Pirate's Cove

It was only a matter of time before the Usual Suspects started to use the current crises for their nefarious purposes, just like they’ve attempted to use a slight increase in the global temperature in the last 170 years, attempted to use COVID

Incessant crises show old economic model is running on empty

First it was a financial crisis. Then a decade of slow growth that bred political anger. After that came a pandemic. Just as the threat of Covid-19 appeared to be receding, along came a European war. Welcome to the era of incessant crises.

Comparisons are often made between today and the 1970s, and in some respects they are appropriate. A global economy already exhibiting plenty of inflationary pressure has been hit by an oil price shock, just as it was in late 1973.

Almost half a century ago, the Opec oil cartel ratcheted up the price of crude during the Yom Kippur war. The sanctions imposed on Russia’s energy exports are having a similar – albeit so far less dramatic – impact. The cost of crude climbed to almost $140 (£107) a barrel at one point last week but it would need to rise a lot further – to $180 a barrel – to beat the 2008 record, once allowance is made for inflation.

Even so, higher energy prices are something western governments could do without. US inflation has already hit 7.9% and will rise further in the coming months. Pretty much each month since last summer, UK inflation has been higher than expected, and it would be no real surprise to see it rise above 10% this spring. That’s still some way short of the peak in 1975, when inflation climbed above 25%.

So, what is The UK Guardian’s David Elliot proposing, after a long discussion of past doom?

There is, though, an unmistakeable sense that the old model is running on empty, while the talk of levelling up and greening the economy suggests that the equivalent of the economic settlement that brought stability to the postwar decades is lurking out there somewhere. The current era of permanent crisis has highlighted the faults of the current system and the difficulties involved in returning to the pre-2007 status quo. It hasn’t yet given way to a fully fledged alternative, although history suggests that sooner or later it will.

Like with most of the climate cultists, Elliot isn’t quite ready to name what the new model should be, as that would scare people. When some Warmists actually say what they want, full on Modern Socialism with the government in charge of everything, people typically go “whoa, whoa, whoa there”, even your average Warmist. That said, expect more Modern Socialists to start making Recommendations for a New Model as the problems continue.

Top 6 Midterm Election Issues – ALL U.S. VOTERS

Clip-N-Save https://t.co/1DiJa4qZsW pic.twitter.com/BkSbWujZhl

— Rasmussen Reports (@Rasmussen_Poll) March 13, 2022

Here in the U.S., a poll like that would usually have pundits and politicians changing their tunes. These days, it will incent them try and jame more Leftism down our throats.