Harquebus’ latest newsletter….

30 06 2016

Howdy all.

The state and quality of main stream journalism (MSJ), including that at our own ABC and despite what they might think of themselves, has deteriorated to the point of being totally useless. Instead of news, we get stories about cats in schools, fanfares about stupid celebrities making stupid remarks and any other triviality that might distract their audiences from the real world and the little that does resemble credible news, is either government propaganda, incomplete, misleading or a combination of all three. The credibility of MSJ is now non existent.

The collapse of Venezuela, shattered climate records, the release of Arctic methane and CO2, unsustainable global debt, Bilderberg meetings and the sixth mass extinction event currently under way are never mentioned. Our environment continues to be destroyed, the oceans polluted and fished to exhaustion, finite resources are wasted on corporate profits while poverty and overcrowding due to unsustainable population growth continue unabated and the fault lies squarely with MSJ which, has failed to hold those responsible to account.
Tony Jones, Australia’s most popular TV journalist, is the worst of the lot. For decades he has reveled in his popularity while all that sustains us is destroyed in the pursuit of growth and profit. He and his MSJ peers must change or we can kiss our sorry little behinds goodbye and if they think that they and theirs are somehow going to be exempt from the bloody mess that will inevitably befall us then, they are even more stupid than the ignorant fools who govern us.
Aussie journalists are only slightly more trustworthy than the corporate bought and paid for politicians that they serve. How proud they must be.

https://au.finance.yahoo.com/news/top-10-most-untrustworthy-aussie-professions-050959497.html

“Sometimes I wonder whether the world is being run by smart people who are putting us on, or by imbeciles who really mean it.” — Mark Twain Here is my usual list of links which, also proves my point.

Cheers.

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“As the economy unwinds, doctors are now stealing hospital food to feed their families.”
http://www.naturalnews.com/054383_Venezuela_starvation_food_shortage.html
“”We want food!” Looting and riots rock Venezuela daily”
http://www.reuters.com/article/us-venezuela-looting-idUSKCN0YY0IR
“With delivery trucks under constant attack, the nation’s food is now transported under armed guard. Soldiers stand watch over bakeries. The police fire rubber bullets at desperate mobs storming grocery stores, pharmacies and butcher shops. A 4-year-old girl was shot to death as street gangs fought over food.”
http://www.nytimes.com/2016/06/20/world/americas/venezuelans-ransack-stores-as-hunger-stalks-crumbling-nation.html

“Half of the world has passed the point of maximum energy consumption. This point is marked by large scale economic crisis. Asia Pacific is approaching that point now.”

http://wakeup.stubbornbull.com.au/the-environment/industrial-issues/have-we-reached-peak-oil/

Trans-Pacific Partnership will barely benefit Australia, says World Bank report”
The average Australian worker will not benefit in any way shape or form from this agreement.”
http://wakeup.stubbornbull.com.au/society/financial-system/trans-pacific-partnership-ttp-what-is-it/

“The EPA states that methane is a greenhouse gas that could have 25 times the impact of carbon dioxide over the next century.”
http://www.businessinsider.com/russian-exploding-permafrost-methane-craters-global-warming-2016-6

“The melting of the permafrost represents one of humanity’s greatest fears for it contains vast amounts of methane, a greenhouse gas much more potent than carbon dioxide.”
http://www.independent.co.uk/environment/gateway-to-the-underworld-siberia-batagaika-siberia-russia-permafrost-melting-a7063936.html
“we are now experiencing the highest level of relative and absolute global inequality at any point in human history.”
“the 21st Century will be a new dark age of luxury for a few and barbaric suffering for most. ”
http://www.greanvillepost.com/2016/06/07/planetary-crisis-we-are-not-all-in-this-together/
“the UN warns bluntly that world population, now well over seven billion ‘has reached a stage where the amount of resources needed to sustain it exceeds what is available
http://churchandstate.org.uk/2016/06/there-are-not-enough-resources-to-support-the-worlds-population/
“Mexico’s wells are running dry.
You would almost not know if you took your news from television or the mainstream media. It is like a closely guarded secret — the aunt in the attic.”
http://peaksurfer.blogspot.com.au/2016/06/the-aunt-in-attic.html

“We have forgotten the lessons of the 1760s, 1850s, and 1920s. We have let Economic Royalists hijack our democracy, and turn our economy into their money machine. Now the middle class is evaporating, infrastructure is crumbling, and pressure is reaching a breaking point. Anti-establishment candidates are on the rise, and no one knows how things will turn out.”
http://evonomics.com/trump-phenomenon-is-a-sign-of-oligarchy/

“Australian scientists report that many surviving corals affected by mass bleaching from high sea temperatures on the northern Great Barrier Reef are the sickest they have ever seen.
http://www.eurekalert.org/pub_releases/2016-06/acoe-hsc062016.php

“In 2009, Obama promised to help “rid the world of nuclear weapons” and was awarded the Nobel Peace Prize. No American president has built more nuclear warheads than Obama.”
https://newmatilda.com/2016/05/30/silencing-america-as-it-prepares-for-war-john-pilger/

“Thus, if tomorrow a war were to break out between the US and Russia, it is guaranteed that the US would be obliterated.”
“If attacked, Russia will not back down; she will retaliate, and she will utterly annihilate the United States.”
http://www.paulcraigroberts.org/2016/06/03/41522/

