http://www.truthdig.com/report/item/we_must_understand_corporate_power_to_fight_it_20160612
We Must Understand Corporate Power to Fight It
In the winter of 1941, a Jewish gravedigger from Chelmo, the western province of Poland, appeared in Warsaw and desperately sought a meeting with Jewish leaders.
He told them the Nazis were rounding up Jews, including the old, women and children, and forcing them into what looked like tightly sealed buses. The buses had the exhaust pipes redirected into the cabins. The Jews were killed with carbon monoxide. He had helped dig the mass graves for thousands of corpses until he escaped.
On the way to Warsaw, he had gone from village to village, frantically warning the Jews. Scores of Jews, in the villages and ultimately in Warsaw, heard his testimony of horror and dismissed it.
A handful of listeners, however, including Zivia Lubetkin, who two years later would help lead the uprising by 500 armed Jewish fighters in the Warsaw Ghetto, instantly understood the ultimate aims of the Nazi state.
“I don’t know how we intuitively shared the same horrible conviction that the total annihilation of all the Jewish communities in Nazi-occupied Europe was at hand,” she wrote in her memoir, “In the Days of Destruction and Revolt.”
She and a handful of young activists started planning a revolt. From that moment forward, they existed in a parallel reality.
“We walked along the overcrowded streets of the Warsaw Ghetto, hundreds of thousands of people pushing and rushing about in fright, antagonistic and tense, living the illusion that they were fighting for their lives, their meager livelihood, but, in reality, when you closed your eyes you could see that they were all dead …”
The established Jewish leadership warned the resistance fighters to desist, telling them to work within the parameters set by the Nazi occupiers. The faces of the established Jewish leaders, when they were informed of the plans to fight back, she wrote, “grew pale, either from sudden fear or from anger at our audacity. They were furious. They reproached us for irresponsibly sowing the seeds of despair and confusion among the people, for our impertinence in even thinking of armed resistance.”
The greatest problem the underground movement faced, she wrote, was “the false hope, the great illusion.” The movement’s primary task was to destroy these illusions. Only when the truth was known would widespread resistance be possible.
The aims of the corporate state are, given the looming collapse of the ecosystem, as deadly, maybe more so, as the acts of mass genocide carried out by the Nazis and Stalin’s Soviet Union.
The reach and effectiveness of corporate propaganda dwarfs even the huge effort undertaken by Adolf Hitler and Stalin. The layers of deception are sophisticated and effective. News is state propaganda. Elaborate spectacles and forms of entertainment, all of which ignore reality or pretend the fiction of liberty and progress is real, distract the masses.
Education is indoctrination. Ersatz intellectuals, along with technocrats and specialists, who are obedient to neoliberal and imperial state doctrine, use their academic credentials and erudition to deceive the public.
The promises made by the corporate state and its political leaders—we will restore your jobs, we will protect your privacy and civil liberties, we will rebuild the nation’s infrastructure, we will save the environment, we will prevent you from being exploited by banks and predatory corporations, we will make you safe, we will provide a future for your children—are the opposite of reality.
The loss of privacy, the constant monitoring of the citizenry, the use of militarized police to carry out indiscriminate acts of lethal violence—a daily reality in marginal communities—and the relentless drive to plunge as much as two-thirds of the country into poverty to enrich a tiny corporate elite, along with the psychosis of permanent war, presage a dystopia that will be as severe as the totalitarian systems that sent tens of millions to their deaths during the reigns of fascism and communism.
There is no more will to reform, or to accommodate the needs and rights of the citizens by the corporate state, than there was to accommodate the needs and rights of Jews in Nazi-occupied Poland. But until the last moment, this reality will be hidden behind the empty rhetoric of democracy and reform. Repressive regimes gradually institute harsher and harsher forms of control while denying their intentions. By the time a captive population grasps what is happening, it is too late.
The elaborate ruses set up by the Nazis that kept Jews and others slated for extermination passive until they reached the doors of the gas chambers, usually decorated with a large Star of David, were legend. Those taken to death camps were told they were going to work. Unloading ramps at Treblinka were made to look like a train station, with fabricated train schedules posted on the walls and a fake train clock and ticket window. Camp musicians played. The elderly and infirm were escorted from the cattle cars to a building called the infirmary, with the Red Cross symbol on it, before being shot in the back of the head. Men, women and children, who would die in the gas chambers within an hour, were given tickets for their clothes and valuables.
“The Germans were quite courteous when they led people to be slaughtered,” Lubetkin noted acidly.
