Perfect Storm

Tim Morgan, the Global Head of Research of the brokers Tullett Prebon, covers the end of the credit super cycle and the diminishing impact which increasing amounts of credit have had on economic growth; the negative impact of globalisation for the developed world; the self-delusion and ignorance of our true plight which has been caused by the corruption of data for critical items such as inflation and GDP; and last but by no means least the deteriorating equation for Energy Return On Energy Invested or EROEI.

It should cause some pause for thought about some of the panaceas being proposed for the current crisis, most particularly ever increasing amounts of government borrowing and spending, and even the efficacy of the much vaunted US shale gas rush.