Home » Economics (Page 17)

Category Archives: Economics

Olduvai
Click on image to purchase

Olduvai III: Catacylsm
Click on image to purchase

Post categories

Post Archives by Category

The world’s economic myths are hitting limits

The world’s economic myths are hitting limits

There are many myths about energy and the economy. In this post I explore the situation surrounding some of these myths. My analysis strongly suggests that the transition to a new Green Economy is not progressing as well as hoped. Green energy planners have missed the point that our physics-based economy favors low-cost producers. In fact, the US and EU may not be far from an economic downturn because subsidized green approaches are not truly low-cost.

[1] The Chinese people have long believed that the safest place to store savings is in empty condominium apartments, but this approach is no longer working.

The focus on ownership of condominium homes is beginning to unwind, with huge repercussions for the Chinese economy. In March, new home prices in China declined by 2.2%, compared to a year earlier. Property sales fell by 20.5% in the first quarter of 2024 compared to the same period a year ago, and new construction starts measured by floor area fell by 27.8%. Overall property investment in China fell by 9.5% in the first quarter of 2024. No one is expecting a fast rebound. The Chinese seem to be shifting their workforce from construction to manufacturing, but this creates different issues for the world economy, which I describe in Section [6].

[2] We have been told that Electric Vehicles (EVs) are the way of the future, but the rate of growth is slowing.

In the US, the rate of growth was only 3.3% in the first quarter of 2024, compared to 47% one year ago. Tesla has made headlines, saying that it is laying off 10% of its staff. It also recently reported that it is delaying deliveries of its cybertruck. A big issue is the high prices of EVs; another is the lack of charging infrastructure. If EV sales are to truly expand, they will need both lower prices and much better charging infrastructure.

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

The distinct danger of being naive

The distinct danger of being naive

Don’t assume it’ll all be OK or that you alone will be able to evade the consequences of collapse.

A dramatic and symbolic landscape scene showing a person standing at the edge of a crumbling cliff, looking out over the horizon. The person is unaware of the danger behind them as the cliff is visibly breaking apart. The scene is set during the day with a clear sky, emphasizing the concept of naivety and impending consequences. This landscape orientation highlights the vastness and isolation of the person in their environment, representing the theme 'The Distinct Danger of Being Naive'.

The writer and commentator Charles Hugh Smith is known for his discussions on global economic trends, the decline of the middle class, and the future of economies around the world.

In a post yesterday, he presented a somber forecast of what he says is “the most likely trajectory of the global financial system, based on history and the dynamics of human systems.”

He describes the unsustainable expansion of credit, which has far outpaced real production and consumption and has been supported by inflated asset price bubbles that will inevitably burst.

Most importantly, Smith warns against the naively optimistic idea that it’s possible to completely evade the consequences of economic collapse by holding hard money assets or offshoring wealth. He argues that emergency measures and increased surveillance will likely thwart such attempts.

As the bottom 99.5% feel the squeeze, their rage at those at the top not paying their fair share will rise exponentially, and the political pressure on authorities to go after the hyper-wealthy will become too intense to ignore. Many of those trying to save the system will have already had enough of coddled billionaires, bankers and financier grifters.

Another conviction that will be revealed as naive is the faith that the rules will stay unchanged, allowing us to hoard our stash and emerge unscathed to scoop up the bargains offered by the less prescient. History is again rather definitive: the rules will change overnight, and continue changing, as needed. One “emergency measure” after another will be imposed and become normalized.

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

“The Federal Reserve Is Clearly Trapped”: Lawrence Lepard

“The Federal Reserve Is Clearly Trapped”: Lawrence Lepard

Friend of Fringe Finance Lawrence Lepard released his most recent investor letter this week.

Friend of Fringe Finance Lawrence Lepard released his most recent investor letter this week. He gets little coverage in the mainstream media, which, in my opinion, makes him someone worth listening to twice as closely.

Photo: Kitco

Larry was kind enough to allow me to share his thoughts heading into Q2 2024. The letter has been edited ever-so-slightly for formatting, grammar and visuals.