“Whether we believe that innovation and technology ultimately make the world better or worse, there is now overwhelming evidence that they are unsustainable in any case. Between economic over-extension, energy over-dependence, and the ruination of our atmosphere and other environments by our civilization and its technologies, it is now almost inevitable that we will soon see a collapse that will make the Great Depression, and perhaps even the five previous great extinctions of life on Earth, look like nothing.
“Modern technology requires cheap energy, and, notwithstanding the recent power games between the US and Russia temporarily and artificially driving down oil prices, we are quickly running out of it.”
http://howtosavetheworld.ca/2016/06/06/technologys-false-hope-and-the-wisdom-of-crows-repost/
“the evidence supports their theory that his death was in no possible way a suicide, as has been reported by police and the mainstream media.”
http://www.naturalnews.com/054302_Jeff_Bradstreet_murder_autism.html

“Having successfully used the EU to conquer the Greek people by turning the Greek “leftwing” government into a pawn of Germany’s banks, Germany now finds the IMF in the way of its plan to loot Greece into oblivion .”
http://www.paulcraigroberts.org/2016/05/25/we-have-entered-the-looting-stage-of-capitalism-paul-craig-roberts/

“All references to climate change’s impact on World Heritage sites in Australia have been removed from a United Nations report.”
“Australia’s Department of the Environment requested that Unesco scrub these sections from the final version.”
http://www.bbc.com/news/world-australia-36376226

Peak oil mates, peak oil. Those that deny it do not understand it.
“when oil companies (and governments) talk about oil supply, they include all sorts of things that cannot be sold as oil on the world market including biofuels, refinery gains and natural gas plant liquids as well as lease condensate.”
“If what you’re selling cannot be sold on the world market as crude oil, then it’s not crude oil.”
http://oilprice.com/Energy/Energy-General/The-Condensate-Con-How-Real-Is-The-Oil-Glut.html

“You’d think this would be pretty big news.  The Prime Minister of one of the biggest economies in the world just made a presentation saying we are on the brink of collapse not only in Japan but worldwide and it was mostly swept under the rug.
“The same globalist elites who are orchestrating the coming collapse own all the major media companies.  They don’t want Joe the Plumber and main street to get an inkling that something is wrong until it is too late… just like in 2008.”
https://www.dollarvigilante.com/blog/2016/06/01/now-japanese-prime-minister-abe-predicts-global-economic-catastrophe-imminent.html

“Neoliberalism hasn’t delivered economic growth – it has only made a few people a lot better off.”
http://www.theguardian.com/commentisfree/2016/may/31/witnessing-death-neoliberalism-imf-economists
“Ocean plastic has turned up literally everywhere. It has been found in the deep sea and buried in Arctic ice. It has been ingested with dire consequences by some 700 species of marine wildlife.”
http://news.nationalgeographic.com/news/2015/02/150212-ocean-debris-plastic-garbage-patches-science/
“inflate another bubble. In other words, do more of what failed spectacularly.
This process of doing more of what failed spectacularly appears sustainable for a time, but this superficial success masks the underlying dynamic of diminishing returns:”
http://www.oftwominds.com/blogjune16/collapse6-16.html
“If our leaders had made better decisions since the last crisis, things could have turned out differently.  But instead, they continued to conduct business as usual, and now we will reap what they have sown.”
http://theeconomiccollapseblog.com/archives/worst-jobs-report-in-nearly-6-years-102-million-working-age-americans-do-not-have-jobs

“The high-profit, low-risk nature of environmental crime is matched by the low funds and uncertain priorities given to fighting it by many decision-takers.”
http://www.theguardian.com/environment/2016/jun/03/value-eco-crimes-soars-26-with-devastating-impacts-natural-world

“That $1.3 trillion bubble was enough to bring down several major banks and cause cascading damage across the global financial system.
Today’s bubble is EIGHT TIMES the size of the last one”
https://www.sovereignman.com/trends/this-financial-bubble-is-8-times-bigger-than-the-2008-subprime-crisis-19590/

“The Arctic is on track to be free of sea ice this year or next for the first time in more than 100,000 years”
“Scientists have monitored greenhouse gas methane – once frozen on the sea bed – bubbling up to the surface at an alarming rate.”
“We’re on a runaway train, scientists are blowing the whistle, but politicians are still shovelling coal into the engine.”
http://www.independent.co.uk/environment/climate-change/arctic-could-become-ice-free-for-first-time-in-more-than-100000-years-claims-leading-scientist-a7065781.html

“A husband should be allowed to lightly beat his wife if she defies his commands and refuses to dress up as per his desires; turns down demand of intercourse without any religious excuse or does not take bath after intercourse or menstrual periods.”
http://www.shtfplan.com/headline-news/husbands-can-beat-their-wives-if-they-refuse-sex-according-to-islamic-council-of-clerics-and-scholars_06042016

“That has left economists and fund managers worried the unconventional measures are setting the stage for exactly what central banks are trying to prevent—another financial crisis.”
http://www.marketwatch.com/story/fund-managers-fear-central-banks-will-create-next-lehman-moment-2016-06-08

“Australia has amassed a huge pile of debt—over 120% of GDP—and most of it is mortgage debt on overvalued real estate. Now that Australia’s economy, which was driven by commodity exports to China, has tanked, a lot of this debt is being turned into interest-only loans, because Australians no longer have the money to repay any of the principal.”
“as conditions deteriorate further, the Australians will become unable to afford taxes and utilities.”
http://cluborlov.blogspot.com.au/2016/06/the-money-cult.html