Jews in ghettos, awaiting deportation to the death camps, were divided by those who worked for the Nazis and therefore had certain privileges, and those who did not. This division effectively pitted the two groups against each other until the final deportations. And collaborating with the killers, in the vain hope that they would be spared, were Jews themselves, organized into Jewish Councils, or Judenrat, and formed into units of the Jewish police, along with what Lubetkin called “their cronies, the spectators and profiteers, the smugglers.”
In the death camps, Jews, to stay alive a little longer, worked in the crematoriums as sonderkommandos. There are always those among the oppressed willing to sell out their neighbor for a few more crusts of bread. As life becomes desperate, the choice is often between collaboration and death.
Our corporate masters know what is coming. They know that as the ecosystem breaks down, as financial dislocations create new global financial meltdowns, as natural resources are poisoned or exhausted, despair will give way to panic and rage.
They know coastal cities will be covered by rising sea levels, crop yields will plummet, soaring temperatures will make whole parts of the globe uninhabitable, the oceans will become dead zones, hundreds of millions of refugees will flee in desperation, and complex structures of governance and organization will break down.
They know that the legitimacy of corporate power and neoliberalism—as potent and utopian an ideology as fascism or communism—will crumble. The goal is to keep us fooled and demobilized as long as possible.
The corporate state, operating a system Sheldon Wolin referred to as “inverted totalitarianism,” invests tremendous sums—$5 billion in this presidential election alone—to ensure that we do not see its intentions or our ultimate predicament.
These systems of propaganda play on our emotions and desires. They make us confuse how we are made to feel with knowledge. They get us to identify with the manufactured personality of a political candidate. Millions wept at the death of Josef Stalin, including many who had been imprisoned in his gulags. There is a powerful yearning to believe in the paternal nature of despotic power.
There are cracks in the edifice. The loss of faith in neoliberalism has been a driving force in the insurgencies in the Republican and Democratic parties. Donald Trump and Hillary Clinton, of course, will do nothing to halt the corporate assault. There will be no reform. Totalitarian systems are not rational. There will only be harsher forms of repression and more pervasive systems of indoctrination and propaganda. The voices of dissenters, now marginalized, will be silenced.
It is time to step outside of the establishment. This means organizing groups, including political parties, that are independent of the corporate political machines that control the Republicans and Democrats.
It means carrying out acts of sustained civil disobedience. It means disruption.
Our resistance must be nonviolent. The Jews in the Warsaw Ghetto, condemned to imminent death and alienated from a Polish population steeped in anti-Semitism, had no hope of appealing to the Nazi state or most of the Poles.
But we still have options. Many who work within ruling class structures understand the corruption and dishonesty of corporate power. We must appeal to their conscience. We must disseminate the truth.
We have little time left. Climate change, even if we halt all carbon emissions today, will still bring rising temperatures, havoc, instability and systems collapse to much of the planet.
Let us hope we never have to make the stark choice, as most of the ghetto fighters did, about how we will die. If we fail to act, however, this choice will one day define our future, as it defined theirs.
Wednesday, June 15, 2016
Saturday, June 4, 2016
SC135-11
http://www.informationclearinghouse.info/article44784.htm
A Russian Warning
We, the undersigned, are Russians living and working in the USA. We have been watching with increasing anxiety as the current US and NATO policies have set us on an extremely dangerous collision course with the Russian Federation, as well as with China. Many respected, patriotic Americans, such as Paul Craig Roberts, Stephen Cohen, Philip Giraldi, Ray McGovern and many others have been issuing warnings of a looming a Third World War. But their voices have been all but lost among the din of a mass media that is full of deceptive and inaccurate stories that characterize the Russian economy as being in shambles and the Russian military as weak—all based on no evidence. But we—knowing both Russian history and the current state of Russian society and the Russian military, cannot swallow these lies. We now feel that it is our duty, as Russians living in the US, to warn the American people that they are being lied to, and to tell them the truth. And the truth is simply this:
If there is going to be a war with Russia, then the United States
will most certainly be destroyed, and most of us will end up dead.
Let us take a step back and put what is happening in a historical context. Russia has suffered a great deal at the hands of foreign invaders, losing 22 million people in World War II. Most of the dead were civilians, because the country was invaded, and the Russians have vowed to never let such a disaster happen again. Each time Russia had been invaded, she emerged victorious. In 1812 Nepoleon invaded Russia; in 1814 Russian cavalry rode into Paris. On June 22, 1941, Hitler’s Luftwaffe bombed Kiev; On May 8, 1945, Soviet troops rolled into Berlin.
But times have changed since then. If Hitler were to attack Russia today, he would be dead 20 to 30 minutes later, his bunker reduced to glowing rubble by a strike from a Kalibr supersonic cruise missile launched from a small Russian navy ship somewhere in the Baltic Sea. The operational abilities of the new Russian military have been most persuasively demonstrated during the recent action against ISIS, Al Nusra and other foreign-funded terrorist groups operating in Syria. A long time ago Russia had to respond to provocations by fighting land battles on her own territory, then launching a counter-invasion; but this is no longer necessary. Russia’s new weapons make retaliation instant, undetectable, unstoppable and perfectly lethal.
