http://www.orionmagazine.org/index.php/articles/article/6052
The Tyranny of Entitlement
I’M CONTINUALLY stunned by how many seemingly sane people believe you can have infinite economic growth on a finite planet. Perpetual economic growth and its cousin, limitless technological expansion, are beliefs so deeply held by so many in this culture that they often go entirely unquestioned. Even more disturbing is the fact that these beliefs are somehow seen as the ultimate definition of what it is to be human: perpetual economic growth and limitless technological expansion are what we do.
Some of those who believe in perpetual growth are out-and-out nut jobs, like the economist and former White House advisor Julian Simon, who said, “We have in our hands now—actually in our libraries-—the technology to feed, clothe, and supply energy to an ever-growing population for the next 7 billion years.” And showing that, when it comes to U.S. economic policies, insanity is never out of season, are yet more nut jobs, like Lawrence Summers, who has served as chief economist at the World Bank, U.S. secretary of the treasury, president of Harvard, and as President Obama’s director of the National Economic Council, and who said, “There are no . . . limits to the carrying capacity of the earth that are likely to bind at any time in the foreseeable future. . . . The idea that we should put limits on growth because of some natural limit is a profound error.”
Others are a bit more nuanced in their nut-jobbery. They may acknowledge that, yes, physical limits might possibly exist, but they also believe that if you just slap the word sustainable in front of the phrase “economic growth,” then you can still somehow have continued growth on a finite planet, perhaps through so-called “soft” or “service” or “high-tech” economies, or through nifty “green” innovations like a really neat nanotech gizmo that can be woven into your clothes and when you dance it generates enough electricity to power your iPod, ignoring the facts that people still need to eat, that humans have overshot carrying capacity and are systematically destroying the natural world, and that even something as groovy as an iPod requires mining, industrial, and energy infrastructures, all of which are functionally unsustainable.
Alongside the nut jobs, there are an awful lot of people who probably just don’t think about it: they simply absorb the perspective of the newscasters who say, “Economic growth, good; economic stagnation, bad.” And of course if you care more about the economic system than life on the planet, this is true. If, however, you care more about life than the economic system, it is not quite so true, because this economic system must constantly increase production to grow, and what, after all, is production? It is the conversion of the living to the dead, the conversion of living forests into two-by-fours, living rivers into stagnant pools for generating hydroelectricity, living fish into fish sticks, and ultimately all of these into money. And what, then, is gross national product? It is a measure of this conversion of the living to the dead. The more quickly the living world is converted into dead products, the higher the GNP. These simple equations are complicated by the fact that when GNP goes down, people often lose jobs. No wonder the world is getting killed.
Once a people have committed (or enslaved) themselves to a growth economy, they’ve pretty much committed themselves to a perpetual war economy, because in order to maintain this growth, they will have to continue to colonize an ever-wider swath of the planet and exploit its inhabitants. I’m sure you can see the problem this presents on a finite planet. But in the short run, there is good news for those committed to a growth economy (and bad news for everyone else), which is that by converting your landbase into weapons (for example, cutting down trees to build warships), you gain a short-term competitive advantage over those peoples who live sustainably, and you can steal their land and overuse it to fuel your perpetual-growth economy. As for those whose land you’ve stolen, well, you can either massacre these newly conquered peoples, enslave them, or (most often forcibly) assimilate them into your growth economy. Usually it’s some combination of all three. The massacre of the bison, to present just one example, was necessary to destroy the Plains Indians’ traditional way of life and force them to at least somewhat assimilate (and become dependent upon the growth economy instead of the land for their very lives). The bad news for those committed to a growth economy is that it’s essentially a dead-end street: once you’ve overshot your home’s carrying capacity, you have only two choices: keep living beyond the means of the planet until your culture collapses; or proactively elect to give up the benefits you gained from the conquest in order to save your culture.
A perpetual-growth economy is not only insane (and impossible), it is also by its very essence abusive, by which I mean that it’s based on the same conceit as more personal forms of abuse. It is, in fact, the macroeconomic enshrinement of abusive behavior. The guiding principle of abusive behavior is that the abuser refuses to respect or abide by limits or boundaries put up by the victim. As Lundy Bancroft, former codirector of Emerge, the nation’s first therapeutic program for abusive men, writes, “Entitlement is the abuser’s belief that he has a special status and that it provides him with exclusive rights and privileges that do not apply to his partner. The attitudes that drive abuse can largely be summarized by this one word.”
The relevance of this word applies on the larger social scale. Of course humans are a special species to whom a wise and omnipotent God has granted the exclusive rights and privileges of dominion over this planet that is here for us to use. And of course even if you subscribe to the religion of Science instead of Christianity, humans possess special intelligence and abilities that grant us exclusive rights and privileges to work our will on the world that is still here for us to use. Growth economies are essentially unchecked and will push past any boundaries set up by anyone other than the perpetrators: certainly the fact that indigenous cultures already are living on this or that piece of ground has never stopped those in power from expanding their economy; nor is the death of the oceans stopping their exploitation; nor is the heating of the planet stopping the exploitation; nor is the grinding poverty of the dispossessed.
And the truth is, you cannot talk abusers out of their behavior. Perpetrators of domestic violence are among the most intractable of all who commit violence, so intractable, in fact, that in 2000 the United Kingdom removed funding for therapy sessions designed to treat men guilty of domestic violence (putting the money instead into shelters and other means of keeping women safe from their attackers). Lundy Bancroft also says this: “An abuser doesn’t change because he feels guilty or gets sober or finds God. He doesn’t change after seeing the fear in his children’s eyes or feeling them drift away from him. It doesn’t suddenly dawn on him that his partner deserves better treatment. Because of his self-focus, combined with the many rewards he gets from controlling you, an abuser changes only when he feels he has to, so the most important element in creating a context for change in an abuser is placing him in a situation where he has no other choice.”
How do we stop the abusers who perpetrate a perpetual-growth economy? Seeing oiled pelicans and burned sea turtles won’t move them to stop. Nor will hundred-degree days in Moscow. We can’t stop them by making them feel guilty. We can’t stop them by appealing to them to do the right thing. The only way to stop them is to make it so they have no other choice.
Monday, January 10, 2011
Wednesday, January 5, 2011
SC104-10
http://www.yesmagazine.org/blogs/david-korten/the-missing-vision
The Missing Vision: A New Agenda For A New Economy
Few and fortunate are those whose lives have not been directly touched by the 2008 Wall Street meltdown and its consequences. People want to understand what went wrong and how we can set it right. Yet the public commentary continues to center primarily on finger-pointing. Who knew what when? Which regulators were asleep at the switch, and why?
Most calls for action seek only to limit the excesses and deceptions of greedy bankers and complicit regulators. We have yet to engage in a much-needed national conversation that addresses essential, yet unasked, questions. For example:
Do Wall Street institutions do anything so vital for the national interest as to justify opening the national purse strings and showering them with trillions of dollars in order to save them from the consequences of their own excess?
Is it possible that the whole Wall Street edifice is built on an illusion that has no substance yet carries deadly economic, social, and environmental consequences for the larger society?
Might there be other ways to provide necessary and beneficial financial services with greater effectiveness and at less cost?
The true alternative to Wall Street capitalism is a system of locally rooted, self-reliant economies that honor true market principles.
Ultimately, it comes down to a question of the values we believe the economy should serve. Should it give priority to money, or to life? To the fortunes of the few, or the well-being of all?
The existing Wall Street-led economy is highly effective and efficient at converting real living wealth to phantom financial wealth to make rich people richer. It is a path to collective suicide.
Our future and that of our children depend on replacing the values and institutions of the Wall Street economy with the culture and institutions of a New Economy designed to provide an adequate and satisfying livelihood for all people in balanced relationship to Earth’s biosphere.I believe that an honest public examination of these questions will lead to a unifying national political consensus that Wall Street institutions produce nothing of value to the society and fulfill no need not better served in other ways. They can and should be replaced with institutions that act like mature, caring adults and serve real needs in ways appropriate to the realities of the twenty-first century.
We cannot, however, simply let the Wall Street financial institutions collapse, as would have happened in 2008 without the federal bailout. Wall Street controls the creation and flow of the money that facilitates the economic transactions on which we depend for meeting most all our material needs. If its institutions suddenly shut down with no alternative in place, we would be left only the money in our pockets and instantly reduced to barter for most essentials of daily life, including food and water.
The process of shutting down Wall Street properly proceeds in parallel with action to put in place the institutions of a New Economy, including a new system for creating and allocating national currencies in ways more responsive to society’s needs.
Building Community: An Economic Approach: David Korten: What economic transformation has to do with building stronger, happier communities.
Leadership for institutional transformation rarely comes from within the institutions of Empire, which bring special privilege to the few and hardship to the many. It invariably comes from authentic grassroots movements that self-organize from outside the establishment to challenge the status quo and create alternative institutions that ultimately displace those that no longer serve.
Efforts to form a social movement to confront the Wall Street-Washington axis are handicapped, however, by the absence of a broadly shared vision of an economic system structured to achieve and maintain financial stability, ecological balance, prosperity for all, and full democratic participation.
As I will elaborate in a future blog, the true alternative to the Wall Street capitalism that is imposing an intolerable burden on society is not totalitarian Soviet-style socialism. It is a system of locally rooted, self-reliant market economies that honor true market principles, operate by clear rules maintained and enforced by truly democratic governments, and mimic the structure and dynamics of Earth’s biosphere.
The Missing Vision: A New Agenda For A New Economy
Few and fortunate are those whose lives have not been directly touched by the 2008 Wall Street meltdown and its consequences. People want to understand what went wrong and how we can set it right. Yet the public commentary continues to center primarily on finger-pointing. Who knew what when? Which regulators were asleep at the switch, and why?
Most calls for action seek only to limit the excesses and deceptions of greedy bankers and complicit regulators. We have yet to engage in a much-needed national conversation that addresses essential, yet unasked, questions. For example:
Do Wall Street institutions do anything so vital for the national interest as to justify opening the national purse strings and showering them with trillions of dollars in order to save them from the consequences of their own excess?
Is it possible that the whole Wall Street edifice is built on an illusion that has no substance yet carries deadly economic, social, and environmental consequences for the larger society?
Might there be other ways to provide necessary and beneficial financial services with greater effectiveness and at less cost?
The true alternative to Wall Street capitalism is a system of locally rooted, self-reliant economies that honor true market principles.
Ultimately, it comes down to a question of the values we believe the economy should serve. Should it give priority to money, or to life? To the fortunes of the few, or the well-being of all?
The existing Wall Street-led economy is highly effective and efficient at converting real living wealth to phantom financial wealth to make rich people richer. It is a path to collective suicide.
Our future and that of our children depend on replacing the values and institutions of the Wall Street economy with the culture and institutions of a New Economy designed to provide an adequate and satisfying livelihood for all people in balanced relationship to Earth’s biosphere.I believe that an honest public examination of these questions will lead to a unifying national political consensus that Wall Street institutions produce nothing of value to the society and fulfill no need not better served in other ways. They can and should be replaced with institutions that act like mature, caring adults and serve real needs in ways appropriate to the realities of the twenty-first century.
We cannot, however, simply let the Wall Street financial institutions collapse, as would have happened in 2008 without the federal bailout. Wall Street controls the creation and flow of the money that facilitates the economic transactions on which we depend for meeting most all our material needs. If its institutions suddenly shut down with no alternative in place, we would be left only the money in our pockets and instantly reduced to barter for most essentials of daily life, including food and water.
The process of shutting down Wall Street properly proceeds in parallel with action to put in place the institutions of a New Economy, including a new system for creating and allocating national currencies in ways more responsive to society’s needs.
Building Community: An Economic Approach: David Korten: What economic transformation has to do with building stronger, happier communities.
Leadership for institutional transformation rarely comes from within the institutions of Empire, which bring special privilege to the few and hardship to the many. It invariably comes from authentic grassroots movements that self-organize from outside the establishment to challenge the status quo and create alternative institutions that ultimately displace those that no longer serve.
Efforts to form a social movement to confront the Wall Street-Washington axis are handicapped, however, by the absence of a broadly shared vision of an economic system structured to achieve and maintain financial stability, ecological balance, prosperity for all, and full democratic participation.
As I will elaborate in a future blog, the true alternative to the Wall Street capitalism that is imposing an intolerable burden on society is not totalitarian Soviet-style socialism. It is a system of locally rooted, self-reliant market economies that honor true market principles, operate by clear rules maintained and enforced by truly democratic governments, and mimic the structure and dynamics of Earth’s biosphere.
Monday, January 3, 2011
SC104-9
http://www.globalresearch.ca/index.php?context=va&aid=22558
Incipient Fascist State: America Has Gone Away
Anyone who doesn’t believe that the US is an incipient fascist state needs only to consult the latest assault on civil liberty by Fox News (sic). Instead of informing citizens, Fox News (sic) informs on citizens. Jason Ditz reports (antiwar.com Dec. 28) that Fox News (sic) “no longer content to simply shill for a growing police state,” turned in a grandmother to the Department of Homeland Security for making “anti-American comments.”
The media have segued into the police attitude, which regards insistence on civil liberties and references to the Constitution as signs of extremism, especially when the Constitution is invoked in defense of dissent or privacy or placarded on a bumper sticker. President George W. Bush set the scene when he declared: “you are with us or against us.”
