Having a delusional story that’s at odds with reality can be harmless. Or it can be fatal. Or somewhere in between.
If Covid has taught me anything, it’s the power of a delusional story to bend otherwise intelligent people away from the truth. In the case of the ivermectin “horse dewormer!” saga, a perfectly harmless drug was withheld from dying patients “because it might not work.”
Meanwhile, drugs such as Remdesivir that were both harmful and did not work were greased right through the approval process and into people’s veins.
This is why I am ever on alert for the next big delusion that could cause harm. The biggest one I’ve ever come across is the delusion about energy – oil specifically.
A lot of people who should otherwise know better have deluded themselves into believing we really don’t need oil anymore. It’s simply a matter of deciding we don’t want to use it anymore. We have electric cars after all!
But this line of thinking is painfully detached from the realities of where we actually are in the energy story. Electric transport is practically non-existent on global energy consumption charts. I’ll post a chart in the comments below that you can expand to see what I’m talking about.
At any rate, the dangerous delusion in play gathers its potential harm from the gap between itself and reality. The reality is we have an exceptionally over-leveraged, debt-based economy that is not even remotely positioned for rapidly spiking and much higher energy prices.
Homer Simpson said, “Alcohol is the cause of and solution to all of life’s problems.”
The Chairman of the Federal Reserve, Jerome Powell, might say, “Money printing is the solution to and cause of ruinous inflation.”
But easy money policies cannot correct a world that is short of oil. Its problems have nothing to do with fantasy money digits on bank hard drives. It’s simply the most basic of all problems that any organism ever faces, running short of its prime source of energy. When cows eat all the grass in their paddock they have a predicament. When the economy runs short on oil it has a predicament.
Well, here we are. It’s a big freaking deal.
This video connects those dots for you.
originally posted at https://www.peakprosperity.com