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Page added on October 23, 2016
Thermodynamic Oil Collapse: Why The Global Economy Will Disintegrate Rapidly
The world is heading towards a rapid disintegration of its economic and financial system due to a “Thermodynamic oil collapse.” I spoke with Dr. Louis Arnoux of nGeni, about the details of the thermodynamics of oil depletion and its impact on the global economy.
Unfortunately, the world is completely in the dark about this energy information and its dire implications to global economic trade and finance, in a relatively short period of time. During the interview, Louis Arnoux discusses the dynamics of the “Thermodynamic oil decline” using six slides, including one on his nGeni technology towards the end of the interview. The information in this interview is so important, Louis needed to take the extra time to explain these concepts in detail.
In the beginning of the interview, Louis describes the significance of the first chart showing how the world’s fuel gauge is now “Running On Empty.”
Dr. Louis Arnoux presents his views concerning the depletion of oil reserves, that is, how to best assess depletion, what stage the depletion is at and what this means in financial and economic terms. This is based on his own research and on that of Bedford Hill and his Hill’s Group team that he has scrutinised in depth. Dr Arnoux is now part of a team of researchers who have recently refined the Hill’s Group work.
They are presently preparing a paper to be published in a peer reviewed scientific journal that will present their thermodynamic analysis of the oil industry, the Hill’s Group Etp model, how this model enables assessing the depletion status of the global oil reserves, and the high fit of their analysis with empirical data. In the present interview Dr Arnoux is not at liberty to discuss this work as it is not published yet. Instead he explains in lay terms the general dynamics of depletion and focuses on the economic and financial implications for the globalised industrial world of the advanced depletion status of oil reserves.
In addition, Louis also provides a chart during the interview showing just how disconnected the financial markets are compared to the reality… or the real physical economy. He developed this chart to show how inflated the U.S. GDP (Gross Domestic Product) is compared to gold and oil:
For real GDP or wealth to be created, it must parallel the value of oil and gold. As we can see in the chart above, it does not. To really understand the significance of this chart, you must watch the Thermodynamic Oil Collapse video above.
I imagine there will be many questions and comments about the interview. I plan on doing additional interviews on this subject matter with Dr. Louis Arnoux and Bedford Hill of the The Hills Group, if his schedule permits.
Lastly, during my four conversations with Louis Arnoux over the past month, I came to realize just how knowledgeable he was in many fields. Not only is Louis an engineer and scientist, he also understand economics and the value of precious metals as real money. He also believes that fiat money will collapse at some point and we will have to move back to a more sound monetary system including gold.
Again, we will discuss this more in upcoming interviews. I would enjoy receiving comments on what you all thought of the information presented in the interview.
13 Comments on "Thermodynamic Oil Collapse: Why The Global Economy Will Disintegrate Rapidly"
Grand Vizer on Sun, 23rd Oct 2016 9:55 pm
“we will have to move back to a more sound monetary system including gold” Absurd. Gold is just a shiny mineral. It has very little intrinsic value. Fillings for teeth.
SRSrocco on Sun, 23rd Oct 2016 10:08 pm
Grand Viper, that goes down in 2,000÷ year history of gold money as the most ignorant statement ever…. lol.
China and Russia are accumulating record amounts of gold while the Western countries add massive amounts of debt and derivatives.
Steve
Dave Thompson on Sun, 23rd Oct 2016 11:18 pm
This article is a great overview of our industrial predicament.
makati1 on Sun, 23rd Oct 2016 11:26 pm
SRS, GV doesn’t know history, obviously.
Hello on Mon, 24th Oct 2016 1:20 am
Gold is useless. I’d rather have a ham sandwich.
Survivalist on Mon, 24th Oct 2016 2:47 am
Gold has a history of being valuable and there are good reasons why this has been the case. It wasn’t just some random idea that popped into the minds of every ancient civilized population from the Aztecs to the Romans to the Chinese for no reason. It had desirable physical characteristics and those characteristics have not changed. Currency became useful because it facilitated incremental trade (i.e. its hard to trade 1/10 of your cow for half of a goat unless you kill them) and rulers could pay troops with currency, tell the population taxes were due to be paid in currency, and then the population got busy providing goods and services to troops so they could get some of their currency to pay their taxes. Gold was the best substance with which to make this currency from. Currency simplified a lot of things. Making it out of gold was the best option. No longer did kings have to feed their armies in far off camps with long supply lines of perishable goods. They just gave them gold coins to take with them and the locals fed the troops in order to get the coins they needed to pay their taxes. Salt was also used as an early form of currency.