Bush’s words demonstrate a frightening decline in our government’s respect for dissent since the presidency of John F. Kennedy. In a speech to the Newspaper Publishers Association in 1961, President Kennedy said:
“No president should fear public scrutiny of his program, for from that scrutiny comes understanding, and from that understanding comes support or opposition; and both are necessary. . . . Without debate, without criticism, no administration and no country can succeed, and no republic can survive. That is why the Athenian law makers once decreed it a crime for any citizen to shrink from controversy. And that is why our press was protected by the First Amendment.”
The press is not protected, Kennedy told the newspaper publishers, in order that it can amuse and entertain, emphasize the trivial, or simply tell the public what it wants to hear. The press is protected so that it can find and report facts and, thus, inform, arouse “and sometimes even anger public opinion.”
In a statement unlikely to be repeated by an American president, Kennedy told the newspaper publishers: “I’m not asking your newspapers to support an administration, but I am asking your help in the tremendous task of informing and alerting the American people, for I have complete confidence in the response and dedication of our citizens whenever they are fully informed.”
The America of Kennedy’s day and the America of today are two different worlds. In America today the media are expected to lie for the government in order to prevent the people from finding out what the government is up to. If polls can be believed, Americans brainwashed and programmed by O’Reilly, Hannity, Beck, and Limbaugh want Bradley Manning and Julian Assange torn limb from limb for informing Americans of the criminal acts of their government. Politicians and journalists are screeching for their execution.
President Kennedy told the Newspaper Publishers Association that “it is to the printing press, the recorder of man’s deeds, the keeper of his conscience, the courier of his news, that we look for strength and assistance, confident that with your help man will be what he was born to be: Free and Independent.” Who can imagine a Bill Clinton, a George W. Bush, or a Barack Obama saying such a thing today?
Today the press is a propaganda ministry for the government. Any member who departs from his duty to lie and spin the news is expelled from the fraternity. A public increasingly unemployed, broke and homeless is told that they have vast enemies plotting to destroy them in the absence of annual trillion dollar expenditures for the military/security complex, wars lasting decades, no-fly lists, unlimited spying and collecting of dossiers on citizens supplemented by neighbors reporting on neighbors, full body scanners at airports, shopping centers, metro and train stations, traffic checks, and the equivalence of treason with the uttering of a truth.
Two years ago when he came into office President Obama admitted that no one knew what the military mission was in Afghanistan, including the president himself, but that he would find a mission and define it. On his recent trip to Afghanistan, Obama came up with the mission: to make the families of the troops safe in America, his version of Bush’s “we have to kill them over there before they kill us over here.”
No one snorted with derision or even mildly giggled. Neither the New York Times nor Fox News (sic) dared to wonder if perhaps, maybe, murdering and displacing large numbers of Muslims in Iraq, Afghanistan, Pakistan, and Yemen and US support for Israel’s similar treatment of Lebanese and Palestinians might be creating a hostile environment that could breed terrorists. If there still is such a thing as the Newspaper Publishers Association, its members are incapable of such an unpatriotic thought.
Today no one believes that our country’s success depends on an informed public and a free press. America’s success depends on its financial and military hegemony over the world. Any information inconsistent with the indispensable people’s god-given right to dominate the world must be suppressed and the messenger discredited and destroyed.
Now that the press has voluntarily shed its First Amendment rights, the government is working to redefine free speech as a privilege limited to the media, not a right of citizens. Thus, the insistence that WikiLeaks is not a media organization and Fox News (sic) turning in a citizen for exercising free speech. Washington’s assault on Assange and WikiLeaks is an assault on what remains of the US Constitution. When we cheer for WikiLeaks’ demise, we are cheering for our own.
Incipient Fascist State: America Has Gone Away
Anyone who doesn’t believe that the US is an incipient fascist state needs only to consult the latest assault on civil liberty by Fox News (sic). Instead of informing citizens, Fox News (sic) informs on citizens. Jason Ditz reports (antiwar.com Dec. 28) that Fox News (sic) “no longer content to simply shill for a growing police state,” turned in a grandmother to the Department of Homeland Security for making “anti-American comments.”
The media have segued into the police attitude, which regards insistence on civil liberties and references to the Constitution as signs of extremism, especially when the Constitution is invoked in defense of dissent or privacy or placarded on a bumper sticker. President George W. Bush set the scene when he declared: “you are with us or against us.”
Bush’s words demonstrate a frightening decline in our government’s respect for dissent since the presidency of John F. Kennedy. In a speech to the Newspaper Publishers Association in 1961, President Kennedy said:
“No president should fear public scrutiny of his program, for from that scrutiny comes understanding, and from that understanding comes support or opposition; and both are necessary. . . . Without debate, without criticism, no administration and no country can succeed, and no republic can survive. That is why the Athenian law makers once decreed it a crime for any citizen to shrink from controversy. And that is why our press was protected by the First Amendment.”
The press is not protected, Kennedy told the newspaper publishers, in order that it can amuse and entertain, emphasize the trivial, or simply tell the public what it wants to hear. The press is protected so that it can find and report facts and, thus, inform, arouse “and sometimes even anger public opinion.”
In a statement unlikely to be repeated by an American president, Kennedy told the newspaper publishers: “I’m not asking your newspapers to support an administration, but I am asking your help in the tremendous task of informing and alerting the American people, for I have complete confidence in the response and dedication of our citizens whenever they are fully informed.”
The America of Kennedy’s day and the America of today are two different worlds. In America today the media are expected to lie for the government in order to prevent the people from finding out what the government is up to. If polls can be believed, Americans brainwashed and programmed by O’Reilly, Hannity, Beck, and Limbaugh want Bradley Manning and Julian Assange torn limb from limb for informing Americans of the criminal acts of their government. Politicians and journalists are screeching for their execution.
President Kennedy told the Newspaper Publishers Association that “it is to the printing press, the recorder of man’s deeds, the keeper of his conscience, the courier of his news, that we look for strength and assistance, confident that with your help man will be what he was born to be: Free and Independent.” Who can imagine a Bill Clinton, a George W. Bush, or a Barack Obama saying such a thing today?
Today the press is a propaganda ministry for the government. Any member who departs from his duty to lie and spin the news is expelled from the fraternity. A public increasingly unemployed, broke and homeless is told that they have vast enemies plotting to destroy them in the absence of annual trillion dollar expenditures for the military/security complex, wars lasting decades, no-fly lists, unlimited spying and collecting of dossiers on citizens supplemented by neighbors reporting on neighbors, full body scanners at airports, shopping centers, metro and train stations, traffic checks, and the equivalence of treason with the uttering of a truth.
Two years ago when he came into office President Obama admitted that no one knew what the military mission was in Afghanistan, including the president himself, but that he would find a mission and define it. On his recent trip to Afghanistan, Obama came up with the mission: to make the families of the troops safe in America, his version of Bush’s “we have to kill them over there before they kill us over here.”
No one snorted with derision or even mildly giggled. Neither the New York Times nor Fox News (sic) dared to wonder if perhaps, maybe, murdering and displacing large numbers of Muslims in Iraq, Afghanistan, Pakistan, and Yemen and US support for Israel’s similar treatment of Lebanese and Palestinians might be creating a hostile environment that could breed terrorists. If there still is such a thing as the Newspaper Publishers Association, its members are incapable of such an unpatriotic thought.
Today no one believes that our country’s success depends on an informed public and a free press. America’s success depends on its financial and military hegemony over the world. Any information inconsistent with the indispensable people’s god-given right to dominate the world must be suppressed and the messenger discredited and destroyed.
Now that the press has voluntarily shed its First Amendment rights, the government is working to redefine free speech as a privilege limited to the media, not a right of citizens. Thus, the insistence that WikiLeaks is not a media organization and Fox News (sic) turning in a citizen for exercising free speech. Washington’s assault on Assange and WikiLeaks is an assault on what remains of the US Constitution. When we cheer for WikiLeaks’ demise, we are cheering for our own.
Thursday, December 30, 2010
SC104-8
http://www.truthdig.com/report/page2/2011_a_brave_new_dystopia_20101227/
2011: A Brave New Dystopia
The two greatest visions of a future dystopia were George Orwell’s “1984” and Aldous Huxley’s “Brave New World.” The debate, between those who watched our descent towards corporate totalitarianism, was who was right. Would we be, as Orwell wrote, dominated by a repressive surveillance and security state that used crude and violent forms of control? Or would we be, as Huxley envisioned, entranced by entertainment and spectacle, captivated by technology and seduced by profligate consumption to embrace our own oppression? It turns out Orwell and Huxley were both right. Huxley saw the first stage of our enslavement. Orwell saw the second.
We have been gradually disempowered by a corporate state that, as Huxley foresaw, seduced and manipulated us through sensual gratification, cheap mass-produced goods, boundless credit, political theater and amusement. While we were entertained, the regulations that once kept predatory corporate power in check were dismantled, the laws that once protected us were rewritten and we were impoverished. Now that credit is drying up, good jobs for the working class are gone forever and mass-produced goods are unaffordable, we find ourselves transported from “Brave New World” to “1984.” The state, crippled by massive deficits, endless war and corporate malfeasance, is sliding toward bankruptcy. It is time for Big Brother to take over from Huxley’s feelies, the orgy-porgy and the centrifugal bumble-puppy. We are moving from a society where we are skillfully manipulated by lies and illusions to one where we are overtly controlled. Orwell warned of a world where books were banned. Huxley warned of a world where no one wanted to read books. Orwell warned of a state of permanent war and fear. Huxley warned of a culture diverted by mindless pleasure. Orwell warned of a state where every conversation and thought was monitored and dissent was brutally punished. Huxley warned of a state where a population, preoccupied by trivia and gossip, no longer cared about truth or information. Orwell saw us frightened into submission. Huxley saw us seduced into submission. But Huxley, we are discovering, was merely the prelude to Orwell. Huxley understood the process by which we would be complicit in our own enslavement. Orwell understood the enslavement. Now that the corporate coup is over, we stand naked and defenseless. We are beginning to understand, as Karl Marx knew, that unfettered and unregulated capitalism is a brutal and revolutionary force that exploits human beings and the natural world until exhaustion or collapse.
“The Party seeks power entirely for its own sake,” Orwell wrote in “1984.” “We are not interested in the good of others; we are interested solely in power. Not wealth or luxury or long life or happiness: only power, pure power. What pure power means you will understand presently. We are different from all the oligarchies of the past, in that we know what we are doing. All the others, even those who resembled ourselves, were cowards and hypocrites. The German Nazis and the Russian Communists came very close to us in their methods, but they never had the courage to recognize their own motives. They pretended, perhaps they even believed, that they had seized power unwillingly and for a limited time, and that just round the corner there lay a paradise where human beings would be free and equal. We are not like that. We know that no one ever seizes power with the intention of relinquishing it. Power is not a means; it is an end. One does not establish a dictatorship in order to safeguard a revolution; one makes the revolution in order to establish the dictatorship. The object of persecution is persecution. The object of torture is torture. The object of power is power.”
The political philosopher Sheldon Wolin uses the term “inverted totalitarianism” in his book “Democracy Incorporated” to describe our political system. It is a term that would make sense to Huxley. In inverted totalitarianism, the sophisticated technologies of corporate control, intimidation and mass manipulation, which far surpass those employed by previous totalitarian states, are effectively masked by the glitter, noise and abundance of a consumer society. Political participation and civil liberties are gradually surrendered. The corporation state, hiding behind the smokescreen of the public relations industry, the entertainment industry and the tawdry materialism of a consumer society, devours us from the inside out. It owes no allegiance to us or the nation. It feasts upon our carcass. The corporate state does not find its expression in a demagogue or charismatic leader. It is defined by the anonymity and facelessness of the corporation. Corporations, who hire attractive spokespeople like Barack Obama, control the uses of science, technology, education and mass communication. They control the messages in movies and television. And, as in “Brave New World,” they use these tools of communication to bolster tyranny. Our systems of mass communication, as Wolin writes, “block out, eliminate whatever might introduce qualification, ambiguity, or dialogue, anything that might weaken or complicate the holistic force of their creation, to its total impression.”
The result is a monochromatic system of information. Celebrity courtiers, masquerading as journalists, experts and specialists, identify our problems and patiently explain the parameters. All those who argue outside the imposed parameters are dismissed as irrelevant cranks, extremists or members of a radical left. Prescient social critics, from Ralph Nader to Noam Chomsky, are banished. Acceptable opinions have a range of A to B. The culture, under the tutelage of these corporate courtiers, becomes, as Huxley noted, a world of cheerful conformity, as well as an endless and finally fatal optimism. We busy ourselves buying products that promise to change our lives, make us more beautiful, confident or successful as we are steadily stripped of rights, money and influence. All messages we receive through these systems of communication, whether on the nightly news or talk shows like “Oprah,” promise a brighter, happier tomorrow. And this, as Wolin points out, is “the same ideology that invites corporate executives to exaggerate profits and conceal losses, but always with a sunny face.” We have been entranced, as Wolin writes, by “continuous technological advances” that “encourage elaborate fantasies of individual prowess, eternal youthfulness, beauty through surgery, actions measured in nanoseconds: a dream-laden culture of ever-expanding control and possibility, whose denizens are prone to fantasies because the vast majority have imagination but little scientific knowledge.”
