by Peleg » Wed 18 Jun 2008, 16:33:11
$this->bbcode_second_pass_quote('venky', 'S')eriously why not?
Things are gloomy now, but economic cycles happen periodically. There are the added problems of the financial crisis in the US and high energy prices; the housing bubble was anyway more a reason for the current economic turmoil than escalating energy costs.
Economic growth has been reasonably strong most of the decade; I dont see why its a given that we are heading into a perpetual recession from now onwards.
Peak oil is why not. There may be a slight recovery but nothing can stop the reduction in economic growth that will come from oil depletion, simply because all alternatives exploited to the hilt would only replace 30% of our current need for oil. So that means at best once depletion sets in to the tune of 30% we are right back where we were before, except we woul dhave done what was natural and grown even larger as those crash course alternatives gave us a break. The human race will not avoid and will not solve the problem that exponential growth in cheap oil supplies and demand thereof has created.