QUARTERLY OVERVIEW 

Globally, the stock markets continued their 45-degree angle rise during the first quarter. Crude oil, and  commodities broadly, also had a stair-step rise consistently during the quarter. Gold and silver and the  miners were an interesting dichotomy. Bullion prices were flat to slightly down in January and February,  and the miners were clobbered during those early months of Q1. However, in March the price of gold  broke through the long-standing $2,070 ceiling and the miners responded, driving the Fund up by 25.4%.  Gold miner indices were down 17% in the first two months before the March move.

Note that the gold mining stocks still have not provided any leverage to the price of gold. In fact, in the  first quarter they did not even keep pace with the increase in the price of gold. With gold up 8.1% in the  quarter, the gold mining indices were up 2%. Typically, gold miners provide 2x to 3x leverage in terms  of returns; so with gold up 8%, the miners would typically have been up 16% to 24%. This supports our  thesis that the miners are still undervalued and are going to mean revert with a vengeance as this bull  market in gold continues. The gold mining shares have a long way to go before they reflect fair value.

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

IMF Warns Biden’s Fiscal Profligacy Poses “Significant Risks” To Global Economy ‘In Great Election Year’

IMF Warns Biden’s Fiscal Profligacy Poses “Significant Risks” To Global Economy ‘In Great Election Year’

The IMF said the the quiet part out loud today (admittedly wrapped in 100s of pages of PhD-ese) in their benchmark Fiscal Monitor this morning: pointing out that America’s recent economic performance is partially the result of the country’s unsustainable borrowing, and that the US’ massive fiscal deficits have stoked inflation and pose “significant risks” for the global economy.

The exceptional recent performance of the United States is certainly impressive and a major driver of global growth, but it reflects strong demand factors as well, including a fiscal stance that is out of line with long-term fiscal sustainability,” the IMF wrote in its latest World Economic Outlook. They added that: “Fiscal policy developments in major economies, notably in the United States, have implications for global financing conditions.”

The IMF said the US had exhibited “remarkably large fiscal slippages”, with the fiscal deficit hitting 8.8 per cent of GDP last year – more than double the 4.1 per cent deficit figure recorded for 2022, calculating that ‘Bidenomics’ (and its Inflation Reduction Act) had contributed 0.5 percentage points to core inflation (due to its fiscal profligacy).

Who could have seen that coming?

The fund further said in its Fiscal Monitor report that it expected the US to record a deficit of 7.1 per cent next year – more than three times the average for other advanced economies. It also raised concerns over Chinese government debt as Beijing copes with weak demand and a housing crisis.

The US and China were among four countries the fund named that “critically need to take policy action to address fundamental imbalances between spending and revenues.”

The others were the UK and Italy.

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

AI, Gold and Nuclear War

AI, Gold and Nuclear War

So-called artificial intelligence (AI) is taking the world by storm. Meanwhile, gold has shot up like a rocket over the past couple of months.

In mid-February, gold was trading at $1,990. Two months later, gold is trading above $2,400 — a $410 gain in just two months.

So here’s a question:

Is there a connection between AI and gold? It seems like an odd question. But as it turns out, the answer is yes. And surprisingly, there has been for decades. It involves the Cold War between the U.S. and the Soviet Union.

In the early 1980s, the KGB was deeply concerned about the possibility of a nuclear first strike by the United States. At the time, Yuri Andropov was head of the KGB.

Andropov’s fear of a nuclear first strike by the U.S. was based in part on the 1980 election of Ronald Reagan and Reagan’s plan to install Pershing II intermediate-range missiles in Europe.

Those missiles could be armed with nuclear warheads and could strike the Soviet Union within minutes of being launched. This put Soviet nuclear forces on a hair-trigger alert. They adopted a “launch on warning” posture.

This means that as soon as credible evidence of a planned first strike was discovered, the Soviet Union would launch its own first strike to avoid destruction of its forces.

The irony was that the U.S. had no actual plans to launch a first strike, but the Soviet Union didn’t know that. Reagan’s speeches about the “evil empire” did nothing to calm Soviet concerns.

AI and Nuclear Readiness

In response, the Soviets developed a primitive (by today’s standards) AI system called VRYAN. That’s a Russian acronym for: sudden nuclear missile attack.

