Tuesday, January 13, 2009

We're broke. Stock up. NOW

From Matt over at Peak Oil: Life After the Oil Crash:

"If you've been reading LATOC or any other (reality-based) energy sites, then you are familiar with the concept of energy return on energy invested (EROEI). Once a closed system's EROEI falls below the break even point, the system is no longer viable."

"Well the financial world has something similar to EROEI which is the amount of GDP generated for each dollar of debt injected into the economy. For lack of a better term, I will refer to this as "MROMI". Not unlike the EROEI of U.S. oil fields, he MROMI of our financial system has been steadily declining for over 50 years. Worse still, here is a chart showing that the system has hit "zero hour"..."

"What does this mean - on a pragmatic level - for the typcial LATOC reader? Well pretty much the usual which is the system is going down and so you should be doing whatever you can realistically do to prepare for major breakdowns in globalized systems of finance and food. If you want to discuss the "monetary flat spin" that we've entered, check out the discussion going on about it right now at the LATOC Forum and the original one over at the Ticker Forum."

Source/Author: Matt at LATOC.

Financial headlines today:

Mike Ruppert: "Economic collapse is accelerating . . . you can expect major breakdowns in daily life likely within just a few months"

Bloomberg: Global Order at Risk as Financial System Cascades Into Crisis

International Tribune: Rapid Collapse of Mexico a Top Fear for U.S. Military

Washington Post: More and More U.S. Consumers Seen Hunkering Down

Are you hunkered down? I am. Start saving! Stop spending! Plant a garden! Stock up! When? NOW.

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