debt

I was looking at the ratio of US debt to US disposable personal income together with some other graphs of oil supply and oil prices, and realized that maybe there is a connection between debt, oil prices and personal income. In this post, I show a few graphs, and offer my conjectures as to what may be behind the relationships. You may agree with me, or perhaps you can offer some different ideas as to what happened in the past, and what may be ahead.

Dubai is going through an economic melt-down. They've been in a massive growth phase and it's financed by debt expecting that there would be a continuous influx of tourists. Dubai doesn't have its own oil. They've been building a wonderland, but the system depends on people flying to their island. Flying requires fossil fuel. And because of peak oil fossil fuel is due to run short soon, and it seems like an obvious folly for them to have done this thing. But here they are.