Home » Economics (Page 29)

Category Archives: Economics

Olduvai
Click on image to purchase

Olduvai III: Catacylsm
Click on image to purchase

Post categories

Post Archives by Category

Today’s Contemplation: Collapse Cometh XXXVIII–The ‘Predicament’ of Ecological Overshoot


Today’s Contemplation: Collapse Cometh XXXVIII

January 25, 2022

Tulum, Mexico (1986) Photo by author

The ‘Predicament’ of Ecological Overshoot

The following contemplation has been prompted by some commentary regarding a recent article by Megan Seibert of the Real Green New Deal Project. It pulls together a couple of threads that I’ve been discussing the past few months…


There is no ‘remedy’ for our predicament of ecological overshoot, at least not one that most of us would like to implement. While it would be nice to have a ‘solution’, we’ve painted ourselves into a corner from which there appears to be no ‘escape’ — for a variety of reasons.

Most people don’t want to contemplate such an inevitability but the writing seems to be pretty clearly on the wall: we have ‘blossomed’ as a species in both numbers and living standards almost exclusively because of the exploitation of a one-time, finite cache of an energy-rich resource that has encountered significant diminishing returns but whose extraction and secondary impacts have led to pronounced and irreversible (at least in human lifespan terms) environmental/ecological destruction; this expansion of homo sapiens has blown well past the natural carrying capacity of our planetary environment and like any other species that experiences this the future can only be one of a massive ‘collapse’ — both in population numbers and sociocultural complexities.

Also like every other animal on this planet, we are hard-wired to avoid pain and seek out pleasure. But unlike other species we have a unique tool-making ability that we can use to help us address this genetic predisposition. So instead of accepting our painful plight and because of our complex cognitive abilities we have crafted a variety of pleasurable narratives to help us deny the impending reality — few of us ‘enjoy’ contemplating our mortality, so we avoid it or create comforting stories to soothe our anxieties and reduce our cognitive dissonance (an afterlife of some kind being one of the most common).

Throw on top of this the propensity for those at the top of our complex social structures to leverage crises to meet their primary motivation (control/expansion of the wealth-generation/extraction systems that provide their revenue streams and positions of ‘power’), and we have the perfect storm of circumstances to craft soothing stories of ‘solutions’ — especially through industrial production of ‘green/clean’ energy.

Conveniently left out of these tales (through both omission and commission) are the ‘costs’ of these ‘remedies’:
1) The actual unsustainability of industrial products dependent upon finite resources, including the fossil fuel platform.
2) The environmentally-/ecologically-destructive extraction and production processes required to construct, maintain, and then dispose of these ‘clean’ products.
3) The impossibility of any proposed energy alternative to fossil fuels to support our current energy-intensive complexities.
4) The social injustices being foisted upon peoples in the regions being exploited for many of the resources required for ‘green’ products.
5) The geopolitical chess games being played primarily over control of the resources — and the very real possibility of large-scale wars because of these.
6) The highlighting of immediately perceived benefits but the hiding of externalised negative consequences (that is made easier because of temporal lags in some of the effects).

Our propensity for ‘trusting’ authority combines with our desire to deny negative outcomes and leads the vast majority of people to believe that the oxymoronic solution of ‘green’ energy is real and achievable. Not only can we overcome the unfortunate consequences of our growth, but we can transition and sustain, no, improve, our standards of living if only we pursue with all our resources (both physical and monetary) the production of technologies cheered on by our ‘leaders’ — who just happen to profit handsomely from this. All it takes is belief…and, of course, the funnelling of LOTS of fiat currency into the hands of the ruling class.

Adding to the complexity of all of this, we walking/talking apes are highly emotional beings and loss impacts us significantly. We go through a rather complicated grieving process to come to grips with the negative emotions that accompany loss. The increasing recognition that we exist on a finite planet with finite resources and that we have reached or surpassed a tipping point in what we can ‘sustain’ of our social and physical complexities brings significant grief — few want the good times or conveniences to ever end. We experience a variety of stages in coming to accept our loss. Psychologist Elisabeth Kubler-Ross first proposed a five-stage process for this: denial, anger, bargaining, depression, acceptance.

Most people, I would argue, are in one of the first three stages at this particular juncture of time. Many are still in complete denial. They continue to believe that things will work out just fine and that the Cassandras shouting about the apocalypse are just plain ‘kooky’. There are some who are indeed quite angry and they are protesting and demanding that our political systems address our issues. They are pushing back hard against the status quo systems, upset that they have been misled on many fronts. Then there are those who are bargaining hard and clinging to the idea that we can ‘tweak’ our current systems or find some ‘solution’, especially through the use of our technological prowess and resourcefulness.

Then there are those few who have moved into the acceptance stage. They recognise what has happened and what will happen. They have acknowledged the inevitability that the complex systems that we rely upon are well beyond our capacity to alter, except perhaps at the margins.

This is not to say those who have reached the acceptance stage have completely ‘given up’, which is an accusation often hurled by those in the earlier stages of grief — and usually along with a LOT of ad hominem attacks. Indeed those who I know accept our predicament are still ‘fighting’, as it were. They are attempting to: alert/inform others so as to not make our situation ever worse (which is exactly what technological ‘solutions’ do); pursuing marginal changes such as increasing the self-reliance/-sufficiency of local regions by advocating relocalisation and regenerative agriculture/permaculture, and/or advocating degrowth; and/or seeking solace through faith of some kind.