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

Predicting the Future: How Good is the “Earth4All” Model?

Predicting the Future: How Good is the “Earth4All” Model?

Jørgen Randers - Wikipedia

Jorgen Randers, one of the original authors of the first report to the Club of Rome, “The Limits to Growth,” of 1972. Now, he is one of the main authors of the new report to the Club, “Earth for All

This post is not meant to be an in-depth assessment of the Earth4All model but a general discussion on how to use forecasting models. I argue that no matter how sophisticated a model can be, it will always have shortcomings and that a flexible approach is normally the best. The Earth4All model is an integrated assessment model (IAM) linked to earlier efforts such as the “Limits to Growth” series of models, but it is a different approach, being more “goal-oriented” in the sense that it defines the policies needed to approach social, economic, and environmental goals. Facing an uncertain future, Earth4All provides a roadmap that we may or may not be able to follow, but it is part of our efforts to manage a better future for humankind.

You surely remember the story of Oedipus, who was foretold by the Pythoness of the Delphic Oracle that he would kill his father and marry his mother. Horrified, Oedipus ran away from the people he believed to be his parents and ended up unknowingly killing his real father and marrying his real mother. This story prefigures a problem that we are still facing nowadays: is the future predictable? And, if it is, does that mean it cannot be changed? When the story of Oedipus was written in the version we know today by Sophocles in the 5th century BC, oracles may have been enjoying the same kind of trust that in our times we reserve to “science.” Hence, the oracle’s words were presented as an absolute and unchangeable destiny.

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

Financial Forecast 2025-2032: Please Don’t Be Naive

Financial Forecast 2025-2032: Please Don’t Be Naive

Rather than attempt to evade Caesar’s reach, a better strategy might be to ‘go gray’: blend in, appear average.

Let’s start by stipulating that I don’t “like” this forecast. I’m not “talking my book” (for example, promoting nuclear power because I own shares in a uranium mine) or issuing this forecast because I favor it. I simply see it as the most likely trajectory of the global financial system, based on history and the dynamics of human systems. “Liking” it or not liking it has nothing to do with it: the opinions of Titanic passengers who didn’t “like” that the ship was sinking didn’t affect the outcome.

You already know the global financial system is untenable. In a nutshell, the expansion of production and consumption has been funded by the expansion of credit–money borrowed from future resources and income. The rate of expanding debt far surpasses the anemic rates of expanding production, and this rapidly expanding mountain of debt is perched precariously on the phantom collateral generated by The Everything Bubble, the astounding expansion of asset prices as those with the lowest cost access to credit have bid up every asset class, from real estate to gold to bitcoin to stocks to fine art.

All these assets are phantom collateral because they were bid up on the wings of cheap, abundant credit. History is rather decisive: all credit-asset bubbles pop, and the price of the assets round-trips back to pre-bubble valuations. As the bubble pops, credit shifts from being abundant and near-zero in cost to being scarce and dear.

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

What About Prices?

What About Prices?

Chapter 8 from my forthcoming book Rebuilding Economics from the Top Down

Inflation, having been quiescent for decades, became a serious issue once more with the bout of inflation that occurred after the peak of the government reaction to the Covid crisis. Though it did not reach the 12-15% levels of the mid-1970s to mid-1980s, and it has fallen sharply from its peak of 8.9% p.a. in June of 2022 to 3.2% in October 2023, it was still a serious break from the low inflation period from the mid-1980s until the beginning of the 2020s—see the top chart in Figure 19.

This is Chapter 8 from my forthcoming book Rebuilding Economics from the Top Down, which will be published by the Budapest Centre for Long-Term Sustainability and the Pallas Athéné Domus Meriti Foundation. I am serialising the book chapters here. A watermarked PDF of the manuscript is available to supporters.

