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What If There Isn't Enough Energy Going Forward?

We'll be forced to live with less. Maybe a LOT less.
Friday, August 24, 2018, 7:09 PM

Currently the media is breathlessly cheering the record amounts of US oil production.

Technology advances in the fracking process have enabled the "shale miracle", resulting in the US producing over 10 million barrels per day for the first time since the 1970s. Think of all the incremental GDP growth that excess oil will power! » Read more

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Satansgoalie

America The Insolvent

A reckoning is due. One the elites are already readying for.
Friday, July 20, 2018, 12:37 PM

We don’t have much time left to get prepared.

Yes, it’s rare for things to suddenly fall apart overnight -- so if you're playing the odds, we probably have a few years left before the status quo as we know it begins to break down. Maybe until 2020; possibly to 2023. But not much longer after that.

The trends are just too severe. And they're building up steam. » Read more

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Why The Coming Oil Crunch Will Shock The World

And why we need a new energy strategy -- fast
Friday, July 6, 2018, 7:42 PM

A responsible global society should have a credible and very publicly-stated energy strategy providing a road map for weaning itself from fossil fuels before they become prohibitively expensive/scarce.

But since we don't have one, the alternative path we're taking is to sleepwalk into the future with no plan for feeding 9 billion people or re-building a crumbled global infrastructure -- let alone facing the additional challenges of running out of critical minerals, dealing with destroyed ecosystems, and being unable to field the necessary fuel and economic complexity to install a brand-new energy infrastructure measuring in the hundreds of quadrillions of BTUs.

This business-as-usual path will be marked by the three D’s: despair, demoralization, and death. » Read more

Podcast

Ronald Stoeferle: Gold Is Dirt Cheap Right Now

And a new bull market for the metal is beginning
Tuesday, June 12, 2018, 11:38 AM

Fresh from releasing his exhaustive 230-page annual report titled In Gold We Trust, Ronald Stoerferle joins us to summarize his forecast for the yellow metal.

Stoerferle, an author of several books on Austrian economics and head of strategy and portofolio management at Incrementum AG, concludes that gold is extremely cheap right now in dollar terms. And he sees a new bull market beginning for the precious metal -- one likely to quickly build momentum as the next (and long overdue) financial market correction arrives. » Read more

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Art Berman: Think Oil Is Getting Expensive? You Ain't Seen Nothing Yet.

A global supply crunch approaches...
Tuesday, May 29, 2018, 11:28 AM

After issuing clear warnings on this program that sub-$50 oil prices were going to be short-lived, oil expert and geological consultant Art Berman returns to the podcast this week to explain why today's $70 oil prices will go higher -- likely much higher -- and start materially contricting world economic growth.

Art explains how the current glut of oil created by the US shale boom -- along with high crude output by both OPEC and non-OPEC  producers -- is a temporary anomaly. Fundamentally, we are not finding nearly as much oil as we need to continue the trajectory of the global demand curve. And at the same time, we're extracting our reserves at a faster rate than ever. That's a mathematical recipe for a coming supply crunch -- it's not a matter of if, but when.

Click the play button below to listen to Chris' interview with Art Berman (60m:06s). » Read more

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PeakProsperity.com

Energy Is The Non-Negotiable Element Defining Our Future

As goes energy, so goes wealth
Friday, April 20, 2018, 8:05 PM

Executive Summary

  • What the Laws of Thermodynamics tell us about Energy
  • How those same Laws then apply to the Economy
  • Why the science convinces us a "forced economic contraction" is in our future
  • What we can choose to do about it

If you have not yet read Part 1: The Economy Is Cooked, available free to all readers, please click here to read it first.

One of my bigger 'learnings' from writing The Crash Course in book form was the deepening of my appreciation for the utter importance of energy to our way of life and to the process of creating (and maintaining) wealth. 

I spent time reacquainting myself with the laws of thermodynamics and came away with a far more focused view of the predicament in which we find ourselves.

I know that 'using the term thermodynamics' may sound awfully bookish or geeky, but it's by far the most important concept if one wants to understand the role of energy in our economy and why our economy will almost certainly fail to operate well in a world of declining net energy.

The laws of thermodynamics have never been violated by humans, not even for a millisecond.  Just like the law of gravity, they just exist as something we can either pay attention to, or not.  Our choice.  But they cannot be violated. At least, they haven't yet; so betting on a future where such laws have been repealed by human ingenuity would not be, shall we say, a sound wager.