Our manufacturing base has been dismantled. Speculators and swindlers have looted the U.S. Treasury and stolen billions from small shareholders who had set aside money for retirement or college. Civil liberties, including habeas corpus and protection from warrantless wiretapping, have been taken away. Basic services, including public education and health care, have been handed over to the corporations to exploit for profit. The few who raise voices of dissent, who refuse to engage in the corporate happy talk, are derided by the corporate establishment as freaks. Attitudes and temperament have been cleverly engineered by the corporate state, as with Huxley’s pliant characters in “Brave New World.” The book’s protagonist, Bernard Marx, turns in frustration to his girlfriend Lenina:
“Don’t you wish you were free, Lenina?” he asks.“I don’t know that you mean. I am free, free to have the most wonderful time. Everybody’s happy nowadays.”He laughed, “Yes, ‘Everybody’s happy nowadays.’ We have been giving the children that at five. But wouldn’t you like to be free to be happy in some other way, Lenina? In your own way, for example; not in everybody else’s way.”“I don’t know what you mean,” she repeated.
The façade is crumbling. And as more and more people realize that they have been used and robbed, we will move swiftly from Huxley’s “Brave New World” to Orwell’s “1984.” The public, at some point, will have to face some very unpleasant truths. The good-paying jobs are not coming back. The largest deficits in human history mean that we are trapped in a debt peonage system that will be used by the corporate state to eradicate the last vestiges of social protection for citizens, including Social Security. The state has devolved from a capitalist democracy to neo-feudalism. And when these truths become apparent, anger will replace the corporate-imposed cheerful conformity. The bleakness of our post-industrial pockets, where some 40 million Americans live in a state of poverty and tens of millions in a category called “near poverty,” coupled with the lack of credit to save families from foreclosures, bank repossessions and bankruptcy from medical bills, means that inverted totalitarianism will no longer work.
We increasingly live in Orwell’s Oceania, not Huxley’s The World State. Osama bin Laden plays the role assumed by Emmanuel Goldstein in “1984.” Goldstein, in the novel, is the public face of terror. His evil machinations and clandestine acts of violence dominate the nightly news. Goldstein’s image appears each day on Oceania’s television screens as part of the nation’s “Two Minutes of Hate” daily ritual. And without the intervention of the state, Goldstein, like bin Laden, will kill you. All excesses are justified in the titanic fight against evil personified.
The psychological torture of Pvt. Bradley Manning—who has now been imprisoned for seven months without being convicted of any crime—mirrors the breaking of the dissident Winston Smith at the end of “1984.” Manning is being held as a “maximum custody detainee” in the brig at Marine Corps Base Quantico, in Virginia. He spends 23 of every 24 hours alone. He is denied exercise. He cannot have a pillow or sheets for his bed. Army doctors have been plying him with antidepressants. The cruder forms of torture of the Gestapo have been replaced with refined Orwellian techniques, largely developed by government psychologists, to turn dissidents like Manning into vegetables. We break souls as well as bodies. It is more effective. Now we can all be taken to Orwell’s dreaded Room 101 to become compliant and harmless. These “special administrative measures” are regularly imposed on our dissidents, including Syed Fahad Hashmi, who was imprisoned under similar conditions for three years before going to trial. The techniques have psychologically maimed thousands of detainees in our black sites around the globe. They are the staple form of control in our maximum security prisons where the corporate state makes war on our most politically astute underclass—African-Americans. It all presages the shift from Huxley to Orwell.
“Never again will you be capable of ordinary human feeling,” Winston Smith’s torturer tells him in “1984.” “Everything will be dead inside you. Never again will you be capable of love, or friendship, or joy of living, or laughter, or curiosity, or courage, or integrity. You will be hollow. We shall squeeze you empty and then we shall fill you with ourselves.”
The noose is tightening. The era of amusement is being replaced by the era of repression. Tens of millions of citizens have had their e-mails and phone records turned over to the government. We are the most monitored and spied-on citizenry in human history. Many of us have our daily routine caught on dozens of security cameras. Our proclivities and habits are recorded on the Internet. Our profiles are electronically generated. Our bodies are patted down at airports and filmed by scanners. And public service announcements, car inspection stickers, and public transportation posters constantly urge us to report suspicious activity. The enemy is everywhere.
Those who do not comply with the dictates of the war on terror, a war which, as Orwell noted, is endless, are brutally silenced. The draconian security measures used to cripple protests at the G-20 gatherings in Pittsburgh and Toronto were wildly disproportionate for the level of street activity. But they sent a clear message—DO NOT TRY THIS. The FBI’s targeting of antiwar and Palestinian activists, which in late September saw agents raid homes in Minneapolis and Chicago, is a harbinger of what is to come for all who dare defy the state’s official Newspeak. The agents—our Thought Police—seized phones, computers, documents and other personal belongings. Subpoenas to appear before a grand jury have since been served on 26 people. The subpoenas cite federal law prohibiting “providing material support or resources to designated foreign terrorist organizations.” Terror, even for those who have nothing to do with terror, becomes the blunt instrument used by Big Brother to protect us from ourselves.
“Do you begin to see, then, what kind of world we are creating?” Orwell wrote. “It is the exact opposite of the stupid hedonistic Utopias that the old reformers imagined. A world of fear and treachery and torment, a world of trampling and being trampled upon, a world which will grow not less but more merciless as it refines itself.”
2011: A Brave New Dystopia
The two greatest visions of a future dystopia were George Orwell’s “1984” and Aldous Huxley’s “Brave New World.” The debate, between those who watched our descent towards corporate totalitarianism, was who was right. Would we be, as Orwell wrote, dominated by a repressive surveillance and security state that used crude and violent forms of control? Or would we be, as Huxley envisioned, entranced by entertainment and spectacle, captivated by technology and seduced by profligate consumption to embrace our own oppression? It turns out Orwell and Huxley were both right. Huxley saw the first stage of our enslavement. Orwell saw the second.
We have been gradually disempowered by a corporate state that, as Huxley foresaw, seduced and manipulated us through sensual gratification, cheap mass-produced goods, boundless credit, political theater and amusement. While we were entertained, the regulations that once kept predatory corporate power in check were dismantled, the laws that once protected us were rewritten and we were impoverished. Now that credit is drying up, good jobs for the working class are gone forever and mass-produced goods are unaffordable, we find ourselves transported from “Brave New World” to “1984.” The state, crippled by massive deficits, endless war and corporate malfeasance, is sliding toward bankruptcy. It is time for Big Brother to take over from Huxley’s feelies, the orgy-porgy and the centrifugal bumble-puppy. We are moving from a society where we are skillfully manipulated by lies and illusions to one where we are overtly controlled. Orwell warned of a world where books were banned. Huxley warned of a world where no one wanted to read books. Orwell warned of a state of permanent war and fear. Huxley warned of a culture diverted by mindless pleasure. Orwell warned of a state where every conversation and thought was monitored and dissent was brutally punished. Huxley warned of a state where a population, preoccupied by trivia and gossip, no longer cared about truth or information. Orwell saw us frightened into submission. Huxley saw us seduced into submission. But Huxley, we are discovering, was merely the prelude to Orwell. Huxley understood the process by which we would be complicit in our own enslavement. Orwell understood the enslavement. Now that the corporate coup is over, we stand naked and defenseless. We are beginning to understand, as Karl Marx knew, that unfettered and unregulated capitalism is a brutal and revolutionary force that exploits human beings and the natural world until exhaustion or collapse.
“The Party seeks power entirely for its own sake,” Orwell wrote in “1984.” “We are not interested in the good of others; we are interested solely in power. Not wealth or luxury or long life or happiness: only power, pure power. What pure power means you will understand presently. We are different from all the oligarchies of the past, in that we know what we are doing. All the others, even those who resembled ourselves, were cowards and hypocrites. The German Nazis and the Russian Communists came very close to us in their methods, but they never had the courage to recognize their own motives. They pretended, perhaps they even believed, that they had seized power unwillingly and for a limited time, and that just round the corner there lay a paradise where human beings would be free and equal. We are not like that. We know that no one ever seizes power with the intention of relinquishing it. Power is not a means; it is an end. One does not establish a dictatorship in order to safeguard a revolution; one makes the revolution in order to establish the dictatorship. The object of persecution is persecution. The object of torture is torture. The object of power is power.”
The political philosopher Sheldon Wolin uses the term “inverted totalitarianism” in his book “Democracy Incorporated” to describe our political system. It is a term that would make sense to Huxley. In inverted totalitarianism, the sophisticated technologies of corporate control, intimidation and mass manipulation, which far surpass those employed by previous totalitarian states, are effectively masked by the glitter, noise and abundance of a consumer society. Political participation and civil liberties are gradually surrendered. The corporation state, hiding behind the smokescreen of the public relations industry, the entertainment industry and the tawdry materialism of a consumer society, devours us from the inside out. It owes no allegiance to us or the nation. It feasts upon our carcass. The corporate state does not find its expression in a demagogue or charismatic leader. It is defined by the anonymity and facelessness of the corporation. Corporations, who hire attractive spokespeople like Barack Obama, control the uses of science, technology, education and mass communication. They control the messages in movies and television. And, as in “Brave New World,” they use these tools of communication to bolster tyranny. Our systems of mass communication, as Wolin writes, “block out, eliminate whatever might introduce qualification, ambiguity, or dialogue, anything that might weaken or complicate the holistic force of their creation, to its total impression.”
The result is a monochromatic system of information. Celebrity courtiers, masquerading as journalists, experts and specialists, identify our problems and patiently explain the parameters. All those who argue outside the imposed parameters are dismissed as irrelevant cranks, extremists or members of a radical left. Prescient social critics, from Ralph Nader to Noam Chomsky, are banished. Acceptable opinions have a range of A to B. The culture, under the tutelage of these corporate courtiers, becomes, as Huxley noted, a world of cheerful conformity, as well as an endless and finally fatal optimism. We busy ourselves buying products that promise to change our lives, make us more beautiful, confident or successful as we are steadily stripped of rights, money and influence. All messages we receive through these systems of communication, whether on the nightly news or talk shows like “Oprah,” promise a brighter, happier tomorrow. And this, as Wolin points out, is “the same ideology that invites corporate executives to exaggerate profits and conceal losses, but always with a sunny face.” We have been entranced, as Wolin writes, by “continuous technological advances” that “encourage elaborate fantasies of individual prowess, eternal youthfulness, beauty through surgery, actions measured in nanoseconds: a dream-laden culture of ever-expanding control and possibility, whose denizens are prone to fantasies because the vast majority have imagination but little scientific knowledge.”
Our manufacturing base has been dismantled. Speculators and swindlers have looted the U.S. Treasury and stolen billions from small shareholders who had set aside money for retirement or college. Civil liberties, including habeas corpus and protection from warrantless wiretapping, have been taken away. Basic services, including public education and health care, have been handed over to the corporations to exploit for profit. The few who raise voices of dissent, who refuse to engage in the corporate happy talk, are derided by the corporate establishment as freaks. Attitudes and temperament have been cleverly engineered by the corporate state, as with Huxley’s pliant characters in “Brave New World.” The book’s protagonist, Bernard Marx, turns in frustration to his girlfriend Lenina:
“Don’t you wish you were free, Lenina?” he asks.“I don’t know that you mean. I am free, free to have the most wonderful time. Everybody’s happy nowadays.”He laughed, “Yes, ‘Everybody’s happy nowadays.’ We have been giving the children that at five. But wouldn’t you like to be free to be happy in some other way, Lenina? In your own way, for example; not in everybody else’s way.”“I don’t know what you mean,” she repeated.
The façade is crumbling. And as more and more people realize that they have been used and robbed, we will move swiftly from Huxley’s “Brave New World” to Orwell’s “1984.” The public, at some point, will have to face some very unpleasant truths. The good-paying jobs are not coming back. The largest deficits in human history mean that we are trapped in a debt peonage system that will be used by the corporate state to eradicate the last vestiges of social protection for citizens, including Social Security. The state has devolved from a capitalist democracy to neo-feudalism. And when these truths become apparent, anger will replace the corporate-imposed cheerful conformity. The bleakness of our post-industrial pockets, where some 40 million Americans live in a state of poverty and tens of millions in a category called “near poverty,” coupled with the lack of credit to save families from foreclosures, bank repossessions and bankruptcy from medical bills, means that inverted totalitarianism will no longer work.
We increasingly live in Orwell’s Oceania, not Huxley’s The World State. Osama bin Laden plays the role assumed by Emmanuel Goldstein in “1984.” Goldstein, in the novel, is the public face of terror. His evil machinations and clandestine acts of violence dominate the nightly news. Goldstein’s image appears each day on Oceania’s television screens as part of the nation’s “Two Minutes of Hate” daily ritual. And without the intervention of the state, Goldstein, like bin Laden, will kill you. All excesses are justified in the titanic fight against evil personified.
The psychological torture of Pvt. Bradley Manning—who has now been imprisoned for seven months without being convicted of any crime—mirrors the breaking of the dissident Winston Smith at the end of “1984.” Manning is being held as a “maximum custody detainee” in the brig at Marine Corps Base Quantico, in Virginia. He spends 23 of every 24 hours alone. He is denied exercise. He cannot have a pillow or sheets for his bed. Army doctors have been plying him with antidepressants. The cruder forms of torture of the Gestapo have been replaced with refined Orwellian techniques, largely developed by government psychologists, to turn dissidents like Manning into vegetables. We break souls as well as bodies. It is more effective. Now we can all be taken to Orwell’s dreaded Room 101 to become compliant and harmless. These “special administrative measures” are regularly imposed on our dissidents, including Syed Fahad Hashmi, who was imprisoned under similar conditions for three years before going to trial. The techniques have psychologically maimed thousands of detainees in our black sites around the globe. They are the staple form of control in our maximum security prisons where the corporate state makes war on our most politically astute underclass—African-Americans. It all presages the shift from Huxley to Orwell.
