From a personal perspective, the 1980s was an alarming decade. It was that time when our family sought to buy a small rural block of land in the North West of Tasmania, Australia. It was our first major purchase. Within the space of two years however we felt the awful financial consequences of the doubling of land prices combined with extraordinarily high real interest rates on our mortgage. There were few jobs at the time - and low-paid at that - to cushion this dramatic decline in our standard of living and the debt burden that went with it. 
So what happened?
Why have we gradually moved into a world where it’s taken for granted that both parents go out to work, that a normal household lives under the burden of (often) unprecedented levels of debt and where Fukushima logic in the industrial sphere has left many people with a dreaded fear of humanity’s extinction event in the short run? The following economic and social narrative may partly explain what I see as our frightening historical evolution into multiple and ubiquitous tipping points.
World energy production per capita peaked in 1979 . It could be argued that this change occurred - not necessarily as a function of resource depletion - but in direct relation to structural shifts in the national and the global economy that evolved in the previous decades. Consumerism, for instance, “proliferated in the US in the 1920s and 1930s, spread to other industrialised nations after the Second World War, particularly in the 1950s.”  In addition, the US dollar, as the global reserve currency, became unhinged from gold as the Bretton Woods international trading system gradually collapsed. This currency then morphed into a ‘petro-dollar’ that sustained US global economic hegemony. Nations that purchased oil were forced to find a way to purchase US dollars.
The nine-fold increase in global oil prices in the 1970s heralded new economic norms around the world. For example, the same material quantity in transactions simply involved greater cash flow. GDP rose whilst economies stagnated. No interest rate policy - including the abandonment of usury limits on interest rates by President Carter - was found to contain inflation from the higher energy prices . Economic bubbles formed.
Profit was shifted to different sectors of the national and global economies. Finance became a big ‘winner’ as family farms declined dramatically .
High energy prices, in turn, translated into reduced consumption. In the corporate sector increased productivity derived from the steady abandonment of environmental controls (including the almost totally unsupervised employment of nuclear energy). Global labour and interest-rate arbitrage by multinationals also produced more profit per unit of labour (productivity again). Workers around the world often simply worked longer hours, if they could find jobs at all. A world ‘jobs crisis’ steadily gained momentum from the 1970s onwards to present day. 
Income inequality began to explode under Reagan and by the end of the 1980s the lax environmental regulation began to translate into poorer health outcomes for citizens . So did the steady global depletion of water and cropland. Ronald Reagan gutted the federal anti-trust authorities in America. “Mergers in finance, communications, entertainment, oil, retailing, and on led to the consolidation of economic power in America.”  The continuing cultural notion that consumption was an indicator of social achievement also participated concentrating economic and political might into fewer hands.
US Government and its leading allies engaged in rigging the value of major global currencies in an unpredictable fashion in order to counter one financial or corporate profit crisis after another  Businesses responded by trying to hedge their bets in this uncertain international trading environment. Asset-backed securities (ABS) became popular in the world of structured finance (derivatives).
In the US major cities and public corporations were being kept from bankruptcy by the tax dollars of ordinary citizens. Meanwhilst most leading international banks were insolvent by every standard except by nomenclature . This was largely due to their improvident long-term loans to Third World countries. These loans were often forced on many US banks by the pressure from government to solve the oil-price-currency overhang in the first instance . “Petro-dollar recycling programs allowed lesser developed nations to purchase oil even as its price skyrocketed, and was actively promoted by the United States.”  Unsustainable third world debt led to US banks lending further funds to these troubled nations to avoid catastrophic debt default.
By the 1990s the primary contradictions of the global economy were evident: ” (i) a contradiction between economic mode of organization and national states, (ii) progressive expansion of fictitious capital, (iii) greater class, ethnic, international and subnational tensions were generated.  Neoliberalism had failed to deliver the goods. It was clear that the US, as the world leader in economic growth was doing so by reducing everyone else’s.