Thus, if tomorrow a war were to break out between the US and Russia, it is guaranteed that the US would be obliterated. At a minimum, there would no longer be an electric grid, no internet, no oil and gas pipelines, no interstate highway system, no air transportation or GPS-based navigation. Financial centers would lie in ruins. Government at every level would cease to function. US armed forces, stationed all around the globe, would no longer be resupplied. At a maximum, the entire landmass of the US would be covered by a layer of radioactive ash. We tell you this not to be alarmist, but because, based on everything we know, we are ourselves alarmed. If attacked, Russia will not back down; she will retaliate, and she will utterly annihilate the United States.
The US leadership has done everything it could to push the situation to the brink of disaster. First, its anti-Russian policies have convinced the Russian leadership that making concessions or negotiating with the West is futile. It has become apparent that the West will always support any individual, movement or government that is anti-Russian, be it tax-cheating Russian oligarchs, convicted Ukrainian war criminals, Saudi-supported Wahhabi terrorists in Chechnya or cathedral-desecrating punks in Moscow. Now that NATO, in violation of its previous promises, has expanded right up to the Russian border, with US forces deployed in the Baltic states, within artillery range of St. Petersburg, Russia’s second-largest city, the Russians have nowhere left to retreat. They will not attack; nor will they back down or surrender. The Russian leadership enjoys over 80% of popular support; the remaining 20% seems to feel that it is being too soft in opposing Western encroachment. But Russia will retaliate, and a provocation or a simple mistake could trigger a sequence of events that will end with millions of Americans dead and the US in ruins.
Unlike many Americans, who see war as an exciting, victorious foreign adventure, the Russians hate and fear war. But they are also ready for it, and they have been preparing for war for several years now. Their preparations have been most effective. Unlike the US, which squanders untold billions on dubious overpriced arms programs such as the F-35 joint task fighter, the Russians are extremely stingy with their defense rubles, getting as much as 10 times the bang for the buck compared to the bloated US defense industry. While it is true that the Russian economy has suffered from low energy prices, it is far from being in shambles, and a return to growth is expected as early as next year. Senator John McCain once called Russia “A gas station masquerading as a country.” Well, he lied. Yes, Russia is the world’s largest oil producer and second-largest oil exporter, but it is also world’s largest exporter of grain and nuclear power technology. It is as advanced and sophisticated a society as the United States. Russia’s armed forces, both conventional and nuclear, are now ready to fight, and they are more than a match for the US and NATO, especially if a war erupts anywhere near the Russian border.
But such a fight would be suicidal for all sides. We strongly believe that a conventional war in Europe runs a strong chance of turning nuclear very rapidly, and that any US/NATO nuclear strike on Russian forces or territory will automatically trigger a retaliatory Russian nuclear strike on the continental US. Contrary to irresponsible statements made by some American propagandists, American antiballistic missile systems are incapable of shielding the American people from a Russian nuclear strike. Russia has the means to strike at targets in the USA with long-range nuclear as well as conventional weapons.
The sole reason why the USA and Russia have found themselves on a collision course, instead of defusing tensions and cooperating on a wide range of international problems, is the stubborn refusal by the US leadership to accept Russia as an equal partner: Washington is dead set on being the “world leader” and the “indispensable nation,” even as its influence steadily dwindles in the wake of a string of foreign policy and military disasters such as Iraq, Afghanistan, Libya, Syria, Yemen and the Ukraine. Continued American global leadership is something that neither Russia, nor China, nor most of the other countries are willing to accept. This gradual but apparent loss of power and influence has caused the US leadership to become hysterical; and it is but a small step from hysterical to suicidal. America’s political leaders need to be placed under suicide watch.
First and foremost, we are appealing to the commanders of the US Armed Forces to follow the example of Admiral William Fallon, who, when asked about a war with Iran, reportedly replied “not on my watch.” We know that you are not suicidal, and that you do not wish to die for the sake of out-of-touch imperial hubris. If possible, please tell your staff, colleagues and, especially, your civilian superiors that a war with Russia will not happen on your watch. At the very least, take that pledge yourselves, and, should the day ever come when the suicidal order is issued, refuse to execute it on the grounds that it is criminal. Remember that according to the Nuremberg Tribunal “To initiate a war of aggression… is not only an international crime; it is the supreme international crime differing only from other war crimes in that it contains within itself the accumulated evil of the whole.” Since Nuremberg, “I was just following orders” is no longer a valid defense; please don’t be war criminals.
