{"id":3008,"date":"2026-03-30T14:28:48","date_gmt":"2026-03-30T13:28:48","guid":{"rendered":"https:\/\/weknow0.co.uk\/?p=3008"},"modified":"2026-03-31T16:49:46","modified_gmt":"2026-03-31T15:49:46","slug":"it-feels-like-deja-vu-all-over-again","status":"publish","type":"post","link":"https:\/\/weknow0.co.uk\/?p=3008","title":{"rendered":"It feels like deja vu all over again"},"content":{"rendered":"\n

OK I don’t know if this is a remotely helpful post, but it really feels to me like one of those months we will look back on, like March 2020, and wonder what we were thinking. To recap<\/a>: on 4 March 2020, while Italy were shutting all their schools and a month after the WHO had declared a global health emergency, we were noting that the number of cases in the UK had jumped from 53 to 87 in one day.<\/p>\n\n\n\n

Jump forward to now and the number of tankers with oil on board is in freefall:<\/p>\n\n\n\n

\"\"<\/a><\/figure>\n\n\n\n

Trump is talking about invading Kharg Island<\/a> and “obliterating” Iran’s energy facilities<\/a>, and we are sitting in the time lags of international fossil fuel freight waiting to see what will happen. But we already know what is going to happen. Just like the pandemic, we will be taking similar measures to the countries already more affected very soon. The order looks like Asia, followed by Africa, then Europe and only then, ironically, the United States.<\/p>\n\n\n\n

So what is going on in Asia right now? Well the Philippines announced a national energy emergency<\/a> six days ago, setting up an authority to oversee the orderly distribution of fuel, food, medicines, and other essential goods. Sri Lanka has announced a four-day week for all government employees<\/a>. Egypt is ordering restaurants, caf\u00e9s and shops<\/a> to close at 9pm to safeguard dwindling energy reserves. Slovenia has brought in fuel rationing<\/a>. Moldova\u2019s Parliament has also voted to impose a state of emergency in the country\u2019s energy sector. Australia is offering free public transport<\/a>. Measures are also being taken in Thailand, Ethiopia, Myanmar, Vietnam, Bangladesh and South Sudan.<\/p>\n\n\n\n

On 3 March 2020, the UK Government unveiled their Coronavirus Action Plan<\/a>, which outlined what the UK had done and what it planned to do next. Paul Cosford, a medical director at Public Health England, said widespread transmission of COVID-19 in the United Kingdom was “highly likely”.<\/p>\n\n\n\n

On 4 March 2020, the Daily Express were telling us:<\/p>\n\n\n\n

\"\"<\/a><\/figure>\n\n\n\n

Which we clearly weren’t. Meanwhile the Daily Mail was anticipating future lockdowns and 6 million people being off sick:<\/p>\n\n\n\n

\"\"<\/a><\/figure>\n\n\n\n

The next day we had the first Covid death in the UK. And life was on hold for the next two years.<\/p>\n\n\n\n

Our response to the energy crisis seems to be almost entirely focused on <\/p>\n\n\n\n

1. The cost-of-living crisis; and<\/p>\n\n\n\n

\"\"<\/a><\/figure>\n\n\n\n

2. The financial markets.<\/p>\n\n\n\n

\"\"<\/a><\/figure>\n\n\n\n

The Education Secretary has said that motorists should fill up as normal<\/a> as the government is “well prepared” for disruption. The trouble is, many of us still remember September 2000:<\/p>\n\n\n\n

\"\"<\/a><\/figure>\n\n\n\n

So that would be enough to make us all feel nervous about shortages and queues for everything, having our lives disrupted and out of our control. But the real potential issue is not even being talked about, certainly not by the government. It is a shortage of food. Steve Keen sets out the economics of global food production here<\/a>. This does not tend to feature prominently in mainstream economic analyses which are energy and food blind for the most part, although the FT did have this graph<\/a> a couple of weeks ago:<\/p>\n\n\n\n

\"\"<\/a><\/figure>\n\n\n\n

As Steve Keen says:<\/p>\n\n\n\n

Survival will depend on grain reserves. China has of the order of 18 months in reserve, which will insulate it from the disruptions of 2026. The USA and India have substantial reserves as well, but some countries\u2014including the UK\u2014have virtually none.<\/em><\/p>\n\n\n\n

…Famines will ensue, and even countries that have never experienced such events could be forced into food rationing. This includes the UK and Australia, and a patchwork of countries across Europe.<\/em><\/p>\n\n\n\n

This is what people are nervous about: not being able to get enough food, either because it isn’t available at all or not at a price they can afford. Calling that a cost-of-living crisis is a bit like calling the Black Death a labour market crisis. And it doesn’t stop there. As Steve Keen continues:<\/p>\n\n\n\n

Other critical products that normally pass through the Strait of Hormuz include Helium, which is critical to the production of semiconductors, and sulphuric acid, which is critical to numerous production processes. The closure of the Strait cuts off one third of global helium output and about half of global sulphuric acid output.<\/em><\/p>\n\n\n\n

With critical industrial inputs cut as well, the problems will cascade well past food alone\u2014though that is clearly the most damaging impact. With LNG, petroleum, helium and sulphuric acid production cut, the capacity to undertake repairs to damaged facilities will also be hindered.<\/em><\/p>\n\n\n\n

The TED War is rather like smashing a spider\u2019s web\u2014and then killing the spider.<\/em><\/p>\n\n\n\n

The spider certainly looks in a poor state of health at the moment, and parts of the web will take years to fix. This is the crisis we are all inevitably going to be entering in the next few weeks. For who knows how long.<\/p>\n\n\n\n

A risk management approach to this crisis would involve communicating a plan to the country that minimised the impulse to hoard resources and protected the most vulnerable from extreme prices, rather than bland reassurances from government ministers. We need this to be in place very quickly now. <\/p>\n","protected":false},"excerpt":{"rendered":"

OK I don’t know if this is a remotely helpful post, but it really feels to me like one of those months we will look back on, like March 2020, and wonder what we were thinking. To recap: on 4 March 2020, while Italy were shutting all their schools and a month after the WHO […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16,8,22,14],"tags":[],"class_list":["post-3008","post","type-post","status-publish","format-standard","hentry","category-covid-19","category-economics","category-media-politics","category-risk"],"_links":{"self":[{"href":"https:\/\/weknow0.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/3008","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/weknow0.co.uk\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/weknow0.co.uk\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/weknow0.co.uk\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/weknow0.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3008"}],"version-history":[{"count":6,"href":"https:\/\/weknow0.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/3008\/revisions"}],"predecessor-version":[{"id":3022,"href":"https:\/\/weknow0.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/3008\/revisions\/3022"}],"wp:attachment":[{"href":"https:\/\/weknow0.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3008"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/weknow0.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3008"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/weknow0.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3008"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}