As disturbing as it my seem, we live in a world that has more than just publishing and books in it. hence today’s post. A fascinating analysis of where we are in world economics and how we got here (though not always one with which I wholeheartedly agree) can be read at the link below. Perhaps the most interesting idea is around the energy revolution and the coming (if you like) energy crunch, well worth pondering for a while:
The critical equation is the difference between energy extracted and energy consumed in extraction – energy return on energy invested (EROEI). Since the Industrial Revolution, EROEI has been high. Oil discovered in the 1930s provided 100 units of energy for every unit consumed. But EROEI has fallen, as discoveries have become smaller and more costly to extract. The killer factor is the non-linear nature of EROEIs. Once returns ratios fall below 15:1, there is a dramatic “cliff-edge” slump in surplus energy, combined with a sharp escalation in cost. And the global average EROEI may fall to 11:1 by 2020. Energy will be 50 per cent more expensive, in real terms, than today. And this will carry through into the cost of almost everything – including food.
via Economic perfect storm: The four trends that killed Western growth | City A.M..