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Today’s Contemplation: Collapse Cometh LXXXVIII–Collapse: Just Like Boiling A Frog


Today’s Contemplation: Collapse Cometh LXXXVIII

January 2, 2023 (original posting date)

Chitchen Itza, Mexico. (1986) Photo by author.

Collapse: Just Like Boiling A Frog

As I continue to work on my multipart contemplation regarding our energy future (Part 1; Part 2), thought I would throw out this ‘brief’ one that shares my comment on the most recent post by The Honest Sorcerer, whose writing in general continues to parallel my own (probably not surprising given the increasing evidence regarding the trends in the topic(s) we discuss).


Great article. As the saying goes: it’s difficult to make predictions, especially about the future[1]. We mostly look at current trends and extrapolate them into the future, believing that tomorrow will unfold much like today — and we do this for pretty sound reasons but mostly because our primate brains have extreme difficulty comprehending complex systems and their nonlinear feedback loops and emergent phenomena. In a time of flux/chaos/transition, such an approach is not always such a good strategy — to say little about all the Black Swans circling overhead[2].

One of the places I default to when hoping to give some certainty to the future (something homo sapiens strongly desire[3]) is the past. This is likely because of my ‘brief’ educational background and work in pre/history (aka archaeology)[4].

While technology has dramatically changed some aspects of how we re/act (i.e., adapt) to our changing environment through our problem-solving abilities, we tend to follow a similar path to our distant ancestors by way of leveraging our tools and ingenuity to help us survive and adapt (agriculture being perhaps the big one that resulted in food surpluses, sedentary lifestyles, exponentially increasing populations, and eventually organizational structures that led to differential access to resources, sociopolitical complexity and, perhaps finally, territorial competition[5]); but these solely human abilities can only take us so far in a world of biogeochemical limits — particularly when the energy required to sustain all our complexities have encountered significant diminishing returns and resulted in catastrophic ecological systems breakdown.

Mix in cognitive and social psychology, biological principles, and physical limits and laws, and we humans can more or less get a better picture of the path(s) we are likely to take in our societal evolutionary journey. One only need review the business-as-usual scenario painted by Meadows et al. in The Limits to Growth for a fairly accurate longer-term prediction of how a world with hard limits will unfold[6].

Based upon all previous experiments with complex societies over the past ten millennia or so, ‘collapse’ appears unavoidable. This decline in complexity (which is what ‘collapse’ is when one gets right down to it and ignores all the emotional baggage we’ve tied to the term) manifests itself in less; less in terms of: social differentiation/stratification; occupational specialization; centralised control by political elite; behavioural control/regimentation; investment in the epiphenomena of complexity — i.e., monumental architecture, artistic and literary development; flow of information between groups; sharing, trading and redistribution of resources; and, coordination between polities[7]. This is a simplification (or Great Simplification as Nate Hagens has termed it[8]) of our adaptive complexities, something that likely would have happened much sooner had we not leveraged fossil fuels to hyper-complexify human adaptations and extend/expand — temporarily — the planet’s carrying capacity for homo sapiens.

Given how far we’ve overshot our natural environmental carrying capacity and consequently degraded our much needed environments and ecological systems — and overexploited virtually every corner of our planet — this inevitable simplification may actually end up being even more dramatic than previous experiments as Catton has pointed out in Overshoot[9].

The journey to this endgame of a substantially simpler future is sure to be the hard part. Increasing geopolitical tensions between competing polities for scarcer resources is sure to occur. Concomitantly, the ruling caste is certain to tighten their grip on their domestic populations by way of authoritarian tendencies (e.g., behavioural and narrative control via increased mass surveillance, militarisation of police, media influence). We are going to witness a continuing breakdown of ecological systems and environmental degradation yet be told these are temporary or reflective of ‘natural’ change. Our Ponzi-type financial/monetary/economic systems are going to be further manipulated from their current highly-manipulated states and any ‘temporary’ deviations from the economy-is-great narrative will be blamed on some evil ‘other’ rather than our own ruling caste and their ongoing machinations.

Like the story about being able to boil a frog alive because of minute temperature changes that go unnoticed, we may miss the little steps that take us to an entirely different world than the one we currently exist within and accept that everything is ‘normal’ despite evidence to the contrary. The ruling caste has learned to be quite adept in manipulating our beliefs about life and their abilities to ‘protect’ us.

All of this said, the future is both unknowable and unpredictable. It will hold many surprises, particularly for the vast majority of people who are just struggling to get through another day/week/year and tend to defer to the ‘authority’ figures that promise them this, that, and everything…


[1] See this.

[2] See this.

[3] See this.

[4] Although my career was in education, I spent a handful of years in university studying and practising archaeology — graduating with a Master of Arts in the subject.

[5] See this, this, this, this, and/or this.

[6] See this.

[7] See this.

[8] See this.

[9] See this.

Today’s Contemplation: Collapse Cometh LXI–Peak Oil: Not Ready For Mainstream Consumption


Today’s Contemplation: Collapse Cometh LXI

July 29, 2022 (original posting date)

Athens, Greece (1984). Photo taken by author.