We also appeal to the American people to take peaceful but forceful action to oppose any politician or party that engages in irresponsible, provocative Russia-baiting, and that condones and supports a policy of needless confrontation with a nuclear superpower that is capable of destroying America in about an hour. Speak up, break through the barrier of mass media propaganda, and make your fellow Americans aware of the immense danger of a confrontation between Russia and the US.
There is no objective reason why US and Russia should consider each other adversaries. The current confrontation is entirely the result of the extremist views of the neoconservative cult, whose members were allowed to infiltrate the US Federal government under President Bill Clinton, and who consider any country that refuses to obey their dictates as an enemy to be crushed. Thanks to their tireless efforts, over a million innocent people have already died in the former Yugoslavia, in Afghanistan, in Iraq, Libya, Syria, Pakistan, the Ukraine, Yemen, Somalia and in many other countries—all because of their maniacal insistence that the USA must be a world empire, not a just a regular, normal country, and that every national leader must either bow down before them, or be overthrown. In Russia, this irresistible force has finally encountered an immovable object. They must be forced to back down before they destroy us all.
We are absolutely and categorically certain that Russia will never attack the US, nor any EU member state, that Russia is not at all interested in recreating the USSR, and that there is no “Russian threat” or “Russian aggression.” Much of Russia’s recent economic success has a lot to do with the shedding of former Soviet dependencies, allowing her to pursue a “Russia first” policy. But we are just as certain that if Russia is attacked, or even threatened with attack, she will not back down, and that the Russian leadership will not “blink.” With great sadness and a heavy heart they will do their sworn duty and unleash a nuclear barrage from which the United States will never recover. Even if the entire Russian leadership is killed in a first strike, the so-called “Dead Hand” (the “Perimetr” system) will automatically launch enough nukes to wipe the USA off the political map. We feel that it is our duty to do all we can to prevent such a catastrophe.
A Russian Warning
We, the undersigned, are Russians living and working in the USA. We have been watching with increasing anxiety as the current US and NATO policies have set us on an extremely dangerous collision course with the Russian Federation, as well as with China. Many respected, patriotic Americans, such as Paul Craig Roberts, Stephen Cohen, Philip Giraldi, Ray McGovern and many others have been issuing warnings of a looming a Third World War. But their voices have been all but lost among the din of a mass media that is full of deceptive and inaccurate stories that characterize the Russian economy as being in shambles and the Russian military as weak—all based on no evidence. But we—knowing both Russian history and the current state of Russian society and the Russian military, cannot swallow these lies. We now feel that it is our duty, as Russians living in the US, to warn the American people that they are being lied to, and to tell them the truth. And the truth is simply this:
If there is going to be a war with Russia, then the United States
will most certainly be destroyed, and most of us will end up dead.
Let us take a step back and put what is happening in a historical context. Russia has suffered a great deal at the hands of foreign invaders, losing 22 million people in World War II. Most of the dead were civilians, because the country was invaded, and the Russians have vowed to never let such a disaster happen again. Each time Russia had been invaded, she emerged victorious. In 1812 Nepoleon invaded Russia; in 1814 Russian cavalry rode into Paris. On June 22, 1941, Hitler’s Luftwaffe bombed Kiev; On May 8, 1945, Soviet troops rolled into Berlin.
But times have changed since then. If Hitler were to attack Russia today, he would be dead 20 to 30 minutes later, his bunker reduced to glowing rubble by a strike from a Kalibr supersonic cruise missile launched from a small Russian navy ship somewhere in the Baltic Sea. The operational abilities of the new Russian military have been most persuasively demonstrated during the recent action against ISIS, Al Nusra and other foreign-funded terrorist groups operating in Syria. A long time ago Russia had to respond to provocations by fighting land battles on her own territory, then launching a counter-invasion; but this is no longer necessary. Russia’s new weapons make retaliation instant, undetectable, unstoppable and perfectly lethal.
Thus, if tomorrow a war were to break out between the US and Russia, it is guaranteed that the US would be obliterated. At a minimum, there would no longer be an electric grid, no internet, no oil and gas pipelines, no interstate highway system, no air transportation or GPS-based navigation. Financial centers would lie in ruins. Government at every level would cease to function. US armed forces, stationed all around the globe, would no longer be resupplied. At a maximum, the entire landmass of the US would be covered by a layer of radioactive ash. We tell you this not to be alarmist, but because, based on everything we know, we are ourselves alarmed. If attacked, Russia will not back down; she will retaliate, and she will utterly annihilate the United States.
