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As energy declines, people will realize that loans can’t be paid back, that the principal is at risk. The collapse of the financial system, breakdown of supply chains, blackouts, end of being able to make computer chips, and so on are symptoms of the underlying cause: LESS OIL AVAILABLE TO DO MILLIONS OF ESSENTIAL TASKS. These nations went through collapse or are in collapse now. Extreme weather will destroy infrastructure, reduce crop yields, force millions to flee rising sea levels, increase mosquito-borne and other diseases.
Corruption threatens to take down the financial system since there have been few reforms and major loopholes in the few changes made since the 2008 crash. Our system is so interdependent that a electromagnetic pulse from the sun or nuclear weapon that knocks out the grid also knocks out transportation and the financial system.
Satellites, GPS, computers, cell phones — virtually every electronic device has microchips. Virtually everything in our homes, everything in our stores, got there on a truck. If trucks, trains, and ships stopped running, our global economy and way of life would stop too. Charles Hall is the originator of the concept of EROI.