Why? It can't, so it won't. The promised entitlements dwarf our ability to fund them many times over. There's really not much more to say there.
But the biggest predicament we face is that steadily-eroding net energy from oil, which will someday be married to steadily-falling output as well, can't support billions more people and our steadily growing pile of debt.
Just as there's no plan at all for what to do when the groundwater runs out besides 'Let the folks in the future figure that one out,' there's no plan at all for reconciling the forced continuation of borrowing at a faster rate than the economy can (or likely will be able to) grow.
The phrase that comes to mind is 'winging it.'
The wonder of it all is that people still turn to the same trusted sources for guidance and as a place to put their trust. For myself, I have absolutely no faith that the mix of DC career politicians and academic wonks in the Fed have any clue at all about such things as energy or ecological realities. Their lens only concerns itself with money, and the only tradeoff concessions they make are between various forms of economic vs. political power.
If the captains supposed to be guiding this ship are using charts that ignore what lies beneath the waterline, then you can be sure that sooner or later the ship is going to strike something hard and founder.
I'm pretty sure the Fed's (and ECB's and BoJ's and BoE's) charts resemble those of medieval times, with "Here be dragons" scrawled in the margins next to a series of charts of falling stock prices and unwinding consumer debt.
So there we are. The globe is heading from 7.1 billion to 8 or 9 billion souls, during a period of time when literally every known oil find will be well past its peak. Perhaps additional shale finds will come along on other continents to smooth things out for a bit (which is not looking likely), but it's well past time to square up to the notion that cheap oil is gone. And with it, our prospects for the robust and widespread prosperity of times past.
Because all of this inevitably leads to some sort of time of reckoning, natural questions emerge: What might happen and when? What would that feel like? How would I know it's started? Given the knowns and unknowns, are there any dominant strategies for mitigating the risks that I should undertake? What are the challenges and what are the opportunities? ...
See full article at Peak prosperity