Peak Oil: Not Ready For Mainstream Consumption

Today’s contemplation is based upon a post in a Peak Oil Facebook Group I belong to and the suggestion that the idea of Peak Oil is catching on more broadly and making its way into the ‘mainstream’.


I am not so sure that the idea of Peak Oil will catch on more broadly and make its way into the ‘mainstream’ — except perhaps on the margins during times such as we are currently witnessing where issues pertaining to energy and the cost of it dominates our worldview. This is what has occurred in the past, such as in the shadow of The Great Recession when oil reached it historical high in June, 2008. It will certainly receive more play amongst those who are aware of it and the consequences that flow from understanding it but amongst the general public I am not so convinced.

Not only is it likely that such mainstream recognition and discussions regarding Peak Oil will be limited in nature but I personally have to wonder how much the extent of the significant implications for everything in our complex societies will actually penetrate into a broader awareness, for a variety of reasons. The notion may gain more notoriety amongst an increased portion of the public than it currently does, but very likely not the existential consequences of the limits imposed by waning fossil fuel resources on the sociocultural complexities supported by them (i.e., pretty well everything in our complex societies, including but certainly not limited to food production, transportation, economic/financial systems, trade, etc.); nor is the notion likely to stick around for long or be widely discussed by many in the population given the media’s tendency to ignore/deny its more unsightly impacts on their prevalent narratives (e.g., chasing the infinite growth chalice is a great thing and needs to continue).

In addition, one can already see a wide array of alternative interpretations of our energy ‘crisis’ being put forward[1]. Some of these include: conspiracy by the elite to bring about The Great Reset; insufficient funding/capital towards all forms of energy production; a conspiracy to keep fossil fuel prices high (including the notion that ‘fossil’ fuels are limitless in quantity as they are abiotic/abiogenic in nature); geopolitical uncertainty, particularly in regions where fossil fuels are in significant quantities; misguided investment policy such as Environmental, Social, and Governance criteria; and, of course, the ultimate scapegoat for the world’s woes — Russia’s invasion of Ukraine.

While some leakage of the idea of the finiteness of the resource or limits to its extraction has occurred[2], many mainstream pundits have completely ignored the concern as it seems unworthy of consideration, or have questioned the accuracy/validity of the idea and thereby dismissed it.

Some mainstream media has indeed already discussed Peak Oil and some of its implications[3].

Mostly, the topic has seemed to get more attention when fossil fuel prices, especially oil and gas, begin to experience significant increases. But when the prices stabilise (usually at a higher floor) or the media has moved its focus onto some other crisis, the discussion shifts away and it is quickly forgotten.

Why will the concept and implications of Peak Oil be mostly absent from the mainstream conversation and/or dissipate relatively quickly?

Here’s my take. There are two primary reasons that I believe the concept and certainly the significant consequences of Peak Oil are unlikely to penetrate very deeply in to the zeitgeist of our ‘modern’ society, and they are the two main themes I have tended to discuss previously.

First, the elite, as they invariably tend to do, will attempt to leverage the impending crisis (as they have been for some time) to meet their primary motivation — maintenance/expansion of the wealth-generation/-extraction systems that provide their revenue streams and thus power/prestige/privileged positions. The status quo power and wealth structures that arise within the organisational imperatives required in a complex society must be preserved!

Since the elite also ‘control’ the mainstream media, and political and education systems, I expect them to keep doing (perhaps with an even hardier push) what they’ve been doing: sell/market the hopium-laced narrative that human ingenuity and our technological prowess can ‘save’ us from the environmental horrors (i.e., global warming/climate change) of burning fossil fuels. It’s no coincidence that they happen to ‘own’ the industrial processes and financial institutions necessary for such an endeavour.

One need only read the majority of ‘news’ or opinions about Peak Oil and it becomes clear that the ‘solution’ is always to transition to ‘green/clean’ energy and to electrify everything.

Second, the psychological mechanisms that impact/influence human beliefs and attitudes will also kick into gear as stress/disorder increases due to the negative consequences of Peak Oil, especially those aspects that lead our thinking/beliefs astray by attempting to: avoid pain and seek pleasure; reduce our cognitive dissonance; lead us to defer to/obey authority; have us go along to get along (i.e., the need to belong to a group); and, perhaps most significantly, the heuristics and biases that simplify complex issues and confirm misplaced beliefs. Basically we tend to gravitate towards the simple narratives offered by our ‘leaders’ and alter our beliefs to avoid painful thoughts.

And all the above doesn’t even touch upon the overwhelming evidence that fossil fuels (and the concomitant leveraging of technology to expedite our drawdown of a number of finite resources) have been the primary impetus leading to our significant overshooting of the globe’s natural carrying capacity for the human species.

What seems to be completely absent in virtually every ‘mainstream’ discussion about Peak Oil is the importance of fossil fuels in supporting virtually all of our complexities.

There are fossil fuel inputs into everything but especially modern industrial agriculture and transportation. These cannot be replaced by non-fossil fuel energy to any significant extent, if at all. Without relocalising food production in particular, we are setting ourselves up for significant food shortages.

