Running short of tailwinds for the economy
Posted: Fri Nov 24, 2023 7:55 am
There's an interesting article up on Our Finite World titled Running short of tailwinds for the economy. It points out that what made the economy tick in the past is now getting short in supply. An interesting point is that high interest rates are good for the US:
Our Finite World is written by Gail Tverberg, who describes herself as:the higher interest rates make the US a more attractive country for other countries to invest in.
The article matches how I think about the economy. But I'm endlessly surprised by the new cars, houses, kitchens and holidays I see people buy. So many contradictions.My name is Gail Tverberg. I am an actuary interested in finite world issues - oil depletion, natural gas depletion, water shortages, and climate change. Oil limits look very different from what most expect, with high prices leading to recession, and low prices leading to financial problems for oil producers and for oil exporting countries. We are really dealing with a physics problem that affects many parts of the economy at once, including wages and the financial system. I try to look at the overall problem.