“the internet has fallen into the hands of large corporations and governments and become the “world’s largest surveillance network”.”
http://www.theinquirer.net/inquirer/news/2460894/sir-tim-berners-lee-internet-has-become-world-s-largest-surveillance-network

“if you care to avoid vaporization and, assuming we do avoid it, live a life other than serfdom, you must wake up and realize that your most deadly enemy is Washington, not the hoax of “Russian aggression,” not the hoax of “Muslim terrorism,” not the hoax of “domestic extremism,” not the hoax of welfare bankrupting America, not the hoax of democracy voting away your wealth, which Wall Street and the corporations have already stolen and stuck in their pockets.”
http://www.paulcraigroberts.org/2016/06/09/where-do-matters-stand-paul-craig-roberts/

“We are heading into a very dark time…a time where technology will be used to enslave, not enlighten or uplift mankind.”
http://www.shtfplan.com/headline-news/economic-collapse-will-serve-one-purpose-global-governance-and-the-enslavement-of-mankind_06112016

“Its fast-growing stalk yields one of the strongest and most useful fibers known, used in superior paper, canvas, ropes, insulation, cardboard, clothing, shoes and plastic — plastic that is, by the way, biodegradable. This one plant can provide many of the products an industrial society needs, sustainably, while drastically reducing pollution, energy consumption, deforestation, fossil fuel use and providing income for millions of farmers”
“Both hemp and marijuana are cannabis plants. Hemp is cannabis sativa and marijuana is cannabis indica. So when regulators wanted to prevent people from getting high on cannabis indica, they criminalized cannabis, which included cannabis sativa, which made it illegal to use one of the most useful and sustainable crops the world has ever known.”
http://www.dailyimpact.net/2016/06/07/the-war-on-hemp/

“There is no such thing as sustainable agriculture. It does not exist.”
http://dark-mountain.net/blog/how-did-things-get-to-be-this-way/

“The economic reality, evident to anyone who isn’t a spin doctor for the Coalition or a journalist for The Australian, is that we have a weak economy, unable to finance our expected living standards.”
https://newmatilda.com/2016/06/06/australias-open-for-business-and-yet-incomes-are-down-and-were-basically-in-recession/

“The last station on Earth without a 400 parts per million (ppm) [CO2] reading has reached it.”
“That’s the first time it’s passed that level in 4 million years (no, that’s not a typo).”
“the planet as a whole has likely crossed the 400 ppm threshold permanently”
http://www.climatecentral.org/news/antarctica-co2-400-ppm-million-years-20451

“Seven climate records set so far in 2016”
https://www.theguardian.com/environment/2016/jun/17/seven-climate-records-set-so-far-in-2016

“What will corporations blame when they can’t use “tighter money supplies” as an excuse?”
http://imgur.com/bbwlZZF

———————————

Harry aka Harquebus
Salisbury North.
South Australia.
harrycebex@hotmail.com




Richard Wolff on the coming crash…….

30 05 2015

Of course, zero mention of Limits to Growth here………





Three Evils of Capitalism

24 02 2015

Reblogged from https://leftymathprof.wordpress.com/3evils/

(Read the essay, or watch the 14 minute video version here in this little box, or on its Youtube page, or full-screen.)

Poverty and war have tormented us for ages, but they won’t for much longer; soon we will be forced to choose between harmony and extinction. Any compromise between those two extremes is nearing an end, because information and ecocide are both growing toward tipping points. And the new vision we need for survival is uncomplicated but also unfamiliar, especially regarding economics.

When people blame the problems of the world on “unregulated capitalism” or “predatory capitalism,” they are implying that capitalism itself is a good and healthy thing. They are implying that we have merely strayed from its sound principles into corruption, a superficial problem that can be cleaned up through reform. But these reformists are mistaken. They have not seen the world as it is; they have not understood what the principles really are. The evils of inequality, externalities, and alienation are inherent in any market economy. To halt the torment and destruction, we’ll have to learn how to share. That didn’t work in some previous attempts, but that just means we’ll have to try doing it differently; the reasons for doing it are still valid. Forcing it on people won’t work, so a change in law won’t be enough; we need a change in culture.

The problem is not “unregulated capitalism.” Writing regulations more carefully will not save us. Satan’s army of lawyers can find him a loophole whenever he wants to escape one of his contracts. And our plutocracy simply disregards its contracts — just look at all of the US government’s violations of its own laws. Money erodes its way through regulations as surely as water finds a way downhill. Any separation between government and big business, between regulators and regulated, is illusory: They share a revolving door, and sometimes a bed. The only way to avoid rule by the wealthy class is to not have a wealthy class.

And fighting against one Monsanto or Halliburton at a time is futile. It’s like Hercules fighting the Hydra: Each time he cut off one head, two more grew in its place. We must look deeper, to what Monsanto’s poisons and Halliburton’s wars have in common.

When Neo awakened from The Matrix, physical reality changed for him, but that film was only a metaphor. When we awaken from the propaganda all around us, physical objects are not changed, but their significance is changed, and our history and expectations are vastly changed.

The old world is dying; we must move on to the new world being born. How will we make the great change? I don’t know the details of that. But it has already begun; you can see it in the peaceful demonstrators being beaten by police. Awareness and understanding are spreading, and our foremost tactic must be to spread them further. When enough people see what is really going on, we will unite, and we will find a way to change things, and the violence will end.