No one, not one of us gets out of here alive. Whether some of us or our descendants make it out the other side of the bottleneck we have created for ourselves is up in the air. I wish the stories that have been weaved about ‘renewables’ and the future they could provide were true but I’ve come to the realisation that the more we do to try and prolong our current energy-intensive complexities, the more we reduce the chances for any of us, including most other species (at least those that we haven’t already exterminated), to have much if any of a future.


A couple of relevant articles/links in no particular order of importance:

COP(out) is Dead

COP(out) is Dead

I took a few minutes to dig into the text coming out of COP(out)28 this morning.

While 70,000 delegates depart Dubai in their private jets congratulating themselves for a job well done, the rest of us are flabbergasted by the failure.

Yet again, the planet has been let down. Anyone paying attention didn’t have high hopes in the first place. COP has been co-opted by the oil industry and is now basically a fossil fuels conference. COP29 is being held in oil-rich Azerbaijan.

This morning, the COP28 final announcement (including recommendations) was released. It is weak and full of loopholes. It’s rhetorical fluff.

COP is dead. Governments and their corporate overlords have abandoned us.

After 28 years of chances, the announcement coming out of COP28 proves we’re on our own.

To demonstrate how weak the recommendations are, I picked apart the announcement. Below I’ve copied the relevant COP suggestions and added my comments underneath.

Further recognizes the need for deep, rapid and sustained reductions in greenhouse gas emissions in line with 1.5 °C pathways and calls on Parties to contribute to the following global efforts, in a nationally determined manner, taking into account the Paris Agreement and their different national circumstances, pathways and approaches:

OK. Sounds interesting. Let’s look at those suggested approaches are…

(a) Tripling renewable energy capacity globally and doubling the global average annual rate of energy efficiency improvements by 2030;

A good start. Tripling renewables capacity and doubling growth within 6 years could significantly shift the energy mix, all things equal. Of course, the language doesn’t speak to the mix directly so this is implied.

However, it is possible that non-renewables capacity grows at the same rate resulting in no change to the mix. Moreover, even if the mix shifts to overweight renewables, non-renewable capacity if left unchanged would still spew the same amount of GHG emissions as today.

…click on the above link to read the rest…

World Could Be At The “Foothills Of The Next Copper Cycle” 

World Could Be At The “Foothills Of The Next Copper Cycle” 

The world is sliding into a copper deficit over the next couple of years as one of the world’s largest copper mines was forced to shutter operations while demand for the refined metal remains elevated due to renewable energy infrastructure and electric vehicles demand.

Warnings of a copper squeeze come as the Panamanian government recently closed First Quantum Minerals Ltd.’s $10 billion Cobre Panama copper mine, which produces 400,000 tons of copper annually and is considered one of the largest copper mines in the world. This decision emerged after protests and political disputes, culminating in the nation’s Supreme Court canceling the mine’s operating license.

The supply forecast faced further complications with unexpected news from Anglo American Plc last Friday. The miner downgraded copper production forecasts for its operations in South America for the next two years.

Anglo slashed its copper production target for 2024 by 200,000 tons. The forecast noted production levels will drop through 2025. The decline in production is equivalent to a large mine going offline.

Bloomberg pointed out the unexpected removal of 600,000 tons of copper production from First Quantum and Anglo American “would move the market from a large expected surplus into balance, or even a deficit,” adding, It’s also a major warning for the future: copper is an essential metal needed to decarbonize the global economy, which means mining companies will play a key role in facilitating the shift to green energy.”

In June, billionaire mining investor Robert Friedland explained to Bloomberg TV in an interview that copper prices are set to soar because the mining industry is failing to increase supply ahead of ‘accelerating demand.’ He warned:

“We’re heading for a train wreck here.” 

Friedland is the founder of Ivanhoe Mines Ltd. He continued, “My fear is that when push finally comes to shove,” copper prices might explode ten times.

…click on the above link to read the rest…

Today’s Contemplation: Collapse Cometh XXXVII–Decline of ‘Rationality’


Today’s Contemplation: Collapse Cometh XXXVII

January 15, 2022

Teotihuacan, Mexico (1988) Photo by author

Decline of ‘Rationality’

Got involved in a discussion after an Facebook Friend (Alice Friedemann, whose work can be seen here) posted a study on the decline of ‘rationality’ over the past few decades.

My initial response was as follows:

My initial thought is that this shift is more the result of a paradigmatic shift in academia itself from ‘Modernism’ to ‘Post-Modernism’ that has slowly filtered into the mainstream than anything else. As a university student during the entire decade of the 1980s, I was exposed to A LOT of Post-Modernist philosophy that questioned ‘Rationality’. Off the top of my head I recall a number of the philosophies I was exposed to coming from such academics as: Roland Barthes, Jacques Derrida, Claude Levi-Strauss, Michel Foucault, Clifford Geertz, Friedrich Nietzche, Martin Heidigger, Jean-Paul Sartre, Stephen Jay Gould, G.W.F. Hegel, H.G. Gadamer, Thomas Kuhn, and Jurgen Habermas. The topics included: rationality, literary criticism, deconstruction, deconstructive criticism, hermeneutics, philology, metaphysics, and dialectics. These all reflected a questioning of the strict ‘factual’ or ‘rational’ universe at one level or another — especially the ‘subjectivity’ verses ‘objectivity’ aspects of ‘science’. Here’s just a few of the books I still have in my dwindling collection:


The conversation has brought back some of my interests that arose during my university education (the ten years were in the pursuit of four degrees from biology/physiology to psychology/anthropology that culminated in an M.A. in archaeology and B.Ed. for a career in education; retired almost ten years now). It’s been a while (decades) since I studied this stuff but here are my two cents on the topic:

There is definitely a difference between the hard/physical sciences and the soft/social ones. Measuring and observing chemical reactions, the movement of stars, or biological/physiological properties then projecting their past and/or future states is quite different then doing this when humans are involved in the equation, be it psychology, economics, history, etc..

