Economic effect of energy downturn

[Buck]

This story is long ,and I've yet to finish all of it, but it
should be of interest as to the "cause and effects" of the
mingling of energy and the economy.

http://www.theoildrum.com/node/3747#more

I plan to print it at the library to ready entirely
while I enjoy a cup of good coffee and my pipe. ;D

[kawalekm]

Thanks Buck
It was VERY informative! *Here's a short epserpt that people here should pay attention too.

"Another impact of higher food and oil prices is more defaults on loans. We first heard about higher default rates on subprime mortgages. As prices of food and energy continue to rise, defaults can be expected to spread to other kinds of loans, such as credit card debt, auto loans, and student loans.

As families cut back on spending, financial difficulties can be expected to spread to businesses. Some types of businesses that are particularly vulnerable include restaurants, airlines, auto manufacturers, and homebuilders. Businesses with high levels of debt are especially vulnerable, since a drop in revenue is likely to make it difficult to make loan payments. "

For people here at BHM, I think we can use these statements as a good indicator of the directions we should be headed in (and those we shouldn't take). *Now is not a good time to be thinking of opening a restarant. *Likewise, anyone here working inside the auto industry had better start making preparations.

On a positive note though, I think anyone gearing up to provide locally grown fruits/nuts/meat/vegetables might find a great niche, as they discover their local products can now compete with industrial food products that have to be shipped great distances. *I'd say read the article, and think of how you could make your homestead fit into a shrinking economy.
Michael