1st evil:   INEQUALITY (3:30 in video)

The data in Thomas Piketty’s recent book shows that increasing economic inequality is a normal trend in capitalism, not an aberration. The problem is deeper than debt-based currency or any other particular method of exploitation and theft. It is inherent in all market economies, even barter economies: Market transactions increase inequality, because they favor whichever participant is in the stronger bargaining position. The only way to not have a wealthy class is by not having a market — that is, by sharing.

Increasing inequality is simplified in the board game Monopoly, which always ends with all the players but one totally impoverished. That’s the outcome even if no one cheats, so the problem is in the principles, not in “corruption.”

The recent study by Gilens and Page shows quantitatively that the USA is a plutocracy, not a democracy. Just a few people now own our homes, workplaces, debts, government, mass communications media, everything. Privately owned workplaces are little dictatorships; that’s why we hate Mondays. Progress brings higher productivity, but its benefits are pocketed by the owners of the workplaces; for the rest of us, progress means layoffs, not leisure.

Psychopaths seek positions of power over others, and even people who are not already psychopaths become corrupted by power if they acquire it; strong evidence of that was given by the Stanford Prison Experiment. We see cruelty wherever the opportunity for it arises — in prison guards, police, soldiers, workplace managers, business tycoons, dictators, or even democratically elected politicians — though in that last case, they cover it up by conducting much of their work in secret and lying about the rest. All these bullies proclaim, and perhaps believe, that they are deserving and that their victims are not.

Clearly, we should reorganize our society so that there are no concentrations of power. That requires not only replacing markets with sharing, but also replacing authoritarian hierarchical government with peer-to-peer networking. This is why I’m an anarcho-commie, which means share and don’t hit, the first two things we all learned in kindergarten.

2nd evil:   EXTERNALITIES (6:17 in video)

Any market transaction is negotiated by a buyer and a seller, but it may affect other parties besides those two. Such effects are outside the considerations of the negotiations, and so they are called externalities. During the crash of 2008, Wall Street traders often reassured one another with the acronym “IBGYBG,” which stood for “I’ll be gone, you’ll be gone.”

Externalities are more due to indifference than outright malice, and so you might think their effects would be random — sometimes harmful and sometimes beneficial — but it doesn’t work that way. The proverbial “bull in a china shop” is not motivated by malice, but he is never beneficial.

Market prices are far from true costs, because they leave out the externalities. Thus the market is not at all the “wise and efficient” allocator of resources claimed by its worshipers. Conventional textbooks gloss over this topic, as though it were something minor, but in fact externalities are enormous: War, poverty, and ecocide are inevitable consequences of any market economy. And by the way, the ecocide is a lot worse than most people realize; feedback loops are about to send us over a climate cliff.

A living whale is an awesome creature, but it has no monetary value. The parts of a recently killed whale are worth a million dollars in quick profit to someone who doesn’t care about the consequences elsewhere. That’s why the whales are disappearing. And that’s why the ecosystem is disappearing too, though it’s larger, more abstract, and harder to see.

You might think that the few people in power would get together and conspire to save the planet that they have seized for their own. But that’s not how they’re behaving.

For instance, a few years ago, the Arctic began melting rapidly. That’s one of the climate feedback loops, and it should have been a wakeup call to stop using fossil fuels before they kill everyone. But instead the plutocrats said, “oh goody, now it will be so much easier to extract fossil fuels from the Arctic!”

The market compels its biggest players to compete against each other in offering quick profits to investors, without regard to consequences. Any big players who find scruples will fall behind in the competition, and will be replaced. We need to overthrow not just the big players, but the entire system.

3rd evil:   ALIENATION   (9:06 in video)

The problem is not just in our rulers. It’s in all of us, in our culture, in the so-called “American dream“: You keep your stuff in your house, I keep my stuff in my house, and God help the guy who doesn’t have a house, because no one else can help him, in our present socioeconomic system. We get the illusion that my well being doesn’t depend on yours, and I don’t need to care about you, and in fact I can’t afford to care about you. We blame the less fortunate for their bad luck, because that’s easier than facing up to the fact that we might be next, that the system is unjust, and that we don’t know how to fix it. We may try to be kind, because that’s human nature, but that’s swimming upstream against the current of separateness.

How blind are we to our own culture? Compare it with physics. An apple’s mass, volume, and colour are objective and measurable traits, independent of any observer. The “owner” of the apple is merely a story that we agree upon, one that can be changed by whoever controls the courts. And yet it has become impossible for us to imagine an apple without an owner.

Our possessions separate us psychologically, and that in turn legitimizes our material separateness. Apathy and alienation seem inevitable and normal. We are forced to compete against each other for survival; friendships become commodities and strategic alliances. We’re distrustful, and our anxiety about lack of security is medically harmful. The wealthy are harmfully stressed too, by their desire to stay ahead, and by their lack of the things that money can’t buy. Lacking meaning, purpose, and direction in our lives, we turn to drugs and entertainments. We see ourselves alone and helpless, and few of us realize that everyone else is alone in much the same way.

No wonder random shootings have become commonplace in our shopping malls. The only thing that can make us safe is a change to a culture in which everyone cares about everyone else and no one gets left behind. But that kind of caring will require sharing. To shelter the homeless and to end the prevalence of sh*t jobs, we’ll have to restructure the entire economy, and we’ll have to change how we feel about one another.