Naïve, then, seems the call to abandon fossil fuels forthwith[4]. There appears zero comprehension of the consequences of that for the very dangerous complexities we have created. But it is also a marketing ploy to shift capital towards non-renewable, renewable energy-harvesting technologies (that depend significantly on fossil fuels). It is increasingly obvious that it is quite counterproductive to continue to chase the perpetual growth chalice (that is one of our greatest challenges that needs confronting) while cheerleading a reduction in fossil fuels.

We have hit significant diminishing returns on our extraction of fossil fuels. This is extremely problematic not only because they support virtually all of the complexities necessary for our very survival but because we continue to be beholden to systems that perpetuate the predicament, especially the pursuit of the infinite growth chalice.

If we do not prepare ourselves adequately and do not abandon our pursuit of growth, we risk massive negative consequences. In fact, it may already be too late to avoid most (all?) of such negative impacts given how far we are likely into ecological overshoot — a predicament I haven’t really touched upon in this contemplation.

A summary of my thoughts is clear from a response I shared this morning on an excellent article by The Honest Sorcerer, entitled Peak Oil Is Back With A Vengeance:

While everything you state is factual and based upon solid data and geological evidence [regarding the reality of Peak Oil], I fear our penchant to deny reality (especially if it is ‘painful’ in nature), reduce our cognitive dissonance (to alleviate stressful thoughts/beliefs), and defer to authority (that we give all too willingly to our ‘elite’) — as well as a potpourri of other psychological mechanisms that impact our beliefs — will once again see Peak Oil discussions/awareness/understanding be sustained/grow only on the margins of society.

Previous bouts of ‘awareness’ have arisen during similar times of stress, especially with regard to energy, but for the most part get lost in the alternative narratives that drown out the clarion calls about Peak Resources and seem directed to distract us from the ugly underside of ecological overshoot and its implications for our misbeliefs about humanity’s future and the magical thinking required to hold that more of what has caused our overshoot — namely technology — will somehow ameliorate/solve our errant ways and existential crises.

The vast, vast majority of people will either choose to ignore/deny the reality of Peak Oil (and especially its implications for our complex societies that completely depend upon fossil fuels for existence) or acknowledge it and then hold on to the rope being dangled by the elite that our ingenuity and technological prowess will ‘solve’ our issues (and, of course, it’s no coincidence that the push by our elite is primarily because they own the industries and institutions that are offered as saviours and stand to profit handsomely from the capital flowing into them).

Even if the concept and some of its significant implications do re-enter the mainstream and actually stick or becomes a common concern, I have to wonder how it will be manipulated by the narrative control managers for the elite. Somehow things are bound to get even more distorted than they are currently, especially given the psychological mechanisms that help to mislead our beliefs (recency, optimism, and confirmation biases particularly).

As with all things, however, time will tell how this plays out…I’m guessing not very well.


[1] A few examples: https://internationalman.com/articles/david-stockman-on-the-all-out-commitment-to-destroy-fossil-fuels-will-it-succeed/; https://www.statista.com/chart/27807/european-gdp-output-losses-twelve-months-after-a-russian-gas-supply-shut-off/; https://www.zerohedge.com/markets/putin-turns-screws-gazprom-unexpectedly-halts-another-more-nord-stream-turbine-european-gas; https://oilprice.com/Latest-Energy-News/World-News/Refinery-Shuts-Down-Due-To-Lack-Of-Crude.html; https://mises.org/library/trouble-oil; https://www.amazon.com/Myths-Lies-Wars-William-Engdahl/dp/3981326369/ref=sr_1_1?keywords=myths+lies+and+oil+wars&qid=1578501116&sr=8-1;

[2] https://www.reuters.com/world/macron-tells-biden-that-uea-saudi-can-barely-raise-oil-output-2022-06-27/; https://www.bloomberg.com/news/articles/2022-06-27/macron-tells-biden-that-uae-and-saudi-pumping-near-oil-limits; https://oilprice.com/Energy/Crude-Oil/UAE-Saudi-Arabia-Pumping-Oil-Near-Limits-Macron.html; https://www.worldoil.com/news/2022/6/27/france-s-macron-tells-biden-that-uae-saudi-pumping-near-oil-limits/;

[3] Examples from my country’s national news institution, Canadian Broadcasting Corporation: https://www.cbc.ca/news/business/peak-oil-problems-and-possibilities-1.845183; https://www.cbc.ca/news/canada/manitoba/ex-premier-slams-province-over-peak-oil-1.1038638l; https://www.cbc.ca/news/canada/manitoba/record-gas-prices-blamed-on-peak-oil-1.1039028; https://www.cbc.ca/news/business/ihs-iea-electric-autonomous-ride-hailing-1.3983818;