“Never again will you be capable of ordinary human feeling,” Winston Smith’s torturer tells him in “1984.” “Everything will be dead inside you. Never again will you be capable of love, or friendship, or joy of living, or laughter, or curiosity, or courage, or integrity. You will be hollow. We shall squeeze you empty and then we shall fill you with ourselves.”
The noose is tightening. The era of amusement is being replaced by the era of repression. Tens of millions of citizens have had their e-mails and phone records turned over to the government. We are the most monitored and spied-on citizenry in human history. Many of us have our daily routine caught on dozens of security cameras. Our proclivities and habits are recorded on the Internet. Our profiles are electronically generated. Our bodies are patted down at airports and filmed by scanners. And public service announcements, car inspection stickers, and public transportation posters constantly urge us to report suspicious activity. The enemy is everywhere.
Those who do not comply with the dictates of the war on terror, a war which, as Orwell noted, is endless, are brutally silenced. The draconian security measures used to cripple protests at the G-20 gatherings in Pittsburgh and Toronto were wildly disproportionate for the level of street activity. But they sent a clear message—DO NOT TRY THIS. The FBI’s targeting of antiwar and Palestinian activists, which in late September saw agents raid homes in Minneapolis and Chicago, is a harbinger of what is to come for all who dare defy the state’s official Newspeak. The agents—our Thought Police—seized phones, computers, documents and other personal belongings. Subpoenas to appear before a grand jury have since been served on 26 people. The subpoenas cite federal law prohibiting “providing material support or resources to designated foreign terrorist organizations.” Terror, even for those who have nothing to do with terror, becomes the blunt instrument used by Big Brother to protect us from ourselves.
“Do you begin to see, then, what kind of world we are creating?” Orwell wrote. “It is the exact opposite of the stupid hedonistic Utopias that the old reformers imagined. A world of fear and treachery and torment, a world of trampling and being trampled upon, a world which will grow not less but more merciless as it refines itself.”
Wednesday, December 8, 2010
SC104-7
http://www.fcnp.com/commentary/national/7980-the-peak-oil-crisis-the-future-of-government.html
The peak oil crisis: the future of government
In case you missed it, a couple of weeks back the International Energy Agency in Paris got around to disclosing that the all-time peak of global conventional oil production occurred back in 2006. Despite that fact that this declaration was tantamount to announcing the end of the 250-year-old industrial age, few in the mainstream media noted the event and it was left to obscure corners of cyber space to ponder the meaning of it all.
It is also worth noting that oil is back in the vicinity of $90 a barrel and even Wall Street economists, who are paid to be eternally optimistic, are starting to talk about oil going for$110-120 a barrel in the next year or so.
In the meantime, the talking heads, pundits and even hard-headed reporters chatter on about the slow but persistent economic recovery that is supposed to be taking place. As the effects of last year's near-trillion dollar stimulus start to be felt, every statistical twitch upward is hailed as proof that normalcy will soon return. Realists, however, call this twitching "bottom-bouncing" and are convinced that far worse is yet to come.
As we all know by now, a new crowd has descended on Washington vowing to make everything right again by cutting taxes, reducing the size and the role of some parts of the government. Above all the folks are committed to getting government regulation off our backs so that free enterprise, the entrepreneurial spirit, merchant capitalism, or what have you can flourish as it did in the past.
What all those calling for reduced government fail to grasp, however, is that 200 years of cheap abundant fossil fuel energy has transformed this country into something completely different. Take food as an example, 200 years ago, some 90+ percent of us were involved in its raising or otherwise procuring food -- or we would simply not eat. Now, thanks to cheap fossil fuels, less than 3 percent of us are engaged in agricultural endeavors and I suspect only a fraction of our "farmers" still have all the requisite skills to feed themselves and their families in the style to which they have become accustomed. Take away the diesel for the tractors and farming is going to become mighty different. Has anyone yoked an ox lately?
In short, 200 years of abundant energy have allowed us to build an extremely complex civilization based on dozens of interrelated systems without which we can no longer live - at least not in the style to which we have become accustomed. Food production and distribution, water, sewage, solid waste removal, communications, healthcare, transportation, public safety, education --- the list of systems vital-to-life and general wellbeing goes on and on.
Those who believe that ten years from now we will be able to get along with much reduced government have little appreciation of how modern civilization works or how bad things are going to get as fossil fuel energy fades from our lives. The notion is absurd that we are in the midst of a routine downturn in the business cycle which can be cured by Keynesian stimulus favored by the Democrats or tax cuts favored by the Republicans.
While no one can foretell the future in detail, every now and again a window opens that allows a general outline of coming events to emerge. For example, in the years leading up to the Second World War one did not have to be clairvoyant to appreciate that a great disaster was about to befall.
Although few recognize how precarious the situation is, we are trapped in a very complex civilization that is rapidly losing the sources of energy and numerous other raw materials that built and maintained it. In America today we have millions un- and under-employed and that is certain to grow into the tens of millions before the decade is out as our politicians horse-trade tax cuts for billionaires in return for extensions of unemployment benefits. The good news is that this phase of the great transition from the industrial age to that which will follow cannot last much longer for events are moving too fast.
Whether one likes it or not, the size and complexity of the coming transition will be so great and unprecedented and there will be so much at stake that only governments will have the authority and power to cope with the multitude of problems that are about to emerge. Be it heresy in some as yet unknowing circles; all this is going to require a massive transfer of resources from private hands to public ones. Take something as simple as jobs. If anyone thinks the employment situation is difficult, wait a few years until the very high priced motor fuels makes discretionary car travel unaffordable. Millions upon millions of jobs in the retail, travel, hospitality, recreational, and dozens of other industries will be lost.
The current efforts by various levels of government to stimulate job creation or save people from home foreclosures will prove to be ridiculously inadequate. A completely new paradigm of what we do to sustain life is going to have to emerge or things will become far worse than most of us have ever known. Modern civilization simply cannot stand a situation in which a substantial share of its people is destitute. The potential for social disorder is too great.
If current trends continue, somewhere in the next five years a critical mass of us will realize that new foundations for civilization, and new ways of life must be found and implemented if we are going to survive with a modicum of comfort, economic, and political stability. Until then there will be many false prophets calling for a return to a civilization which is no longer possible.
The peak oil crisis: the future of government
In case you missed it, a couple of weeks back the International Energy Agency in Paris got around to disclosing that the all-time peak of global conventional oil production occurred back in 2006. Despite that fact that this declaration was tantamount to announcing the end of the 250-year-old industrial age, few in the mainstream media noted the event and it was left to obscure corners of cyber space to ponder the meaning of it all.
It is also worth noting that oil is back in the vicinity of $90 a barrel and even Wall Street economists, who are paid to be eternally optimistic, are starting to talk about oil going for$110-120 a barrel in the next year or so.
In the meantime, the talking heads, pundits and even hard-headed reporters chatter on about the slow but persistent economic recovery that is supposed to be taking place. As the effects of last year's near-trillion dollar stimulus start to be felt, every statistical twitch upward is hailed as proof that normalcy will soon return. Realists, however, call this twitching "bottom-bouncing" and are convinced that far worse is yet to come.
As we all know by now, a new crowd has descended on Washington vowing to make everything right again by cutting taxes, reducing the size and the role of some parts of the government. Above all the folks are committed to getting government regulation off our backs so that free enterprise, the entrepreneurial spirit, merchant capitalism, or what have you can flourish as it did in the past.
What all those calling for reduced government fail to grasp, however, is that 200 years of cheap abundant fossil fuel energy has transformed this country into something completely different. Take food as an example, 200 years ago, some 90+ percent of us were involved in its raising or otherwise procuring food -- or we would simply not eat. Now, thanks to cheap fossil fuels, less than 3 percent of us are engaged in agricultural endeavors and I suspect only a fraction of our "farmers" still have all the requisite skills to feed themselves and their families in the style to which they have become accustomed. Take away the diesel for the tractors and farming is going to become mighty different. Has anyone yoked an ox lately?
In short, 200 years of abundant energy have allowed us to build an extremely complex civilization based on dozens of interrelated systems without which we can no longer live - at least not in the style to which we have become accustomed. Food production and distribution, water, sewage, solid waste removal, communications, healthcare, transportation, public safety, education --- the list of systems vital-to-life and general wellbeing goes on and on.
Those who believe that ten years from now we will be able to get along with much reduced government have little appreciation of how modern civilization works or how bad things are going to get as fossil fuel energy fades from our lives. The notion is absurd that we are in the midst of a routine downturn in the business cycle which can be cured by Keynesian stimulus favored by the Democrats or tax cuts favored by the Republicans.
While no one can foretell the future in detail, every now and again a window opens that allows a general outline of coming events to emerge. For example, in the years leading up to the Second World War one did not have to be clairvoyant to appreciate that a great disaster was about to befall.
Although few recognize how precarious the situation is, we are trapped in a very complex civilization that is rapidly losing the sources of energy and numerous other raw materials that built and maintained it. In America today we have millions un- and under-employed and that is certain to grow into the tens of millions before the decade is out as our politicians horse-trade tax cuts for billionaires in return for extensions of unemployment benefits. The good news is that this phase of the great transition from the industrial age to that which will follow cannot last much longer for events are moving too fast.
Whether one likes it or not, the size and complexity of the coming transition will be so great and unprecedented and there will be so much at stake that only governments will have the authority and power to cope with the multitude of problems that are about to emerge. Be it heresy in some as yet unknowing circles; all this is going to require a massive transfer of resources from private hands to public ones. Take something as simple as jobs. If anyone thinks the employment situation is difficult, wait a few years until the very high priced motor fuels makes discretionary car travel unaffordable. Millions upon millions of jobs in the retail, travel, hospitality, recreational, and dozens of other industries will be lost.
The current efforts by various levels of government to stimulate job creation or save people from home foreclosures will prove to be ridiculously inadequate. A completely new paradigm of what we do to sustain life is going to have to emerge or things will become far worse than most of us have ever known. Modern civilization simply cannot stand a situation in which a substantial share of its people is destitute. The potential for social disorder is too great.
If current trends continue, somewhere in the next five years a critical mass of us will realize that new foundations for civilization, and new ways of life must be found and implemented if we are going to survive with a modicum of comfort, economic, and political stability. Until then there will be many false prophets calling for a return to a civilization which is no longer possible.
Saturday, November 27, 2010
SC104-6
http://thearchdruidreport.blogspot.com/2010/11/no-time-for-lullabies.html
No Time for Lullabies
At this point we’ve covered the core techniques of backyard food gardening, one of the three basic ingredients in the bubbling cauldron of green wizardry. Those core techniques are far from the only things that can usefully be added to the pot, of course, but I don’t propose to go into the other options in any detail.
First, and to my mind the most crucial, is the need for dissensus. It’s impossible to know in advance what particular set of tools and skills will be the one best suited to squeak past the mess taking shape around us – and by this I mean to include both the short-term mess defined by the implosion of America’s debt economy and its overseas equivalents, and the long-term and even more daunting mess defined by the head-on collision between a civilization and technostructure predicated on limitless expansion and the hard limits of a finite planet. Green wizardry, as I’ve already discussed here, is only one option, and even within green wizardry there needs to be plenty of room for different paths, new inventions, local traditions, and a good helping of outright eccentricity.
Those of my readers who took me up on last week’s challenge and sat down with a copy of Darwin’s The Origin of Species and a tall beverage of choice already have some sense of the importance of variation in evolution; that’s what provides the raw material that gets sorted out by natural selection. There’s no shortage of natural selection piling up for us in the not too distant future, that’s for sure, but it’s up to us to provide the variation. That’s part of what’s behind my recommendation that aspiring green wizards haunt used book stores and go digging for obscure pieces of information, and it’s also part of the reason why I’ve focused almost monomaniacally on a very specific version of backyard food gardening – the version that evolved in the 1970s energy crises – when there are many other options out there. The logic here is straightforward: a pretty fair fraction of green wizards who didn’t grow up during that decade are bound to get irritated by the deliberately annoying Seventies-centric approach, and that irritation will send them looking for other options.
Another important reason, though, was brought home to me by a book that arrived on my doorstep not too long ago. I’m not going to name the author, the publisher, or even the subject matter, because it could have been any of a hundred books; these days they’re as interchangeable, as forgettable, and as inescapable as American politicians at election time. I’m not sure why it was mailed to me, as it came unannounced; I have to assume that since I blog about the crisis of industrial society, and this book claims to offer a solution to that crisis, the author or the publisher’s marketing department decided that I probably ought to know about it.
You already know the kind of book I’m discussing. It begins with several chapters of potted history that combines an overheated version of the mess we’re in – slanted, naturally, toward those aspects of the mess that the proposed solution is supposed to solve – and an equally colorful account of the prehistory of the solution that traces it back to an exotic and currently fashionable source. It goes on to talk about the proposed solution with the kind of overhyped enthusiasm and rose-tinted assumptions more often associated with the press releases of small tech startups that will be bankrupt within the year. It spares a brief chapter or two to mention criticisms directed at the proposed solution in order to dismiss them out of hand, and then finishes up with a vision of the glorious Utopian future that awaits once the Party’s latest five year plan – er, excuse me, once the proposed solution gets the universal acceptance and ample funding the author hopes to attract.
