Why We Have an Oversupply of Almost Everything (Oil, labor, capital, etc.)

Again, Gail Tverberg manages to present valuable perspectives on our present energy, economy, and ecology predicament.

Our Finite World

The Wall Street Journal recently ran an article called, Glut of Capital and Labor Challenge Policy Makers: Global oversupply extends beyond commodities, elevating deflation risk. To me, this is a very serious issue, quite likely signaling that we are reaching what has been called Limits to Growth, a situation modeled in 1972 in a book by that name.

What happens is that economic growth eventually runs into limits. Many people have assumed that these limits would be marked by high prices and excessive demand for goods. In my view, the issue is precisely the opposite one: Limits to growth are instead marked by low prices and inadequate demand. Common workers can no longer afford to buy the goods and services that the economy produces, because of inadequate wage growth. The price of all commodities drops, because of lower demand by workers. Furthermore, investors can no longer find investments that…

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About christersoderberg

Living and growing up in nine countries has left strong impressions on the background of Christer Söderberg, helping to create an awareness of the impermanence in life and the uncertain value of knowledge; illustrating the paradox between knowing and what we may do well to “unlearn”. Christer has worked with companies in six countries on four continents, most recently in Brazil where between 1998 and 2002 he started a subsidiary for a Swedish Multinational. Studies in business and a lifetime of social entrepreneurship have further cemented his belief that the only thing we can change is ourselves. This lifelong endeavor expresses itself in creating the conditions for change through places, physical and virtual spaces where the individual can feel safe in him/herself; at least enough to stop, reflect and listen to the world we live in. We exist in our relationship to each other, our environment, and ourselves. Through observation and silence, preferably in close communion with nature, a “zero perspective” can help stimulate the questions surrounding our purpose and a meaningful contribution while on earth. Increased awareness of individual potential plants seeds for long-term success; Open World initiatives help awaken the hidden potential in individuals, creating new perspectives on cooperation and personal development. Increased focus and balance help provide a strong base for individual and business growth, with a deeply ingrained sense of responsibility, respect and awe for the power in nature.
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