Mainstream Broker Turns Spenglerian
The economy as we know it is facing a lethal confluence of four critical factors – the fall-out from the biggest debt bubble in history; a disastrous experiment with globalisation; the massaging of data to the point where economic trends are obscured; and, most important of all, the approach of an energy-returns cliff-edge.
The report presents the data and analysis in a scenery of Roman and Gothic ruins at sunset or against the background of dark clouds signaling a gathering storm. This is the first time we see a financial institution actually understanding the critical role of energy in the economic process and even introduces the concept of EROEI in the analysis. Chapeau! The significance of this report is not in the analysis or data presented, that could have been taken from elsewhere years ago, but that finally strong warning signals have arrived at the topfloors of financial circles in the London-New York axis of Anglosphere.
P.S. We were told that this broker had published a similar report back in June 2010. [pdf]