The US leadership has done everything it could to push the situation to the brink of disaster. First, its anti-Russian policies have convinced the Russian leadership that making concessions or negotiating with the West is futile. It has become apparent that the West will always support any individual, movement or government that is anti-Russian, be it tax-cheating Russian oligarchs, convicted Ukrainian war criminals, Saudi-supported Wahhabi terrorists in Chechnya or cathedral-desecrating punks in Moscow. Now that NATO, in violation of its previous promises, has expanded right up to the Russian border, with US forces deployed in the Baltic states, within artillery range of St. Petersburg, Russia’s second-largest city, the Russians have nowhere left to retreat. They will not attack; nor will they back down or surrender. The Russian leadership enjoys over 80% of popular support; the remaining 20% seems to feel that it is being too soft in opposing Western encroachment. But Russia will retaliate, and a provocation or a simple mistake could trigger a sequence of events that will end with millions of Americans dead and the US in ruins.
Unlike many Americans, who see war as an exciting, victorious foreign adventure, the Russians hate and fear war. But they are also ready for it, and they have been preparing for war for several years now. Their preparations have been most effective. Unlike the US, which squanders untold billions on dubious overpriced arms programs such as the F-35 joint task fighter, the Russians are extremely stingy with their defense rubles, getting as much as 10 times the bang for the buck compared to the bloated US defense industry. While it is true that the Russian economy has suffered from low energy prices, it is far from being in shambles, and a return to growth is expected as early as next year. Senator John McCain once called Russia “A gas station masquerading as a country.” Well, he lied. Yes, Russia is the world’s largest oil producer and second-largest oil exporter, but it is also world’s largest exporter of grain and nuclear power technology. It is as advanced and sophisticated a society as the United States. Russia’s armed forces, both conventional and nuclear, are now ready to fight, and they are more than a match for the US and NATO, especially if a war erupts anywhere near the Russian border.
But such a fight would be suicidal for all sides. We strongly believe that a conventional war in Europe runs a strong chance of turning nuclear very rapidly, and that any US/NATO nuclear strike on Russian forces or territory will automatically trigger a retaliatory Russian nuclear strike on the continental US. Contrary to irresponsible statements made by some American propagandists, American antiballistic missile systems are incapable of shielding the American people from a Russian nuclear strike. Russia has the means to strike at targets in the USA with long-range nuclear as well as conventional weapons.
The sole reason why the USA and Russia have found themselves on a collision course, instead of defusing tensions and cooperating on a wide range of international problems, is the stubborn refusal by the US leadership to accept Russia as an equal partner: Washington is dead set on being the “world leader” and the “indispensable nation,” even as its influence steadily dwindles in the wake of a string of foreign policy and military disasters such as Iraq, Afghanistan, Libya, Syria, Yemen and the Ukraine. Continued American global leadership is something that neither Russia, nor China, nor most of the other countries are willing to accept. This gradual but apparent loss of power and influence has caused the US leadership to become hysterical; and it is but a small step from hysterical to suicidal. America’s political leaders need to be placed under suicide watch.
First and foremost, we are appealing to the commanders of the US Armed Forces to follow the example of Admiral William Fallon, who, when asked about a war with Iran, reportedly replied “not on my watch.” We know that you are not suicidal, and that you do not wish to die for the sake of out-of-touch imperial hubris. If possible, please tell your staff, colleagues and, especially, your civilian superiors that a war with Russia will not happen on your watch. At the very least, take that pledge yourselves, and, should the day ever come when the suicidal order is issued, refuse to execute it on the grounds that it is criminal. Remember that according to the Nuremberg Tribunal “To initiate a war of aggression… is not only an international crime; it is the supreme international crime differing only from other war crimes in that it contains within itself the accumulated evil of the whole.” Since Nuremberg, “I was just following orders” is no longer a valid defense; please don’t be war criminals.
We also appeal to the American people to take peaceful but forceful action to oppose any politician or party that engages in irresponsible, provocative Russia-baiting, and that condones and supports a policy of needless confrontation with a nuclear superpower that is capable of destroying America in about an hour. Speak up, break through the barrier of mass media propaganda, and make your fellow Americans aware of the immense danger of a confrontation between Russia and the US.
There is no objective reason why US and Russia should consider each other adversaries. The current confrontation is entirely the result of the extremist views of the neoconservative cult, whose members were allowed to infiltrate the US Federal government under President Bill Clinton, and who consider any country that refuses to obey their dictates as an enemy to be crushed. Thanks to their tireless efforts, over a million innocent people have already died in the former Yugoslavia, in Afghanistan, in Iraq, Libya, Syria, Pakistan, the Ukraine, Yemen, Somalia and in many other countries—all because of their maniacal insistence that the USA must be a world empire, not a just a regular, normal country, and that every national leader must either bow down before them, or be overthrown. In Russia, this irresistible force has finally encountered an immovable object. They must be forced to back down before they destroy us all.