The original Neoclassical (and Austrian) explanation for inflation is that it is caused by “too much money chasing too few goods”, with government money creation being the culprit, and with “long and variable lags” between government deficits and actual inflation:

The lag between the creation of a government deficit and its effects on the behavior of consumers and producers could conceivably be so long and variable that the stimulating effects of the deficit were often operative only after other factors had already brought about a recovery rather than when the initial decline was in progress. Despite intuitive feelings to the contrary, I do not believe we know enough to rule out completely this possibility. If it were realized, the proposed framework could intensify rather than mitigate cyclical fluctuations; that is, long and variable lags could convert the fluctuations in the government contribution to the income stream into the equivalent of an additional random disturbance. (Friedman 1948, p. 254. Emphasis added).

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

AI, Cryptocurrency Will Double Data Center Energy Consumption by 2026

According to the IEA, electricity consumption from data centres, artificial intelligence (AI) and the cryptocurrency sector could double by 2026. Factor in the global push to EVs.

Please consider the International Energy Agency IEA Electricity Analysis Report 2024-2026.

IEA Notable Points

  • Global electricity demand rose moderately in 2023 but is set to grow faster through 2026
  • Global electricity demand is expected to rise at a faster rate over the next three years, growing by an average of 3.4% annually through 2026.
  • Electricity consumption from data centres, artificial intelligence (AI) and the cryptocurrency sector could double by 2026.
  • About 85% of additional electricity demand through 2026 is set to come from outside advanced economies
  • China provides the largest share of global electricity demand growth in terms of volume, but India posts the fastest growth rate through 2026 among major economies.
  • EU electricity consumption is not expected to return to 2021 levels until 2026 at the earliest. Electricity prices for energy-intensive industries in the European Union in 2023 were almost double those in the United States and China.
  • Despite energy prices falling from their previous record highs, EU electricity demand further declined in 2023. Lower industrial electricity demand was the most important factor, as in the previous year.
  • Renewables are set to provide more than one-third of total electricity generation globally by early 2025, overtaking coal. The share of renewables in electricity generation is forecast to rise from 30% in 2023 to 37% in 2026, with the growth largely supported by the expansion of ever cheaper solar PV.
  • By 2025, global nuclear generation is forecast to exceed its previous record set in 2021.
  • Global CO2 emissions from electricity generation are expected to fall by more than 2% in 2024 after increasing by 1% in 2023.

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

Forget the Black Swans; the Vultures already Circling us Are Bad Enough to Kill us

Forget the Black Swans; the Vultures already Circling us Are Bad Enough to Kill us

There is certainly more coming to eat away at your finances as infamous bankster Jamie Dimon laid out quite broadly and plainly this week.

gray and white bird on brown tree branch during sunset
Photo by Abhishek Singh on Unsplash

Jamie Dimon never saw a dying bank he didn’t want to eat. Yet, while I think that Dimon’s name should be pronounced less like the clear, crown jewel of choice and more like the horned fiends of Hades, he does often speak of things likely to bring down the banking world or the economy with more candor than any other bankers, including particularly his partners in crime at the Fed. And you can be sure he has his scavenger eye on those things.

Perhaps it is just because he has unparalleled confidence that he is untouchable like a serial killer who talks to police on the street about how sorry he feels that they have had no luck at all finding the serial killer. He’s just that confident his next big take from hauling in a failing bank at fire-sale prices is so certain, he needn’t worry that warning everyone of the coming failures will get in the way of his business. Thus, he can play the saint for warning us all, knowing the greedy will ignore his warnings anyway, and still wait in the wings for that Friday evening call from Fed Chair Jerome Powell that says, “We have another bank for you. Can we meet tomorrow morning to discuss terms and complete a weekend sale?”

Fitting right in with my theme for this weekend’s Deeper Dive for paying subscribers to be titled “The Apoceclypse,” The CEO of JPMorgan Chase warned the world this week that it faces “Risks that eclipse anything since World War II.” I, of course, couldn’t agree more, so I want to spend this article distilling the Dimon’s annual report down to the most essential risks:

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

David Stockman on How the US Federal Debt Has Gone Parabolic…

David Stockman on How the US Federal Debt Has Gone Parabolic…

US Federal Debt

The federal debt has been recently increasing by $1 trillion every 100 days. That’s $10 billion per day, $416 million per hour.

