Monday, September 21, 2009

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http://thearchdruidreport.blogspot.com/

Daydreams of Destruction

Last week's post on The Archdruid Report got rather more than the usual number of responses. Most of the comment – no surprises there – focused on my suggestion that the hopes for a better future retailed so freely by all sides in today’s cultural conversations face certain disappointment. At first glance, this may not seem like a controversial statement; one of the crucial facts about the future, after all, is that the fossil fuels that prop up current lifestyles across the industrial world, and provide the basis for survival for hundreds of millions in the Third World, are depleting rapidly with no adequate replacements in sight.

That hard fact pretty much guarantees a future in which poverty, hunger, warfare, and early death will be vastly more common than their opposites, and in which a great many of the comforts and opportunities we now take for granted will no longer be available. That, in turn, would certainly seem to define the future ahead of us as worse than the present, in ways sweeping enough that any benefits to be gained from the changes in store could be considered consolation prizes at best. Still, so straightforward an assessment of our prospects is profoundly unwelcome in many circles these days.

The difficulty here is that faith in the prospect of a better future has been so deeply ingrained in all of us that trying to argue against it is a bit like trying to tell a medieval peasant that heaven with all its saints and angels isn’t there any more. The hope that tomorrow will be, or can be, or at the very least ought to be better than today is hardwired into the collective imagination of the modern world. Behind that faith lies the immense example of three hundred years of industrial expansion, which cashed in the cheaply accessible fraction of the Earth’s fossil fuel reserves for a brief interval of abundance so extreme that garbage collectors in today’s America have access to things that emperors could not get before the industrial revolution dawned.

That age of extravagance has profoundly reshaped – in terms of the realities of human life before and after our age, a better word might be “distorted” – the way people nowadays think about very nearly anything you care to name. In particular, it has blinded us to the ecological realities that provide the fundamental context to our lives. It’s made nearly all of us think, for example, that unlimited exponential growth is possible, normal, and good, and so even as the disastrous consequences of unlimited exponential growth slam into our society one after another like waves hitting a sand castle, the vast majority of people nowadays still build their visions of the future on the fantasy that problems caused by growth can be solved by still more growth.

The distorted thinking we have inherited from three centuries of unsustainable growth crops up in full force even among many of those who think they’re reacting against it. Activists at every point on the political spectrum have waxed rhetorical for generations about the horrors the future has in store, to be sure, but they always offer a way out – the adoption of whatever agenda they happen to be promoting – and it leads straight to a bright new tomorrow, in which the hard limits of the present somehow no longer seem to apply. (Take away the trope of “the only way to rescue a better future from the jaws of imminent disaster” from today’s activist rhetoric, for that matter, and in most cases there’s very little left.)

Still, the bright new tomorrow we’ve all been promised is not going to arrive. This is the bad news brought to us by the unfolding collision between industrial society and the unyielding limits of the planetary biosphere. Peak oil, global warming, and all the other crises gathering around the world are all manifestations of a single root cause: the impossibility of infinite growth on a finite planet. They are warning signals telling us that we have gone into full-blown overshoot – the state, familiar to ecologists, in which a species outruns the resource base that supports it – and they tell us also that growth is not merely going to stop; it’s going to reverse, and that reversal will continue until our population, resource use, and waste production drop to levels that can be sustained over the long term by a damaged planetary ecosystem.

That bitter outcome might have been prevented if we had collectively taken decisive action before we went into overshoot. We did not do so, and at this point the window of opportunity is firmly shut. Nearly all the proposals currently being floated to deal with the symptoms of our planetary overshoot assume, tacitly or otherwise, that this is not the case and we still have as much time as we need. Such proposals are wasted breath, and if any of them are enacted – and some of them very likely will be enacted, once today’s complacency gives way to tomorrow’s stark panic – the resources poured into them will be wasted as well.

This is one of the reasons it seems crucial to me to keep coming back to the hard facts of our predicament: our limited resources and even more limited time need to be directed toward projects that might actually do some good. Still, there’s another side to this repeated insistence on an unwelcome reality, and the best way to explore that is to glance back at one of the responses to last week’s post.

The comment in question came from a reader who signed himself “Tony.” I trust he won’t feel unduly picked on, as I’ve chosen his response as a thoughtful and eloquent expression of a common feeling that many readers of mine, and countless others as well, have expressed in their own ways. While acknowledging the ghastly human toll that will be inflicted by the ending of the industrial age, he argues that life in the modern world, while materially prosperous, is empty and meaningless, and hopes that life after industrialism will be more fulfilling. He comments:

My life is EASY now, but I do not LIKE it. My body may have ease, but not my soul. I also find no soul’s ease in the prospects for many, say, who need modern health care to live. I nonetheless find excitement in the thought that current power structures may soon crumble, finally giving those like myself, and others in my generation, a chance to really live.

Any of my readers who have been in contact with the peak oil scene, or any of the other movements that have predicted the decline and fall of our present civilization, will have heard these same feelings expressed many times. Some of my readers may have had such feelings themselves. The idea that a future of material deprivation and suffering may nonetheless be better in some psychological or spiritual sense echoes tropes deeply rooted in the narratives of our culture. Who among us hasn’t daydreamed about fleeing from the complexities and moral compromises of modern existence to some simpler and more strenuous life where, at least in our imaginations, the sources of life and meaning are closer?

It’s a very old fantasy. The Roman poet Horace, in his Second Epode, put the same sentiments in the mouth of a moneylender, who imagined himself living the simple life of a poor farmer off in the Italian hill country, then turned from such daydreams back to the work of managing his investments. No doubt there were plenty of poor farmers in Horace’s time whose daydreams fixated instead on the high life of a wealthy moneylender in Rome.

