Bloomberg/Alex Wittenberg/4-7-2022
“Jeremy Grantham has a fresh warning about Russia’s invasion of Ukraine: oil-price spikes of this magnitude have always triggered recessions, and the global economy is at risk of much bigger challenges in the coming decades as finite commodities become scarce.”
USAGOLD note: Grantham’s assertion that a spike in the oil price always triggers a recession is bourne out in the accompanying chart. In this brief analysis, he makes an interesting philosophical observation: “Although we live on a finite planet, we have been attempting for the last 250 years to do the impossible: to generate perpetual compound growth.”
Source: St. Louis Federal Reserve [FRED]
