World energy production has reached a bumpy plateau.
That means growth has reached a bumpy base line just above zero.
From here on it is a zero sum line.
There is just a small amount of growth available to the world and most
of it has been cornered by China and India.
However China is currently now finding the limit to growth which is why
their economy is winding back a little.

From now on we have to learn how to run our economies on zero growth or
we will find ourselves in a contracting economy.
Unfortunately only a few economists have realised the relationship
between growth and energy and those that do have been campaigning to
wake them all up. Most economists think it is all about money.

I had the opertunity to speak to our local polly at one of those meet
the voters nights. He just did not have a clue and had never heard the
suggestion previously.
However he does seem to be interested to find out as I got an email
a day or so later asking for source information.

Bazz I am unsure Capitalism can run on zero growth.
China and India grow from a very low start, other country's given the chance can to.
The African Continent for a start.
Brazil is taking giant steps.
South America, if it can get diseases free,has Cattle enought to swamp markets, at least take a major share.
Zero growth is stalling,stalling leads to going back wards.
I do not share your view on energy, right now oil price is stable.
Stayed that way while Lybia fought for its freedom.
Iraq saw it sky rocket.
Been reading,about very real great new inventions and I have no doubt if needed we will find energy in months.
Nuclear power will if needed power the whole world, growth and all, for ten century's if we need it to.
As each country, no matter how poor today, starts to want growth it will grow.

A possible solution at last to the financial crisis

It is August. In a small town on the South Coast of France, holiday
season is in full swing, but it is raining so there is not too much
business happening. Everyone is heavily in debt. Luckily, a rich tourist
arrives in the foyer of the small local hotel. He asks for a room and
puts a Euro100 note on the reception counter, takes a key and goes
to inspect the room located up the stairs on the third floor.

The hotel owner takes the banknote in a hurry and rushes to his meat
supplier to whom he owes E100. The butcher takes the money and races to
his supplier to pay his debt. The wholesaler rushes to the farmer to
pay E100 for pigs he purchased some time ago. The farmer triumphantly
gives the E100 note to a local prostitute who gave him her services on
credit. The prostitute goes quickly to the hotel, as she was owing the
hotel for her hourly room use to entertain clients. At that moment, the
rich tourist is coming down to reception and informs the hotel owner
that the proposed room is unsatisfactory and takes his E100 back and
departs. There was no profit or income. But everyone no longer has any
debt and the small townspeople look optimistically towards their
future.

COULD THIS BE THE SOLUTION TO THE GLOBAL FINANCIAL COLLAPSE?

Belly said;
Bazz I am unsure Capitalism can run on zero growth.
China and India grow from a very low start, other country's given the chance can to.

I believe capitalism will be able to continue, but under somewhat
different rules. There will be a lot more local small business.
Banks will still exist I expect, but another form of financing will be
in effect. I expect they will be more like an exchange and a manager
of local currencies.
Merchant banks and their financing as we know it now will not exist.
Certainly global trade will diminish with the credit system.

Belly> I do not share your view on energy, right now oil price is stable.

Not really, the price is rather volatile, WTI went over US$100
yesterday and Brent was $110. Tapis which is the price we use is $120.
These are the levels that generate a
recession. If they stay around these prices for a week watch petrol
prices in about 10 days.
At these high prices people will miss paying their mortgages or
electricity bills.
The problem with alternatives is scale and energy intensity.
A cup of petrol can take a car to the top of the Eiffel Tower.
In order of energy intensity;
1st is nuclear, 2nd oil, 3rd coal, 4th natural gas then a big gap
to wood followed by everything else a long way back.

And that is the problem Belly, petrol being a liquid is very versatile
it is cheap can be put readily through pipes etc and contains a
lot of energy for its volume. There is nothing like it.
That is where the problem lies. Crack that and Bill Gates will come begging.

Belly>Been reading,about very real great new inventions

Haven't we all. Everyone is looking for the magic bullet.

if every nation was as productive as Israel who has basically transformed a desert into food bowl there would be no lack anywhere. Compare that to Africa full of corrupt leaders who are rich in minerals and rich in fertile lands but can't feed themselves. Its not rocket science. The overpopulation mantra is simply that. Its a fallacy.

"""
Been reading,about very real great new inventions and I have no doubt if needed we will find energy in months.
"""

Very interesting, Belly. Care to share your new find?