Still, there’s a crucial difference. Neither Alfius the moneylender nor the poor farmers of the Italian hinterlands, as far as we know, ever harnessed their daydreams of a better life to fantasies of global catastrophe. Nowadays, by contrast, a great many people do exactly that. From fundamentalist Christians who pin their hopes on the Rapture – “He’s tooting, and I’m scooting,” to quote a popular bumper sticker – straight through to the current crop of utopian true believers who insist that the implosion of the industrial world will be followed by the inevitable triumph of whatever ideology they favor, a great many people nowadays pin their hopes of a better life onto whatever convenient cataclysm comes to mind. Tony’s hope that the fall of current power structures will allow him “a chance to really live” is simply another variation on this theme.

The irony here would be worth savoring if it weren’t so potentially explosive. I’m normally unsympathetic to claims that our civilization is a unique case, but in this context it may just have accomplished something that no other society in all of history can match. Certainly I can’t think of another case in which people faced with the tolerably common human experience of a less than fulfilling life have had so few inner resources to hand, and so little knowledge of past thought about the same problem, that the only option a great many of them seem to be able to find is to sit around and wait for the world to end.

I try to wear my archdruid’s hat lightly in discussions in this blog, but it’s hard to think of any way to speak to this situation that doesn’t wade fairly deep into the waters of philosophy, not to mention spirituality. The fact that a life lived in material comfort can be unsatisfying does not mean that the comfort is what makes it unsatisfying. Life can be every bit as barren of meaning to someone who is starving to death in a burned-out basement, or scratching out a bare living from a few acres of mud and manure around a squalid hovel. The choices we make in response to our surroundings affect our relationship to the sources of meaning far more powerfully than the surroundings themselves, and those choices depend on the quality and content of our inner lives, not on outer factors. None of this ought to be news to anyone; it can be found in every tradition of human wisdom and spiritual teaching from the dawn of history right up to the present, and it remains as valid today as it ever was.

If Tony and his countless equivalents want “a chance to really live,” in other words, nothing is holding them back. If they feel their present comforts are obstacles to a better life, nothing prevents them from getting rid of those comforts. If they feel that danger and deprivation would make life more real for them, those can also be had easily enough by those who actually want them. Of course that’s the rub. Alfius could have gotten out of the moneylending business, donated his wealth to charity, moved to a farm and made his rural fantasy real, but of course he didn’t actually want to do that; he simply wanted to daydream about it. I admit to a strong suspicion that the same is true of Tony and his peers.

Alfius’ daydreams, mind you, were relatively harmless. I am not sure the same thing can be said of the fantasy of redemption through catastrophe that underlies Tony’s comments and the feelings of a great many other people just now. As industrial civilization begins to come apart around us in the decades ahead, the mismatch between that fantasy and the bitter realities of life in a dying civilization will stand out in increasingly stark colors, but in the meantime those who indulge in daydreams of destruction are a good deal less likely to take the practical, positive steps that could make the time of troubles ahead of us less harrowing than it could be.

Thus I think it’s crucial to come back to the hard fact that we are not heading toward a happier future in any sense that matters. We are moving into a troubled, difficult, dangerous age in which most of us stand to lose a great many of the things that matter to us. Those troubles may encourage some of us to pursue a relationship with the sources of meaning in our lives, granted, but they are at least as likely to keep others too busy scrambling for survival or grieving over their losses to find time for that challenging process. When we project our fantasies of a better life onto the inkblot patterns of catastrophe, then, we’re kidding ourselves, and the sooner we grasp that – the sooner we come to terms with the bleak predicament facing us, and turn our attention to figuring out what might still be saved and then trying to save it – the more likely we are to make a positive difference in a bitter time

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http://www.commondreams.org/view/2009/09/21

Globalization Goes Bankrupt

........"The leaders of the G-20 are meeting to try and salvage their power and money after everything that has gone wrong," said Benedicto Martinez Orozco, co-president of the Mexican Frente Autentico del Trabajo (FAT), who is in Pittsburgh for the protests. "This is what this meeting is about."

The draconian security measures put in place to silence dissent in Pittsburgh are disproportionate to any actual security concern. They are a response not to a real threat, but to the fear gripping the established centers of power. The power elite grasps, even if we do not, the massive fraud and theft being undertaken to save a criminal class on Wall Street and international speculators of the kinds who were executed in other periods of human history. They know the awful cost this plundering of state treasuries will impose on workers, who will become a permanent underclass. And they also know that once this is clear to the rest of us, rebellion will no longer be a foreign concept.

The delegates to the G-20, the gathering of the world's wealthiest nations, will consequently be protected by a National Guard combat battalion, recently returned from Iraq. The battalion will shut down the area around the city center, man checkpoints and patrol the streets in combat gear. Pittsburgh has augmented the city's police force of 1,000 with an additional 3,000 officers. Helicopters have begun to buzz gatherings in city parks, buses driven to Pittsburgh to provide food to protesters have been impounded, activists have been detained, and permits to camp in the city parks have been denied. Web sites belonging to resistance groups have been hacked and trashed, and many groups suspect that they have been infiltrated and that their phones and e-mail accounts are being monitored.

Larry Holmes, an organizer from New York City, stood outside a tent encampment on land owned by the Monumental Baptist Church in the city's Hill District. He is one of the leaders of the Bail Out the People Movement. Holmes, a longtime labor activist, on Sunday led a march on the convention center by unemployed people calling for jobs. He will coordinate more protests during the week.