What isn’t in books of this kind is as important, and as worth mentioning, as what is in them. You won’t find any substantive discussion of the limits of the proposed solution – what dimensions of the crisis of industrial civilization it can’t solve, which bioregions or human societies can’t use it effectively, what resource requirements, environmental effect, or economic factors place constraints on its use, and so on. You won’t find any substantive discussion of the downside of the proposed solution – what burdens it will place on already stressed resource supplies, ecosystems, or economies. Equally, you won’t find meaningful comparisons between the proposed solution and other ways of accomplishing the same thing. Since there are always limits, costs, and alternatives, and a reasoned approach to any kind of decision needs to take these three things into account, their exclusion from such books is not exactly a minor point.
Still, there’s another factor left out in the sort of book I’m discussing: there’s nothing the reader is supposed to do in response. Until recently, if you picked up a book that took some current crisis, painted it in the most apocalyptic terms available, then trotted out some solution dolled up in glowing colors for your approbation, you could safely bet any sum you like to name that the final chapters would try to sell the reader on a product to buy, a service to pay for, a movement to join, or something similar. That sort of snake oil sales pitch is as old as the hills of Iowa and twice as corny, but at least it’s relatively straightforward.
The books I have in mind are anything but straightforward. Like the sales pitches just mentioned, they work overtime making whatever crisis concerns their authors look as dire as possible, and gild their proposed solutions with a glitter of infallibility as glorious as anything a carnival pitchman ever claimed for Doctor Fox’s Genuine Arkansas Snake Oil, but they’re not written to sell. It finally occurred to me, while reading the example mentioned earlier in this essay, what their actual purpose is: they’re written to soothe.
This sort of lullaby literature is very popular just now. Shorter pieces humming the same tunes can be found all through what passes for news media in America these days. The New York Times is particularly fond of such things; my adopted kid sister Sharon Astyk neatly eviscerated one example from that source in a recent blog post, but it’s a safe bet that neither the author nor the intended audience of the piece will notice. They are paying attention to something else.
Especially but not only in America, an awareness is spreading through the crawlspaces of society that the current round of troubles might not just be a speedbump on the road to the shiny future our society’s myths promise us. The sense that something has truly, deeply, desperately gone wrong, right down at the core of the world we’ve created for ourselves, has made itself the background to most of the collective conversations that define our culture. The popularity of soothing narratives about the future just now is, if anything, a marker for just how pervasive that background has become; it’s only when fears are inescapable that efforts at mass reassurance find a market.
Still, there’s another dimension to all this, and it bears directly on the Green Wizards project. One of the things that makes our predicament so difficult for so many people to face just now, and especially for so many Americans, is that every available option for the future includes the certainty of massive impoverishment. The five per cent of us who live in the United States have gotten used to living on a quarter of the world’s energy supply and around a third of its raw materials and industrial products. Even if the world wasn’t facing the rapid depletion of its readily accessible fossil fuel reserves, the equally rapid depletion of many other nonrenewable resources essential to the economy, a global climate tipping toward critical instabilities, a dizzying array of local, regional, and global ecological shifts, and the inevitable feedback loops and synergistic effects these changes are going to cause – and of course the world is facing all these things, and will be facing more of them with every passing year – even if these things weren’t happening, the arrangements that provide Americans with so huge a share of the world’s resources are not going to last much longer.
Those arrangements were the product of a particular set of historical conditions. A century ago, those conditions didn’t exist; back then, it was Britain that received a disproportionate share of the world’s wealth, as the beneficiary of an imperial system that directly ruled a quarter of the world’s land surface and also dominated the world’s oceans and, by that fact, most of its international trade. America in those days was a rising power, to be sure, but wasn’t even close to the world’s biggest economy; it had to shelter its industries from the impact of the British colossus by exactly the sort of trade barriers the Chinese are using against us today. (Yes, British economists criticized the US in much the same terms our economists now use to denounce the Chinese; we didn’t listen and neither will they.)
It didn’t take a hundred years for the British empire to be replaced by ours, and it won’t take a hundred years for ours to be replaced by someone else’s. Since we can’t rely on the unusual historical circumstances that allowed Britain to maintain a few shreds of its imperial dignity and some of its privileged economic standing – they were basically able to rent their island out to the American military as an unusually large aircraft carrier conveniently anchored right off the shores of Europe; we don’t have that geopolitical advantage – the aftermath of the American empire is almost certain to be much more like the aftermath of most other empires: economic collapse, massive political dislocations, and a long period of turmoil and contraction until the bottom is reached and recovery can finally start to take shape. The global empire that preceded Britain’s, the Spanish Empire, may provide a more accurate model: that empire imploded in the early nineteenth century in the wake of Britain’s rise to global power, and it wasn’t until the late twentieth century that Spain finally managed to pull itself out of the long nightmare of impoverishment and political chaos that followed.
Again, this is what we would be able to expect if the global economy was entirely based on sustainable resources and the global ecology wasn’t redefining itself in the face of a couple of centuries of fossil fuel-powered abuse. Factor in the impact of energy and resource depletion, climate change, and environmental instability, and the very high likelihood of an increasingly desperate and violent scramble for remaining resources on the way down, and the effects of the end of American empire are likely to be more drastic than anything we’ve seen in the western world since the fall of Rome.
I suspect most Americans these days know this, or at least sense it. These days, when I give a talk on the future to an audience outside the peak oil community, I can begin it like this – “Remember all those scientists a few decades back who warned that if we didn’t make some drastic changes in the very near future, we’d be in deep trouble in the early twenty-first century? Well, guess what.” – and far more often than not, nobody argues. Some of them, at least to judge by the comments and questions I field, are already beginning to try to fit their minds around a future in which nearly all of us are desperately poor by today’s standards; many more are hoping that the worst of it will miss them somehow, or that they’ll be lucky enough to die before it hits – I’ve had people, not all of them elderly, express this latter hope to me in so many words.
Even among those who insist that it won’t happen – those who claim that the center of the Earth really is full of limitless oceans of oil, or that holding hands in a circle and singing “Kum Ba Ya” is a viable strategy for an age of imperial decline and global overshoot, or that the Rapture or the Singularity or 2012 or some other deus ex machina will annihilate history and save them from the future – I have to question how many people actually believe what they claim to believe. I know far too many people who insist the world will end in 2012, for example, who are still putting money into their retirement accounts, and it’s been an open secret for the last decade that the vast majority of people who like to imagine living in a lifeboat ecovillage have not been willing to lift a finger or spend a dime to bring such a project into being.
I’d like to suggest that this is because daydreams about nonexistent lifeboat ecovillages and planet-ending catastrophes two years from now that weren’t actually predicted by the ancient Mayans at all share a common purpose, one that’s also shared by abiotic oil, fusion power, and a dime store’s worth of other lullabies disguised as solutions. Their purpose is to give people something more pleasant to think about than the future that’s breathing down our necks. Yes, planet-ending catastrophes are more pleasant to think about than a couple of centuries of ragged decline, impoverishment, and population loss; if we all get blown to kingdom come in one vast fireball, at least it’s over quickly, and you can probably get some consolation in the few seconds before you’re vaporized by reminding yourself that, after all, it wasn’t your fault.
The irony here, and it’s a rich one, is that potentially workable projects can be turned into lullabies just as effectively as the most dubious daydream. I’m not exactly a fan of the lifeboat ecovillage concept, but it’s always possible that one or more of the handful of voluntary communities that have adopted this role might turn out to have had the right idea all along; it’s the ones that haven’t been built, will never be built, and function primarily as lullaby fodder that are guaranteed to be useless. Equally, some of the other approaches that have become the focus of soothing pronouncements that the solution has been found might actually do some good – and in some cases, quite a bit of good – if they’re treated as projects needing immediate hard work by anyone who wants to see them happen, rather than as props for the fantasy that somebody else is going to do everything that’s necessary.
Green wizardry is vulnerable to exactly the same process. That’s one reason why I don’t intend to present a nice neat all-encompassing plan for saving the world in these essays, or the book for which they form the very rough initial draft. Green wizardry can’t save the world, if by “saving the world” is meant finding some way to allow Americans to keep on living some semblance of a lifestyle that requires a third of the world’s economic activity to support it; but it won’t even accomplish those modest but useful tasks that it could potentially do if it gets treated primarily as raw material for lullabies.
We don’t have time for lullabies. With the United States government openly covering its debts by printing money, food and commodity prices spiking, the number of permanently unemployed people soaring across the industrial world, and China cutting deals with its other major trading partners to price goods and handle exchanges in yuan and local currencies rather than dollars, we face a high risk of serious discontinuities in the relatively near future. That’s why I hope to goad those people already involved in the Green Wizards project to get going; it may be winter here in the northern hemisphere, but that’s a good time to plan those garden beds, order seeds, keep the compost going, and put some tools on the list of holiday presents.
Next week’s post will push the envelope a bit further by talking about the value of some bits of the old appropriate tech toolkit that have been consigned to the fringes. In the meantime, I’d encourage any of my readers who might have been using these posts as lullaby fodder to think again. If you’re going to be desperately poor by today’s standards, and you are, you might as well learn how to handle that with a certain amount of skill, and maybe even a bit of grace. Knowing how to grow some of your own food, keep your home comfortable with minimal energy inputs, and do the other things green wizards can do will help with that; listening to lullabies won’t.
No Time for Lullabies
At this point we’ve covered the core techniques of backyard food gardening, one of the three basic ingredients in the bubbling cauldron of green wizardry. Those core techniques are far from the only things that can usefully be added to the pot, of course, but I don’t propose to go into the other options in any detail.
First, and to my mind the most crucial, is the need for dissensus. It’s impossible to know in advance what particular set of tools and skills will be the one best suited to squeak past the mess taking shape around us – and by this I mean to include both the short-term mess defined by the implosion of America’s debt economy and its overseas equivalents, and the long-term and even more daunting mess defined by the head-on collision between a civilization and technostructure predicated on limitless expansion and the hard limits of a finite planet. Green wizardry, as I’ve already discussed here, is only one option, and even within green wizardry there needs to be plenty of room for different paths, new inventions, local traditions, and a good helping of outright eccentricity.
Those of my readers who took me up on last week’s challenge and sat down with a copy of Darwin’s The Origin of Species and a tall beverage of choice already have some sense of the importance of variation in evolution; that’s what provides the raw material that gets sorted out by natural selection. There’s no shortage of natural selection piling up for us in the not too distant future, that’s for sure, but it’s up to us to provide the variation. That’s part of what’s behind my recommendation that aspiring green wizards haunt used book stores and go digging for obscure pieces of information, and it’s also part of the reason why I’ve focused almost monomaniacally on a very specific version of backyard food gardening – the version that evolved in the 1970s energy crises – when there are many other options out there. The logic here is straightforward: a pretty fair fraction of green wizards who didn’t grow up during that decade are bound to get irritated by the deliberately annoying Seventies-centric approach, and that irritation will send them looking for other options.
Another important reason, though, was brought home to me by a book that arrived on my doorstep not too long ago. I’m not going to name the author, the publisher, or even the subject matter, because it could have been any of a hundred books; these days they’re as interchangeable, as forgettable, and as inescapable as American politicians at election time. I’m not sure why it was mailed to me, as it came unannounced; I have to assume that since I blog about the crisis of industrial society, and this book claims to offer a solution to that crisis, the author or the publisher’s marketing department decided that I probably ought to know about it.
You already know the kind of book I’m discussing. It begins with several chapters of potted history that combines an overheated version of the mess we’re in – slanted, naturally, toward those aspects of the mess that the proposed solution is supposed to solve – and an equally colorful account of the prehistory of the solution that traces it back to an exotic and currently fashionable source. It goes on to talk about the proposed solution with the kind of overhyped enthusiasm and rose-tinted assumptions more often associated with the press releases of small tech startups that will be bankrupt within the year. It spares a brief chapter or two to mention criticisms directed at the proposed solution in order to dismiss them out of hand, and then finishes up with a vision of the glorious Utopian future that awaits once the Party’s latest five year plan – er, excuse me, once the proposed solution gets the universal acceptance and ample funding the author hopes to attract.
What isn’t in books of this kind is as important, and as worth mentioning, as what is in them. You won’t find any substantive discussion of the limits of the proposed solution – what dimensions of the crisis of industrial civilization it can’t solve, which bioregions or human societies can’t use it effectively, what resource requirements, environmental effect, or economic factors place constraints on its use, and so on. You won’t find any substantive discussion of the downside of the proposed solution – what burdens it will place on already stressed resource supplies, ecosystems, or economies. Equally, you won’t find meaningful comparisons between the proposed solution and other ways of accomplishing the same thing. Since there are always limits, costs, and alternatives, and a reasoned approach to any kind of decision needs to take these three things into account, their exclusion from such books is not exactly a minor point.
Still, there’s another factor left out in the sort of book I’m discussing: there’s nothing the reader is supposed to do in response. Until recently, if you picked up a book that took some current crisis, painted it in the most apocalyptic terms available, then trotted out some solution dolled up in glowing colors for your approbation, you could safely bet any sum you like to name that the final chapters would try to sell the reader on a product to buy, a service to pay for, a movement to join, or something similar. That sort of snake oil sales pitch is as old as the hills of Iowa and twice as corny, but at least it’s relatively straightforward.
The books I have in mind are anything but straightforward. Like the sales pitches just mentioned, they work overtime making whatever crisis concerns their authors look as dire as possible, and gild their proposed solutions with a glitter of infallibility as glorious as anything a carnival pitchman ever claimed for Doctor Fox’s Genuine Arkansas Snake Oil, but they’re not written to sell. It finally occurred to me, while reading the example mentioned earlier in this essay, what their actual purpose is: they’re written to soothe.