Perhaps one of the reasons that the Post-Modern era occurred was the result of the social sciences attempting to legitimise their fields as ‘science’ in order to be taken more seriously. Regardless, I still believe humans cannot ever be ‘objective’, especially about themselves; there are just too many psychological mechanisms affecting our cognition. Then there are the ‘incentives’ that exist in research and academia that impact ‘science’; not only the interpretation of results but their use and distribution/publication.

I also believe that as an endeavour practised by very fallible human beings science cannot help but be ‘subjective’ in nature. On more than one occasion we can see the exact same physical evidence being ‘interpreted’ in diametrically-opposed ways by ‘experts’ in the same field, and consensus, if it does occur, can sometimes take place as a result of persuasiveness and influence of a group rather than as a reflection of the evidence itself. This makes one of the more important aspects of science, the modelling of future states, even more problematic — to say little about our ‘interpretations’ of past states.

Throw complexity, non-linearity, and chaos into the mix and everything becomes less prone to accurate modelling and interpretation, no matter how sophisticated or how much data is input. In fact, the more data and more complex the model the more prone it is to error, especially due to the assumptions that tend to get built into them. The smallest of input errors can result in the largest of output result errors.

Certainly there are some models and projections that are better than others and evidence leads to ‘laws’ that are for the most part, irrefutable; but for better or worse, science tends to work on probabilities and rarely absolutes, with the passage of time being the verification of how accurate the base assumptions and model are.

So, I think we need to be careful as Post-Modern thought is challenged and rejected that the pendulum doesn’t swing too far the other way and as some are doing attempt to place science upon a pedestal from which it cannot be questioned or criticised, ever. I’ve run into individuals who will not accept any questioning of ‘science’ or criticism of the endeavour. As soon as you pose a question you are labelled a ‘denier’ and ignored or attacked. Science is absolute, irrefutable, and always correct. Always.

One of the dangers I’ve observed in an unquestioning faith in ‘science’ becomes the increasing leveraging of cherry-picked science by the ruling class to justify/rationalise policy and/or actions; something that has happened in the past and that we seem to be seeing more and more of with it being accompanied by the insistence that the policy/action taken is absolutely correct, cannot be questioned, and anyone critical is anti-science, anti-rational, anti-government and should be silenced, ostracised, marginalised, deplatformed, etc., etc.. And it could very well be that the apparent increasing questioning of ‘science’ is the epiphenomenon of people questioning the ruling class, not necessarily the scientific process itself.

And while the above beliefs of mine may appear as anti-science to some I would argue they are not. They are simply critical awareness of the fact that science is an endeavour practised by very fallible human beings that live in a social world where they are pushed and pulled in numerous directions by a variety of forces that can and do influence the way they think and interpret their physical world. Add to this the (ab)use of ‘science’ by the ruling class and we have the perfect environment for controversy beyond a simple reflection about the human aspects of the practice of science.

We have to be very careful that science does not become a cult where its adherents are ‘righteous’ and ‘better than the others’ because of their ‘correct’ beliefs. That sounds an awful lot like using science to create a new religion to me.

I close with a passage near the beginning of an article on the idea of a ‘renewable’ energy transition by Professor Emeritus Dr. William Rees and Meghan Seibert that I believe is relevant:

“We begin with a reminder that humans are storytellers by nature. We socially construct complex sets of facts, beliefs, and values that guide how we operate in the world. Indeed, humans act out of their socially constructed narratives as if they were real. All political ideologies, religious doctrines, economic paradigms, cultural narratives — even scientific theories — are socially constructed “stories” that may or may not accurately reflect any aspect of reality they purport to represent. Once a particular construct has taken hold, its adherents are likely to treat it more seriously than opposing evidence from an alternate conceptual framework.”


Inflation in Real Life Much Worse Than in Government Fantasy World

Inflation in Real Life Much Worse Than in Government Fantasy World

Inflation is dead!

At least that’s what you would think if you listen to government officials and talking heads in the financial media.

So, how is this victory over inflation working out for the average person?

Not so great.

Based on official CPI data, price inflation has cooled somewhat, although it remains far above the Federal Reserve’s 2% target. That hasn’t stopped President Biden and most of the mainstream financial media from declaring victory over rising prices. Biden even suggested that companies should start cutting prices since inflation is falling.

It’s important to remember that even if we believe the government numbers and price inflation is cooling, that doesn’t mean consumers are getting any relief.

Prices are not falling. They’re just going up slower than they were six months ago.

And those price increases are cumulative. Since January 2022, prices have risen 9.7% based on the CPI. And the CPI is designed to understate rising prices.

