China, India, and peak oil

Energy investment bank CEO Russell Simmons on what happens if (when?) India and China develop like Japan did in the ’50s and ’60s.

“If that happens, then we need to be prepared for for one of two things: either bringing on supply to the tune of a new North Sea every two or three years — which is impossible — or watching demand outstrip supply. And finally we [will] create shortages that literally create a run on the energy bank, just like we had a run on Bear Stearns.”

Except there will be no entity to force a deal and make things better (if just temporarily) like the Fed just did with Bear. There is no magical way to create more oil and lower prices.