In fact, Uncle Sam’s debt has risen by $470 billion in the first two months of this year to $34.5 trillion and is on pace to surpass $35 trillion in a little over a month, $37 trillion well before year’s end, and $40 trillion some time in 2025. That’s about two years ahead of the current CBO (Congressional Budget Office) forecast.

On the current path, moreover, the public debt will reach $60 trillion by the end of the 10-year budget window. But even that depends upon the CBO’s latest iteration of Rosy Scenario, which envisions no recession ever again, just 2% inflation as far as the eye can see and real interest rates of barely 1%. And that’s to say nothing of the trillions in phony spending cuts and out-year tax increases that are built into the CBO baseline but which Congress will never actually allow to materialize.

So when it comes to the projection that the 2034 debt will come in at just $60 trillion, we’ll take the wonders any day of the week. The fact that it will likely be much higher also means that the Washington UniParty’s prevailing fiscal policy path will lead to $100 trillion of public debt sometime in the early 2040s. And that means, in turn, that annual interest expense will then be greater than the entire federal budget during 2019.

Needless to say, neither Trump nor Biden has said, “Boo,” about this looming calamity. Sleepy Joe has even had the audacity to brag that he has reduced the federal deficit by more than half.

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

Today’s Contemplation: Collapse Cometh CIII–We All Believe What We Believe…Evidence Be Damned.


Today’s Contemplation: Collapse Cometh CIII

Teotihuacan, Mexico. (1988) Photo by author.

We All Believe What We Believe…Evidence Be Damned.

The following contemplation is my comment on the latest Honest Sorcerer post that explores personality ‘types’ and how these contribute to why we tend to hold such different views of our world.


Very interesting discussion and does help to explain a lot. And, again, you’ve provided me a springboard to share my own thoughts…

Perhaps these inherent differences (not necessarily hard-wired since I can see that my own answers to many of the questions on the test — which I took many years ago as well since my employer at the time regularly discussed and explored such things — have changed significantly over the years; I seem to have ‘come to the middle’ in many areas) are a big contributor to why I’ve come to hold that we believe what we believe, regardless of evidence or well-reasoned, counter-arguments.

In fact, being who we are with our complex cognitive abilities, we fight off non-confirmatory thoughts/ideas to reduce/avoid the stress/anxiety that can arise when our beliefs are challenged.

One of those beliefs I’ve certainly encountered when discussing ‘collapse’ with others is the idea that our pursuit of the perpetual growth chalice on a finite planet is just fine, thank you very much; please don’t regale me with your data and/or pre/historic and research-based examples of societal decline and/or overshoot…I will not listen or I will list off all the evidence of human progress and problem-solving abilities — particularly with respect to complex technologies — to prove my perspective.

And, of course, it doesn’t help the attempt to counter this notion of infinite growth on a finite planet when the ruling caste who significantly profits from the pursuit (in both monetary and power terms) cheerleads and encourages it at every turn and opportunity. I hear nothing but propaganda about the benefits of human expansion and development from my local/regional/federal politicians whenever they open their mouths and rarely, if ever, discussion of the knock-on, negative impacts except assurances that they will be minimal and/or overcome — yes, we are constructing a relatively expansive community upon these wetlands in this ecologically-sensitive area above important aquifers, but we’re putting a butterfly parkette in to benefit the environment…

For anyone agreeing with the herd and/or deferring to authority, as most of us do, or simply sitting on the fence, then it’s next to impossible to break with the majority perspective. I’ve given up my attempts to raise or even discuss the topic with most family members and others in my social circle — unless I am directly asked for my input. They simply do not want to even think about such a ‘depressing’ subject. Better to discuss and debate whether you think the Toronto Maple Leafs will make it through the first round of the upcoming hockey playoffs…

We even see such opposing views within the ‘collapse-aware’ communities, such as the Degrowth Movement, where a major core seems to hold that with just the right tinkering, and then widespread adoption, of ‘correct’ behaviours and technologies, humanity can solve the problems at hand — never recognising that it’s an unsolvable predicament that we might, at best, be capable of slightly mitigating for some small percentage of people.