http://www.bbc.com/news/magazine-25255957
peakyeast on Mon, 24th Oct 2016 4:31 am
@Hello: That might work with a few sandwiches that you use quickly. Try waiting a year or two with eating your sandwich. I think you might discover that almost anything else is more worth.
makati1 on Mon, 24th Oct 2016 6:07 am
Gold is ancient and deeply embedded in our psyche. Hello may think that ham sandwiches are better, but if he has no ham and someone does that will trade it for a gold coin…
peakyeast on Mon, 24th Oct 2016 6:37 am
At this point in time a fairly large submarine might be the best investment. -With fishing equipment and a filled cold storage. And lots and lots of waterproof solarpanels.
Davy on Mon, 24th Oct 2016 6:44 am
I would recommend 1/10 of an OZ gold coins in a stash along with cash money. You don’t need a lifesavings but it should be part of your collapse tool box. I find small gold coins allows an easier exchange where as a 1 OZ coin or a larger gold bar are more useful as an investment vehicle. This is fine too but I would recommend a better investment vehicle at this size be land and way of life. Small coins with cash are effective for that initial collapse period when ATM’s stop and people are desperate. People will be looking for means of exchange. Just because there is a collapse does not mean people will end trade. If I have food and you have a small gold coin I will likely make a trade. I also might trade my food for your food still having the gold option is just another survival tool. If collapse does not happen gold will always retain some value. People who are hyper conscious about a return are going to be disappointed in a collapse period. What they should be looking for is an investment that is going to lose less instead of more. An investment that has properties more than the investment itself has more intrinsic value in a collapse period. Small gold coins fit this description. Land you can make a living on is likewise of value. Education that allows you to produce something of value along with the tools is another.
Cloud9 on Mon, 24th Oct 2016 7:34 am
Fiat paper is scrip printed for the benefit of banks. It is conjured out of thin air at nominal costs and enables banks to charge rent on money they never possessed and allows governments to spend beyond their means. This system of frauds has existed in governments ancient and modern. All of these frauds run the same cycle with the eventual debasement of the currency and the resulting collapse of the political system.
A great read on this process can be found in the book When Money Dies by Adam Fergusson. The American system of frauds was perfected with the creation of the Federal Reserve in 1913. Consequently, America has been on this trajectory for over 100 years. The dollar as a system of frauds is long in the tooth.
We have been successfully conditioned by the oligarchs that control the system to believe that Constitutional money, gold and silver are barbaric relics with little or no use. The physical gold and silver markets are rigged by the sale of paper promises that like fiat are conjured out of thin air. This process has been so successful that the general public fails to recognize the true value of precious metals. Meanwhile, oligarchs from around the world continue to accumulate it. You must remember that what they say in public and do in private are two separate things.
When money dies, it tends to do so rather rapidly. At some point, in the world of transactions a noticeable change occurs. People come to realize that their money loses value over time. They come to understand that efforts to save money become a losing proposition. The velocity of money picks up. Then hyperinflation kicks in and faith is lost in the currency.
I have on my desk two Zimbabwe bank notes. The first is a one dollar bill with a security strip printed in 2007. The second is a fifty trillion dollar bill printed in 2008. In less than 24 months the Zimbabwean currency died.
If you want to understand the end result of monetary collapse look at this video on Zimbabwe after the collapse. https://www.youtube.com/watch?v=7ubJp6rmUYM
freak on Tue, 25th Oct 2016 3:31 am
I am starting to believe like Harry Dent that we are headed for a deflationary collapse and then maybe later inflation might happen. There will be no way to really protect your wealth and maybe holding dollars out of the banking system might be prudent. During deflation no one will have any currency to buy gold but might trade for it with food. You know governments are going to do what ever they have to do to stay in power including confiscating what ever wealth they can get there hands on.
https://www.youtube.com/watch?v=s8-LrQib2qo
makati1 on Tue, 25th Oct 2016 4:35 am
freak, anyone who has more money in a bank than is necessary to keep the account open and to pay the next month’s bills, is a fool. Someday they will go to the ATM and it will be off line, permanently. The government can do it any time they want. No notice, just shut down. And you are helpless if you do not have cash. Lots of cash.
During the Depression, the Prez closed the banks for over a week. Shut down many of them permanent;y. If your money was in the ones he closed, it was gone. Nothing has changed except now they just shut down the ATMs and all credit/debit cards and checks are worthless.
I have enough in my bank accounts to keep them open. Not a penny more. Do you?