The Government Will Not Survive The Falling EROI

While the MSM believes business as usual will continue for quite some time, the U.S. and world are about to face a collapse of epic proportions.  Also, many of the precious metal analysts have this notion that if we just allow the Big Banks to fail and get back on “Sound Money”, then after a recovery, we will experience profound economic growth.

Unfortunately, sound money cannot prevent the coming financial and economic devastation due to the falling EROI – Energy Returned On Invested.  I sat down with the folks at SilverShield to discuss why the U.S. Government, just like the Roman Empire will fail due to the falling EROI.

That being said, owning physical gold and silver will be some of the best assets to own in the future to protect your wealth.

NOTE:  This is not Anti-Government rhetoric on my part (even though there is a great deal that could change for the better in the Federal Govt), but rather a common sense conclusion that all large governments will not survive the coming EROI collapse.

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6 Comments on "The Government Will Not Survive The Falling EROI"

  1. Hi Steve,

    Great interview – and I was very glad to hear someone stress the importance of peak oil in the future of our economy.

    If you are interested, I’d very much like to interview you on Skype for our newsletter. We don’t have a huge distribution now, but we are growing.

    You don’t need to publish this post – it’s a personal message to Steve.

    — Deck

    • Deck,

      Glad you enjoyed the interview. I will contact you via your email… if you don’t mind.


  2. OutLookingIn | March 22, 2015 at 6:59 pm |

    The falling EROI will not be the chief percipitant of the coming global economic catastrophe. It will be a contributing factor, but by no means the chief factor. The tipping point will come from the financial sector and the failure of the 1 quadrilion notional derivative market. Cracks are beginning to appear, as in the case of the crash in oil price.

    Beginning as early as August 2014, oil traders contracted VLCC (very large crude carrier) and ULCC (ultra large crude carrier) tankers to carry North Sea, West African and Arab crudes to South Africa’s Saldanha Bay, which has a large oil storage terminal with a capacity of 45 million barrels. Hoping to repeat their trading fortune profits made in the storage asset plays of 2009 – 2010. These oil futures have long since been sold into the derivative market and are now ticking time bombs of massive financial destruction.

    Its interesting to note here, that the United States exported 401,000 barrels of oil per day in July 2014, the highest level of exports in 57 years and the second highest monthly export volume since 1920! From the U.S. Census Bureau for November 2014, the U.S. upped oil exports to 501,766 barrels per day, setting a new record.

    Now we learn that all on-land U.S. oil storage will reach capacity much sooner then anticipated, in late May or early June! Just when the Bakken oil shale play and North Dakota are scheduled to produce much more oil. As U.S. oil storage space is exhausted, every barrel of production will have to be sold on the open market at any clearing price.

  3. Likely this won’t draw the comments of a short quick-read piece, as there is a time investment in listening. I don’t know Ryan but do know Chris at Silver Shield. Good questions; good calm discussion. An interview with the sound and intonation of a voice adds to the messages one is attempting to communicate.

  4. Very good interview, thanks. Watch central banks monetize oil futures going forward. That does nothing about falling eroi, the focus is on ponzi extension. Guess we have to wait for the blackouts.

  5. i Thanks to your information

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