"It is de facto martial law," he said, "and the real effort to subvert the work of those protesting has yet to begin. But voting only gets you so far. There are often not many choices in an election. When you build democratic movements around the war or unemployment you get a more authentic expression of democracy. It is more organic. It makes a difference. History has taught us this."

Our global economy, like our political system, has been hijacked by a tiny oligarchy, composed mostly of wealthy white men who serve corporations. They have pledged or raised a staggering $18 trillion, looted largely from state treasuries, to prop up banks and other financial institutions that engaged in suicidal acts of speculation and ruined the world economy. They have formulated trade deals so corporations can speculate across borders with currency, food and natural resources even as, according to the Food and Agriculture Organization (FAO) of the United Nations, 1.02 billion people on the planet struggle with hunger. Globalization has obliterated the ability of many poor countries to protect food staples such as corn, rice, beans and wheat with subsidies or taxes on imported staples. The abolishment of these protections has permitted the giant mechanized farms to wipe out tens of millions of small farmers-2 million in Mexico alone-bankrupting many and driving them off their land. Those who could once feed themselves can no longer find enough food, and the wealthiest governments use institutions such as the International Monetary Fund, the World Bank and the World Trade Organization like pit bulls to establish economic supremacy. There is little that most governments seem able to do to fight back.

But the game is up. The utopian dreams of globalization have been exposed as a sham. Force is all the elite have left. We are living through one of civilization's great seismic reversals. The ideology of globalization, like all utopias that are sold as inevitable and irreversible, has become a farce. The power elite, perplexed and confused, cling to the disastrous principles of globalization and its outdated language to mask the political and economic vacuum before us. The absurd idea that the marketplace alone should determine economic and political constructs caused the crisis. It led the G-20 to sacrifice other areas of human importance-from working conditions, to taxation, to child labor, to hunger, to health and pollution-on the altar of free trade. It left the world's poor worse off and the United States with the largest deficits in human history. Globalization has become an excuse to ignore the mess. It has left a mediocre elite desperately trying to save a system that cannot be saved and, more important, trying to save itself. "Speculation," then-President Jacques Chirac of France once warned, "is the AIDS of our economies." We have reached the terminal stage.

"Each of Globalization's strengths has somehow turned out to have an opposing meaning," John Ralston Saul wrote in "The Collapse of Globalism." "The lowering of national residency requirements for corporations has morphed into a tool for massive tax evasion. The idea of a global economic system mysteriously made local poverty seem unreal, even normal. The decline of the middle class-the very basis of democracy-seemed to be just one of those things that happen, unfortunate but inevitable. That the working class and the lower middle class, even parts of the middle class, could only survive with more than one job per person seemed to be expected punishment for not keeping up. The contrast between unprecedented bonuses for mere managers at the top and the four-job families below them seemed inevitable in a globalized world. For two decades an elite consensus insisted that unsustainable third-world debts could not be put aside in a sort of bad debt reserve without betraying Globalism's essential principles and moral obligations, which included an unwavering respect for the sanctity of international contracts. It took the same people about two weeks to abandon sanctity and propose bad debt banks for their own far larger debts in 2009."

The institutions that once provided alternative sources of power, including the press, government, agencies of religion, universities and labor unions, have proved morally bankrupt. They no longer provide a space for voices of moral autonomy. No one will save us now but ourselves.

"The best thing that happened to the Establishment is the election of a black president," Holmes said. "It will contain people for a given period of time, but time is running out. Suppose something else happens? Suppose another straw breaks? What happens when there is a credit card crisis or a collapse in commercial real estate? The financial system is very, very fragile. The legs are being kicked out from underneath it."

"Obama is in trouble," Holmes went on. "The economic crisis is a structural crisis. The recovery is only a recovery for Wall Street. It can't be sustained, and Obama will be blamed for it. He is doing everything Wall Street demands. But this will be a dead end. It is a prescription for disaster, not only for Obama but the Democratic Party...........

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http://www.informationclearinghouse.info/article23550.htm

The Economy Is A Lie, Too

Americans cannot get any truth out of their government about anything, the economy included. Americans are being driven into the ground economically, with one million school children now homeless, while Federal Reserve chairman Ben Bernanke announces that the recession is over.

The spin that masquerades as news is becoming more delusional. Consumer spending is 70% of the US economy. It is the driving force, and it has been shut down. Except for the super rich, there has been no growth in consumer incomes in the 21st century. Statistician John Williams of shadowstats.com reports that real household income has never recovered its pre-2001 peak.

The US economy has been kept going by substituting growth in consumer debt for growth in consumer income. Federal Reserve chairman Alan Greenspan encouraged consumer debt with low interest rates. The low interest rates pushed up home prices, enabling Americans to refinance their homes and spend the equity. Credit cards were maxed out in expectations of rising real estate and equity values to pay the accumulated debt. The binge was halted when the real estate and equity bubbles burst. As consumers no longer can expand their indebtedness and their incomes are not rising, there is no basis for a growing consumer economy. Indeed, statistics indicate that consumers are paying down debt in their efforts to survive financially. In an economy in which the consumer is the driving force, that is bad news.

The banks, now investment banks thanks to greed-driven deregulation that repealed the learned lessons of the past, were even more reckless than consumers and took speculative leverage to new heights. At the urging of Larry Summers and Goldman Sachs’ CEO Henry Paulson, the Securities and Exchange Commission and the Bush administration went along with removing restrictions on debt leverage.