It’s a right pickle and reminds me of a quote from a Richard Duncan article (an electrical engineer behind the Olduvai Theory of civilisational collapse):

“…according to the Olduvai schematic, world energy production per capita will decrease…[then] there will be a rash of permanent electrical blackouts worldwide. Consequently the vital…functions — communication, computation, and control — will be lost.
…Mother Nature then solves for us the (apparently) insuperable problem of the Tragedy of the Unmanaged Commons, which the human race seems either incapable or unwilling to solve for itself.”[1]


If you’ve made it to the end of this contemplation and have got something out of my writing, please consider ordering the trilogy of my ‘fictional’ novel series, Olduvai (PDF files; only $9.99 Canadian), via my website — the ‘profits’ of which help me to keep my internet presence alive and first book available in print (and is available via various online retailers). Encouraging others to read my work is also much appreciated.


[1] See this.

Today’s Contemplation: And Now For Something Completely Different, Part 6

Today’s Contemplation: And Now For Something Completely Different, Part 6

February 16, 2023 (original posting date)

While I take a break from my Contemplation posts here is the sixth installment of chapters from the fourth book in my fictional novel series (that stalled a few years ago but have ready). I will continue to share some of these over the next little while. Here are the links to PDF files of Chapter 1, Chapter 2, Chapter 3, Chapter 4, Chapter 5, and now Chapter 6.

The storyline: Flowing from actual world events, a damaged environment, dwindling energy resources, and a manipulated market-economy all come crashing together in this tale about the social and individual impact of stresses that overwhelm a precarious and complex global system. Supply chain interruptions, border disputes, increased fascism, growing protest movements, and mass migration out of rural areas into cities dominant the new normal.

Basically, this is a tale (set in Canada) about the individual (and societal) reactions to a breakdown of our complex systems. Life is proceeding ‘normally’ for most while a marginalised minority are increasingly concerned about the unsustainability of our way of life. Governments begin to clash with domestic populations while the machinations of some of the ruling caste, especially around energy systems, is exposed. Chapters trace the lives and experiences of a handful of people during the timeframe of about 3 months before to 3 months after a grid-down situation…

If you’ve made it to the end of this contemplation and have got something out of my writing, please consider ordering the trilogy of my ‘fictional’ novel series, Olduvai (PDF files; only $9.99 Canadian), via my website — the ‘profits’ of which help me to keep my internet presence alive and first book available in print (and is available via various online retailers). Encouraging others to read my work is also much appreciated.

Inflation is Causing Tectonic Shifts

Inflation is Causing Tectonic Shifts

Even if stock investors are acting as if nothing happened along the road they are walking, they will soon wish they had not missed the obvious.

a person walking down a road next to a stone wall
Photo by Roberta Piana on Unsplash

Yesterday when stocks crashed hard, I wrote the following caveat to their epitaph:

Whoa! Delusions broken. At least, for todaybut give investors a wisp of faint hope tomorrow, and greed may go from free fall to free floating again.

Indeed, the faintest wisp was all they got in today’s PCE inflation report, but that was all it took to send them deliriously positive in a state of euphoria and denial again. That won’t likely last long, foolish as it is, because the road is likely to be more than bumpy from here on out on the inflation front—more like jagged—and because bond investors today refused to give up the tougher edge they took yesterday with the bond vigilantes holding out for better returns. Never underestimate the foolishness and denial that undergirds this stock market, causing investors to miss the obvious signs on each side of them.

… Because, as I also wrote yesterday …

The 2YR yield is now getting very close to 5%. At those levels Treasuries will be seriously sucking money out of stocks for the practically free ride of doing nothing but sitting home with zero risk and clipping interest coupons. Those days won’t be long in coming.

That is what we saw today in bond action as yields continued to rise. A few articles in the news today highlighted how bond traders are now demanding higher yields from US Treasuries and not letting go of the reins…

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

Today Contemplation: Collapse Cometh CI–Theory Is Great, In Theory: More On Our ‘Renewable’ Energy Future


Today Contemplation: Collapse Cometh CI

February 13, 2023 (original posting date)

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

Theory Is Great, In Theory: More On Our ‘Renewable’ Energy Future

Quite often I get involved in online discussions with others about our predicament(s). Most of the time these are quite friendly in nature and a sharing of ideas and questions.