We’ve been told — and some of us have believed it — that it’s human nature to be greedy, selfish, and lazy. We’ve been told that humans work only for private gain, and work well only in competition. We’ve been told that our culture and behaviour can’t change. But none of that is true.

The Fall from Grace was 10,000 years ago, with the invention of the word “mine,” and we’ve lived in its shadow ever since. But throughout the 200,000 years before that, we lived cooperatively, without rulers, sharing everything of importance, and that’s still our deeper nature, our genetic heritage. You can see the cooperation at any traffic merge.

“Half full” and “half empty” are optimistic and pessimistic observations of the same glass. But human nature is not just what we observe. It’s what we choose and aspire to be. Even if the reformists were right — that it is possible to make selfishness viable — why would anyone want to? Right now our culture encourages our worst behaviour; let’s replace it with a culture that brings out our better side.

I’m hoping for a miracle. That doesn’t necessarily involve supernatural intervention; Charles Eisenstein defined a “miracle” to be simply an event that most people believe impossible until it happens. The miracle I’m hoping for — and actually, I believe it is possible, even if a lot of people don’t — is that some good ideas will spread very quickly, and people everywhere will begin sharing and cooperating. That’s the only thing that might still save us from the rapidly accelerating ecocide. Can we shed our cynicism, and see with new eyes, and give each other the inspiration we need?





Enough is enough…..

30 07 2014

This little video came past me during a heated disussion over at The Conversation.  I have to say, it’s one of the very best things I’ve seen in a long time, it almost gives me hopium!  It originated from http://steadystate.org/enough-is-enough

The standout statement for me, who submerges himself in all this stuff and finds it harder and harder to learn something new was this:

“Growth is a substitute for equality of income.  So long as there is growth there is hope, and that makes large income differentials tolerable”

And who said this?  Henry Wallich, former Governor of the Federal Reserve…..  of course as the film reveals, equality of income is also a substitute for growth…  This film also deals with the predicament of debt well.  Tim Jackson, whose lecture on growth is featured elsewhere on DTM makes an appearance also.

Also making an appearance in this film is the idea of Guaranteed Minimum Income, a notion first introduced to me by my own son!

Also of interest, to me at least as a former member of the Australian Greens, is the appearance of a woman by the name of Natalie Bennett from the Green Party of England and Wales.  I really really wish the Australian Greens would explain their economic policies better.  Or at all.  I cannot ever remember either Bob Brown or Christine Milne doing anywhere near as good a job as Natalie Bennett does…..

All in all, I can’t recommend viewing this enough….  and it should be shared widely.





Money rules….

28 07 2014

Over the past 15 or 20 years, society switched from being a society to being an economy.  Today, everything has a price, and nobody does anything anymore unless there’s “money in it”.  Take Universities; fifty years ago, one could go to University, for free, and just learn….  that’s what Universities were always for.  To learn.  Today Universities are all about money, and learning how to make money.  I clearly remember our son, who at the time was doing his first science degree, coming home from University one night, scathing of the number of people studying ‘business studies’ or economics or any number of other money making pursuits on offer at these institutions.

Alex now has two science degrees and a Master….. and can’t get work.  It was, admittedly, bad timing on his part, Australia has elected an anti-science government that only believes in making money and measuring everything society, oops I mean the economy, does in dollar terms.  An economy does not need scientists, it needs bean counters….  so funding for Australia’s premiere scientific organisation, CSIRO, is being defunded, and is now starting to sack scientists.  Just when we need them most.

Putting a price on everything was brought home succinctly the other day by George Monbiot who wrote:

So just at this moment, this perfect moment of the total moral and ideological collapse of the neoliberal capitalist system, some environmentalists stumble across it and say, “This is the answer to saving the natural world.” And they devise a series of ideas and theories and mechanisms which are supposed to do what we’ve been unable to do by other means: to protect the world from the despoilation and degradation which have done it so much harm.

I’m talking about the development of what could be called the Natural Capital Agenda: the pricing, valuation, monetisation, financialisation of nature in the name of saving it.

Sorry, did I say nature? We don’t call it that any more. It is now called natural capital. Ecological processes are called ecosystem services because, of course, they exist only to serve us. Hills, forests, rivers: these are terribly out-dated terms. They are now called green infrastructure. Biodiversity and habitats? Not at all à la mode my dear. We now call them asset classes in an ecosystems market. I am not making any of this up. These are the names we now give to the natural world.

How much longer this sad state of affairs can continue, no one knows, except that it can’t possibly last much longer.  Here is the latest shock from Bloomberg….:

For the past two decades, growth in the global economy spelled higher revenues for the Organization of Petroleum Exporting Countries. Not any more.

The CHART OF THE DAY shows how last year was the first since 1993 that the value of OPEC’s total crude exports didn’t track the direction of global gross domestic product. The bottom panel shows how the group supplying about 40 percent of the world’s oil fetched lower average prices and also shipped fewer barrels year on year.

So there you have it……  the beginning of the end of the ‘bumpy plateau’ that shapes Peak Oil is about to end, and the beginning of the inexorable backside of Hubbert’s Curve is at hand.  This is as good as it gets, and all the things we value in dollars will soon be worthless.

Also of interest, and pertinent to the collapse of the plutocracy, I recently discovered this article….