We are absolutely and categorically certain that Russia will never attack the US, nor any EU member state, that Russia is not at all interested in recreating the USSR, and that there is no “Russian threat” or “Russian aggression.” Much of Russia’s recent economic success has a lot to do with the shedding of former Soviet dependencies, allowing her to pursue a “Russia first” policy. But we are just as certain that if Russia is attacked, or even threatened with attack, she will not back down, and that the Russian leadership will not “blink.” With great sadness and a heavy heart they will do their sworn duty and unleash a nuclear barrage from which the United States will never recover. Even if the entire Russian leadership is killed in a first strike, the so-called “Dead Hand” (the “Perimetr” system) will automatically launch enough nukes to wipe the USA off the political map. We feel that it is our duty to do all we can to prevent such a catastrophe.
Wednesday, June 1, 2016
SC135-10
http://www.postcarbon.org/the-boiling-pot/
The Boiling Pot
On the surface, things appear normal. The status quo of life in America circa 2016 isn’t to everyone’s liking, but at least the system is still working after a fashion. The price of oil is going up a bit: that means the cost of driving is also creeping higher, but steeper prices provide a little welcome relief for an oil industry otherwise teetering on the brink of financial ruin. There are tiresomely long lines at airports, but that means people have the wherewithal to pay for plane tickets. Most people are disgusted with the presumptive U.S. presidential candidates, but at least the machine of electoral politics is still marginally functioning. The stock market is up, unemployment is down. We’re muddling through.
Or are we? Beneath the lid, a pot of trends is coming to a boil. If Carl Jung was right about the existence of a collective unconscious, it must be seething with nightmares right about now.
So far, 2016 is the hottest year in history. And not by just a smidgen: every single month so far has set a record. This handy little animation has been making the rounds of environmental websites in the last couple of weeks; it shows a climate system that is shooting off the rails.
Slow, linear change is giving way to self-reinforcing feedbacks and non-linear lurches. Last December (just 6 months ago), delegates to climate talks in Paris agreed to try to limit global warming to 1.5 degrees centigrade. Extend the temperature trend shown in that animation for just another few months and we may well be beyond that threshold. How long until we get to two degrees? Three?
Arctic sea ice this month is by far at the lowest extent ever recorded and temperatures in Siberia are rising four times faster than in the rest of the world, releasing enormous amounts of methane and carbon stored in permafrost.
In the energy world, the growth of unconventional oil and gas supplies appears to have postponed peak oil for a decade (conventional oil production flatlined starting in 2005; all the supply increase since then has come from tight oil, tar sands, heavy oil, and deepwater oil)—but at what cost? Unconventional oil production carries higher environmental risks, including increased greenhouse gas emissions per liter of finished fuel.
And it took massive investment to finance the surge in unconventionals. If it hadn’t been for easy-money central bank policies in the wake of the 2008 global financial crash, it’s likely the fracking boom would have been an unnoticeable blip. A few years of sky-high oil prices were also necessary. But high prices weakened demand for oil, just as drillers flooded the market with the wrong grades of crude in the wrong places at the wrong time. The result: an oil price crash (starting in mid-2014) and financial bloodletting within the industry.
We appear to be in a new era in which oil prices are either high enough to stimulate new supply, in which case they are also high enough to cripple the economy; or they are low enough to stimulate the economy, but also so low as to decimate the industry. There is no longer any tenable middle ground.
Today’s price of $50 per barrel is high in historic terms, but still too low to allow the industry to recover from the past two years of staggering losses. The trouble is, the unconventional production binge required a lot of cash, and most of it was borrowed. According to data compiled by FactSet and Yahoo Finance, the U.S. energy sector is drowning in $370 billion of debt, double the amount a decade ago. Just to make interest payments, energy companies shelled out $16.7 billion in 2015—half of their total operating profit. And despite rebounding oil prices, the situation is getting worse, with over 86 percent of energy sector operating profits going to interest payments in the first quarter of 2016. Unless prices zoom back past $100 a barrel, the tens of billions of dollars in debt coming due between 2017 and 2020 will likely trigger a wave of defaults and bankruptcies.
That could spell serious trouble for an economy that has been on life support for eight years now. After the nearly catastrophic crash of 2008, low interest rates, bailouts, and quantitative easing succeeded in restoring a sense of economic normalcy, though at the cost of more financial bubbles (in housing, fracking, and tech) and increased economic inequality. But what will the wizards of finance do when things turn ugly again—as they inevitably will, sooner or later? Negative interest rates will prove more than a little unpopular with savers, and throwing trillions more at banks and investors won’t help the masses afford to pay interest on their mounting debt or to buy more consumer goods.
