Tuesday, 30 June 2009

Doom and gloom at the OECD

The latest doom and gloom economic pronouncement from the OECD is hardly surprising. In the past year of crashing economies nothing has been done to address the underlying issues of corporate greed, over consumption, lack of investment in sustainable green collar job, the banking / monetary system and most of all our dependency on finite fossil fuel resources.

The oil price has steadily risen over the last six months to its pre-peak level, a sure sign that the demand / supply gap has closed. I doubt whether the price will rise to its Jun 08 peak any time soon as any rising price of oil will have a negative impact on the rest of the world's economy and as the world economy dives the demand for oil drops along with its price.

All the time we have a world economy predicated on oil, coal and gas, all of which are finite and will therefore fall in supply we will grind along on this long spiral of recession. We need to kick the carbon habit and base our main economic input (energy) on somthing that it a little less finite

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