The Real Reason for the Crash and How to Fix It
When economists talk about the crash, they usually blame subprime mortgages and profligate lending by the banks. However, our financial problems are only a side-effect of the real issue, which is that, last summer, we experienced our first taste of what it is like to butt up against the limits of the earth’s ability to sustain our growth.
Things have changed so much that it is almost impossible to look back to those days and remember what it was like, and yet it’s only a few months ago.
Starting in early 2007 and peaking last summer, commodities prices shot up massively across the board, culminating last August when oil reach $149.00 a barrel, and gasoline prices around the world shot up by as much as two hundred percent in some countries.
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