This sort of lullaby literature is very popular just now. Shorter pieces humming the same tunes can be found all through what passes for news media in America these days. The New York Times is particularly fond of such things; my adopted kid sister Sharon Astyk neatly eviscerated one example from that source in a recent blog post, but it’s a safe bet that neither the author nor the intended audience of the piece will notice. They are paying attention to something else.
Especially but not only in America, an awareness is spreading through the crawlspaces of society that the current round of troubles might not just be a speedbump on the road to the shiny future our society’s myths promise us. The sense that something has truly, deeply, desperately gone wrong, right down at the core of the world we’ve created for ourselves, has made itself the background to most of the collective conversations that define our culture. The popularity of soothing narratives about the future just now is, if anything, a marker for just how pervasive that background has become; it’s only when fears are inescapable that efforts at mass reassurance find a market.
Still, there’s another dimension to all this, and it bears directly on the Green Wizards project. One of the things that makes our predicament so difficult for so many people to face just now, and especially for so many Americans, is that every available option for the future includes the certainty of massive impoverishment. The five per cent of us who live in the United States have gotten used to living on a quarter of the world’s energy supply and around a third of its raw materials and industrial products. Even if the world wasn’t facing the rapid depletion of its readily accessible fossil fuel reserves, the equally rapid depletion of many other nonrenewable resources essential to the economy, a global climate tipping toward critical instabilities, a dizzying array of local, regional, and global ecological shifts, and the inevitable feedback loops and synergistic effects these changes are going to cause – and of course the world is facing all these things, and will be facing more of them with every passing year – even if these things weren’t happening, the arrangements that provide Americans with so huge a share of the world’s resources are not going to last much longer.
Those arrangements were the product of a particular set of historical conditions. A century ago, those conditions didn’t exist; back then, it was Britain that received a disproportionate share of the world’s wealth, as the beneficiary of an imperial system that directly ruled a quarter of the world’s land surface and also dominated the world’s oceans and, by that fact, most of its international trade. America in those days was a rising power, to be sure, but wasn’t even close to the world’s biggest economy; it had to shelter its industries from the impact of the British colossus by exactly the sort of trade barriers the Chinese are using against us today. (Yes, British economists criticized the US in much the same terms our economists now use to denounce the Chinese; we didn’t listen and neither will they.)
It didn’t take a hundred years for the British empire to be replaced by ours, and it won’t take a hundred years for ours to be replaced by someone else’s. Since we can’t rely on the unusual historical circumstances that allowed Britain to maintain a few shreds of its imperial dignity and some of its privileged economic standing – they were basically able to rent their island out to the American military as an unusually large aircraft carrier conveniently anchored right off the shores of Europe; we don’t have that geopolitical advantage – the aftermath of the American empire is almost certain to be much more like the aftermath of most other empires: economic collapse, massive political dislocations, and a long period of turmoil and contraction until the bottom is reached and recovery can finally start to take shape. The global empire that preceded Britain’s, the Spanish Empire, may provide a more accurate model: that empire imploded in the early nineteenth century in the wake of Britain’s rise to global power, and it wasn’t until the late twentieth century that Spain finally managed to pull itself out of the long nightmare of impoverishment and political chaos that followed.
Again, this is what we would be able to expect if the global economy was entirely based on sustainable resources and the global ecology wasn’t redefining itself in the face of a couple of centuries of fossil fuel-powered abuse. Factor in the impact of energy and resource depletion, climate change, and environmental instability, and the very high likelihood of an increasingly desperate and violent scramble for remaining resources on the way down, and the effects of the end of American empire are likely to be more drastic than anything we’ve seen in the western world since the fall of Rome.
I suspect most Americans these days know this, or at least sense it. These days, when I give a talk on the future to an audience outside the peak oil community, I can begin it like this – “Remember all those scientists a few decades back who warned that if we didn’t make some drastic changes in the very near future, we’d be in deep trouble in the early twenty-first century? Well, guess what.” – and far more often than not, nobody argues. Some of them, at least to judge by the comments and questions I field, are already beginning to try to fit their minds around a future in which nearly all of us are desperately poor by today’s standards; many more are hoping that the worst of it will miss them somehow, or that they’ll be lucky enough to die before it hits – I’ve had people, not all of them elderly, express this latter hope to me in so many words.
Even among those who insist that it won’t happen – those who claim that the center of the Earth really is full of limitless oceans of oil, or that holding hands in a circle and singing “Kum Ba Ya” is a viable strategy for an age of imperial decline and global overshoot, or that the Rapture or the Singularity or 2012 or some other deus ex machina will annihilate history and save them from the future – I have to question how many people actually believe what they claim to believe. I know far too many people who insist the world will end in 2012, for example, who are still putting money into their retirement accounts, and it’s been an open secret for the last decade that the vast majority of people who like to imagine living in a lifeboat ecovillage have not been willing to lift a finger or spend a dime to bring such a project into being.
I’d like to suggest that this is because daydreams about nonexistent lifeboat ecovillages and planet-ending catastrophes two years from now that weren’t actually predicted by the ancient Mayans at all share a common purpose, one that’s also shared by abiotic oil, fusion power, and a dime store’s worth of other lullabies disguised as solutions. Their purpose is to give people something more pleasant to think about than the future that’s breathing down our necks. Yes, planet-ending catastrophes are more pleasant to think about than a couple of centuries of ragged decline, impoverishment, and population loss; if we all get blown to kingdom come in one vast fireball, at least it’s over quickly, and you can probably get some consolation in the few seconds before you’re vaporized by reminding yourself that, after all, it wasn’t your fault.
The irony here, and it’s a rich one, is that potentially workable projects can be turned into lullabies just as effectively as the most dubious daydream. I’m not exactly a fan of the lifeboat ecovillage concept, but it’s always possible that one or more of the handful of voluntary communities that have adopted this role might turn out to have had the right idea all along; it’s the ones that haven’t been built, will never be built, and function primarily as lullaby fodder that are guaranteed to be useless. Equally, some of the other approaches that have become the focus of soothing pronouncements that the solution has been found might actually do some good – and in some cases, quite a bit of good – if they’re treated as projects needing immediate hard work by anyone who wants to see them happen, rather than as props for the fantasy that somebody else is going to do everything that’s necessary.
Green wizardry is vulnerable to exactly the same process. That’s one reason why I don’t intend to present a nice neat all-encompassing plan for saving the world in these essays, or the book for which they form the very rough initial draft. Green wizardry can’t save the world, if by “saving the world” is meant finding some way to allow Americans to keep on living some semblance of a lifestyle that requires a third of the world’s economic activity to support it; but it won’t even accomplish those modest but useful tasks that it could potentially do if it gets treated primarily as raw material for lullabies.
We don’t have time for lullabies. With the United States government openly covering its debts by printing money, food and commodity prices spiking, the number of permanently unemployed people soaring across the industrial world, and China cutting deals with its other major trading partners to price goods and handle exchanges in yuan and local currencies rather than dollars, we face a high risk of serious discontinuities in the relatively near future. That’s why I hope to goad those people already involved in the Green Wizards project to get going; it may be winter here in the northern hemisphere, but that’s a good time to plan those garden beds, order seeds, keep the compost going, and put some tools on the list of holiday presents.
Next week’s post will push the envelope a bit further by talking about the value of some bits of the old appropriate tech toolkit that have been consigned to the fringes. In the meantime, I’d encourage any of my readers who might have been using these posts as lullaby fodder to think again. If you’re going to be desperately poor by today’s standards, and you are, you might as well learn how to handle that with a certain amount of skill, and maybe even a bit of grace. Knowing how to grow some of your own food, keep your home comfortable with minimal energy inputs, and do the other things green wizards can do will help with that; listening to lullabies won’t.
SC104-5
http://www.chrismartenson.com/blog/economy-set-starve/48474#part-ii
It's Official: The Economy Is Set To Starve
Part I: It's the End of the Oil As We Know It...
If you have already read Part I of this report, please click here to go directly to Part II.
Once a year, the International Energy Agency (IEA) releases its World Energy Outlook (WEO), and it's our tradition here at ChrisMartenson.com to review it. A lot of articles have already been written on the WEO 2010 report, and I don't wish to tread an already well-worn path, but the subject is just too important to leave relegate to a single week of attention.
Because some people will only read the first two paragraphs, let me get a couple of conclusions out right up front. You need to pay close attention to Peak Oil, and you need to begin adjusting, because it has already happened. The first conclusion is mine; the second belongs to the IEA.
Okay, it's not quite as simple as that; there are a few complexities involved that require us to dig a bit deeper and to be sure our terms and definitions are clear so that we are talking about the same things.
But if we can simply distinguish between two types of "oil" (you'll see why that term is in quotes in a second), the story becomes much easier to follow.
"Conventional oil" is the cheap and easy stuff. A well is drilled, pipe is inserted and oil comes up out of the ground that can be shipped directly to a refinery. Whether the oil is "sour" or "sweet" doesn't matter; it's still conventional oil.
"Unconventional oil" refers to things like tar sands, ultra-deep-water oil, coal-to-liquids, oil shale, and natural gas liquids. In other words, oil that is much more difficult and expensive to produce.
The IEA has been producing annual reviews of the world energy situation for a long time and has not mentioned the term "Peak Oil" (as far as I know) until this year's report. And not only did they mention it, they said that as far as conventional oil goes, it's in the rear view mirror:
Crude oil output reaches an undulating plateau of around 68-69 mb/d by 2020, but never regains its all-time peak of 70 mb/d reached in 2006, while production of natural gas liquids (NGL) and unconventional oil grows quickly.
WEO 2010 - Executive Summary
I might quibble that the all-time peak remains 2005 in the US Energy Information Agency data set, but the main point here is that the IEA has not only used the words "Peak Oil" (finally!) but they've done so in the past tense, at least with regard to conventional oil.
The IEA now sees all forms of oil, conventional and unconventional, hitting a high of 99 million barrels per day (mbd) by 2035 (including 3 mbd of 'refinery gains'). Of course, we may wish to take even this tepid estimate of growth in oil supplies with a grain of salt, because in every annual report, like clockwork, the IEA has been ratcheting down its estimate of how much oil we'll have in the future:
.......First, pay close attention to the legend for the chart. Starting at the bottom, note that crude oil from "currently producing fields" (dark blue) is already in sharp decline and is expected to decline from a high of 70 mbd in 2006 to ~15 mbd in 2035; a loss of 55 mbd over 25 years, or 2.2 mbd per year. The next band up (gray) is crude oil from "fields yet to be developed," which we largely know about but have not yet really started producing significantly.
My only comment here is that these fields cannot overcome the expected rate of loss in the dark blue band below them. All of the conventional oil that we know about is now past peak. In order to keep conventional oil flat, we have to move up to the third band (light blue), which goes by the spine tingling name "fields yet to be found" - which will apparently be delivering a very hefty 22 mbd by 2035. In other words, the IEA is projecting that in 25 years, more oil will be flowing from "fields yet to be found" than from all the fields ever found and put into production by the year 2010.
Colin Campbell, one of the earliest analysts of peak oil who has decades of oil field experience, is on record as saying that the "fields yet to be developed" category, originally introduced to the world as unidentified Unconventional in 1998, is a "coded message for shortage" and was, off the record, confirmed as such by the IEA. That coded message is getting easier and clearer to receive by the day.
But back to the main story line. Even if the final assessment of future oil production isn't notched down even one more tick, we have all the information we need to spot an enormous problem in the global story of growth. Assuming that we stick with the 99 mbd by 2035 estimate going forward, this represents a growth rate in oil of only around one-half of one percent (0.5%) per year between now and then.
This means that over the next 25 years, the global economy will have to make do with less than half the rate of growth in oil that it enjoyed over the prior 25 years. How will the economy grow with less oil available? What will happen to the valuations of financial assets that explicitly assume that prior rates of growth stretch endlessly into the future?
To cut to the chase, the admission by the IEA that we will not be achieving past levels of energy growth should be the most gigantic red flag in history, at least to those who might care that their money or other paper-based forms of wealth be worth something in the future. What if that future growth does not emerge? What happens when the collateral for a loan goes sour? The IEA report indicates an enormous set of risks for an over-leveraged world reliant on constant growth.
The bottom lines are these:
The IEA now admits that conventional crude oil peaked in 2006. Permanently. Any gains from here are due to contributions from unconventional oil and natural gas-to-liquids.
Under no scenario envisioned will future growth in fossil fuel supplies be equal prior rates of growth.
Energy from here on out is going to be (much) more expensive.
I cannot state this strongly enough: The WEO 2010 report is an official admission that Peak Oil is not only real, but it's already here.
Part II: Scouring the Globe for Fuel
"Tomorrow’s [economic] expansion was collateral for today’s debt."
~ Colin Campbell
The implications from this report are too important to preserve just for the enrolled members who support this site's mission, people, and goals. We're going to open up most of this report to the general public because we feel it's the right thing to do. For those unfamiliar with my work, the job I do most frequently is a combination of information scout (I connect dots) and analyst (I dig deep).
Okay, let's head deeper into the World Energy Outlook (WEO) 2010 report. Here's my quick summary of the report.
By 2035:
Between 2008 and 2035, total energy demand grows by 36%, or 1.2% per year; far less than the 2% rate of growth seen over the prior 27 years. (Note: This comes from the "New Policies Scenario," which is the middle scenario of three in the report. We'll discuss this one throughout.)
Renewables will be contributing very little to the overall energy landscape, just 14% of the total, and this includes hydro.