When the bubble burst, the extraordinary leverage threatened the financial system with collapse. The US Treasury and the Federal Reserve stepped forward with no one knows how many trillions of dollars to “save the financial system,” which, of course, meant to save the greed-driven financial institutions that had caused the economic crisis that dispossessed ordinary Americans of half of their life savings. The consumer has been chastened, but not the banks. Refreshed with the TARP $700 billion and the Federal Reserve’s expanded balance sheet, banks are again behaving like hedge funds. Leveraged speculation is producing another bubble with the current stock market rally, which is not a sign of economic recovery but is the final savaging of Americans’ wealth by a few investment banks and their Washington friends. Goldman Sachs, rolling in profits, announced six figure bonuses to employees. The rest of America is suffering terribly.

The unemployment rate, as reported, is a fiction and has been since the Clinton administration. The unemployment rate does not include jobless Americans who have been unemployed for more than a year and have given up on finding work. The reported 10% unemployment rate is understated by the millions of Americans who are suffering long-term unemployment and are no longer counted as unemployed. As each month passes, unemployed Americans drop off the unemployment role due to nothing except the passing of time.

The inflation rate, especially “core inflation,” is another fiction. “Core inflation” does not include food and energy, two of Americans’ biggest budget items. The Consumer Price Index (CPI) assumes, ever since the Boskin Commission during the Clinton administration, that if prices of items go up consumers substitute cheaper items. This is certainly the case, but this way of measuring inflation means that the CPI is no longer comparable to past years, because the basket of goods in the index is variable. The Boskin Commission’s CPI, by lowering the measured rate of inflation, raises the real GDP growth rate. The result of the statistical manipulation is an understated inflation rate, thus eroding the real value of Social Security income, and an overstated growth rate. Statistical manipulation cloaks a declining standard of living. In bygone days of American prosperity, American incomes rose with productivity.

It was the real growth in American incomes that propelled the US economy. In today’s America, the only incomes that rise are in the financial sector that risks the country’s future on excessive leverage and in the corporate world that substitutes foreign for American labor. Under the compensation rules and emphasis on shareholder earnings that hold sway in the US today, corporate executives maximize earnings and their compensation by minimizing the employment of Americans. Try to find some acknowledgement of this in the “mainstream media,” or among economists, who suck up to the offshoring corporations for grants. The worst part of the decline is yet to come. Bank failures and home foreclosures are yet to peak. The commercial real estate bust is yet to hit. The dollar crisis is building.When it hits, interest rates will rise dramatically as the US struggles to finance its massive budget and trade deficits while the rest of the world tries to escape a depreciating dollar.

Since the spring of this year, the value of the US dollar has collapsed against every currency except those pegged to it. The Swiss franc has risen 14% against the dollar. Every hard currency from the Canadian dollar to the Euro and UK pound has risen at least 13 % against the US dollar since April 2009. The Japanese yen is not far behind, and the Brazilian real has risen 25% against the almighty US dollar. Even the Russian ruble has risen 13% against the US dollar.

What sort of recovery is it when the safest investment is to bet against the US dollar? The American household of my day, in which the husband worked and the wife provided household services and raised the children, scarcely exists today. Most, if not all, members of a household have to work in order to pay the bills. However, the jobs are disappearing, even the part-time ones. If measured according to the methodology used when I was Assistant Secretary of the Treasury, the unemployment rate today in the US is above 20%. Moreover, there is no obvious way of reducing it. There are no factories, with work forces temporarily laid off by high interest rates, waiting for a lower interest rate policy to call their workforces back into production. The work has been moved abroad. In the bygone days of American prosperity, CEOs were inculcated with the view that they had equal responsibilities to customers, employees, and shareholders. This view has been exterminated. Pushed by Wall Street and the threat of takeovers promising “enhanced shareholder value,” and incentivized by “performance pay,” CEOs use every means to substitute cheaper foreign employees for Americans .Despite 20% unemployment and cum laude engineering graduates who cannot find jobs or even job interviews, Congress continues to support 65,000 annual H-1B work visas for foreigners.

In the midst of the highest unemployment since the Great Depression what kind of a fool do you need to be to think that there is a shortage of qualified US workers?

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http://kunstler.com/blog/2009/09/original-sin.html

Original Sin

In our history, the American nation committed obvious sins against select groups of people, and we've paid bitterly for some of that. But now it's our sins against the land itself that threaten to sink the USA as a viable enterprise.

It's odd, that in his otherwise excellent blow-by-blow account ("Eight Days," in the Sept 21 New Yorker Magazine) of the September 2008 Wall Street meltdown that left Lehman dead, and AIG croaking in a ditch, and the banking system in general functionally crippled, reporter James B. Stewart never got around to really describing the cause of it all -- namely, the on-the-ground material catastrophe of American suburbia.

It was the worthlessness of the tradable securitized debt associated with all those overpriced (and overvalued) chipboard and vinyl houses, smeared recklessly over the American landscape, that started all the trouble in the first place.

And it is our inability to come to grips with that underlying catastrophe that prolongs the resolution of the still-florid banking crisis -- since the federal government is doing everything possible to prop up the failed capital equation of terminal suburbia, and to deny the obsolescence of that version of the American Dream and all the mechanisms for delivering it.

The suburban project was not a conspiracy by the likes of Robert Moses, Walt Disney, Frank Lloyd Wright, and President Eisenhower to produce a living arrangement with no future. It was the emergent, self-organizing result of special circumstances in a particular time and place: post World War Two America, with an immense supply of cheap oil, cheap land, and the industrial capacity to churn out all the necessary components for a car-dependent development pattern. Suburbia was spawned out of a couple of persistent themes in American cultural history: 1.) that cities and city life were no good; 2.) and that the romance of settling the wilderness could be reenacted, at great profit, in all that space beyond the towns and cities. It would be silly to deny the appeal of this arrangement at its inception. By the end of WW II, city life in the popular imagination was reduced to one potently awful image: Ralph Kramden's apartment in "The Honeymooners" TV show.