In other words, we’re all still coping with much higher prices no matter what the latest CPI report says. And the suffering is far worse than sterile BLS reports indicate.

This becomes clear when we go out in the real world and stop listening to news people spouting government numbers.

Ironically, we can learn more about the actual impact of inflation from the movie Home Alone than we can from some guy on CNBC droning on and on about the CPI.

In this 1990 classic, 8-year-old Kevin McCallister’s family went on a holiday trip to Paris and accidentally left him alone in his house. Chaos ensues.

You may recall that after realizing he’s alone, Kevin makes a trip to the grocery store. After all, a kid has to eat.

…click on the above link to read the rest…

Today’s Contemplation: Collapse Cometh CLXIX–Fiat Currency Devaluation: A Ruling Elite ‘Solution’ to Growth Limits

Today’s Contemplation: Collapse Cometh CLXIX

Teotihuacan, Mexico (1988). Photo by author.

Fiat Currency Devaluation: A Ruling Elite ‘Solution’ to Growth Limits

Today’s post is my comment on the latest Honest Sorcerer’s piece regarding the misuse of the term ‘inflation’ and how currency devaluation and the coming energy squeeze overlap.

Another well-articulated summary of yet a further aspect of our species’ predicament brought about by a society’s attempts to pursue infinite growth on a finite planet and how our ruling class attempts to keep the party going for a tad longer (mostly for them and their ilk) as we bump up against and try to ignore the planet’s biogeophysical limits to growth.

Debauching a currency as a society continues to expand but encounters diminishing returns on its investments in complexity has a long and storied history. In fact, the ‘strategy’ of economic machinations of this type to kick-the-can-down-the-road as it were has been around for about as long as complex societies and their currencies have been. The most famous (at least for those schooled in Western cultures) is that of the multi-generational devaluation of the Roman denarius[1].

By Nicolas Perrault III — Own work, CC0, https://commons.wikimedia.org/w/index.php?curid=67224989

I penned a rather lengthy Contemplation on the economic manipulation we will experience increasingly as part of a series on our energy future. In this fourth and final installment (that aligns with your piece) I begin with this:

“In Part 1, I argue that energy underpins everything, including human complex societies. In Part 2, I suggest that the increasing need for diminishing resources, especially finite or limited ‘renewable’ ones, invariably leads to geopolitical tension between competing polities. Part 3 further posits that this geopolitical competition creates internal societal stresses that are met with rising authoritarianism and attempts at sociobehavioural control of domestic populations by the ruling elite.

Economic manipulation — mostly through the financial/monetary systems of a society, that the ruling caste controls — is part and parcel of addressing the societal stresses that arise as things become more complex (as a result of the problem-solving aspects of a society), competition with other polities increases, resources become more dear, and control of the population takes on greater urgency.”

Pre/history has witnessed this story play out countless times in a rather predictable fashion. First, a society addresses its various problems using the least expensive and easiest-to-achieve ‘solutions’. The surpluses that result from this approach allow for a society to continue expanding (hydrocarbons having strapped powerful rockets to this recurrent tendency). Eventually, however, diminishing returns on these ‘solutions’ are encountered. More expensive and harder-to-achieve ‘solutions’ are then pursued.

Surpluses can stave off having to abandon growth for a while but eventually a point is reached where the masses begin to bear the brunt of the economic contraction that accompanies expansion or even just to maintain the status quo — the elite finding ways to insulate themselves for as long as possible. In a society with a complex economic/monetary system, manipulation via currency devaluation is one of the go-to ‘solutions’ since it can disguise responsibility for the inevitable decline in living standards that are experienced from it while benefitting a few at the top of the power and wealth structures that exist in large, complex societies.

On the surface this approach can appear to be effective, and certainly the narrative managers that work on behalf of the ruling class to steer beliefs amongst the masses stress this to be the case. In reality, however, this currency devaluation is like eating one’s seed corn: it always ends badly, for everyone since it is stealing from the future…

I provide some further thoughts on this phenomena in these posts: Collapse Cometh IV; Collapse Cometh XI; Collapse Cometh XXXII; Collapse Cometh CXII.

Today’s Contemplation: Collapse Cometh XXXVI–On Narrative Control and ‘Fact Checking’


Today’s Contemplation: Collapse Cometh XXXVI

December 21, 2021

Tulum, Mexico (1986) Photo by author

On Narrative Control and ‘Fact Checking’

One of the areas of interest for me as I weaved my way through my ten years of formal post-secondary education (yes, I spent the entire decade of the 1980s pursuing four degrees at several different universities; some of it part-time as I waffled between education and full-time work for relatively good pay in a grocery store) was that of epistemology (the nature and origins of ‘knowledge’). It was likely the result of some of my required readings: Stephen Jay Gould’s Ever Since Darwin, Thomas Kuhn’s The Structure of Scientific Revolutions, and Clifford Gertz’s The Interpretation of Cultures. Regardless, I ended up exploring (outside of my regular classes) such topics as deconstructive criticism, hermeneutics, and philology; interesting topics for someone who ended up teaching elementary school students (10 years) and as a school administrator (15 years).

Upon reflection, this exploration of how humans come to ‘know’ what they know (or at least what they believe) has led me to be rather skeptical of dominant narratives, especially of ‘authority figures’. My challenging of ‘authority’, as it were, may have come somewhat ‘naturally’ given I grew up in the household of a police officer. Not that I consider my dad to have been ‘authoritarian’, not at all, but the somewhat ‘natural’ pushback children can give to parents was slightly coloured in our household by the simple fact that my dad was a sociocultural authority figure on top of his role as a father.

