Peak Oil Passnotes: The Name Is Bonds, T-Bonds

But one of the main factors in maintaining high energy prices is the fact that high costs are already delaying new production coming onstream. There is a choking point in the energy complex that may be further exacerbated by any fear of a recession. A combination of high current costs, delayed projects and fear of investment due to uncertainty will only bolster prices. All of this is backed up by the fact that the cheap and easy to access oil and gas has gone.

In order to avoid the double disaster of a recession coupled with high energy prices – something genuinely too painful to think about – central banks may be forced to do what the current economic wisdom tells them to do, cut interest rates, fuelling another debt laden mess. If that occurs we will embark on another shorter, repeat lurch between dreams and disaster.

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