Written by Nick Hanauer (a Seattle-based entrepreneur – never heard of him before now…), this telling article is a wake up call for his 0.1%er mates of his… He starts off by displaying his credentials as a filthy rich plutocrat – “You probably don’t know me, but like you I am one of those .01%ers, a proud and unapologetic capitalist. I have founded, co-founded and funded more than 30 companies across a range of industries—from itsy-bitsy ones like the night club I started in my 20s to giant ones like Amazon.com, for which I was the first nonfamily investor”, writes in the middle “I see pitchforks”, but ends with “If we don’t do something to fix the glaring inequities in this economy, the pitchforks are going to come for us. No society can sustain this kind of rising inequality. In fact, there is no example in human history where wealth accumulated like this and the pitchforks didn’t eventually come out. You show me a highly unequal society, and I will show you a police state. Or an uprising. There are no counterexamples. None. It’s not if, it’s when.”

Wow……..  are they actually waking up to themselves?  Notice how he claims to be a 0.1%er, not a 1%er..?!

Gulfstream V – in case you didn’t know!

Here’s what I say to you: You’re living in a dream world. What everyone wants to believe is that when things reach a tipping point and go from being merely crappy for the masses to dangerous and socially destabilizing, that we’re somehow going to know about that shift ahead of time. Any student of history knows that’s not the way it happens. Revolutions, like bankruptcies, come gradually, and then suddenly. One day, somebody sets himself on fire, then thousands of people are in the streets, and before you know it, the country is burning. And then there’s no time for us to get to the airport and jump on our Gulfstream Vs and fly to New Zealand. That’s the way it always happens. If inequality keeps rising as it has been, eventually it will happen. We will not be able to predict when, and it will be terrible—for everybody. But especially for us.

George Monbiot seems to believe in the pitchforks…..  he ends his piece with “Well, ladies and gentlemen, it is no mystery… what do we do instead?  It is the same answer that it has always been. The same answer that it always will be. The one thing we just cannot be bothered to get off our bottoms to do, which is the only thing that works. Mobilisation.”

Never mind the pitchforks…….  bring back the guillotine!





The Faustian bargain that modern economists never mention

2 12 2013

Reblogged from http://www.resilience.org/

Probably not much new to regular readers of DTM here, but a thoroughly well put together article well worth the read…….  and sharing with those people you know who are still unconvinced.

Historically people have shifted their belief systems in various ways. The Greeks and Romans believed in numerous gods and goddesses and attributed all kinds of powers to them. Then the great monotheistic religions came along and people began to believe in just one god, though they honored him under different names.

Recently, beliefs have shifted again, with people worshipping just one part of a god, the invisible hand. Thanks to Adam Smith and those who followed him, especially the current neoclassical economic theologians, we have seen such an increase in the world’s wealth and sheer numbers that it is hard to imagine life before the industrial revolution, with its shift from mostly human and animal muscle power to the energy dense fossil fuels—coal, oil, and natural gas. It is also hard to imagine that humanity could someday slide back into another age of scarcer and more expensive energy, but that is a possibility that cannot be excluded from our thinking.

The Faustian Bargain

What about the Faustian bargain? It remains deeply hidden from view because its exposure by the high priests of modern economics would force us to rethink how we live and why we live this way, as well as what we’re planning to leave for future generations. The Faustian bargain goes something like this: Thanks to the discovery and exploitation of fossil fuels, humans (really just a small minority of them) are able to live richer lives today than even the queens and kings of yore could have dreamed of.

Furthermore, we’ve used some of those finite resources to increase food supplies and to expand the human population, which provides the economic system with both more workers and more consumers, a necessity to keep the economy growing under our current economic model. The world’s population increased from 1.6 billion in 1900 to 7 billion today, and we add about 80 million more each year. Humans have quickly become the most numerous megafauna on the planet.

The other side of the bargain, the side hidden from view and never mentioned in economics texts is this: At some undetermined time in the future, one that creeps ever closer, this economic system, fed by energy and other resources at ever increasing rates at one end and spewing out waste products at rates that cannot be absorbed by Earth’s ecosystems at the other, is unsustainable. What that means is simple enough: Industrial society as we know it cannot go on as it has forever—not even close.

Our economic system must exist within Earth’s finite limits, so recent and current generations have sold their soul to the devil for temporary riches, leaving the Devil to collect his due when the system falls apart under its own weight and the four horsemen of the apocalypse ride again across the world’s landscapes. None of this will happen tomorrow or this week or this year, but our economic system is faltering at both ends.

For many, if not most of the world’s population, life may become more difficult, incomes lower, and uncertainty greater. It does not mean the end of the world, as some predicted for 2012, but it will mean that future generations probably will not live like current ones. Rather than admit that the current system cannot be sustained, the affluent and powerful will do everything possible to maintain the status quo.

The Fallacy of Long-Term Economic Growth

Economic growth remains a mantra for politicians and corporate leaders, including the banksters who brought us the Great Recession. Even President Obama, like presidents before him, speaks regularly about “growing the economy.” But nothing in the real world suggests that economic growth can continue forever. Nor does much evidence support the notion that economic growth has been a good thing for either the planet or billions of its human residents. It looks more like a colossal Ponzi scheme.

