GLOBAL RESOURCES ANALYSIS


DANGERS | COLLAPSING GOVERNMENTS


Governments that are already in economic dire straits due to declining economies, increasing debts, budget deficits, currency problems, trade deficits, negative economic growth direction, less global influence, high stagflation (combination of inflation and economic crimp) rates, ICT problems, less contact with the inhabitants in general, could face very difficult times when they haven't addressed PeakOil and PeakOil really gone hits their economies and deepens the problems severely and also bring new negative effects and dangers to their economies and societies. Governments that have ignored PeakOil will find themselves in such difficulties that only true good or bad hearted political leaders will stay in office, the rest will be cleaning their desks as soon as possible. PeakOil her effect of negative economic growth by higher cost prices and increasing trade deficits will give increasing unemployment, which will lead to increasing societal unrest and even some periods of real intensive societal turbulence. Governments than must cut in their expenses and staffing severely (adjusting expenses to income), because budget deficit lending would not be possible. Building governmental debts and trade deficits in times of tailwind will become the most outspoken failures of the past. Building up an expensive government in times of tailwind will be the curse of the past. Governments that could not control themselves in automatically expending. Taking each year more and more percentages of the GDP, which percentage accelerates in times of negative economic growth, because cutting in government spending is not easy to realize, that takes time and courage or a suddenly disaster. PeakOil will blood drain nations like the Versailles Treaty has blood drained Germany after World War II. When governments gets the effects and dangers of PeakOil on top of their already severe problems and gets problems with payment to their officials, than governments could collapse. It has happen 15-20 years ago in Russia. The Western World has no insurance policy by having the right car. If you drive the right car wrong, you still end nowhere.


Author: Gijs Graafland


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