There had to be something better than that. Suburbia was engineered as the antidote to the Kramden's apartment: country-living-for-everybody. The evacuation of the cities to the new outlands proceeded as relentlessly as the landings at Normandy. It wasn't until the program was well underway that the self-destructive essence of it became obvious -- that every new housing subdivision killed the original rural character of the land, with the result that suburban life quickly became a cartoon of country living in a cartoon of a country house in a cartoon of the country. With additional layer-on-layer of, first, the shopping in the form of highway strips, then malls, along with the office "parks," these places elaborated themselves into a kind of cancer-of-the-landscape, a chronic and expensive condition that Americans had no choice but to live with, because of the monumental investments they had already made in it. The discontents it produced lent it to psychological depression and dark humor, just as chronic illness does. But we were stuck with it.

Meanwhile, all the machinery of culture and politics made it impossible to construct anything differently. The exquisitely fine-tuned planning-and-zoning codes generated by the thousands of town boards mandated a suburban outcome everywhere -- with plenty of help from the DOT traffic engineers, the fire marshals, and the even the mandarins of academia who trained all these professionals. As a natural consequence of all this, the disinvestment in cities -- especially the older cities of the industrial heartland -- continued remorsely until it seemed as if the Second World War had taken place in St. Louis and Cleveland.

This mode of behavior persisted through the first, short-lived oil scarcity tremors of the 1970s. It was so completely embedded in the popular imagination that it had become the baseline American identity. The suburban project caught a second wind in the 1990s, when the last great non-OPEC oil fields of the North Sea, Alaska, and Siberia nullified the grip of the Islamic cartel for while, and sent the price of oil down to $11-a-barrel. Ironically, it was during those years that the warnings of "peak oil" first circulated beyond the geology offices, and it was clear to anyone who reflected on the connections that the project of suburbia was doomed.

It was also ironic, tragically so, that during this same period Wall Street began to seek some new way to make real money beyond stock and bond markets, which didn't seem to produce wealth at all for more than a decade when inflation was factored in. By a fortuitous coincidence, the revolution in computers enabled Wall Street bankers to concoct abstruse new species of tradable paper securities based on bundles of debt that seemed to produce miraculous earnings. It had the added advantage of being inscrutable to both investors and financial regulators. Due diligence became impossible and moral hazard spread like ringworm in a dormitory. The bulk of the securitized debt originated in home mortgages and the larger result was a gigantic racket ramped up between Wall Street and the US government to conceal all the structural weaknesses of a de-industrialized US economy behind a hyperbolic commerce in the very thing that the American public cherished most: their houses, which, understandably, everybody had come to call "homes." Wall Street might as easily have commoditized mother and apple pie - if you could sell each one for half a million dollars.

The banking fiasco still underway is at once a proxy for the larger failure of the American economy and the greatest fissure in it. Put as simply possible: we can't service our debt, we can't generate more debt, and the notional "capital" we thought we possessed is dissolving into nothingness. The federal government and Wall Street remain committed to supporting all the rackets associated with a suburban sprawl economy that has entered its own zone of remorseless failure. It is failing as a capital investment first, and is secondarily failing as a practical living arrangement. The two failures will continue in a close race toward terminal entropy.

The dirty secret all along was that by 2005 there was no economy left in the USA beyond the suburban sprawl economy with its so-called "consumer" nexus -- largely devoted to the outfitting of suburbia. More mortgage debt (and credit card and car loan debt) will go bad and the investment paper that represents it will go bad and it will eventually destroy our current system for accumulating, valuing, and deploying wealth...........

Monday, September 14, 2009

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http://www.dailymail.co.uk/home/moslive/article-1212013/Revealed-The-ghost-fleet-recession.html

Revealed: The ghost fleet of the recession

.......The 'ghost fleet' near Singapore. The world's ship owners and government economists would prefer you not to see this symbol of the depths of the plague still crippling the world's economies........

........Here, on a sleepy stretch of shoreline at the far end of Asia, is surely the biggest and most secretive gathering of ships in maritime history. Their numbers are equivalent to the entire British and American navies combined; their tonnage is far greater. Container ships, bulk carriers, oil tankers - all should be steaming fully laden between China, Britain, Europe and the US, stocking camera shops, PC Worlds and Argos depots ahead of the retail pandemonium of 2009. But their water has been stolen. They are a powerful and tangible representation of the hurricanes that have been wrought by the global economic crisis........

........Just 12 months ago these financiers and brokers were enjoying fat bonuses as they traded cargo space. But nobody wants the space any more, and those that still need to ship goods across the world are demanding vast reductions in price. Do not tell these men and women about green shoots of recovery. As Briton Tim Huxley, one of Asia's leading ship brokers, says, if the world is really pulling itself out of recession, then all these idle ships should be back on the move........

.......Some experts believe the ratio of container ships sitting idle could rise to 25 per cent within two years in an extraordinary downturn that shipping giant Maersk has called a 'crisis of historic dimensions'. Last month the company reported its first half-year loss in its 105-year history........

........There have hardly been any new orders. In 2011 the shipyards will simply run out of ships to build.......

Saturday, September 12, 2009

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http://www.ricefarmer.blogspot.com/

Sunday, August 23, 2009

Brave New World of Chaos

The other day I ran across a highly interesting essay over at World Politics Review titled “Risk and Resilience in a Globalized Age: Containing Chaos.” What caught my eye was “chaos” in the title, which is because I see chaos playing an ever bigger role in the world as the competition over a dwindling pie intensifies, and traditional structures start coming apart at the seams. The article makes some very good observations, and raises some questions in my mind that may not be the questions the author intended to raise. Following are a few comments. If you find this interesting, definitely read the article and draw your own conclusions.

