Posted 10 years ago on Sept. 28, 2012, 3:13 p.m. EST by notaneoliberal
This content is user submitted and not an official statement
By Gail Tverberg ; Posted on September 26, 2012 14 Votes
Governments and economists around the world have not figured out that what the world economy is suffering from, to varying degrees, is “high-priced fuel syndrome“.
High-priced fuel syndrome has a number of symptoms:
Slow economic growth, or contraction People in discretionary industries laid off from work High unemployment rates Debt defaults (or huge government intervention to prevent debt defaults) Governments in increasingly poor financial condition Declining home and business property values Rising food prices Lower tolerance for immigrants Huge difficulty in funding retirement programs, programs for disabled, and regular pension plans Rising international tensions related to energy supply The countries with the most problem with high-priced fuel syndrome are the industrialized countries that are big importers of oil. This is the case because oil has been a particularly high-priced fuel in the past few years. Importing high-priced oil adds challenges of its own, since funds used for imported oil flow out of the country.