The chart tells the story. The problem clearly is that oil, once the plentiful cheap provider of energy and of course the million other uses that it has, has reached the point of where the costs are prohibitive to production, or very close too it.

The US is now sitting on a massive supply of natural gas, in addition to a mountain of coal. The generation of power needs to be switched to gas, away from oil. Less demand, lower prices. The result will allow oil to be used in other areas at a lower price. Electric cars, filled up with electricity generated by natural gas.

Productivity and the natural rate of interest need to rise if there is to be any chance of reducing through payment of the now unmanageable debt loads. If productivity does not rise, and the natural rate of interest with it, vast quantities of capital [debt] will be destroyed in default. America and the world are no longer rich enough to simply default and maintain the standard of living currently enjoyed.