[4] https://www.timesnownews.com/mirror-now/in-focus/world-must-abandon-fossil-fuels-urgently-say-scientists-as-they-prepare-to-present-landmark-ipcc-report-article-90642366; https://www.chesterstandard.co.uk/news/national/19621587.fuel-crisis-good-lesson-need-abandon-fossil-fuels-says-minister/; https://www.duluthnewstribune.com/opinion/local-view-abandon-fossil-fuels-to-avoid-climate-catastrophe; https://www.theguardian.com/news/2015/apr/08/can-world-economy-survive-without-fossil-fuels; https://www.nytimes.com/2021/05/18/climate/climate-change-emissions-IEA.html

A Primer For American Patriots And Preppers Facing An Uncertain Future

A Primer For American Patriots And Preppers Facing An Uncertain Future

The average patriot (or prepper) is usually a middle class conservative or libertarian with a tendency towards independent thinking and some experience with economic struggle in their past. Most of us have made something of ourselves from very little, or, we had parents that made something of themselves from very little and we watched as children while they climbed their way up the ladder through hard work and merit.

Our philosphy is based on experience and a willingness to look beyond the veil. Most of the western public is bombarded with endless messaging about how stable and safe and “prosperous” our society is. We are constantly slapped in the face with propaganda telling us that patriots are not only crazy, but also dangerous.  We are the bumbling bad guys in every film and TV show.  We’re the “extremists” that refuse to accept that the system works, and if we would just stop trying to be independent from the system, we will find safety and happiness.

We are told a lot of things that aren’t true, and this is really the first thing that sets the preparedness culture apart from everyone else – A healthy sense of skepticism when it comes to establishment claims and mainstream assumptions. We will NOT be sitting idle listening to the band play while the Titanic sinks. We understand, however, that there’s a considerable number of people out there that are content to do so…

There are numerous and unique motivations for people who delve into the patriot life and I think there’s a perception that it requires some kind of abnormal shift in routine or a complete upending of one’s existence.  If you become a patriot or prepper you have to live in a compound and wear army garb everyday and be suspicious of everyone…

…click on the above link to read the rest…

Today’s Contemplation: Collapse Cometh CII–That Uncertain Road, Part 1.

Today’s Contemplation: Collapse Cometh CII

February 20, 2023

Monte Alban, Mexico. (1988) Photo by author.

That Uncertain Road, Part 1

“I think it’s much more interesting to live not knowing than to have answers which might be wrong. I have approximate answers and possible beliefs and different degrees of uncertainty about different things, but I am not absolutely sure of anything and there are many things I don’t know anything about, such as whether it means anything to ask why we’re here. I don’t have to know an answer. I don’t feel frightened not knowing things, by being lost in a mysterious universe without any purpose, which is the way it really is as far as I can tell.”
― Richard P. Feynman

“As far as the laws of mathematics refer to reality, they are not certain; and as far as they are certain, they do not refer to reality.”
― Albert Einstein

There are many words that could be used to describe the future and humanity’s ability to know how it will unfold. Unknowable. Unpredictable. Uncertain. Unwritten. Undetermined. Unforeseeable.

These tool-making, story-telling apes we have termed homo sapiens just happen to abhor this aspect of existence. Uncertainty has been found to result in negative affect for most people in most situations[1]. In fact, it has been suggested that “the oldest and strongest emotion of mankind is fear, and the oldest and strongest kind of fear is fear of the unknown”[2] and that “…fear of the unknown may be a, or possibly the, fundamental fear, representing an Archimedean lever for human psychology”[3].

As Dan Gardner reminds the reader in Future Babble[4] humans want and need control, especially of their environment/surroundings. Not having control, or at least the sense of it, can lead to stress, disease, and early death. Having some ‘certainty’ about what the future holds is a type of control, even if we know what happens is out of our personal control.

We have developed a host of psychological mechanisms to defend against our fear of uncertainty (e.g., illusion of control). In fact, psychologists have found an increased dependence upon magical thinking when control is lost or uncertainty increases[5]. In addition, people will cling more fiercely to their belief system in the face of counterfactual evidence in order to increase their sense of certainty. They will ignore or deny those things that increase their cognitive dissonance and the uncertainty it creates.

We also more often tend to see patterns where none exist as we search for certainty[6]. Reassurance about the future motivates people to seek it somewhere. Anywhere.

Cognitive psychologists suggest prospection, the term used to describe the generation of possible future scenarios, is a central tenet of both cognition and emotion[7]. But it is also a fundamental aspect of learning for any animal that is driven by their avoidance of pain and seeking of pleasure since being able to sense patterns of environmental changes or actions of other animals can alter their behaviour to seek a reward or avoid a punishment — perhaps the most basic one being falling prey to a potential predator.

As tool makers, we leverage this rather unique ability in attempts to help us control our environment, thus providing a sense of security against this uncertain future. And it seems we often fall back on this skill to help us believe some as-yet-to-be-hatched ‘tool’ will be created to help us achieve what we have yet to achieve — certainty about the future by solving our various problems, such as a lack of ‘clean’ energy.

As story tellers, we craft all variety of narratives to help us understand our world — the past, the present, and especially the future. Religion. Biology. Politics. Physics. Economics. History. Mathematics. Psychology. Astrology. Ecology. Chemistry. Philosophy.