First, globalization is seen to be a threat, which is an admission you will certainly not get from mainstream politicians, who relentlessly bombard us with propaganda about how globalization will make everyone affluent and happy. But the author correctly observes that the unintended consequence of globalization is a “supernetwork” that engulfs everything and threatens us because it’s quite literally out of our control. As such, the world system lurches from one crisis to another, dragging whole populations and countries around like a runaway bulldozer dragging a man who is helplessly digging in his heels in a futile effort to stop the machine.

Another interesting feature of this piece is the author’s identification of what he calls “parasites” of the global supernetwork. Let me quote the author’s description.

The third and final threat posed by globalization will be the emergence of super-empowered groups of individuals that compete with the nation-state for money and power. These groups, typically small, leverage easily accessed functions of the supernetwork for their personal benefit at great expense to the collective good. These small networks span the gamut from “trusted insiders” in financial industry to guerrilla/terrorist groups.The author goes on to illustrate how these small groups pull the levers of this hyper-interconnected system to generate fantastically huge results and secure wealth and power incommensurate with the number of people actually involved.

As a prescription to deal with instability and lack of systemic control, the author recommends “the development of self-sufficient, decentralized systems at the local level — from economics to politics to food to energy to communications — that can operate successfully even when the larger system breaks down.” This is sage advice, of course. Note that the author does not see the global supernetwork breaking down, but rather growing more complex and stronger. Of course among those in the know, you will find little disagreement with the idea of decentralization and local self-sufficiency.

The next section discusses how to deal with “parasites,” and seems generally on the mark in the sense that it recommends against the use of large-scale, heavy-duty solutions such as launching military strikes. A recommended course of action is sowing discord among actors and co-opting them. One statement gives me pause for thought: “In some few cases, it will be impossible to leave the actors involved intact. In those cases, tightly targeted efforts (i.e., special operations) to eliminate these malicious groups will be required.” And what kind of actors would those be? Probably so-called “terrorists.” Of course, terrorism is abhorrent for the destruction and death it causes. But what about the other kinds of parasites, such as those who prey mercilessly on the rest of us to make themselves rich? Such parasites cause nationwide, or even global-scale financial and social disruption, and bring untold suffering and misery to millions of people throughout the world, which in my view is just as bad, or maybe even worse, than a terrorist who kills a few people in a bombing. Would it be all right to “eliminate” such evil and greedy people? Perhaps in the author’s worldview it’s all right to “eliminate” an olive-skinned Arab/Muslim “terrorist” (who likely believes he is getting back at gross injustice), while it’s not all right to “eliminate” a white Western financier who stole the wealth of uncountable people, while having no illusions about righting wrongs. Maybe that’s the reason that white Western Ponzi-scheme scam artists might go to prison, but they won’t be shot down on the street like dogs or murdered in their beds by “special operations” personnel, or bombed by drones. Food for thought, isn’t it? “Neutralization” isn’t always so neutral. And what should we do with the rogue US government/military elements who were behind 9/11?

For that matter, how would the author propose we deal with groups such as Bilderberg, those unelected elites who discuss our futures behind closed doors?

Finally, the piece ends with a section titled “Delivering Benefits and Improving Fairness.” If you subscribe to the “business as usual” worldview, the prescription set forth here sounds good. Enfranchisement, more-or-less equal pieces of pie, blah blah blah. Right on! But this is flawed by the underlying assumption that we’ll have plenty of resources and energy to work with. There is no acknowledgment — indeed there seems to be no awareness — of peak oil, and how expensive energy will be the primary driving force in global dynamics from now on. Surely the author, who obviously has some good analytical skills, has not overlooked the worldwide jockeying for position to lock down supplies of energy (especially oil) and other resources. Then there is the potential effect on the global supernetwork. Since globalization is the child of cheap energy, it is bound to undergo some kind of radical restructuring and simplification as energy gets more expensive. What will happen to global shipping? To the internet? In that sense, expensive energy will work to undermine the global supernetwork. Indeed, the author says of the supernetwork: “It’s unlikely that we will see any reversal in the spread of the global supernetwork. To the contrary, it will continue to expand, complexify, and intensify.” On the contrary, I think that industrial civilization is at or near its maximum complexity already, at which point it begins to break down and simplify. This has happened to all previous civilizations, and there’s no reason to believe it won’t happen to ours. We are already struggling with layers of complexity — each of which requires more energy. To cope with problems of increasing complexity and scale, we create a new agency or appoint a new “czar,” which only makes the problem worse. The system is already out of control, as we can see from the failure of all these governments, agencies, and czars to effect any meaningful change.

But whatever happens, I guarantee you that there will be plenty of chaos to go around.

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http://thearchdruidreport.blogspot.com/

A Terrible Ambivalence

........The arguments in the Guardian debate are far less extreme, and far more reasonable, than these. So why do they leave me shaking my head, convinced that neither one has grasped what's most essential about the predicament before us?

The places where Monbiot misses the turning, as I see it, stand out clearly, and longtime readers of this blog will likely have no difficulty at all anticipating my disagreements with his views. To begin with, his call to arms is an epic case of locking the barn door when the horse has not only left but mailed back a forwarding address from another state. The end of industrial civilization would almost certainly have been forestalled if sensible policies had been put in place in the 1950s; there was arguably still some hope of success if all-out efforts had been launched in the 1970s; at this point, with Hubbert's peak already past, CO2 piling up in the atmosphere and the world's human population approaching seven billion, the chances of preventing collapse compare unfavorably with those of a snowball in Beelzebub's back yard.