On occasion these turn into disagreements. And sometimes, unfortunately, these turn quite confrontational with me having to disengage from the dialogue due to the vitriol thrown at me — apparently I am not only anti-humanistic but a Big Oil shill, a climate change denier, and a fucking idiot/liberal/conservative/progressive/Malthusian, etc..

Once the ad hominem attacks begin, I usually just state we will have to agree to disagree and discontinue the interaction. I know people don’t want their beliefs challenged, they want them confirmed so if the interaction has gone sideways there’s little point to continue it. Few if any people change their beliefs due to a well-reasoned or evidence-based argument that runs counter to their own thoughts.

This said, most of the disagreements are civil and the issue stems from a divergence in whether we can ‘solve’ the problem/predicament we are focusing upon. I’ve found that the vast majority continue to believe that we can address the topic we’re discussing via some complex technology — usually non-renewable, renewable energy-harvesting technologies such as those that harness wind or sunshine to produce electricity (aka ‘renewables’).

While at one time during my fall into the rabbit’s hole of Peak Oil and all the related issues, I held out ‘hope’ for humanity and our planet. Nowadays, more often than not, I am tending towards there being no way out of the conundrum we walking, talking apes have led ourselves into. Neither time nor resources are on our side it would seem. Salvation, as it were, has been lost to the sands of time.

Here is one recent example with a fellow member of a Degrowth group I am a member of stemming from an article of The Honest Sorcerer’s that I posted to the group.



LK: “Politics” is just a name for technology of resource allocation on a societal scale.

We’re currently using the 18th century technology based on exponential growth (investments are made to obtain money to make more investments), it’s called “capitalism”.

Degrowth is another technology of resource allocation, and the one we need, because exponential growth on a finite planet is not possible.

(Having said that, we still need to combine degrowth with all kinds of low-emissions energy sources like renewables and nuclear, and we need to work on extending the life of existing low-carbon energy sources for as long as possible)


My response:: While I agree that degrowth (and radical at that) is needed, the alternative energy-harvesting technologies to fossil fuels you suggest we need to pursue require huge carbon inputs for their construction (and in perpetuity), continue to contribute to the destruction of our biosphere via the massive mineral mining and processing necessary, and only serve as an attempt to sustain the unsustainable so end up making our fundament predicament of ecological overshoot even worse. We need to be pursuing a low-/no-tech future with one hell of a lot fewer people. It is increasingly looking like it will have to be Nature that takes us there…

LK: The science is quite clear, low carbon energy sources have much, much lower carbon intensity of energy generation over their lifetimes, and lifetime extension to optimise for energy production instead of returns on investment decreases that carbon intensity even further. And fossil fuels have an enormous mining impact.

This is the third line of defense of fossil fuel companies: first they were straight-out lying about climate change, then they were lying about whether climate change is caused by humans, now they are lying about relative impacts of fossil fuel vs low carbon technologies, and it apparently works.

Low-tech future doesn’t work, it’s just a lie fossil companies are telling us to keep burning fossil fuels. We’re a tool-using social species and we need tools to get out of the shit we got into by using tools.


We will have to agree to disagree.

First, it seems you are assuming a support for fossil fuels in my comment that is not present. One does not have to be in any way supportive of the continuation of our extraction and use of them to see that alternatives are in every way — upstream and downstream — still quite dependent upon them. In fact, if you look at the largest investors in support of ‘alternatives’, you will discover it is the large energy businesses (aka Big Oil). Why would that be? Perhaps because they know that fossil fuels are required in huge quantities for them.

Second, the view that only carbon emissions are important blinds people to all the other complexities concerning our predicament of ecological overshoot. Biodiversity loss, mostly because of land system changes brought on by human expansion, appears to be much more significant. A concerted push to adopt non-renewable, renewable energy-harvesting technologies will ensure continued destruction of our biosphere.