Are any of the tales we tell and share accurate reflections of our world and its functioning? Can we predict the future? Can we, using all of our cognitive abilities, understandings of the world, and technologies reduce the uncertainty that lays before us?

The answer may actually be irrelevant since we all tend to believe what we believe — be it learned or conditioned, accurate or misinformed. And we use what we believe to reduce our anxiety about an uncertain future.


Despite all of the above, and knowing full well that predictions about the future are just stories we tell to reduce our uncertainty, the following is one perspective on what the future may hold based upon two beliefs that seem certain to me, although I know they don’t to everyone:
1) We exist upon a planet with finite resources;
2) Biological and historical precedents exist from which we can learn and help us map a likely future.

First, we live upon a planet with a finite amount of resources available to us. Despite the story that infinite substitutability can overcome or mitigate this reality, I firmly believe we cannot create more of our most important resources from thin air. This is especially true for life’s primary resource, energy. As the First Law of thermodynamics states: energy can neither be created nor destroyed, only converted from one form to another. This limits what is available to all species upon our planet.

Second, there exist biological and historical ‘experiments’ concerning ecological overshoot and complex society ‘collapse’ that we can use to help us understand important processes and how they are likely to unfold.

To paraphrase the saying about events rhyming with the past, there should be no assumptions that the future will unfold exactly as it has in the past. While there will no doubt be similarities because humans are animals with strong genetic predispositions that act and react in somewhat constrained ways, we are also a species with strong sociocultural influences upon our behaviour that vary in both time and place. And the contextual environment within which we are behaving is never precisely the same; particularly given the complexities that accumulate and impact us — especially technological in nature.

There is so much that has already been written and could be said about ecological overshoot and humanity’s prospects as we travel further into it. It is important to my thinking here that I note that humans are a biological species similar to every other one on our planet and there exist many behavioural responses that we cannot avoid because of this. Perhaps the most fundamental biologically-based one is that of reproduction and a species tendency to reproduce to a level that can be sustained by their immediate habitat. Overshooting this sustainable carrying capacity invariably results in moving to an uninhabited and unexploited area or ‘reversion to the mean’ of a species’ population size[8].

Humans however, as an apex predator and with their tool-making abilities, have been able to exceed significantly the natural, environmental carrying capacity allowing us to go well beyond the limits imposed by nature. Population biology demonstrates that such a situation cannot and will not go on indefinitely. And the resulting ‘correction’ may as a result of this being even more dramatic in nature.

As William Catton Jr. argues, our ability to employ technological tools to expand our carrying capacity has resulted in a trap that now threatens the environment and ecological systems we require for our survival. Blind to what we are doing, we have embraced and increased the speed with which we are drawing down the finite resources we rely upon. There will be, based upon other species that have overshot their environmental carrying capacity, a reversion to the mean of population size that can be ‘sustained’ — and it will be much, much lower than may have been reached in an uncontaminated and undamaged environment[9].

Further, Catton observes that “[o]vershoot will occur, if it hasn’t already. We may come to feel guilty about stealing from the future, but we will continue to do it. Overshoot will further aggravate the reduction of carrying capacity. Crash must follow. The greater the overshoot, the greater the crash.” (p. 253)

The following graph from Catton’s text provides four possible growth scenarios, with Panel D being the most likely for humanity. As he explains “’carrying capacity’ has been represented by two different curves. A major fraction of the recent, apparently high carrying capacity for human high-energy living must be attributed to temporary resources — i.e., non-renewable fossil acreage, the earth’s savings deposits. In Panel D, it is optimistically assumed that the component of carrying capacity based on renewable resources has remained stable so far. But it is recognized that serious overshoot, induced by temporarily high composite carrying capacity, will at least temporarily undermine even the sustainable component.” (p. 253)

That’s overshoot in a nutshell: an epic crash in population as our fundamental resources can no longer support our numbers. The writing seems on the wall that human population numbers are likely to fall precipitously from their current and relatively high numbers.

How that unfolds is yet to be determined, but it seems the most likely scenario some time down the road as the resources, especially energy, become more scarce to support our inflated numbers…

In Part 2, I will elaborate on what I believe our pre/historical precedents suggest about what we might expect down that uncertain road…


[1] See this, this, and/or this.

[2] See this.

[3] See this.

[4] See this.

[5] See this, this, and/or this.

[6] See this, this, this, and/or this.

[7] See this.

[8] See this, this, this, this, and/or this.

[9] See this.

The Demon-Haunted World

“We’ve arranged a global civilization in which most crucial elements profoundly depend on science and technology. We have also arranged things so that almost no one understands science and technology. This is a prescription for disaster. We might get away with it for a while, but sooner or later this combustible mixture of ignorance and power is going to blow up in our faces.”

  • Carl Sagan, The Demon-Haunted World: Science as a Candle in the Dark.

The White Sands Proving Ground sits in the Jornada del Muerto desert, southeast of Socorro, New Mexico. On July 16, 1945, it became the test site for the world’s first nuclear detonation. The Manhattan Project – the race to build the bomb – had started modestly enough six years earlier, but as it gained momentum would go on to employ more than 130,000 people and expend the equivalent of $26 billion in today’s money.

