http://hypoventurecapital-research.com/?p=70The Petroleum Ceiling and the Limits of Growth
Since the credit crisis began, we’ve been hearing a lot about how investing in a ‚ÄòGreen New Deal‘, ‚ÄòA Green Economy‘, and ‚ÄòA Clean Energy Economy‘ will rescue us. But how, specifically, will green solutions be our savior, and why – at the end of the age of oil and a time of increasingly dangerous human-caused climatic instability – is this type of policy package so crucial for President Obama to implement during his first 100 Days?
Over the past few months, as I’ve talked about how our economy won’t experience a prolonged period of growth until we wean ourselves from our addiction to oil, I’ve referred to this limit on growth as the “Petroleum Ceiling” on our economy. What I mean – even now as gas prices have temporarily dropped due to recessional demand and investors’ flight to safety in the dollar (among other reasons) – is that as long as our economy is so foolishly dependent on oil, once the business cycle starts to heat up again, demand for oil will go up and with it, the prices of food, commodities and other critical goods and services – bringing the period of growth to a screeching halt.
We saw what happens when gas prices skyrocket this past summer, and fortunately now have a chance to take steps to break through The Petroleum Ceiling before a Peak Oil crisis hits that makes the credit crisis look like a day in Mr. Rogers’ Neighborhood. The solution that the new Obama Administration should implement, as a slew of experts have declared, is to invest our tax dollars in something far more inspirational – and likely a considerably better investment – than bailing out greedy, irresponsible investment banks: a Green New Deal centered on the strategic proliferation of renewable energy and energy efficient technologies.
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