93% of all the demand increase comes from non OECD countries (mainly China and India).
Oil remains the dominant fuel (although diminishing in total percentage).
The global economy will grow by an average of 3.2% per annum.
It's time to cut demand for oil by raising prices (they recommend ending energy subsidies for fossil fuels as the mechanism).
Conventional oil has peaked, and this is a permanent condition. All oil gains from here forwards will come from non-conventional sources and gas and coal-to-liquids programs.
There are enormous implications to that series of bullet points, if one stops to think about them in total. One glaring difficulty in all of this is that the IEA notes that China and India are going to consume nearly every drop of any potential future increases in oil production. Yet overall production is only going to grow by a meager 0.5% per year.
So how does the IEA suppose that oil growth can slow down to a paltry 0.5%/year, see China and India increase their consumption massively, and still have everything balance out? We all know that China and India (et al.) have been growing their oil consumption by massive percentages in the recent past, and there's some evidence that we can expect more of that behavior in the years to come.
In fact, this was what India's Premier told the world on November 1, 2010:
Premier Manmohan Singh told India's energy firms on Monday to scour the globe for fuel supplies as he warned the country's demand for fossil fuels was set to soar 40 percent over the next decade.
The country of more than 1.1 billion people already imports nearly 80 percent of its crude oil to fuel an economy that is expected to grow 8.5 percent this year and at least nine percent next year.
(Source)
So, yes, it's pretty much expected that China and India, et al., will be increasing their consumption by rates much (much) higher than 0.5%, which means, logically, that some other countries will have to consume at negative rates in order for the equation to balance.
And this is exactly what the IEA has modeled and proposed:
......I want to draw your attention to the green circles that I placed on there. Yes, you are reading that right. To balance everything out, the IEA has modeled the OECD as actually decreasing its consumption of coal and oil by significant amounts (that's what a negative 'incremental demand' requires: a decrease in current consumption). The difference is made up from a mix of renewables, biomass, nuclear, and natural gas.
Never has such a thing happened in the entire industrial history of the OECD. Never. There are no models or examples to follow here. No guidance is offered to suggest how such a monumental feat will be accomplished, beyond tossing a few more bucks at renewables, as if money alone could correct for vast differences in energy quantity and quality.
To suggest that the next 25 years for the OECD will be characterized by a significant reduction in the use of the two primary industrial fuels is an astonishing claim, and so it deserves to be carefully examined. But, speaking bluntly, this is not going to happen.
Any suggestion that the OECD is going to reduce its use of coal for electricity and oil for liquid fuels has to be accompanied by evidence of massive programs of investment towards energy transitioning that, truth be told, have to have been started a decade or more before the arrival of Peak Oil. Hinting that it might possibly be a good idea to move these renewable dreams to the drawing board after the advent of Peak Oil is akin to playing tunes on a sinking ship; at best, you are providing a captivating diversion.
Regardless, no such programs operating at appropriate scale are even remotely in sight.
A point that I try to make clear in my upcoming book (due out in March 2011 from Wiley) is that such an energy transition would be evident by such things as the trillions of dollars being dedicated to it, by eminent domain actions to secure new land for natural gas pipelines, and by vehicles that could run on electricity or natural gas being churned out by the millions. While we can debate whether we might get there someday, there can be no doubt that we are not there today.
So if one is a card-carrying member of the mainstream media, what does one do with such a major event as the WEO 2010 report? In the case of the New York Times, the answer is to run a completely schizophrenic pair of articles, but bury the supportive one deep in the "blogs" section while placing the one that completely ignores the WEO 2010 report prominently in the business section.
The first of these two articles, separated by only a day and centering firmly on the IEA report, is titled "Is ‘Peak Oil’ Behind Us?" to which the article correctly answers "Yes":
Is ‘Peak Oil’ Behind Us?
Peak oil is not just here — it’s behind us already
That’s the conclusion of the International Energy Agency, the Paris-based organization that provides energy analysis to 28 industrialized nations. According to a projection in the agency’s latest annual report, released last week, production of conventional crude oil — the black liquid stuff that rigs pump out of the ground — probably topped out for good in 2006, at about 70 million barrels a day. Production from currently producing oil fields will drop sharply in coming decades, the report suggests.
That's pretty accurate. You'd think that such a stunning admission by the preeminent body responsible for preparing such reports for the OECD would have sparked a fury of investigation and maybe even self-investigation by the New York Times, which through the years has pooh-poohed the entire idea of Peak Oil rather religiously. But that didn't happen.
The second article is entitled "There Will Be Fuel" and is chock full of comforting anecdotes and quotes from oil industry executives:
There Will Be Fuel
Just as it seemed that the world was running on fumes, giant oil fields were discovered off the coasts of Brazil and Africa, and Canadian oil sands projects expanded so fast, they now provide North America with more oil than Saudi Arabia. In addition, the United States has increased domestic oil production for the first time in a generation.
“The estimates for how much oil there is in the world continue to increase,” said William M. Colton, Exxon Mobil’s vice president for corporate strategic planning. “There’s enough oil to supply the world’s needs as far as anyone can see.”
Somebody get that man a pair of glasses (!)
Seriously, any country or corporation that cannot foresee the end of cheap and abundant oil is being run by dangerous people. To suggest that even the most optimistic assessment of oil, which has it peaking in 2030, is too far away to begin planning for today is just silly. Really, now...responsible planners considering major capital projects with multi-decade life spans (which can be 30 years or more for many things) should just ignore energy? That's the message here? Goodness, gracious.
In fact, there are so many problems with "There Will Be Fuel" that I hardly know where to turn to next. I suppose we could note that the article quoted "100 years of natural gas" left in the US without mentioning the all-important phrase "at current rates of consumption." To those who are familiar with exponential processes, and who know that energy consumption has been increasing exponentially for decades, such an oversight is an enormous red flag. It betrays either ignorance or deception on somebody's part (perhaps the editor?), and neither are acceptable at this stage of the energy debate. Once we increase consumption at reasonable and prior rates, that 100 years can rapidly shrink to mere decades in a hurry.
What's the difference between "100 years of gas" and "maybe a couple of decades"? Night and day.
Next, we might note that the article goes out of its way to make the case that "estimates for how much oil there is in the world continue to increase," while somehow avoiding the essential point that it's not the amounts that matter, but the rates at which the oil can be coaxed to flow out of the ground. Peak Oil is, has been, and always will be about flow rates, not amounts.
For example, if the very center of the earth were entirely filled with oil, but we could only get to it through a single, very thin tube (limiting how fast we could pull the oil out), it wouldn't really matter how much was there - a hundred trillion barrels could be there - because how much we could do with it would be limited by the rate of extraction. Exponential economic growth requires increases in fuel consumption. It always has and it always will, until and unless a brand new model of economics is developed.
Again, the lack of awareness of this basic concept of the difference between rates and amounts leaves the New York Times piece very much in doubt.
I could go on, but it's not all that helpful to once again catch the New York Times playing fast and loose with the facts in order to advance an agenda; for now, let's just observe that Peak Oil refers to a condition where the rate of extraction cannot be increased. If it were about amounts, then I suppose we would call it "Peak Reserves," but it's not, and for a reason: We care about the flow rates.
It is on this matter of flow rates that the IEA report was especially jarring and succinct: Peak Oil has happened.
At this point, it may be good to remind ourselves that last year an IEA whistleblower said that the organization had willfully underplayed looming shortages due to political pressures from the US.
Please read the following very carefully; it represents very important context for what we are about to discuss next. (I'm quoting at length because it's all essential):
The world is much closer to running out of oil than official estimates admit, according to a whistleblower at the International Energy Agency who claims it has been deliberately underplaying a looming shortage for fear of triggering panic buying.
The senior official claims the US has played an influential role in encouraging the watchdog to underplay the rate of decline from existing oil fields while overplaying the chances of finding new reserves.
The allegations raise serious questions about the accuracy of the organisation's latest World Energy Outlook on oil demand and supply to be published tomorrow – which is used by the British and many other governments to help guide their wider energy and climate change policies.
Now the "peak oil" theory is gaining support at the heart of the global energy establishment. "The IEA in 2005 was predicting oil supplies could rise as high as 120m barrels a day by 2030 although it was forced to reduce this gradually to 116m and then 105m last year," said the IEA source, who was unwilling to be identified for fear of reprisals inside the industry. "The 120m figure always was nonsense but even today's number is much higher than can be justified and the IEA knows this.
"Many inside the organisation believe that maintaining oil supplies at even 90m to 95m barrels a day would be impossible but there are fears that panic could spread on the financial markets if the figures were brought down further. And the Americans fear the end of oil supremacy because it would threaten their power over access to oil resources," he added.
A second senior IEA source, who has now left but was also unwilling to give his name, said a key rule at the organisation was that it was "imperative not to anger the Americans" but the fact was that there was not as much oil in the world as had been admitted. "We have [already] entered the 'peak oil' zone. I think that the situation is really bad," he added.
(Source)
The idea expressed above is simple enough: The oil data has been fudged to the upside by the IEA. Pressure has allegedly been applied upon the IEA to paint a rosier picture than a strict interpretation of the data would warrant. To speculate, the reason why is that there are a host of interlocking vested interests in the financial but especially political spheres that would find the public recognition of Peak Oil to be disruptive and therefore unwelcome.
This is just another example of Fuzzy Numbers, but the consequences of fibbing to ourselves about oil are far more dire than when we lie about employment. If it weren't so serious, it would be just another somewhat regrettable obfuscation of reality created to serve narrow and temporal political purposes.
Note: There is a well-recorded history, going back at least 13 years, of the IEA being fully aware of Peak Oil but bowing to political pressure to soften the message. Read paragraphs 4 & 5 of this piece by Colin Campbell for some more essential background.
Conclusion
Here's where we are:
The IEA has known about looming Peak Oil issues for more than a decade and is only now explicitly recognizing the idea in their public documents.
People inside and outside of the IEA say that the organization has downplayed both the timing and potential severity of Peak Oil.
Peak Conventional Oil has already happened.
Any possible growth in future oil that the IEA can envision -- and we might suspect that even this is fudged to the upside and will retreat in subsequent reports -- is going to be almost entirely eaten up by China and India.
What this means is very, very simple. There will be an energy crisis in the near future that will make anything we've experienced so far seem like a pleasant memory.
The very best personal investments you can make at this stage will involve increasing your energy resilience. Make your house require less heating and cooling, use the sun wherever and whenever possible, and increase your personal storage of the fuels you use (if and when possible).
The potential knock-on effects of less energy to the complex system known as our economy are unpredictable in their exact details and timing, but are thoroughly knowable via their broad, topographical outlines. The economy will become simpler and less ordered.
It's Official: The Economy Is Set To Starve
Part I: It's the End of the Oil As We Know It...
If you have already read Part I of this report, please click here to go directly to Part II.
Once a year, the International Energy Agency (IEA) releases its World Energy Outlook (WEO), and it's our tradition here at ChrisMartenson.com to review it. A lot of articles have already been written on the WEO 2010 report, and I don't wish to tread an already well-worn path, but the subject is just too important to leave relegate to a single week of attention.
Because some people will only read the first two paragraphs, let me get a couple of conclusions out right up front. You need to pay close attention to Peak Oil, and you need to begin adjusting, because it has already happened. The first conclusion is mine; the second belongs to the IEA.
Okay, it's not quite as simple as that; there are a few complexities involved that require us to dig a bit deeper and to be sure our terms and definitions are clear so that we are talking about the same things.
But if we can simply distinguish between two types of "oil" (you'll see why that term is in quotes in a second), the story becomes much easier to follow.
"Conventional oil" is the cheap and easy stuff. A well is drilled, pipe is inserted and oil comes up out of the ground that can be shipped directly to a refinery. Whether the oil is "sour" or "sweet" doesn't matter; it's still conventional oil.
"Unconventional oil" refers to things like tar sands, ultra-deep-water oil, coal-to-liquids, oil shale, and natural gas liquids. In other words, oil that is much more difficult and expensive to produce.
The IEA has been producing annual reviews of the world energy situation for a long time and has not mentioned the term "Peak Oil" (as far as I know) until this year's report. And not only did they mention it, they said that as far as conventional oil goes, it's in the rear view mirror:
Crude oil output reaches an undulating plateau of around 68-69 mb/d by 2020, but never regains its all-time peak of 70 mb/d reached in 2006, while production of natural gas liquids (NGL) and unconventional oil grows quickly.
WEO 2010 - Executive Summary
I might quibble that the all-time peak remains 2005 in the US Energy Information Agency data set, but the main point here is that the IEA has not only used the words "Peak Oil" (finally!) but they've done so in the past tense, at least with regard to conventional oil.
The IEA now sees all forms of oil, conventional and unconventional, hitting a high of 99 million barrels per day (mbd) by 2035 (including 3 mbd of 'refinery gains'). Of course, we may wish to take even this tepid estimate of growth in oil supplies with a grain of salt, because in every annual report, like clockwork, the IEA has been ratcheting down its estimate of how much oil we'll have in the future:
.......First, pay close attention to the legend for the chart. Starting at the bottom, note that crude oil from "currently producing fields" (dark blue) is already in sharp decline and is expected to decline from a high of 70 mbd in 2006 to ~15 mbd in 2035; a loss of 55 mbd over 25 years, or 2.2 mbd per year. The next band up (gray) is crude oil from "fields yet to be developed," which we largely know about but have not yet really started producing significantly.