A pressure cooker needs an escape valve, and this year politics is serving that function for the pressure cooker that American society has lately become. Bernie Sanders is giving voice to popular anger at increasing economic inequality, and at Wall Street’s immunity from being held culpable for the 2008 crash and its continued predation on the rest of the economy. Donald Trump is a megaphone for the blind fury of the wage class at its ongoing destruction by globalization and immigration. There is a heavy scent of anti-establishmentarianism in the air; that leaves poor Hillary Clinton, the consummate establishment politician, trying desperately to sound like an outsider and a critic of the globalized, financialized governmental megamachine she has labored for decades to help build, manage, and sell to voters.
For the next six months the upcoming U.S. presidential election will probably be the main focus of discussion for both the media and Main Street. A lot depends on the outcome, but a good outcome is hard to imagine; only shades of bad. Sanders is the only candidate with a sound energy and climate policy, but he has a vanishingly small chance of actually becoming the next president. Clinton is the odds-on favorite: she has the backing of Wall Street, the Washington foreign policy establishment, and the military-industrial complex. She would doubtless continue most of the current administration’s domestic policies (including its confused and largely self-defeating climate and energy policies), but her stance toward Russia, China, and the Middle East would likely be far more combative—hardly what we need at a moment when global tensions are likely to be exacerbated by weakened economies.
But don’t count Trump out. Riding on a tide of white working-class wrath, he has managed to surpass the expectations of all of his critics. While it is next to impossible to divine actual policy proposals from his muddled, self-aggrandizing speeches, he did manage to give broad hints at his energy and climate intentions in a talk in North Dakota last week, where he made it fairly clear that he just doesn’t care about climate change, that he really likes fossil fuels (including coal), that he doesn’t like wind or solar that much, and that he understands so little about the country’s resource reserves and energy production statistics that he somehow thinks it physically possible for the U.S. to become a significant net exporter of oil and gas. As to his likely foreign policies, your guess is as good as mine.
A Trump presidency could lead to a nearly unprecedented period of turmoil for the nation: blue states and red states would be at each other’s throats. The fallout for relations with other countries are unknown, but the implications for climate and energy would clearly be horrific.
“Blowing off steam” is a phrase often used to describe the harmless pranks of teenagers, though it could also apply to a continent-destroying super-volcano. In the American political context, the scale of the impending steam and magma release is uncertain. But pressure is building and the available outlets are few.
Whoever the next president turns out to be, her or his term in office will likely coincide with another financial crash, which could well turn out to be much worse than the 2008 debacle. Social pressures from rising inequality and dashed expectations will build to explosive levels. And climate impacts may well take forms that even a Donald Trump cannot ignore.
Altogether, the next eight years are unlikely to be as safely corked and bottled as the last. They say crisis is opportunity. We may be facing more opportunities than we know what to do with....
The Boiling Pot
On the surface, things appear normal. The status quo of life in America circa 2016 isn’t to everyone’s liking, but at least the system is still working after a fashion. The price of oil is going up a bit: that means the cost of driving is also creeping higher, but steeper prices provide a little welcome relief for an oil industry otherwise teetering on the brink of financial ruin. There are tiresomely long lines at airports, but that means people have the wherewithal to pay for plane tickets. Most people are disgusted with the presumptive U.S. presidential candidates, but at least the machine of electoral politics is still marginally functioning. The stock market is up, unemployment is down. We’re muddling through.
Or are we? Beneath the lid, a pot of trends is coming to a boil. If Carl Jung was right about the existence of a collective unconscious, it must be seething with nightmares right about now.
So far, 2016 is the hottest year in history. And not by just a smidgen: every single month so far has set a record. This handy little animation has been making the rounds of environmental websites in the last couple of weeks; it shows a climate system that is shooting off the rails.
Slow, linear change is giving way to self-reinforcing feedbacks and non-linear lurches. Last December (just 6 months ago), delegates to climate talks in Paris agreed to try to limit global warming to 1.5 degrees centigrade. Extend the temperature trend shown in that animation for just another few months and we may well be beyond that threshold. How long until we get to two degrees? Three?
Arctic sea ice this month is by far at the lowest extent ever recorded and temperatures in Siberia are rising four times faster than in the rest of the world, releasing enormous amounts of methane and carbon stored in permafrost.
In the energy world, the growth of unconventional oil and gas supplies appears to have postponed peak oil for a decade (conventional oil production flatlined starting in 2005; all the supply increase since then has come from tight oil, tar sands, heavy oil, and deepwater oil)—but at what cost? Unconventional oil production carries higher environmental risks, including increased greenhouse gas emissions per liter of finished fuel.
