Planck Foundation



Let's make analysing of this facet simple, let's loose for one minute political correctly attitude to make good analysing simpler. The first world will be confronted with higher prices, as they are energy deficit, they will export their wealth to energy surplus nations. Gradual higher prices is of all times, due to inflation, due to money supply, but the result was steady prosperity growth. This time is it's different for the first world. Prices rise with no economic growth to compensate these price rises. The result for the first world: one 100% (as in mathematical no other option) certainly stagflation. Stagflation is when prices rise, people gets less purchase power and economies shrink/decline to lower levels. Stagflation is an inflation central bankers can't control: it's driven by external factors: they are on the side line of this development. Countries with severe current credit, energy, water and food surpluses will gain huge positive wealth changes (as other countries exports their purchase power -wealth- to them). The credit, energy, water and food crises together will totally reshuffle the wealth levels on earth. The price on/of oil addiction will be huge, draining the former economic giants dramatically.

Author: Gijs Graafland

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