My only comment here is that these fields cannot overcome the expected rate of loss in the dark blue band below them. All of the conventional oil that we know about is now past peak. In order to keep conventional oil flat, we have to move up to the third band (light blue), which goes by the spine tingling name "fields yet to be found" - which will apparently be delivering a very hefty 22 mbd by 2035. In other words, the IEA is projecting that in 25 years, more oil will be flowing from "fields yet to be found" than from all the fields ever found and put into production by the year 2010.
Colin Campbell, one of the earliest analysts of peak oil who has decades of oil field experience, is on record as saying that the "fields yet to be developed" category, originally introduced to the world as unidentified Unconventional in 1998, is a "coded message for shortage" and was, off the record, confirmed as such by the IEA. That coded message is getting easier and clearer to receive by the day.
But back to the main story line. Even if the final assessment of future oil production isn't notched down even one more tick, we have all the information we need to spot an enormous problem in the global story of growth. Assuming that we stick with the 99 mbd by 2035 estimate going forward, this represents a growth rate in oil of only around one-half of one percent (0.5%) per year between now and then.
This means that over the next 25 years, the global economy will have to make do with less than half the rate of growth in oil that it enjoyed over the prior 25 years. How will the economy grow with less oil available? What will happen to the valuations of financial assets that explicitly assume that prior rates of growth stretch endlessly into the future?
To cut to the chase, the admission by the IEA that we will not be achieving past levels of energy growth should be the most gigantic red flag in history, at least to those who might care that their money or other paper-based forms of wealth be worth something in the future. What if that future growth does not emerge? What happens when the collateral for a loan goes sour? The IEA report indicates an enormous set of risks for an over-leveraged world reliant on constant growth.
The bottom lines are these:
The IEA now admits that conventional crude oil peaked in 2006. Permanently. Any gains from here are due to contributions from unconventional oil and natural gas-to-liquids.
Under no scenario envisioned will future growth in fossil fuel supplies be equal prior rates of growth.
Energy from here on out is going to be (much) more expensive.
I cannot state this strongly enough: The WEO 2010 report is an official admission that Peak Oil is not only real, but it's already here.
Part II: Scouring the Globe for Fuel
"Tomorrow’s [economic] expansion was collateral for today’s debt."
~ Colin Campbell
The implications from this report are too important to preserve just for the enrolled members who support this site's mission, people, and goals. We're going to open up most of this report to the general public because we feel it's the right thing to do. For those unfamiliar with my work, the job I do most frequently is a combination of information scout (I connect dots) and analyst (I dig deep).
Okay, let's head deeper into the World Energy Outlook (WEO) 2010 report. Here's my quick summary of the report.
By 2035:
Between 2008 and 2035, total energy demand grows by 36%, or 1.2% per year; far less than the 2% rate of growth seen over the prior 27 years. (Note: This comes from the "New Policies Scenario," which is the middle scenario of three in the report. We'll discuss this one throughout.)
Renewables will be contributing very little to the overall energy landscape, just 14% of the total, and this includes hydro.
93% of all the demand increase comes from non OECD countries (mainly China and India).
Oil remains the dominant fuel (although diminishing in total percentage).
The global economy will grow by an average of 3.2% per annum.
It's time to cut demand for oil by raising prices (they recommend ending energy subsidies for fossil fuels as the mechanism).
Conventional oil has peaked, and this is a permanent condition. All oil gains from here forwards will come from non-conventional sources and gas and coal-to-liquids programs.
There are enormous implications to that series of bullet points, if one stops to think about them in total. One glaring difficulty in all of this is that the IEA notes that China and India are going to consume nearly every drop of any potential future increases in oil production. Yet overall production is only going to grow by a meager 0.5% per year.
So how does the IEA suppose that oil growth can slow down to a paltry 0.5%/year, see China and India increase their consumption massively, and still have everything balance out? We all know that China and India (et al.) have been growing their oil consumption by massive percentages in the recent past, and there's some evidence that we can expect more of that behavior in the years to come.
In fact, this was what India's Premier told the world on November 1, 2010:
Premier Manmohan Singh told India's energy firms on Monday to scour the globe for fuel supplies as he warned the country's demand for fossil fuels was set to soar 40 percent over the next decade.
The country of more than 1.1 billion people already imports nearly 80 percent of its crude oil to fuel an economy that is expected to grow 8.5 percent this year and at least nine percent next year.
(Source)
So, yes, it's pretty much expected that China and India, et al., will be increasing their consumption by rates much (much) higher than 0.5%, which means, logically, that some other countries will have to consume at negative rates in order for the equation to balance.
And this is exactly what the IEA has modeled and proposed:
......I want to draw your attention to the green circles that I placed on there. Yes, you are reading that right. To balance everything out, the IEA has modeled the OECD as actually decreasing its consumption of coal and oil by significant amounts (that's what a negative 'incremental demand' requires: a decrease in current consumption). The difference is made up from a mix of renewables, biomass, nuclear, and natural gas.
Never has such a thing happened in the entire industrial history of the OECD. Never. There are no models or examples to follow here. No guidance is offered to suggest how such a monumental feat will be accomplished, beyond tossing a few more bucks at renewables, as if money alone could correct for vast differences in energy quantity and quality.
To suggest that the next 25 years for the OECD will be characterized by a significant reduction in the use of the two primary industrial fuels is an astonishing claim, and so it deserves to be carefully examined. But, speaking bluntly, this is not going to happen.
Any suggestion that the OECD is going to reduce its use of coal for electricity and oil for liquid fuels has to be accompanied by evidence of massive programs of investment towards energy transitioning that, truth be told, have to have been started a decade or more before the arrival of Peak Oil. Hinting that it might possibly be a good idea to move these renewable dreams to the drawing board after the advent of Peak Oil is akin to playing tunes on a sinking ship; at best, you are providing a captivating diversion.
Regardless, no such programs operating at appropriate scale are even remotely in sight.
A point that I try to make clear in my upcoming book (due out in March 2011 from Wiley) is that such an energy transition would be evident by such things as the trillions of dollars being dedicated to it, by eminent domain actions to secure new land for natural gas pipelines, and by vehicles that could run on electricity or natural gas being churned out by the millions. While we can debate whether we might get there someday, there can be no doubt that we are not there today.
So if one is a card-carrying member of the mainstream media, what does one do with such a major event as the WEO 2010 report? In the case of the New York Times, the answer is to run a completely schizophrenic pair of articles, but bury the supportive one deep in the "blogs" section while placing the one that completely ignores the WEO 2010 report prominently in the business section.
The first of these two articles, separated by only a day and centering firmly on the IEA report, is titled "Is ‘Peak Oil’ Behind Us?" to which the article correctly answers "Yes":
Is ‘Peak Oil’ Behind Us?
Peak oil is not just here — it’s behind us already
That’s the conclusion of the International Energy Agency, the Paris-based organization that provides energy analysis to 28 industrialized nations. According to a projection in the agency’s latest annual report, released last week, production of conventional crude oil — the black liquid stuff that rigs pump out of the ground — probably topped out for good in 2006, at about 70 million barrels a day. Production from currently producing oil fields will drop sharply in coming decades, the report suggests.
That's pretty accurate. You'd think that such a stunning admission by the preeminent body responsible for preparing such reports for the OECD would have sparked a fury of investigation and maybe even self-investigation by the New York Times, which through the years has pooh-poohed the entire idea of Peak Oil rather religiously. But that didn't happen.
The second article is entitled "There Will Be Fuel" and is chock full of comforting anecdotes and quotes from oil industry executives:
There Will Be Fuel
Just as it seemed that the world was running on fumes, giant oil fields were discovered off the coasts of Brazil and Africa, and Canadian oil sands projects expanded so fast, they now provide North America with more oil than Saudi Arabia. In addition, the United States has increased domestic oil production for the first time in a generation.
“The estimates for how much oil there is in the world continue to increase,” said William M. Colton, Exxon Mobil’s vice president for corporate strategic planning. “There’s enough oil to supply the world’s needs as far as anyone can see.”
Somebody get that man a pair of glasses (!)
Seriously, any country or corporation that cannot foresee the end of cheap and abundant oil is being run by dangerous people. To suggest that even the most optimistic assessment of oil, which has it peaking in 2030, is too far away to begin planning for today is just silly. Really, now...responsible planners considering major capital projects with multi-decade life spans (which can be 30 years or more for many things) should just ignore energy? That's the message here? Goodness, gracious.
In fact, there are so many problems with "There Will Be Fuel" that I hardly know where to turn to next. I suppose we could note that the article quoted "100 years of natural gas" left in the US without mentioning the all-important phrase "at current rates of consumption." To those who are familiar with exponential processes, and who know that energy consumption has been increasing exponentially for decades, such an oversight is an enormous red flag. It betrays either ignorance or deception on somebody's part (perhaps the editor?), and neither are acceptable at this stage of the energy debate. Once we increase consumption at reasonable and prior rates, that 100 years can rapidly shrink to mere decades in a hurry.
What's the difference between "100 years of gas" and "maybe a couple of decades"? Night and day.
Next, we might note that the article goes out of its way to make the case that "estimates for how much oil there is in the world continue to increase," while somehow avoiding the essential point that it's not the amounts that matter, but the rates at which the oil can be coaxed to flow out of the ground. Peak Oil is, has been, and always will be about flow rates, not amounts.
For example, if the very center of the earth were entirely filled with oil, but we could only get to it through a single, very thin tube (limiting how fast we could pull the oil out), it wouldn't really matter how much was there - a hundred trillion barrels could be there - because how much we could do with it would be limited by the rate of extraction. Exponential economic growth requires increases in fuel consumption. It always has and it always will, until and unless a brand new model of economics is developed.
Again, the lack of awareness of this basic concept of the difference between rates and amounts leaves the New York Times piece very much in doubt.
I could go on, but it's not all that helpful to once again catch the New York Times playing fast and loose with the facts in order to advance an agenda; for now, let's just observe that Peak Oil refers to a condition where the rate of extraction cannot be increased. If it were about amounts, then I suppose we would call it "Peak Reserves," but it's not, and for a reason: We care about the flow rates.
It is on this matter of flow rates that the IEA report was especially jarring and succinct: Peak Oil has happened.
At this point, it may be good to remind ourselves that last year an IEA whistleblower said that the organization had willfully underplayed looming shortages due to political pressures from the US.
Please read the following very carefully; it represents very important context for what we are about to discuss next. (I'm quoting at length because it's all essential):
The world is much closer to running out of oil than official estimates admit, according to a whistleblower at the International Energy Agency who claims it has been deliberately underplaying a looming shortage for fear of triggering panic buying.
The senior official claims the US has played an influential role in encouraging the watchdog to underplay the rate of decline from existing oil fields while overplaying the chances of finding new reserves.
The allegations raise serious questions about the accuracy of the organisation's latest World Energy Outlook on oil demand and supply to be published tomorrow – which is used by the British and many other governments to help guide their wider energy and climate change policies.
Now the "peak oil" theory is gaining support at the heart of the global energy establishment. "The IEA in 2005 was predicting oil supplies could rise as high as 120m barrels a day by 2030 although it was forced to reduce this gradually to 116m and then 105m last year," said the IEA source, who was unwilling to be identified for fear of reprisals inside the industry. "The 120m figure always was nonsense but even today's number is much higher than can be justified and the IEA knows this.
"Many inside the organisation believe that maintaining oil supplies at even 90m to 95m barrels a day would be impossible but there are fears that panic could spread on the financial markets if the figures were brought down further. And the Americans fear the end of oil supremacy because it would threaten their power over access to oil resources," he added.
A second senior IEA source, who has now left but was also unwilling to give his name, said a key rule at the organisation was that it was "imperative not to anger the Americans" but the fact was that there was not as much oil in the world as had been admitted. "We have [already] entered the 'peak oil' zone. I think that the situation is really bad," he added.
(Source)
The idea expressed above is simple enough: The oil data has been fudged to the upside by the IEA. Pressure has allegedly been applied upon the IEA to paint a rosier picture than a strict interpretation of the data would warrant. To speculate, the reason why is that there are a host of interlocking vested interests in the financial but especially political spheres that would find the public recognition of Peak Oil to be disruptive and therefore unwelcome.
This is just another example of Fuzzy Numbers, but the consequences of fibbing to ourselves about oil are far more dire than when we lie about employment. If it weren't so serious, it would be just another somewhat regrettable obfuscation of reality created to serve narrow and temporal political purposes.
Note: There is a well-recorded history, going back at least 13 years, of the IEA being fully aware of Peak Oil but bowing to political pressure to soften the message. Read paragraphs 4 & 5 of this piece by Colin Campbell for some more essential background.
Conclusion
Here's where we are:
The IEA has known about looming Peak Oil issues for more than a decade and is only now explicitly recognizing the idea in their public documents.
People inside and outside of the IEA say that the organization has downplayed both the timing and potential severity of Peak Oil.
Peak Conventional Oil has already happened.
Any possible growth in future oil that the IEA can envision -- and we might suspect that even this is fudged to the upside and will retreat in subsequent reports -- is going to be almost entirely eaten up by China and India.
What this means is very, very simple. There will be an energy crisis in the near future that will make anything we've experienced so far seem like a pleasant memory.
The very best personal investments you can make at this stage will involve increasing your energy resilience. Make your house require less heating and cooling, use the sun wherever and whenever possible, and increase your personal storage of the fuels you use (if and when possible).
The potential knock-on effects of less energy to the complex system known as our economy are unpredictable in their exact details and timing, but are thoroughly knowable via their broad, topographical outlines. The economy will become simpler and less ordered.
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