\nThe world\u2019s rapidly growing and modernising population is consuming the earth\u2019s limited natural resources at an ever-increasing and unsustainable rate. Here are some major concerns:<\/p>\n
Peak Oil production<\/em><\/strong><\/p>\n Peak oil production brings the end of economic growth<\/p><\/div>\n Energy is the resource that powers all human and economic activity and oil is the energy source we depend upon most. Global production of conventional crude oil peaked in 2005 and unconventional oil from oil shale, (and) tar sands and cropping is barely making up the shortfall while creating new problems for water, land, food systems, wildlife and the atmosphere.<\/p>\n Peak Coal and Natural Gas<\/strong><\/em><\/p>\n Coal fracking uses too much water<\/p><\/div>\n Coal and natural gas reserves are extensive, but as more accessible, higher quality sources are depleted, growing practices like mountaintop removal for \u201cdirtier\u201d coal and hydraulic rock fracturing (\u201cfracking\u201d) for shale oil and natural gas carry high capital and environmental costs which limit their future viability.<\/p>\n Peak Everything Else<\/strong><\/em> Climate Change:<\/strong><\/em><\/p>\n Climate change is nonnegotiable and if we get it wrong this time there is no second chance. The critical threshold of the ratio of greenhouse gases in the atmosphere has been reached, and only drastic measure to reduce this ratio will avert a perilous future.<\/p>\n Increasing high levels of carbon dioxide and other gases in the atmosphere have trapped more of the sun\u2019s energy over the past century and have warmed the earth\u2019s oceans, landmasses and atmosphere. The warmer atmosphere can hold more moisture and has more energy to drive mass air movements and power more frequent and violent tornados, hurricanes, floods, droughts, snowstorms, heat waves, dangerous hail and lightning storms, and record rainfalls.<\/p>\n Flooding in Bangkok 2011<\/p><\/div>\n We can expect: 2.\u00a0\u00a0\u00a0\u00a0 More forest fires and wild fires as droughts become longer and more severe. Drought affecting crops in New Zealand<\/p><\/div>\n Economic Turmoil<\/strong> We can expect: Also, the bewildering array of derivatives \u2013 exotic financial instruments that create money but not real wealth, \u2013 are now monetarily valued to far exceed the value of all real goods and services on the planet. As the hard physical limits to growth begin to appear in the forms noted above, the entire growth-dependent financial system may be headed for a very hard landing.<\/p>\n Economists are part of the problem<\/strong><\/p>\n The remedies advocated by economists are at best suspect.. The New York Times Magazine headlined \u201cHow Did Economists Get It So Wrong?\u201d while Business Week featured \u201cWhy Economics is Bankrupt\u201d and \u201cWhat Good Are Economists Anyway?\u201d The Guardian talks of \u201cRescuing economics from its own crisis\u201d and Atlantic Magazine headlines were \u201cWill Economists Escape a Whipping?\u201d \u201cWhy Economics Failed\u201d and \u201cHave economists gone mad?\u201d<\/p>\n Infinite growth is not possible on a finite planet<\/p><\/div>\n The mechanistic approach to economics sees the rights of the individual as paramount and the sustainability problem as simply a matter of balancing competing economic, social and ecological considerations. On the other hand, a systems perspective suggests things are not quite this simple.<\/p>\n Solutions where the government pumps money into the system, will not solve our economic woes. As United States has recently discovered it only increases the debt and extends the suffering. As Europe is about to discover, you can’t solve a debt problem with more debt.<\/p>\n How come economists get it so wrong?<\/p><\/div>\n Because of increased trade, technological innovation and our ability to exploit the cheap, abundant energy of fossil fuels, New Zealand has had a prolonged period of economic growth with more production, more food, more people and more income. But energy is a prerequisite for all economic activity.<\/p>\n At the core of many of our problems is our monetary and taxation system.\u00a0 Any economic system must include an accurate accounting of its environmental and social effects.