Capitalism is now in crisis. It’s no surprise, after all. Vulnerable nations around the world have been prompted to build up their reserves. Massive trade imbalances ensued as a result. This excessive liquidity from ‘emerging’ nations and debt-dependent consumption in industrial countries (lower wages/workers using rising asset values on their homes as income) has come to the inevitable bust.
Despite all the rhetoric of ‘free markets’ that sustained the global neoliberalst agenda, the big corporations of the world’s ‘military-industrial complex’ were bailed out (yet again) by taxpayers. Alarmingly, however, the accumulated debts gathered in the previous 45 years of ponzi capitalism have proved to be beyond the ability of sovereign states to sustain. (But at last, it is no longer possible for the mainstream media to continue to compute the virtues of purely competitive markets to monopoly and oligopoly!)
This month the world’s biggest central bank, the US Federal Reserve, is levered 50 to 1. Another bout of quantitative easing seems inevitable as the era of unprecedented monetary expansion goes on and on. The traditional assumption to date has been that “economic growth will return and facilitate the repayment of sovereign loans and mop up the excessive liquidity.”  This time, however, the reduced energy flows around the world are real! We are in an oil plateau that began in 2004 . In the latter half of this year world oil production has been predicted to go into decline. We have not been blessed with a form of governance that would prepare the world for such a crisis. But that’s not the only one.
“Now we have entered an age of growing crisis, of shock piled upon shock: vertiginous food price spikes and oil price hikes, devastating weather events, financial meltdowns and global contagion.” Says an Oxfam report published this year . A similar sentiment is repeated in many thousands of forums across the internet.
“The system has reached the stage that a bankrupt sovereign state is issuing debt to buy bonds in a vehicle that is tasked with buying debt from a bankrupt Sovereign state that is no longer able to go to market. Folks this is reaching the level of a Monty Python skit.” 
“Are the derivatives regulated? No. Are you still getting growth in derivatives? Yes.”
The situation is evolving very fast. As 30% of people in the US rely on loans taken out against their retirment pensions  a list of US President Obama’s leading economists are stepping down.  As the global food system fails  it appears that the student loan crisis could be a bigger financial failure than the housing crisis .
Here in Australia the economy is reported to have suffered its worst fall since 1991 as record floods, other natural catastrophe’s and obvious government mismanagement of finances and resources devastate the economic base of the nation. 
Whilst crowds of people riot in the streets of Greece and many other nations the home in the valley gives me a degree of refuge from the hidden fist of the market…. for the time being. There is also some kind of personal reassurance in having found a rough narrative to help me clarify some of the reasons as to how we may have got to this ‘place’ we’re in now, together. But I don’t have the answers. Today’s predicament poses demands for great and immediate change. Most immediately I see the demand for a quick evolution of a sustainable indigenous economy.
But what we do on our own probably won’t get us very far.
Through others, we become ourselves.
 In the late 1970s and the early 1980s US households experienced a major debt peak relative to personal income and this phenomenon repeated in other nations.
The rise in debt in the US corresponded with the rise in the price of oil and money.See: http://1.bp.blogspot.com/-yzbG3IFxxlE/TVaIG8lo2_I/AAAAAAAABDE/z5smLB5GtdA/s1600/FRED-FEDFUNDS.png
Why Growth is Dead
Thursday, May 12, 2011, 1:47 pm, by cmartenson
 The Peak of World Oil Production and the Road to the Olduvai Gorge
Richard C. Duncan, Ph.D.
Pardee Keynote Symposia, Geological Society of America. Summit 2000.Reno, Nevada
November 13, 2000. …World Energy Production per Capita: 1920-1999
 Stewart Lansley, After the Gold Rush: The Trouble with Affluence: ‘Consumer Capitalism’ and the Way Forward (London: Century Business Books, 1994), p. 85.
 Inflation in the US (according to CPI measures) declined between 1981 and 1983 then began a long-term rise.
