Julien Pierrehumbert:
> The most amazing thing here is that while he recognizes that US energy
> consumption
> is unsustainable, he mascarades the current level of US energy consumption as a
> requirement.
Yes, Policy Pete is interesting because it is by an evidently rational person with a
sceptical eye, who nonetheless cannot think of an alternative, even though he knows
the existing energy system is finished.
You are right about seeling arms etc to Saudis: that, and the fact that most
petrodollars earned by Gulf states are reinvested in 'safe havens', ie, they end up
buying US or European real estate, bonds etc. However, none of this alters the
deflationary and inequality effects of oil hikes, or the fact that energy shortages
have fundaemntal and in the long run potentially disastrous effects: US per capita
income levels did not rise for 20 years after 1973. It will be worse next time.
Mark
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