Anyways, I believe I have always questioned to a certain extent the ‘popular’ stories we are exposed to. And as I’ve read more widely over the years, I’ve come to hold that these stories tend to always play to the pursuits of the people that dominate society’s economic and power structures. Reading Edward Bernays’ Propaganda, Murray Rothbard’s Anatomy of the State, and Noam Chomsky’s Hegemony or Survival: America’s Quest for Global Dominance has certainly solidified that feeling. In fact, I’ve come to believe that the primary motivation of our ruling elite is the control/expansion of the wealth-generating/extraction systems that provide their revenue streams. Everything they do serves this purpose in one way or another. Everything.

As Chomsky makes clear in Hegemony or Survival, one of the dominant concerns of the ruling elite is controlling the masses. Without such control, their power and privilege is at risk since the masses far, far outnumber the elite.

Rothbard argues in Anatomy of the State even just simple, passive resignation by the people that the status quo structures are inevitable is enough to sustain them. To ensure such acceptance, the State employs ‘opinion molders’ to justify/rationalise/persuade the population of the beneficence of the ruling elite and that some alternative is far worse.

In Propaganda, Bernays sets out arguing that democracies being so complex require an unseen group of people to guide their ideas and beliefs so as to ensure cooperation. It is this special cadre that directs what stories/narratives are to be believed that is the real ruling power in a society, not its politicians. And, of course, Bernays became an important part of the US Empire’s storytelling to market geopolitical ‘interventions’ as adventures in nation building and spreading democracy.

So, narrative control is essential to maintaining power and privilege. One of the growing ways of controlling the narrative in a world of social media and non-mainstream/corporate digital news is to ‘disprove’ alternative stories. One of the more recent forms of such control has been the phenomenon of ‘fact checking’. Fact checking has been marketed as a form of objective and investigative research into claims disseminated by others. If one can ‘check’ the ‘facts’ and show them to be biased, prejudiced, misinformed, misguided, purposely false, etc., then one’s own narrative can be shown to be ‘true’ and ‘factual’.

It would appear, however, that the ‘fact-checking’ narrative itself is beginning to fray quite openly, perhaps reinforcing the accusation by some that the process of ‘fact checking’ is far more about giving the appearance of objective support for dominant/mainstream storylines (virtually always in favour of the power and economic structures that favour the ruling elite) rather than actually providing ‘factual’ buttressing of well-documented and evidentiary arguments.

Although you will have some difficulty finding the following stories in most (all?) mainstream/corporate media outlets (this is one of the ways legacy media censures stories; they simply don’t report on them at all or very marginally— see the organisation Project Censored for ongoing examples), there is increasing exposure that ‘fact checking’ is nothing more than another tool in the toolbox of narrative control/propaganda used by the ruling elite.

In a lawsuit by journalist John Stossel, Facebook has defended its ‘fact checking’ by claiming that the third-party fact checkers it uses are merely the ‘opinion’ of the fact checkers it depends upon and thus protected under the U.S.’s First Amendment. It’s ‘opinion’ not actually ‘factual’ so the lawsuit is frivolous.

In another accusation of wrong-doing, the British Medical Journal (BMJ) has written an open letter to Mark Zuckerberg of Facebook/Meta calling the censorship and flagging of some of their work very problematic. In fact, the editors of the journal called Facebook’s fact checking: “inaccurate, incompetent, and irresponsible.” Facebook/Meta has yet to reply.

We have a long-time journalist standing up to the fact-checking process and Facebook defending itself by stating these ‘fact checks’ are really just the opinion of others. Followed by a well-respected medical journal challenging Facebook’s fact checking as completely off-base and unfounded. Two pretty strong strikes against a powerful media’s supposed objective ‘fact checking’ and increasing censorship of non-mainstream stories.

I could go one with example after example of such blatant manipulation of narratives by our ruling elite and their so-called ‘fact checkers’ but what else is there to say? Except, if the mainstream/corporate media and/or government/politicians are pushing repeatedly a narrative (or purposely censoring one), then it likely serves the purpose of manipulating what you believe so as to maintain/expand the status quo power and/or economic structures of our society. Their stories, no matter the rationalisation/justification for them, should always be viewed critically and questioned. Chances are they are serving their narrow purposes, not the wider society’s.

I see this all the time in many of the energy/resource stories I read and the domineering economic paradigm through which the ‘facts’ are viewed at the expense of an ecological lens. And while there has been a growing incorporation of environmental/ecological concerns in the energy/resource narratives, it seems to me it’s more about crafting storylines that serve to leverage concern about natural limits to further expand wealth and control, and certainly not to address the notion that we can’t continue to pursue growth in any form in perpetuity without doing irreparable damage to the natural systems we depend upon for our very survival.

No, we can chase growth, employ everyone, and forever raise our standards of living by constructing ‘Net Zero’ buildings and electric vehicles, all powered by ‘clean/green’ energy, and living happily ever after. Comforting stories to be sure, but also ones that feed the insatiable profit-seeking of the ruling elite at the expense of the natural systems that provide our ability to be alive.

Infinite growth. Finite planet. What could possibly go wrong?



