«There Is No "Next Economy"»
https://thehonestsorcerer.substack.com/p/there-is-no-next-economy>The largest energy crisis in human history has exposed the extractive, wholly unsustainable nature of the Western / Chinese industrial ecosystem. Mining used to happen in poor global south countries using cheap oil, while metallization and part manufacturing was increasingly done in China, using cheap coal. Final product assembly then took place either in China, or somewhere closer to the market, where labor was cheap and easy to exploit. With the Iran war depriving the global south and the mining colony, Australia, of its energy (primarily diesel fuel) the whole extractive industrial ecosystem has come under threat. Bad news is, that there is no next economy: so called “renewables” and batteries use the same raw materials and rely on the same processes as the old, fossil fuel economy. If anything the new, electrified economy has become even more reliant on oil than its “predecessor” ever was. No oil, no green energy either.
[…]
>As you can see from the above, fossil fuels are not essential in transportation or generating electricity only, but in making just about anything: from cheap plastics (a derivative of oil) to ultra-high purity graphite, or from sulfuric acid to diesel fuel. The 20% loss of world supply is thus not just an issue of price, forcing people to commute less or pay more at the pump, but a body blow to the entire materials based supply chain from copper mines in Chile or bauxite mines in Australia, to international shipping, manufacturing and delivery. And that supply chain includes everything: from food to computers, or from solar panels to electric vehicles.
>There is no energy transition, no electrification, no green economy. There is no “next economy” waiting in the wings either. There is just one economy: this one. And when it falters—either due to mineral depletion and peak production, or ecological disaster, perhaps due to climate change, or in this case war—that will be it. The ultimate risk the US-Israel coalition ran by starting a war on Iran was not one temporary shortage, nor a recession, or an increase in geopolitical premiums. It was the risk of starting a highly uneven, cascading collapse of an integrated commercial world order into a drastically simplified, shrinking shadow of a once globalized economy.
#Collapse #Globalization #TheHonestSorcerer