Among the scientists and military men in attendance, there was no consensus as to what the results might be. The physicist Norman Ramsey forecast that the bomb would fail to go off completely. Robert Oppenheimer predicted an explosive yield equivalent to 300 tons of TNT. The Ukrainian-American chemist George Kistiakowsky plumped for 1,400 tons of TNT. The German-American physicist Hans Bethe went for 8,000 tons of TNT. The Polish-born physicist Isidor Isaac Rabi chose 18,000 tons of TNT (he would win the bet).

But the Italian physicist Enrico Fermi proposed a different wager altogether. He darkly suggested two options: given that the atmosphere would ignite, would the blast destroy just the state, or would it incinerate the entire planet ?

Fermi’s prediction was not as outlandish as it sounds today. Earlier in the war, in the spring of 1942, German physicists approached Hitler’s Minister for War Production, Albert Speer, to discuss the possibility of their building a nuclear bomb…

…click on the above link to read the rest of the article…

Five ways to ensure that models serve society: a manifesto

Five ways to ensure that models serve society: a manifesto

Pandemic politics highlight how predictions need to be transparent and humble to invite insight, not blame.
Cartoon of scientists and policymakers inspecting the inside of a black box that is outputting a policy document

Illustration by David Parkins

The COVID-19 pandemic illustrates perfectly how the operation of science changes when questions of urgency, stakes, values and uncertainty collide — in the ‘post-normal’ regime.

Well before the coronavirus pandemic, statisticians were debating how to prevent malpractice such as p-hacking, particularly when it could influence policy1. Now, computer modelling is in the limelight, with politicians presenting their policies as dictated by ‘science’2. Yet there is no substantial aspect of this pandemic for which any researcher can currently provide precise, reliable numbers. Known unknowns include the prevalence and fatality and reproduction rates of the virus in populations. There are few estimates of the number of asymptomatic infections, and they are highly variable. We know even less about the seasonality of infections and how immunity works, not to mention the impact of social-distancing interventions in diverse, complex societies.

Mathematical models produce highly uncertain numbers that predict future infections, hospitalizations and deaths under various scenarios. Rather than using models to inform their understanding, political rivals often brandish them to support predetermined agendas. To make sure predictions do not become adjuncts to a political cause, modellers, decision makers and citizens need to establish new social norms. Modellers must not be permitted to project more certainty than their models deserve; and politicians must not be allowed to offload accountability to models of their choosing2,3.

This is important because, when used appropriately, models serve society extremely well: perhaps the best known are those used in weather forecasting. These models have been honed by testing millions of forecasts against reality.

…click on the above link to read the rest of the article…

The Empire of Uncertainty

The Empire of Uncertainty

Anyone claiming they can project the trajectory of the U.S. and global economy is deluding themselves.

Normalcy depends entirely on everyday life being predictable. To be predictable, life must be stable, which means that there is a high level of certainty in every aspect of life.

The world has entered an era of profound uncertainty, an uncertainty that will only increase as self-reinforcing feedbacks strengthen disrupting dynamics and perverse incentives drive unintended consequences.

It may be more accurate to say that we’ve entered the Empire of Uncertainty, an empire of ambiguous borders and treacherous topology.

A key driver of uncertainty is the Covid-19 virus, which is a slippery little beast. Nine months after its emergence on the world stage, discoveries are still being made about its fundamental nature.

Humans crave certainty, as ambiguity and uncertainty create unbearable anxiety. This desire to return to a predictable “normal” drives us to grasp onto whatever is being touted as a certainty: a cure, a vaccine, a fiscal policy to restore the “Old Normal” economy, etc.

But none of these proposed certainties is actually certain, and those touting these certainties are non-experts who latch onto an “expert” opinion that resolves their need for certainty and predictability.

What we want, of course, is a return to old certainties that we’re familiar with. In the context of pandemic, the model most people are working from is a conventional flu pandemic: a certain number of people get the virus and become ill, a certain number of then die, and those who survive resume their old life.

But there is mounting evidence that Covid-19 doesn’t follow this neat pattern of “the dead are gone and everyone else picks up where they left off.” Counting the dead as the key statistic completely ignores the long-term consequences of Covid-19 that include permanent organ damage.

…click on the above link to read the rest of the article…

What Will the Future Bring? Here’s How to Survive the Uncertainty

What Will the Future Bring? Here’s How to Survive the Uncertainty

We live in a very different world than we did back in January when the calendar turned to 2020 and everyone was anticipating the great things they’d accomplish in the brand new decade.

Only 3 months ago, we all had futures we imagined…

  • Kids graduating from high school or college
  • A vacation we were planning
  • A new job we were striving toward
  • Retirement so close you could practically smell the beach where you’d spend your golden years
  • The health and fitness goal you were finally going to achieve
  • A positive lifestyle change you were planning to make
  • A relocation to a new destination
  • The advancement of your relationship, whether it was a new one or one you’d been in for a while
  • A summer road trip
  • Getting a new pet
  • An empty nest and what you were going to do with that newly vacant bedroom
  • A new family member

Three months ago, we all had dreams, goals for the future, or at least some idea of what the upcoming year would hold for us.