Today’s Contemplation: Collapse Cometh XXXV–Exponential Growth, Natural Carrying Capacity, and Ecological Overshoot


Today’s Contemplation: Collapse Cometh XXXV

December 8, 2021

Pompeii, Italy (1984) Photo by author

Exponential Growth, Natural Carrying Capacity, and Ecological Overshoot

The following very short contemplation was in response to some comments on an Andrew Nikiforuk article in The Tyee.


As an Apex predator, humans were on a path from the outset to likely overshoot the natural carrying capacity of their environment. As the late Dr. Albert Bartlett opines in a must-watch presentation on our inability to understand the exponential function: “…here we can see the human dilemma — everything we regard as good makes the population problem worse, everything we regard as bad helps solve the problem. There is a dilemma if ever there was one.”

As William Catton argues in Overshoot, we humans have had two approaches to overcoming carrying capacity limits and continuing our exponential population explosion and global reach/impact: the takeover and drawdown methods.

For millennia we relied upon taking over unexploited regions by migrating. The biggest boost came about with the European ‘discovery’ of a second hemisphere.

Then, a couple of centuries ago, we began exploiting the drawdown method that relies upon extraction of fossil energy to inflate the human carrying capacity.

Given that the drawdown method relies upon a finite resource, that avenue of extending the limits to our expansion could only ever be temporary. And, it would appear, we encountered diminishing returns on the drawdown method some decades ago but are only now really beginning to experience the limits imposed upon us by a finite planet.

Population biology shows us what happens to a species that comes to rely upon finite resources (or renewables ones that are over-harvested faster than can be replenished): population collapse.

We have this knowledge and awareness but for many reasons we tend to refuse to accept it. Instead we craft comforting narratives in our denial or bargaining to avoid thinking too deeply about it.

There is no solving this via our technology or ‘ingenuity’ (in fact, there’s a good argument to be made that our attempts to do this are actually expediting and adding to our overshoot by increasing our drawdown of finite resources, further overloading our planetary sinks, and further reducing our carrying capacity). Our refusal (for whatever reason) to degrow/downsize/power-down/etc. ensures we lose our chance to mitigate the consequences of our overshoot.


After posting this comment, Alice Friedemann (see her Energy Skeptic website) posted the following on Facebook. I encourage everyone to read this and consider signing it.


Capitalism Cannot Turn Into Anything But Autocracy

Capitalism Cannot Turn Into Anything But Autocracy

…only to disintegrate altogether soon after

The history of capitalism has an arc of its own. It has a beginning, a high point, and yes, an end — with or without revolutions, climate change or ecological destruction. Capitalism follows a trajectory of natural evolution culminating in a Orwellian dystopia, right before its quick demise. Join me in this short review on the origins of capitalism to understand why every attempt made at dismantling it has failed — and will continue to do so — until the authoritarian technologies making it possible disappear in the not so distant future.


According to Investopedia “Capitalism is an economic system characterized by private ownership of the means of production, with labor solely paid wages. Capitalism depends on the enforcement of private property rights, which provide incentives for investment in and productive use of capital.” What is sorely missing from this definition — as always when it comes to economics — is the role of technology and energy. Both factors have played a crucial role in the conception of this idea, let alone its growth into the hydra it has become. Contrary to common wisdom, I argue, neither of these critical inputs — energy and technology — were brought about by capitalism itself, it was completely the other way around. It was the use of technology and an ever growing availability of energy which has made capitalism possible, and thus the loss of these will be the cause which will eventually bring it to its knees.

Capitalism can never hoped to be dismantled without abandoning technology.

I know that is a harsh statement, perhaps prompting some of my readers to point out how anti-technology I am, and how a socialist revolution / green technologies / Bitcoin / gold / or fill in the blank could turn things around overnight. Well, all I ask is this: bear with me for a few more minutes.

…click on the above link to read the rest…

Hope Dies, Gold Rises

Hope Dies, Gold Rises

The primary stages of grief include: Denial, anger, bargaining, depression and finally, acceptance.

When it comes to grieving over the slow demise of the American economy, sovereign IOU/USD and the absolute failure of our “re-election-only-focused” policy makers, these stages of grief are easy to see yet easier to ignore.

But false hope won’t help us.

Denying a Recession

With the vast majority of sectors that make up the U.S. economy evidencing three months of negative GDP growth while a laundry list of leading homebuilder indicators (housing starts and prospective buyers) drops into recessionary red, I keep wondering when the recession debate will finally end.

Walmart is worrying, Jamie Dimon is worrying, commercial real estate delinquencies are rising and IPO markets are all but dead on arrival.

But that’s just the latest hard data.

One can cite everything from the Conference Board of Leading Indicators, negative M2 growth, yield curve movements and a drying repo market to make it empirically clear that the US is not heading for recession but has already been in one for nearly a year.

In fact, if we were to define a Depression by growth rates of inflation-adjusted GDP per capita, then factually speaking, we have also been in a quantifiable depression for the last 16 years.

Such data, of course, is depressing, but are we all still hoping for kinder facts or a political and monetary Santa Claus to cure our denial?

I for one favor preparation over denial.

Then Comes the Anger

Citizens storming the Capital, or grabbing guitars and singing “I’m taxed to no end and my dollar aint $#!T” are just the first signs of  the anger stage.