The True Meaning Of Inflation
John Tamny, 01.25.10. Forbes magazine.
 Drawing on the observations from Henry CK Liu’s article:‘The real problems with $50 oil’ May 26, 2005
 The Economy in the 1980s
Source: US Department of STate
 Duration of unemployment in the US, Bureau of Labor Statistics as found at:
IMF fears ‘social explosion’ from world jobs crisis
By Ambrose Evans-Pritchard
Published: 11:00PM BST 13 Sep 2010
“America and Europe face the worst jobs crisis since the 1930s and risk “an explosion of social unrest” unless they tread carefully, the International Monetary Fund has warned.”
 A Perfect Storm of GMOs, Chemicals and Cancer.The Peoples Voice.
By Rady Ananda
Cancer From the Kitchen?
By NICHOLAS D. KRISTOF Op-Ed Columnist
Published: December 5, 2009
 In 1999 it was reported that “For the first time since China’s great famine claimed 30 million lives in 1959-61, rising death rates are slowing world population growth.” The World Watch Institute wrote that the AIDS epidemic and water and cropland shortages problems largely ignored by the international community for years are the major cause. See:
Lester R. Brown, coauthor with Gary Gardner and Brian Halweil of Beyond Malthus: Nineteen Dimensions of the Population Challenge. 
via the World Watch Institute
Can be downloaded at: http://www.worldwatch.org/system/files/EWB110_0.pdf
 On Reagan’s Birthday We Still Celebrate His Policies That Broke the Middle Class. Jeff Madrick, Senior Fellow, Roosevelt Institute. Posted: February 11, 2011 11:03 AM
 Fed, ECB Risk 1987 Rerun With Policy Drift: Michael R. Sesit
Commentary by Michael R. Sesit, June 13 2008
 Tappan On Survival. by Mel Tappan.Copyright 1981
 See William Greider’s ‘Secrets of the Temple - How the Federal Reserve Runs the Country’
 Cardoso, Eliana and Helwege, Ann. Latin America’s Economy. p.116 and Pastor, Robert A. ed. Latin American Debt
Crisis: Adjusting to the Past or Planning for the Future. p.54 and U.S. Senate Joint Economic Committee Website. As quoted in:
The Latin American Debt Crisis of the 1980s and its Historical Precursors
Alexander Theberge. April 8, 1999
 Reader Juan – ‘Hoisted From Comments: Has Neo-Liberalism Failed to Deliver the Goods?’
Naked Capitalism. Saturday, July 5, 2008
 Tipping Point- Near-Term Systemic Implications of a Peak in Global Oil Production. An Outline Review. By David Korowicz
Feasta & The Risk/Resilience Network. 15th March 2010. Reviewed April 1.
 ‘Peak Oil’ : Jimmy Carter’s Secretary of Energy sounds the alarm
Interview with Robert L. Hirsch (1/2)
 OPEC says oil supply gap looms later this year. 10th June 2011
 Oxfam said in a report entitled “Growing a Better Future: Food Justice in a Resource-Constrained World”
Hunger crisis worsens, food system broken - Oxfam
Reuters, Tuesday May 31 2011
 Jack Barnes. 2011
 Mobius Says Another Financial Crisis ‘Around The Corner’
By Kana Nishizawa - May 30, 2011 9:10 PM GMT+1000
 30% Of People With A 401(k) Have Taken Out A Loan Against It: New All Time Record
Tyler Durden’s picture
Submitted by Tyler Durden on 06/09/2011 18:47 –0400
 Top White House economist Goolsbee steps down
6th June 2011
 How The Global Food System Is Failing
Free Internet Press.Intellpuke
Wednesday, June 1, 2011
 The Next Bubble Is About to Burst: College Grads Face Dwindling Jobs and Mounting Loans
 Economy suffers worst fall since 1991
By online business reporter Michael Janda
1st June 2011
 L. S. Vygotsky, The History of the Development of Higher Mental Functions
First published on EconoSpeak: HERE