I’ll bet none of us even considered on New Year’s Eve that we’d spend the first half (at least) of the year dealing with a deadly pandemic. Heck, I sat on a balcony in a little seaside village in Montenegro, toasting the new decade with a friend and some Jack Daniels, watching fireworks over the Adriatic Sea, and planning what European destination I’d be heading to next.

It probably never crossed anyone’s mind that there’d be some crazy new virus that nobody had ever heard of which would leave us under the equivalent of house arrest for months. Few of us imagined that suddenly, over the course of just a few weeks, more than ten million Americans would suddenly become unemployed.

…click on the above link to read the rest of the article…

When Certainty Frays, Capital Gets Skittish

When Certainty Frays, Capital Gets Skittish

The net result is capital is impaired in eras of uncertainty.

As we look ahead to 2019, what can we be certain of? Maybe your list is long, but mine has only one item: certainty is fraying.

Confidence in financial policies intended to eliminate recessions is fraying, confidence in political processes that are supposed to actually solve problems rather than make them worse is fraying, confidence in the objectivity of the corporate media is fraying, and confidence in society’s ability to maintain any sort of level playing field is fraying.

When certainty frays, capital gets skittish. Predicting increased volatility is an easy call in this context, as capital will not want to stick around to see how the movie ends if things start unraveling. The move out of stocks into government bonds is indicative of how capital responds to uncertainty.

The coordinated efforts of global central banks to backstop and boost markets also backstopped confidence in the banks’ monetary policies. Regardless of the long-term impact of the policies of quantitative easing and repression of interest rates, capital could count on the policies remaining in force and act accordingly.

With the Federal Reserve apparently ending the Fed Put and normalizing interest rates after a decade of near-zero rates, certainty about global central bank policies and the impacts of those policies has dissipated.

With valuations at historic highs and real estate rolling over, confidence that gains are essentially permanent is also fading. Buying at the top and holding onto the asset as it loses value is a predictable way to destroy capital, and so capital’s willingness to exit is rising, as is its preference for deep, liquid markets such as U.S. Treasury bonds, markets where big chunks of capital can be safely parked until clarity and confidence return.

…click on the above link to read the rest of the article…

Why buy gold now? Because I don’t know

Why buy gold now? Because I don’t know

From 2000 through 2012, the price of gold increased every year, rising from around $280 an ounce to nearly $1,700. It was an unprecedented run.

Then, in 2013, gold took a nose dive, losing over 27% of its value.

It was widely reported that the Swiss National Bank, the former bastion of monetary conservatism, lost $10 billion that year just on its gold holdings.

As you probably know, central banks hold a portion of their reserves in gold. The practice goes back to when central banks actually had to have gold on hand to trade in and out of paper money (or even trade for goods and services).

And central banks still hold reserves in gold today, even though they don’t need it to transact like they used to.

So that begs the question, did the Swiss National Bank actually lose $10 billion? It still had every ounce of gold in its vaults. And gold, after all, ismoney.

Plus, the SNB wasn’t holding gold to speculate…

Today, central banks hold gold as a hedge against fiat money. These are the guys with their fingers on the printing press… so they know exactly the effect they have on money.

And right now, banks are buying up gold hand over fist. Central banks currently hold 20% of all the gold ever mined—33,000 metric tons.

And JPMorgan Chase says they’ll buy another 650 tons this year and next.

Why?

Gold is for the I don’t knows.

And right now, there are a LOT of I don’t knows.

Markets have been going crazy over the past few months.

After a record bull run for stocks, we are now seeing massive volatility with the Dow regularly jumping 500+ points in a single day. Just yesterday, the Dow fell a whopping 800 points.

…click on the above link to read the rest of the article…

We are Living with Maximum Uncertainty – Catherine Austin Fitts

We are Living with Maximum Uncertainty – Catherine Austin Fitts


Financial expert Catherine Austin Fitts has said for years that the economy was not going to crash, but be on a “slow burn.” How long can they make this heavily indebted game last? Fitts says, “Our problem as investors is we don’t know. If you look at all the information we need to make an intelligent assessment, we don’t have access to that information. I have said many times this is a military question. Who has the biggest weapons and who has the ability to deliver force and control? So, we are living with maximum uncertainty. . . . Clearly, we are headed into a new currency world that’s part of a new control system, but the answer is we don’t know when. My fear with many, many commentators is they are underestimating the power and endurance of the system. I am always getting yelled at because people think I am pro-empire. I am not saying I am pro-empire or I am for the things they are doing to keep it going.”

Fits adds that things are so uncertain that “the old system could go five years or five months.”

On introducing a new dollar, Fitts says, “Even if they do introduce a dollar backed by gold, it’s going to start off with a small market share. They are very unlikely to do a big bang thing. These guys are prototypers.”