…click on the above link to read the rest…

Today’s Contemplation: CLXVIII–Avoiding ‘Collapse’ Awareness


Today’s Contemplation: CLXVIII

Pompeii, Italy (1984). Photo by author.

Avoiding ‘Collapse’ Awareness

The following is my comment on Alan Urban’s most recent post (see here) discussing his thoughts on why more people are not ‘collapse aware’.


The reasons you cite for most not being ‘collapse aware’ are part and parcel of a variety of explanations for this state of affairs. In my contemplations on the situation I’ve come to the conclusion that a lot of this is due to human psychology and the mechanisms that help us to avoid anxiety-provoking thoughts.

First, we highly-cognitive apes deplore uncertainty and the idea of ‘collapse’ is all about an uncertain future and one in which we have little to no control over events. In response, we tend to grab a hold of stories that portray certainty, especially if they paint a more positive future (thanks optimism bias) — regardless of evidence to the contrary (see my posts that discuss this here and here).

In addition, we humans tend to defer to authority, get caught up in groupthink, strive to reduce our cognitive dissonance, and seek to justify our perceptions of the world (see my series of posts on these, beginning here). These aspects of human cognition make us most susceptible to certain forms of narrative management (aka propaganda), particularly stories that portray a comforting and certain future.

Then there’s what seems our complete and utter blindness to the underpinnings of our complex societies — energy — and the limits of our ability to sustain the quantities required to maintain our living standards (see my post series beginning here on this aspect). That we have been drawing down our primary source — hydrocarbons — at ever-increasing rates as we encounter the headwinds due to diminishing returns is increasingly rationalised away as simply a bump in the road since our ingenuity and technological prowess can address any impediments to our wishes/wants — physics be damned.

Add to the above the idea that perhaps the most important cognitive evolutionary shift for our species may have been where we became aware of our own mortality and then developed ways to deny this reality (see Ajit Varki and Danny Brower’s thesis here). Denying reality has become an entrenched means of reducing our anxiety, and it gets used often; and perhaps increasingly as the world goes sideways and provokes greater instances of uncertainty.

Combine the above with the hierarchical aspects of our social species and complex societies, and our story-telling means of communicating, and we have the perfect mix for why we rationalise away evidence for the impending ‘collapse’ of our current living arrangements and all the conveniences and comforts they afford us — especially in the so-called ‘advanced’ economies that have depended upon the lion’s share of what has been to this point in our history a growing supply of surplus energy.

We ignore the hard biogeophysical limits, we rationalise away the ecological systems destruction wrought by our demands, and we weave comforting narratives to avoid anxiety-provoking thoughts. We live in a world of what appears widely-held false beliefs where challenging them gets you ignored and/or ostracised by those clinging to mainstream notions. It’s often better to raise marginally-related topics and concerns to nudge others along a path of ‘sustainability’ and ‘resilience’ as you suggest rather than confront the hard reality of limits and what overshooting them means to our future…

Beware the Snake Oil Salesmen: Climate Change and Elite Confabs

I penned this more than two years ago as members of the world’s ruling caste gathered for COP26. It’s just as relevant today as these so-called ‘leaders’ gather once again in Dubai, United Arab Emirates for COP28…

_____

Today’s Contemplation: Collapse Cometh XXXI–
Beware the Snake Oil Salesmen: Climate Change and Elite Confabs

Blog      Medium

“If we are not discussing significant degrowth, however (and we’re not because there’s no money to be made from it and the primary motivation of the ruling class, who control the mainstream narratives, is the control/expansion of the wealth-generating systems that provide their revenue streams), then it would seem we are just creating stories to sell more stuff and people tend to accept them readily because they reduce cognitive dissonance — we recognise we live on a finite planet and infinite growth is not possible (except through extreme magical, Cargo Cult-like thinking) but want to also believe that we can continue to live in our energy- and resource-intensive lifestyles uninterrupted and without significant sacrifice”

Also see: Today’s Contemplation: Collapse Cometh XXXII–
Greenwashing, Fiat Currency, Narrative Management: More On Climate Change and Elite Confabs

Blog      Medium

Insanity: Celebrating Rate Cuts At A Shiller PE Of 31x

Insanity: Celebrating Rate Cuts At A Shiller PE Of 31x

Last week ended the way all weeks have been ending: with the stock market raging higher based on future expectations of rate cuts that (1) have not happened yet (2) probably won’t happen until next year, unless a market crash happens first and (3) won’t make their way through the economy for another 18 to 24 months.

But nonetheless, the S&P is looking to finish the year nearing astronomical 20% gains, something that I would have thought to have been impossible with rates raging higher over the last 2 years. But, then again, remember as I wrote in September — rate cuts are usually the signal for the market to crash — not rate hikes: Fed Rate Cuts Should Scare The Shit Out Of You

Is that something I wish I had understood better heading into the last few years? Absolutely. Have I taken an ass whooping betting on volatility and being mostly net short? Absolutely. Does that mean I’m going to be deadass wrong again in 2024?

Not necessarily.

After all, look at gold. As I’ve noted, gold is one of the very few names I’d consider ever being “all in”. And, as I have written about extensively, I find the setup for the precious metal heading into 2024 to be outstanding. I’ve been harping on this since the inception of this blog and it took until this week for gold to hit new all time highs: The Fed Can’t, And Won’t, Nail The Dismount

So let’s just hope it isn’t my analysis that’s wrong, but rather, just my timing.