And it took massive investment to finance the surge in unconventionals. If it hadn’t been for easy-money central bank policies in the wake of the 2008 global financial crash, it’s likely the fracking boom would have been an unnoticeable blip. A few years of sky-high oil prices were also necessary. But high prices weakened demand for oil, just as drillers flooded the market with the wrong grades of crude in the wrong places at the wrong time. The result: an oil price crash (starting in mid-2014) and financial bloodletting within the industry.
We appear to be in a new era in which oil prices are either high enough to stimulate new supply, in which case they are also high enough to cripple the economy; or they are low enough to stimulate the economy, but also so low as to decimate the industry. There is no longer any tenable middle ground.
Today’s price of $50 per barrel is high in historic terms, but still too low to allow the industry to recover from the past two years of staggering losses. The trouble is, the unconventional production binge required a lot of cash, and most of it was borrowed. According to data compiled by FactSet and Yahoo Finance, the U.S. energy sector is drowning in $370 billion of debt, double the amount a decade ago. Just to make interest payments, energy companies shelled out $16.7 billion in 2015—half of their total operating profit. And despite rebounding oil prices, the situation is getting worse, with over 86 percent of energy sector operating profits going to interest payments in the first quarter of 2016. Unless prices zoom back past $100 a barrel, the tens of billions of dollars in debt coming due between 2017 and 2020 will likely trigger a wave of defaults and bankruptcies.
That could spell serious trouble for an economy that has been on life support for eight years now. After the nearly catastrophic crash of 2008, low interest rates, bailouts, and quantitative easing succeeded in restoring a sense of economic normalcy, though at the cost of more financial bubbles (in housing, fracking, and tech) and increased economic inequality. But what will the wizards of finance do when things turn ugly again—as they inevitably will, sooner or later? Negative interest rates will prove more than a little unpopular with savers, and throwing trillions more at banks and investors won’t help the masses afford to pay interest on their mounting debt or to buy more consumer goods.
A pressure cooker needs an escape valve, and this year politics is serving that function for the pressure cooker that American society has lately become. Bernie Sanders is giving voice to popular anger at increasing economic inequality, and at Wall Street’s immunity from being held culpable for the 2008 crash and its continued predation on the rest of the economy. Donald Trump is a megaphone for the blind fury of the wage class at its ongoing destruction by globalization and immigration. There is a heavy scent of anti-establishmentarianism in the air; that leaves poor Hillary Clinton, the consummate establishment politician, trying desperately to sound like an outsider and a critic of the globalized, financialized governmental megamachine she has labored for decades to help build, manage, and sell to voters.
For the next six months the upcoming U.S. presidential election will probably be the main focus of discussion for both the media and Main Street. A lot depends on the outcome, but a good outcome is hard to imagine; only shades of bad. Sanders is the only candidate with a sound energy and climate policy, but he has a vanishingly small chance of actually becoming the next president. Clinton is the odds-on favorite: she has the backing of Wall Street, the Washington foreign policy establishment, and the military-industrial complex. She would doubtless continue most of the current administration’s domestic policies (including its confused and largely self-defeating climate and energy policies), but her stance toward Russia, China, and the Middle East would likely be far more combative—hardly what we need at a moment when global tensions are likely to be exacerbated by weakened economies.
But don’t count Trump out. Riding on a tide of white working-class wrath, he has managed to surpass the expectations of all of his critics. While it is next to impossible to divine actual policy proposals from his muddled, self-aggrandizing speeches, he did manage to give broad hints at his energy and climate intentions in a talk in North Dakota last week, where he made it fairly clear that he just doesn’t care about climate change, that he really likes fossil fuels (including coal), that he doesn’t like wind or solar that much, and that he understands so little about the country’s resource reserves and energy production statistics that he somehow thinks it physically possible for the U.S. to become a significant net exporter of oil and gas. As to his likely foreign policies, your guess is as good as mine.
A Trump presidency could lead to a nearly unprecedented period of turmoil for the nation: blue states and red states would be at each other’s throats. The fallout for relations with other countries are unknown, but the implications for climate and energy would clearly be horrific.
“Blowing off steam” is a phrase often used to describe the harmless pranks of teenagers, though it could also apply to a continent-destroying super-volcano. In the American political context, the scale of the impending steam and magma release is uncertain. But pressure is building and the available outlets are few.
Whoever the next president turns out to be, her or his term in office will likely coincide with another financial crash, which could well turn out to be much worse than the 2008 debacle. Social pressures from rising inequality and dashed expectations will build to explosive levels. And climate impacts may well take forms that even a Donald Trump cannot ignore.
Altogether, the next eight years are unlikely to be as safely corked and bottled as the last. They say crisis is opportunity. We may be facing more opportunities than we know what to do with....
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