A problem with the laws of thermodynamics is that they require a little bit of study to understand and they are loaded with wacky jargon which masks some very simple ideas.  Gravity is easy - all one has to do to appreciate it is get a few feet off the ground - the farther the better - in order for the reptilian portions of the brain to kick in and take over and make you very, very aware of gravity's potential consequences. Unfortunately, the laws of thermodynamics are less obvious, and we don't have a hard-wired evolutionary pathway that will force awareness upon us.  We have to come by an appreciation of the laws intellectually.

The first law simply states that.. » Read more

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The Economy Is Cooked

The growth cycle has peaked
Friday, April 20, 2018, 8:04 PM

Hours ago, European Central Bank chief Mario Dragho conceded: "The growth cycle may have peaked"

Of course, those paying attention to the data already knew this. Our politicians and central planers have been peddling to us the fantasy that the global economy is strengthening, finally ready to fire on all cylinders after nearly ten years of dependence on monetary stimulus.

That just ain't so. » Read more

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Off The Cuff: Silver Set To Soar?

An epic short squeeze looks to be in the making
Friday, April 20, 2018, 1:24 AM

In this week's Off The Cuff podcast, Chris and Davefairtex discuss:

  • Crazy Like A Fox?
    • Evaluating Trump's colorful record so far
  • Silver Set To Soar?
    • An epic short squeeze looks in the making
  • Commodity Complex Break-Out?
    • Rising oil prices are leading the way
  • Beware The Bitcoin?
    • Reasons to proeed with caution before re-entering the crypto space

PeakProsperity.com's gold & silver analyst joins Off The Cuff this week to discuss his tingling spider-sense, which is predicting a price breakout in silver.

Click to listen to a sample of this Off the Cuff Podcast or Enroll today to access the full audio and other premium content today.
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6 Essential Strategies For Prospering Through The Next Crisis

Be one of the few positioned to prosper when crisis hits
Friday, April 6, 2018, 11:32 PM

Executive Summary

  • The trends that have driven the past 10 years are now ending/over. Ride their reversal wisely.
  • Crisis can destroy or magnify your prospects. Your decisions today will control which outcome you experience.
  • In many cases, you need to do the opposite of what the 'herd' is doing
  • The 6 essential strategies for prospering through the next crisis

If you have not yet read Part 1: This Is The Turning Point, available free to all readers, please click here to read it first.

Strategies For Prospering Through The Next Crisis

Those with the open-mindedness, courage and optimism to adapt in time will be far less impacted -- and indeed, will have much better odds of coming through this transition the better for it. Amazing opportunities will arise during this time to increase all aspects of your wealth (yes, money -- but also in all the other important Forms Of Capital, too).

Don’t count on currency “money” retaining its purchasing power. 

States (governments) always follow the same pathway: when financial promises can’t be kept, states debauch/devalue their currencies as a politically expedient short-term solution.

But alas, just like central bank stimulus, the short-term expediency becomes the permanent policy, and the unintended consequences start piling up, for example, a loss of trust in the state’s currency.

I see Venezuela’s destruction of its currency as the canary in the coalmine. The first canaries to drop lifeless from their perch will be non-reserve currencies.  Then the weakest of the reserve currencies will be over-issued (via credit rather than actual money-printing) and then even the mightiest will collapse.

Many people reckon the US dollar (USD) is the weakest, and perhaps they’ll be right, but I think the Chinese yuan (RMB), Japanese yen and EU euro will lose purchasing power first.

The RMB isn’t actually a “real currency,” it’s simply a derivative of the USD via the official peg. As for becoming gold-backed, please examine any chart of Chinese debt issuance (all of which is currency) and then compare that to... » Read more

Podcast

PeakProsperity.com

Dr. Charles Hall: The Laws Of Nature Trump Economics

It's all about Energy Return On Energy Invested (EROEI)
Monday, March 5, 2018, 1:59 PM

Dr. Charles Hall may not be a name you instantly recognize, but it should be.

Now a Professor Emeritus of the College of Environmental Science and Forestry, Dr. Hall is a rigorous researcher of energy, oil, biophysical economics -- and was a critical early pioneer in developing the key resource metric of Energy Returned On Energy Invested (EROEI).

After a life's career of looking at the world through the lens of EROEI, Hall is very concerned that, as a global society, we are hurtling towards an energy crisis that will forcefully (and likely painfully) downshift our standard of living within the lifetime of the current generation. » Read more