There is no doubt wealthy people around the world are buying gold. Why? Fitts says, “The reality is . . . in the worst case scenario, gold is a store of value because it is respected globally as a currency or money without the backing of a sovereign government. What is the global currency that has backing without a sovereign government, and gold and silver are one of the few.

…click on the above link to read the rest of the article…

Do Not Waste One More Second

Do Not Waste One More Second

Do not waste one more second of your time on this earth, for the insects are all dying, and the ice caps are vanishing, and the oceans are filling with plastic.

This could all be gone very soon, so don’t waste it. Don’t take any part of the crackling miraculousness of this cacophony for granted, because there are missiles being targeted, and there are vast battle plans being drawn. You could look outside your window tomorrow morning and see a mushroom cloud on the horizon, and you will regret letting life’s preciousness slip through your fingers.

We do not like to think about death. We say, “I will think about death some other day. Today I must busy myself with mental chatter about nonsense and the avoidance of feeling my feelings. I would love to stare into the white skull of the human condition, but my schedule is chock full of escapism.” We push death aside, and push death aside, and push death aside. And then, one day, death pushes us aside.

One way or another, the end is coming. But if you truly, deeply engage here, you can live more life in a week than most people live in an entire lifetime. By that I do not mean that you can have more experiences, I just mean that you can experience far more moments with far more depth and clarity than someone who’s just drifting through life on autopilot. One week fully and consciously appreciated contains more lived life than an entire stay in this world from cradle to grave when it is taken for granted.

And of course you will also have far more amazing experiences than someone who isn’t directly interfacing with the moment.

…click on the above link to read the rest of the article…

Uncertainty is the Mother of Volatility

QUESTION: Well you called this year the political year from hell. You got that one right again. Between trying to figure out the politics in the US, we have Britain in turmoil and Italy trying to figure out if they should stay or go. Hungary becoming more defiant and Sweden swinging to the right. You are the best at forecasting this sort of crazy stuff. You got BREXIT right and Trump’s victory. I can see your model looks at the economics and predicts a response that becomes political change. So what does this all mean?

KD

ANSWER: Regardless of your political persuasion be it for or against any of these political issues, the importance is really the impact upon CONFIDENCE. If you are for or against Trump, we still have one thing in common. We just want stability and some sense of the future to bank on. For example, if Trump were to go down, the impact upon the world market could be very dramatic and how we then stage ourselves to survive this type of financial chaos is critical. It is the same situation in Europe. If Italy pulls the cord to get out, the Euro cannot survive. What I hear from Behind the Curtain is that the ECB may be forced to cut its bond purchases by 50% and there are even those demanding Quantitative Easing MUST end by the end of the year. Draghi has DESTROYED the bond markets in Europe. Stopping QE will result in interest rates going up dramatically.

As I have said, Trump is the Counter-Trend or FALSE move. I fear what comes afterward be it now or in 2020.

…click on the above link to read the rest of the article…

Axiom of Uncertainty

Axiom of Uncertainty

It’s simple. Given that there might well be an absolute nature/structure of the universe and our perhaps fundamentally limited cognitive position/abilities within it can we be certain that we can be sure about the true nature of anything? Can there be fundamental forces, matter, and material relationships of which we will never know?

While unanswerable in principle, the mere possibility of such an epistemological situation has many consequences.

Firstly, it considerably lets out the air out of our current secular hubris.

Science and technology have given us what is perhaps a false impression of our own cognitive and technical omnipotence. While we rightly marvel at what we have achieved during the last five centuries, it does not necessarily give us the right to think that we can, even theoretically, master and understand all that there is.

Would it be so far fetched to think that the human mind, both as it is now and will be in the future, will always be limited in what it can know?

Although we cannot even judge the actual probability of such a proposition it should nevertheless give us pause while constructing brash anthropocentric scenarios which inflate our own importance within the universe.

If we stop to consider the possible theoretical implications of this axiom of uncertainty we will quickly realize that we may never know more than a part, even just a small part of existence past, present, and future.

Of course that does not mean we should stop trying to know all we can.

On the other hand, it does mean that we should be far more circumspect when offering explanations about everything whether scientific, political, or religious.

In each of these domains, we may, it might turn out, be far off the mark.

Yet, the deeper point is that according to the above axiom we can never know for sure.

…click on the above link to read the rest of the article…

Oil Prices Tear Higher On Middle East Tensions

Oil Prices Tear Higher On Middle East Tensions

Marcellus gas rig

Oil prices rose on Tuesday ahead of the API data report, fueled by Middle East tensions and dwindling crude output in Venezuela.

(Click to enlarge)

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– U.S crude oil exports averaged 1.1 million barrels per day (mb/d) in 2017, twice as high as 2016. It was the second full-year since the prohibition on crude exports had been lifted.

– Canada remained the largest buyer at 29 percent of total U.S. exports. But a notable development was the emergence of China as a major buyer of U.S. crude, representing 20 percent of the total.

– Breaking it down by product type, crude oil only accounts for 18 percent of total petroleum product exports, with hydrocarbon gas liquids (HGL) and distillates each accounting for 22 percent.

…click on the above link to read the rest of the article…

Olduvai IV: Courage
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