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Yes. It is inexpensive energy of the right kinds that makes the economy grow, so that debt can be repaid with interest. It is like "leavening for bread." Substituting poor quality energy, like wind and solar, doesn't work. Even substituting high-priced oil doesn't work. Natural gas, shipped around the world as LNG, also tends to be too high-priced. It is low-priced energy of the right kinds that allows the economic growth needed so that debt can be repaid with interest.

The energy limit is an affordability limit. It takes place because well-paying jobs require energy of the right kinds. When there is not enough affordable energy available, there tends to be great wage disparity. The many poor people cannot afford cars and motorcycles, and many other things. Young people tend to live with their families much longer. All of these effects reduce economic growth.

At some point, debt defaults start rising. It is these rising debt defaults that seem to push the system toward failure. With all of today's derivatives, rising debt defaults tend to set off a chain of failures of banks, private equity organizations, and even governmental organizations. If central governments attempt to bail out all of these organizations, hyperinflation is likely to occur.

Jan 9
at
3:05 PM
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