Now it could be argued that any possibility is worth pursuing if the alternative is dire enough, and this is basically the argument Monbiot makes. Unfortunately his plan of action is simply to dust off the same toolkit of protest methods that activists have been using with diminishing returns, and governments have been brushing aside with increasing success, since the dawn of the twentieth century. The handful of successes achieved by those methods many decades ago have imposed a bizarre astigmatism of the imagination on the left; the stereotyped methods of protest have become so sacrosanct, or so automatic, that the mere fact that they have failed consistently for years never quite seems to register.

All this invites comparison with Don Quixote, even if Monbiot is fighting for windmills rather than against them. Woeful countenances aside, though, insisting on the pursuit of an unreachable goal through ineffective methods is not normally a productive way to prepare for a difficult future. There's nothing in Monbiot's proposal that hasn't been tried repeatedly since the 1950s without having the least impact on the trajectory of industrial society, and as the saying has it, if you always do what you've always done, you'll always get what you've always gotten.

All this may seem like support for Paul Kingsnorth's side of the argument, and of course it parallels a number of the points he makes in the debate and elsewhere in his writings. It seems fair to say that my views are much more in sympathy with his than with Monbiot's, and I suspect that Kingsnorth would agree with that assessment, as he's the one who cited me to support one of his arguments. Yet there's a sour note running through his contributions to the debate, and it comes out forcefully every time he finesses the human cost of the transformation ahead of us.

Monbiot, to give him his due, calls him on this repeatedly. A deindustrial world, as Monbiot correctly points out, will be able to support maybe two billion people at most – my working guess, for what it's worth, is that this is too optimistic by a factor of four – and this means that in any future that doesn't include the survival of the industrial system, a lot of people are going to die. Now of course he goes from there to imply, more or less, that yet another round of protest marches is the only way to keep five billion human corpses from hitting the ground in a single planetwide thud, and this doesn't exactly follow. Still, the basic point is valid, and Kingsnorth's efforts to evade it are troubling.

Yet that evasion is inseparable from a central theme of Kingsnorth's argument, which is that a better world can be expected to rise out of the wreckage of the present. That Monbiot's argument also hinges on his hopes for a bright new tomorrow adds a rich irony to the debate. Both men are proclaiming the gospel of a better future; their disagreements are simply about what form that future will take and how we will get there. Both assume that we can have, and ought to have, a future that's even shinier than the present. It's a very common assumption, so common that many of those who are reading these words may share it, but it's also the place where the worm gets in and rots the apple to the core.

We are not going to have a future better than the present: not in our lifetimes, and not in those of our grandchildren's grandchildren. We collectively closed the door on that possibility decades ago, and none of the rapidly narrowing range of choices still open to us now offers any way of changing that. If this sounds like fatalism, it may be worth remembering that once a car goes skidding off a mountain road into empty air, it requires neither a crystal ball nor a faith in predestination to recognize that nothing anybody can do is going to prevent a terrific crash.

It's nonsense to claim, as some inevitably do, that this realization makes taking action pointless. Our efforts, given hard work, wisdom, and a substantial dollop of luck, may well succeed in making the future less difficult than it will otherwise be. It may be possible for us to save a few things worth saving that would otherwise be lost, to stem some little of what will be an immense tide of human suffering, to do what we can to help stabilize a damaged biosphere so Nature doesn't have to rebuild it entirely from scratch. All of these things are profoundly worth doing. None of them will change the fact that the future ahead of us will be a profoundly difficult time in which many of the things that are most meaningful to each of us will inevitably be lost.

We do no one a favor, least of all ourselves, by trying to sugarcoat that very unpalatable reality. Nor do we gain anything by playing the fox to industrial civilization's grapes, and insisting that the extraordinary gifts the recent past has given us are sour because they are about to pass out of our reach. During the age that is coming to an end, the billion or so of us who have lived in the industrial world have enjoyed comforts and opportunities that our species had never known before and almost certainly will never know again. Those could never have been anything but temporary, they were distributed no more fairly than anything else passed around by human hands, and a wiser species would likely have had more common sense than to launch itself on the trajectory we followed, but it's as distorting to dismiss the extraordinary achievements of our age as it would be to ignore the terrible cost for those achievements that will be paid by us and our descendants.

So many of us want things all one way or the other, all good or all evil, without the terrible ambivalence that pulses through all things human as inescapably as blood. So many of us want to see today's civilization as humanity's only hope or as ecocide incarnate, and long for a future that will be either the apotheosis or the final refutation of the present. It's far less popular, and arguably far more difficult, to embrace that ambivalence and accept both the wonder and the immense tragedy of our time. Still, it seems to me that if we are to face up to the challenges of the future that's bearing down on us, that difficult realization is an essential starting point.

Friday, September 11, 2009

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http://www.informationclearinghouse.info/article23454.htm

Europe’s Complicity in Evil

There is a widespread supposition that Obama, being black and a member of an oppressed race, will imbue US foreign policy with a higher morality than the world experienced from Bush and Clinton. This is a delusion.

Obama represents the same ideology of American “exceptionalism” as other recent presidents. This ideology designates the United States as The Virtuous Nation and supplies the basis for the belief that America has the right, indeed the responsibility, to impose its hegemony upon the world by bribery or by force. The claim of American exceptionalism produces a form of patriotism that blinds the US population to the immorality of America’s wars of aggression.