The current refrain seems to be “Complex technologies and human ingenuity will save us from our predicament of ecological overshoot and its various symptoms (e.g., biodiversity loss) because they’ve worked up to this point in our history”…except inductive reasoning/logic does not always work. Continual observations by the turkey of the farmer have provided nothing but overwhelming evidence and positive reinforcement that the farmer is a beneficent and thoughtful caregiver; right up until the day before Thanksgiving and the trip behind the barn to the killing cone.

You should look at the work of energy researcher Alice Friedemann and geologist Simon Michaux to understand better the limitations of the ‘solution’ referred to as our ‘energy transition’.

But you are correct that a low-tech future doesn’t work. It doesn’t work to support our unsustainable living arrangements but more importantly the power and wealth structures of the status quo…that is why the ruling caste is pushing ‘renewables’: to maintain/expand their share of a quickly-shrinking economic pie. And this is ultimately why we will pursue these complex technologies despite the impossibility of what their cheerleaders promise. The profiteers of our world stand to make one hell of a lot of money before it all goes to hell in a handbasket.

These images/memes perhaps sum my perspective up:


LK: There’s one thing that kills people pretty rapidly and effectively and that is the lack of energy.

You can either support low-carbon energy sources or you can support fossil fuels or you can support widespread energy poverty that kills a fuckton of people, and those will be mainly poor people in the Global South.

Degrowth is not anarcho-primitivism, it’s not about the remnants of humanity huddling in cold and without hospitals and sewage networks, it’s about building sustainable future around equitable use of energy for everyone.

But we need low-carbon energy, because climate change drives biodiversity loss, water crises (because rising oceans make a lot of areas lose their access to potable water) and other nasty third-order effects.


My response: Again, we’ll have to agree to disagree. Pre/history shows us overwhelmingly that the utopian future you imagine is not possible on a finite planet with 8 billion (and growing). It is denial/bargaining in the face of biogeophysical realities and limits. Ecological overshoot for homo sapiens will be, I am almost certain, dealt with by Nature, not us — particularly given all the claims/liens on future energy/resources in the form of quadrillions of dollars of debt/credit that currently exist and have been created to sustain our current arrangements with zero concern for the future from which the resources have been stolen.


LK: There’s a lot of research by degrowth theoreticians that demonstrates that we’re perfectly technologically capable of supporting 8 billion people on a finite planet, leaving 50% of it to wild nature. It just would be a different life than the US “cardboard houses in suburbia with 2,5 cars per family and 2+ hours of commuting daily, eating beef and flying regularly”.

It would require end of capitalism, though, which is why capitalists are promoting narratives of “we’re doomed, there’s nothing we can do, all alternatives are bad, I guess we’ll have to die off in the future, but so far, we’re bringing in record annual profits”.


My response: Theory is great, in theory. Reality is something quite different. Every complex society to date has perished/collapsed/declined — most before ‘capitalism’ ever existed. To believe we will do otherwise is, well, just denial/bargaining built upon a lot of assumptions and hope. We would be better to plan for a future much, much different than the one you paint. But, again, I think Nature is going to take care of this predicament for us.


After mostly finishing this contemplation I came across Gail Tverberg’s latest that provides some great insight into why the complex technologies many are arguing will help solve our energy dilemma will not.


There are plenty of similar arguments out there if one so chooses to discover them and the overwhelming evidence that ‘renewables’ are not in any way going to do much except: add to the drawdown of finite resources; contribute to the continuous overloading of planetary sinks; provide more profits for the industrialists, financiers, and well-connected elite; and, sustain the misguided belief system that all is well for the most part, and human ingenuity and our technological prowess can solve any problem that stands in the way of some utopian future where we all (billions and billions of us) live in harmony with nature. Transcending the biological and physical constraints of existence upon a finite planet is well within our reach…if only you believe.

See especially:


If you’ve made it to the end of this contemplation and have got something out of my writing, please consider ordering the trilogy of my ‘fictional’ novel series, Olduvai (PDF files; only $9.99 Canadian), via my website — the ‘profits’ of which help me to keep my internet presence alive and first book available in print (and is available via various online retailers). Encouraging others to read my work is also much appreciated.

Olduvai IV: Courage
Click on image to read excerpts

Olduvai II: Exodus
Click on image to purchase

Click on image to purchase @ FriesenPress