One of the most optimistic supporters of modern economics and its marvels is Tim Harford, who wrote, in his book The Logic of Life, “The more of us there are in the world, living our logical lives, the better our chances of seeing out the next million years.” This may be the dumbest thing an economist has ever written and he shows not even the slightest understanding of the planet on which we live. Homo sapiens has only been around for about 200,000 years, so another 800,000 years at the rate we’re going seems absurd. If our population were to continue to grow at an annual rate of only 1.0 percent, slightly less than our current growth rate, then our numbers would increase to over 115 trillion in just the next thousand years. You can play with the growth rate if you wish, but you cannot escape the cold hard fact that human population growth must stop. Only economists seem to miss the fact that economic growth must stop.

Among the high priests of modern economic theology, Paul Krugman came closer than anyone to admitting that growth could not go on forever on our planet. In an Op-Ed piece in the New York Times (12-26-10) he wrote, “What the commodity markets are telling us is that we’re living in a finite world [my italics] ….” He went on to mention the possibility of peak oil production and even climate change, both of which threaten the modern economic system, but then, returning to the faithful fold, he wrote, “This won’t bring an end to economic growth….” He admitted that our lifestyles might have to change but gave no clue about where and how that might come about or where it might lead.

Economic reality and economic theology don’t fit together very well. In 1988 Edward Abbey wrote, in his book One Life at a Time, Please:

It should be clear to everyone by now that crude numerical growth does not solve our problems of unemployment, welfare, crime, traffic, filth, noise, squalor, the pollution of air, the corruption of our politics, the debasement of the school system (hardly worthy of the name ‘education’), and the general loss of popular control over the political process—where money, not people, is now the determining factor.

Today, 24 years later, virtually every word of Abbey’s statement is truer than ever, yet politicians and economic theologians continue to preach that if we can just grow the economy (local, state, national, and world) then all will be well again. You need not look far or deeply to see how wrong they are and what price we’ll pay when the Devil comes looking for our collective souls.

Among economists, Herman Daly is one of the few who has tried to reveal the Faustian bargain for what it really is, as is apparent in this statement from a Dec. 26 article, Rio+20 Needs to Address the Downsides of Growth:

Even though economies are still growing, and still put growth in first place, it is no longer economic growth, at least in wealthy countries, but has become uneconomic growth. In other words, the environmental and social costs of increased production are growing faster than the benefits, increasing “illth” faster than wealth, thereby making us poorer, not richer. We hide the uneconomic nature of growth from ourselves by faulty national accounting because growth is our panacea, indeed our idol, and we are very afraid of the idea of a steady-state economy. The increasing illth is evident in exploding financial debt, in biodiversity loss, and in destruction of natural services, most notably climate regulation.

As a geographer, I look for signs in my local cultural landscape that look ominous, from potholes in streets to for sale and/or for lease signs strewn around our city like leaves after a storm. Ours is a small city, with about 30,000 residents, yet our city manager, in an end-of-the-year report, pointed out that we would need some $80,000,000 to repair our current infrastructure, a figure out of all proportion to our physical and residential size. That amounts to nearly $2,700 for each man, woman, and child. He also pointed out that our city is operating with below necessary numbers of police, fire, and emergency responders. The potholes will get larger in 2012 and beyond.

Though these and other problems are widely distributed across the nation, I think the infrastructure issue alone is symbolic. The U.S. is becoming a “pothole culture,” one in which the pothole is a symbol of our inability to accomplish all kinds of things any more. (See recent New York Times article.) Other nations are on their way as well.

Despite the continued whirring of the world economy, most people here and elsewhere are not getting anywhere and are feeling jilted by the system they’ve depended on for decades because they thought it could be sustained forever. It cannot, but that doesn’t mean life cannot go on, it means, instead, that we need to move in new directions, but we won’t do that until we understand what is making so many people so unhappy. We need to realize that instead of believing bigger is better we need to decide to favor better over bigger, quality over quantity, less over more.

Two examples illustrate the point that the world economy has exceeded both Earth’s ability to provide ever more inputs and its ability to absorb and purify excessive wastes. Crude oil is a good example of the first; carbon emissions and global warming good examples of the second. Both were mentioned by Krugman, but he provided no details about how we might deal with either issue, nor did he say how economic growth would continue without confronting these and numerous other raw material and waste issues.

First Example of Limits to Economic Growth: Crude Oil

Given that most Americans have a knowledge of history that doesn’t go back much over a month or two, it is no surprise that they cannot conceive of a time without cars, gasoline (preferably cheap), and a pattern of settlement that requires the use of both—our modern suburban landscape. For many years the U.S. was the world’s largest producer of crude oil and the largest exporter of it as well. In 1970, however, our oil extraction reached a peak and then started down hill. We became an importer of oil and today import more oil than any other nation, even though we still produce lots of oil and our extraction has been increasing in recent years.

Since about 2005 the world’s extraction of crude oil has been almost flat, despite prices that rose at one point to around $147 per barrel. Though we may not know for a while whether the world has reached its peak oil production or not, we do know that it will. In the meantime we know that traditional oil fields are getting more and more difficult to find, are harder to get to, and will be more expensive to develop. Alternative sources of oil, such as the Athabascan tar sands, are abundant but also expensive to develop and environmentally undesirable. Substitutes for gasoline, such as corn ethanol, are not only nonsensical from either an environmental or an economic viewpoint, they are also diverting food from humans (mostly via animals) to SUVs, driving food prices upward.

Figure 1 below, by mathematician Tom Murphy on his Do the Math blog, in post called, The Future Needs and Attitude Adjustment, provides a deeper historical perspective on oil production and industrial societies.

