since 1945.

After speaking to many associates about what is going on we all agreed on the following:

1) The level of mischief and associated financial losses now being admitted by the markets is purposely being underestimated by a factor of at least 100%.

2) The federal response/distraction of a tax rebate is a joke and will have no affect. Especially if people use it to buy goods that are “Made in China”.

3) This is something almost no one alive today has lived through or knows how to deal with.

4) This crisis may be the best (if also the most painful) way to get the majority of us out of our cars and suburban McMansions and back to living in urban settings within walking distance of jobs and amenities. Will energize the masses to support the development of rail transit beyond the current lip service. Will place the financial responsibility back with the homeowner instead of with the corrupt mortgage brokers so that if a kid needs dental work or the car breaks down you won't lose your house over a missed payment.

I don't have a lot so I also don't have a lot to lose. But I am still positioning myself for the coming crisis the best I can by controlling the size of my home, where I live (within easy reach of necessities), limiting the need to drive or depend on energy sucking devices, getting food locally, etc. I hope you all are doing the same.