<\/p>\n Our monetary and banking system runs on interest bearing debt. Without increasing debt it is hard to \u201cgrow the economy.\u201d Economist Ken Boulding once said “Anyone who believes exponential growth can go on forever in a finite world is either a madman or an economist”.<\/p>\n The worst thing that could have been done in 2008 was for the National Government to borrow money ($300m a week) from private banks at interest. It is only going to cause more debt., increasing a debt burden currently $102,000 for each man, woman and child. Unfortunately there is no magic solution that will turn back the clock to an era of abundant resources and easy growth.<\/p>\n Globalisation and the harshest form of capitalism have eroded the bonds of community, created vast gaps of wealth between the richest and the poorest, and impoverished the natural environment.\u00a0 In New Zealand twenty percent of our children live in homes of beneficiaries. Too many of our youth are unemployed and not being effectively educated or trained.. Maori suffer most from all this.<\/p>\n","protected":false},"excerpt":{"rendered":" A PERFECT STORM OF CRISES Resource Depletion: The world\u2019s rapidly growing and modernising population is consuming the earth\u2019s limited natural resources at an ever-increasing and unsustainable rate. Here are some major concerns: Peak Oil production Energy is the resource that … Continue reading ![\"\"](\"https:\/\/neweconomics.net.nz\/wp-content\/uploads\/2011\/10\/peak-oil1.jpeg\" "\\"peak")
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\nPopulation pressure and modernisation is rapidly depleting many, if not most, of the resources we use to sustain civilisation. Fresh water, arable land, phosphorus for fertilizer, seafood stocks, lithium, gold, rare earth metals, rainforest products and other resources are close to, or already past, peak production. When the easiest and cheapest resource stocks are gone, the rest become more expensive and generally come at a higher environmental cost.<\/p>\n<\/a>
\nIncreasing crop failures like those\u00a0 in Russia due to extreme heat and drought; in Pakistan due to extreme flooding; and in Australia due to extreme heat, drought, and floods.
\nIncreasing death, destruction and economic devastation as more powerful tornadoes, floods and hurricanes afflict larger areas of the planet.<\/p>\n
\n3.\u00a0\u00a0\u00a0\u00a0 Greater damage from pathogens and insects as naturally balanced ecosystems begin to break down.<\/p>\n<\/a>
\nThe global financial system is currently in a state of terminal breakdown. It’s been on life support for the better part of half a decade, and the costs of keeping it on life support are spiralling out of control. While most agree that the global economy nearly collapsed in the spring of 2008, few acknowledge that nothing has fundamentally changed to prevent this from happening again. Recent bailouts of fragile European economies like Greece, Ireland and Portugal (like the bailouts of American financial institutions) increased the debt that first caused the defaults and likely set the stage for more economic chaos not far down the road. The IMF is warning of a dangerous new phase but as expected their prescription is \u201crepair\u201d when it should be \u201credesign\u201d.<\/p>\n
\n\u00b7\u00a0 \u00a0\u00a0\u00a0 \u00a0High inflation or deflation, both harmful
\n\u00b7\u00a0 \u00a0\u00a0\u00a0 \u00a0Scarce capital or credit for job creation or infrastructure projects
\n\u00b7\u00a0 \u00a0\u00a0\u00a0 \u00a0Dramatic cuts in government services as debt liabilities grow and tax revenue shrinks.
\n\u00b7\u00a0 \u00a0\u00a0\u00a0 \u00a0Growing ranks of unemployed as families sink into poverty and unemployment
\n\u00b7\u00a0 \u00a0\u00a0\u00a0 \u00a0Possible or even inevitable global economic collapse.<\/p>\n<\/a><\/a><\/a>It doesn\u2019t take a genius to understand there is something very wrong at the heart of the global economic system. We have a parasitic investment banking class sucking at the heart of main street business and at ordinary people.\u00a0 The system\u2019s dependence on exponential growth also causes environmental harm and unsustainable demand on natural resources.<\/p>\n