Figure 1: Image by Tom Murphy. Original caption: “On the long view, the fossil fuel age is a blip, with a down side mirroring the (more fun) up side.”

You don’t need any knowledge of either deep history or the unpredictable future to get the point of this graph (unless, of course, you are an economist). Like Earth itself, the supply of crude oil is finite, even if we don’t know exactly how much is there, where it all is, or how much of it we can ultimately recover. Though we can tweak this curve, argue about its shape, and nibble along its edges, the basic fact remains: World oil extraction will reach a peak, probably sooner rather than later. After that, extraction will decline, though along what kind of curve we don’t know for sure. Just as the Stone Age did not end because of a lack of stones, the oil age will not end because of a lack of oil. Rather, it will end because what is left of the oil supply will at some point cost far more than it is worth; it will take more energy to extract it than we would get from it.

Knowing this, the prudent course would be to wean ourselves from this energy source as soon as possible, in order to treat our addiction before it is too late. However, we live in one of the most competitive periods in world history. Not only do Americans not want to be parted from their cars but millions of Chinese, Indians, and others are lining up to get their first taste of “the freedom of the road.” That is one of the reasons why, despite a sagging world economy and lower crude oil consumption in the U.S. in recent years, the price of crude oil has hovered around $100 per barrel through most of 2011 ($98.83 on Dec. 31).

Second Example of Limits to Economic Growth: Carbon Emissions and Global Warming

Burning fossil fuels to provide energy at the input end of our economic system results in a combination of outputs or waste products that cannot be removed or neutralized quickly enough by our ocean and atmosphere. That leads to an increasing amount of gases and particulates gathering in both, changing the chemistry of both the ocean and our atmosphere. Among the gases is carbon dioxide, a greenhouse gas that we know plays a role in how Earth’s atmosphere is warmed. Adding more carbon dioxide to our atmosphere is analogous to turning our heater up a little—we get more heat.

We know that the carbon dioxide content of the atmosphere has gone from about 280 parts per million around 1850 to 390 parts per million in 2011, an increase of just over 39 percent. Though we did not discover how to measure the atmospheric content of carbon dioxide directly before the mid-1950s, we do have a careful record of what it has been doing since then, as shown in Figure 2 below (from Wikipedia):

Figure 2. The Keeling Curve of atmospheric CO2 concentrations measured at the Mauna Loa Observatory. (From Wikipedia)

It is hard to miss the upward trend in the carbon dioxide content of the atmosphere since 1958. Few scientists would identify a source for this trend outside of humans and our burning of fossil fuels. Figure 3 below shows how much more carbon dioxide humans are adding each year through the burning of fossil fuels, setting a new record for emissions in 2010 (source):

Figure 3. Greenhouse Gas image from Yahoo News

It also shows the major contributors, China and the U.S. The failure of the U.S. to lead the world toward an economic system less dependent on fossil fuels is monumental. Modeling shows that rising carbon dioxide emissions can be expected to lead to global warming.

Conclusions

Though causes and effects may be difficult to connect, the outbreak of protests around the world in 2011 doesn’t seem coincidental. From the Arab Spring, to Greece and other European countries, to the Occupy Wall Street movement in the U.S., and even to demonstrations in Russia, people have taken to the streets to protest governments, corporations, and policies that are affecting their lives in negative ways. TIME magazine in 2011 chose “The Protestor” as its person of the year.

The are several reasons for people to be angry and upset. High oil prices and more extreme weather conditions have been driving food prices upward and high gas prices act as a tax on consumers, slowing modern economies. In addition, in the U.S. awareness has grown that most of the gains of economic growth are going to the top one percent (or less) of the population. Figure 4 below from Mother Jones (“It’s the Inequality, Stupid,” by Dave Gilson and Carolyn Perot, March/April 2011) says all one needs to know about inequality in the U.S. today.

Figure 4. Average Income Per Family Distributed by Income Group. (From Mother Jones)

Figure 5 below from the Congressional Budget Office shows how things have changed for different income groups in recent decades in the U.S. Citizens who are not in the top 1% are coming out very much worse than those at the top, whether they realize it or not.

Figure 5.

Even as nations continue to prop up banks and the Fed plays games with trillions of dollars, the general feeling seems to be that the “pothole culture” or its equivalent is spreading, that the benefits of what economic growth there is are not being shared equitably, and that many places cannot even maintain what they have in terms of infrastructure. Frustration is widespread, and much of it seems connected to what may be first signs that our modern industrial economy is breaking down. An analogy might be those first tiny pools of oil that you start to see under your car, warning you softly that things may be going wrong.

Unless humanity recognizes the bargain we’ve made with the Devil, and soon, we’ll saddle ourselves or posterity with paying the Devil his due. We cannot treat our current addiction to fossil fuels and economic growth until we admit we have them. Perhaps the best advice I’ve seen lately came from John Greer, who wrote:

Right now, as the limits to growth tighten around us like a noose and an economy geared to perpetual expansion shudders and cracks in the throes of decline, one of the things that’s needed most is the willingness, in a time of gathering darkness, to locate what lamps can still be found, and light them.

Is anyone out there listening? You can bet the Devil is!





Great TED talk I thought my readers would like…

21 05 2012

We feel instinctively that societies with huge income gaps are somehow going wrong. Richard Wilkinson charts the hard data on economic inequality, and shows what gets worse when rich and poor are too far apart: real effects on health, lifespan, even such basic values as trust.