We here on Peakoil are concerned about the affordability of energy and the stresses it will put on businesses and consumers, now and increasingly in the future.
Some of us believe that as these various consumers of energy spend a greater and greater percentage of their income on energy that the economy will slow, or even crash.
Sounds like common sense. However, what I realized when I attempted to 'complete the circuit', I wasn't so sure:
I spend more money on energy. It goes to the energy company, big oil, and the Saudi's. But the money just doesn't sit there; it is re-invested back into the world economy. I mean, it's not like the Saudi's are stuffing greenbacks under their mattress, right?
That re-invested money eventually makes its way back into the US economy as investments as venture capital, thereby financing the scaling-up of potential alternative fuel sources.
Just stop me cold where my line of thinking is going wrong, maybe I'm missing something...
I suppose if anything that this means less capital will be concentrated in the US economy due to the fact that a great portion will not make its way back to the U.S.