Nothing is any different under Obama. Obama has escalated war in Afghanistan; started a new war in Pakistan; tolerated or supported a military coup that overthrew the elected president of Honduras; is constructing 7 new US military bases in Colombia, South America; is going forward with various military projects designed to secure US global military hegemony, such as the Prompt Global Strike initiative that intends to provide the US with the capability to strike anywhere on earth within 60 minutes; is working to destabilize the government in Iran, with military attack still on the table as an option; supports America’s new military African Command; intends to encircle Russia with US bases in former constituent parts of the Soviet Union; has suborned NATO troops as mercenaries in US wars of aggression.

How should Europe react? Europe should disassociate from the United States and go into active opposition to US foreign policy. Europeans should demand that their governments withdraw from NATO as it serves no European interest. The two aggressive militarist powers, the US and Israel, should be sanctioned by the UN and embargoed. Instead, Europe is complicit in US and Israeli war crimes.

Because of the cold war, Europe is accustomed to following US leadership. The financial convenience of the shelter provided by US military power negated independent European foreign policies. In effect, Western European countries became US puppet states.

How does Europe escape from a subservient relationship of many decades? Not easily. The US is accustomed to calling the shots and reacts harshly when it meets opposition. For example, French opposition to Bush’s invasion of Iraq brought about instant demonization of France by the US media and members of Congress.

The US government uses financial sanctions and threatened leaks of sensitive personal information gathered by its worldwide spy networks to discipline any independent-minded European leader.

Europe is essentially captive and forced to put US interests ahead of its own. Consequently, unless Europeans find their courage and discard their servile status, Europe will be badgered into more wars and eventually led into a devastating war with Russia. One European country can do little, but concerted action would be effective. For example, why do not Europeans protest that the war criminal Tony Blair was given a post in the EU?

The Obama administration’s attitude towards self-determination and the sovereignty of the people is that these grand-sounding concepts are useful platitudes with which to mask the hegemonic interests of the US government. US money and propaganda foment “velvet” or “color” revolutions that turn more countries into American puppet states.

The platitudes are useful also to disguise the overthrow of US civil liberties, such as habeas corpus, due process, and prohibitions against torture and preemptive arrest.

During the cold war era, one of the mainstays of US propaganda against the Soviet Union was the inability of Soviet citizens to travel within their country without the government’s permission. This indignity has now been inflicted upon US citizens. As of September, 2009, US citizens can no longer travel within their country by air without the permission of the Transport Security Administration.

The Obama administration has adopted the Bush administration’s search procedures. Under these rules travelers’ computers, cell phones, and other devices can be seized for searches that can take up to 30 days. If you are on your way to a meeting and your presentation is on your computer and your contacts’ numbers are on your cell phone, you are out of luck.

“Terrorist threat” is the excuse for these Gestapo practices. However, there have been no domestic acts of terrorism in 8 years. The few “plots” that led to arrests were all instigated by FBI agents in order to keep the nonexistent threat alive in the public’s mind. Yet, despite any real terrorist threat the police state continues to gain ground. Considering the extent of America’s oppression of peoples abroad, one would expect much more blowback than has occurred, assuming that 9/11 was not itself an inside job designed to provide an excuse for America’s wars of aggression in Afghanistan, Iraq, and Pakistan.

Europe must look beyond the empty American political rhetoric about “freedom and democracy” and recognize the emerging Brownshirt American State. Democracy is slipping away from America. Its place is being taken by an oligarchy of powerful interest groups, such as the financial sector, the military/security complex about which President Eisenhower warned, and AIPAC. Political campaign contributions from interest groups determine the content of US domestic and foreign policy. A country in which political elites are above the law and can violate with impunity both laws against torture and constitutional protections of civil liberties is not a free country.

American political leaders and the American people need Europe’s help in order to avoid the degeneration of the American political entity. American freedom, as well as sovereign independence elsewhere in the world, require criticisms of US foreign and domestic policies. The US media, which was concentrated into a few hands during the Clinton administration, functions as a Ministry of Propaganda for the government. It was the New York Times that gave credibility to the neoconservative propaganda and forged documents that were used to sell the invasion of Iraq to the public. It was the New York Times that sat for one year on the evidence that the Bush administration was committing felonies by violating the Foreign Intelligence Surveillance Act. It was not until after Bush was re-elected that the reporter was able to force his story through editorial opposition. Americans need criticism from Europe to compensate for the absence of an independent American media. Americans need outside help in order to reach an understanding of the immorality of their government’s policies, because they receive no such help from their own media. Without Europe’s help, Americans cannot regain the spirit of liberty and tolerance bequeathed to them by their Founding Fathers. America herself is a victim of the neoconservative and liberal internationalist pursuit of US hegemony.

We in America need to hear many voices telling us that it is self-defeating to become like an enemy in order to defeat an enemy. As Germans learned under Hitler and Russians learned under Stalin, it is the internal enemy--the unaccountable elite that controls a country’s government--that is the worst and most dangerous enemy.

If America has enemies who are against “freedom and democracy,” then America herself must make certain not to sacrifice her own civil liberties, and the sovereignty of other peoples, to a “war on terror.” Acts of terror are a small cost compared to the cost of the erosion of civil liberties that took centuries to achieve. Far more people died to achieve liberty than have died in terrorist attacks.

The United States cannot pretend to be a guarantor of liberty when the US government takes away liberty from its own citizens.

The United States cannot pretend to be a guarantor of peace and democracy when the US government uses deception to attack other lands on false pretenses.

Europe, whose culture was wrecked by 20th century wars, Europe, which has experienced tyranny from the left-wing and from the right-wing, has a right to its own voice. America needs to hear this voice.