Anyway I took the time this week to offer up my updated thoughts on Elon Musk and Tesla, after both Musk’s outburst at the DealBook conference and Tesla’s Cybertruck reveal. I explain my thoughts and continued stance on Tesla here: Elon Musk And Dark Forces

…click on the above link to read the rest…

Today’s Contemplation: Collapse Cometh XXXIV–Energy-Averaging Systems and Complexity: A Recipe For Collapse

Today’s Contemplation: Collapse Cometh XXXIV

November 28, 2021

Athens, Greece (1984) Photo by author

Energy-Averaging Systems and Complexity: A Recipe For Collapse

Supply chain disruptions and the product shortages that result have become a growing concern over the past couple of years and the reasons for these are as varied as the people providing the ‘analysis’. Production delays. Covid-19 pandemic. Pent-up consumer demand. Central bank monetary policy. Government economic stimulus. Consumer hoarding. Supply versus demand basics. Labour woes. Vaccination mandates. Union strikes. The number and variety of competing narratives is almost endless.

I have been once again reminded of the vagaries of our supply chains, the disruptions that can result, and our increasing dependence upon them with the unprecedented torrential rain and flood damage across many parts of British Columbia, Canada; and, of course, similar disruptions have occurred across the planet.

Instead of a recognition that perhaps a rethinking is needed of the complexities of our current systems and the dependencies that result from them, particularly in light of this increasingly problematic supply situation, we have politicians (and many in the media) doubling-down on the very systems that have helped to put us in the various predicaments we are encountering.

Our growing reliance on intensive-energy and other resource systems is not viewed as any type of dependency that places us in the crosshairs of ecological overshoot and unforeseen circumstances, but as a supply and demand conundrum that can be best addressed via our ingenuity and technology. Once again the primacy of a political and/or economic worldview, as opposed to an ecological one, shines through in our interpretation of world events; and of course the subsequent ‘solutions’ proposed.

Our dependence upon complex and thus fragile long-distance supply chains (over which we may have little control whatsoever) is not perceived as a consequence of resource constraints manifesting themselves on a finite planet with a growing population and concomitant resource requirements but as a result of ‘organisational’ weaknesses that can be overcome with the right political and/or economic ‘solutions’. Greater centralisation. More money ‘printing’. Increased taxes. Significant investment in ‘green’ energy. Massive wealth ‘redistribution’. Expansive infrastructure construction. Higher wages. Rationing. Forced vaccinations. The proposed ‘solutions’ are almost endless in nature and scope.

All of these ‘solutions’ have one thing in common: they attempt to ‘tweak’ our current economic/political systems. They fail to recognise that perhaps the weakness or ‘problem’ is with the system itself. A system that has built-in constraints that pre/history, and population biology, would suggest result in eventual failure.

Archaeologist Joseph Tainter discusses the benefits and vulnerabilities of ‘energy averaging systems’ (i.e., trade) that contributed to the collapse of the Chacoan society in his seminal text The Collapse of Complex Societies.

He argued that the energy averaging system employed early on took advantage of the Chacoan Basin’s diversity, distributing environmental vagaries of food production in a mutually-supportive network that increased subsistence security and accommodated population growth. At the beginning, this system was improved by adding more participants and increasing diversity but as time passed duplication of resource bases increased and less productive areas were added causing the buffering effect to decline.

This fits entirely with Tainter’s basic thesis that as problem-solving organisations, complex societies gravitate towards the easiest-to-implement and most beneficial ‘solutions’ to begin with. As time passes, the ‘solutions’ become more costly to society in terms of ‘investments’ (e.g., time, energy, resources, etc.) and the beneficial returns accrued diminish. This is the law of marginal utility, or diminishing returns, in action.

As return on investment dropped for those in the Chacoan Basin that were involved in the agricultural trade system, communities began to withdraw their participation in it. The collapse of the Chacoan society was not due primarily to environmental deterioration (although that did influence behaviour) but because the population choose to disengage when the challenge of another drought raised the costs of participation to a level that was more than the benefits of remaining. In other words, the benefits amassed by participation in the system declined over time and environmental inconsistencies finally pushed regions to remove themselves from a system that no longer provided them security of supplies; participants either moved out of the area or relocalised their economies. The return to a more simplified and local dependence emerged as supply chains could no longer provide security.

Having just completed rereading William Catton Jr.’s Overshoot, I can’t help but take a slightly different perspective than the mainstream ones that are being offered through our various media; what Catton terms an ecological perspective. And one that is influenced by Tainter’s thesis: our supply chain disruptions are increasingly coming under strain from our being in overshoot and encountering diminishing returns on our investments in them (and this is particularly true for one of the most fundamental resources that underpin our global industrial societies: fossil fuels).

What should we do? It’s one of the things I’ve stressed for some years in my local community (not that it seems to be having much impact, if any): we need to use what dwindling resources remain to relocalise as much as possible but particularly food production, procurement of potable water, and supplies of shelter needs for the regional climate so that supply disruptions do not result in a massive ‘collapse’ (an additional priority should also be to ‘decommission’ some of our more ‘dangerous’ creations such as nuclear power plants and biosafety labs).

Pre/history shows that relocalisation is going to happen eventually anyways, and in order to avert a sudden loss of important supplies that would have devastating consequences (especially food, water, and shelter), we should prepare ourselves now while we have the opportunity and resources to do so.

Instead, what I’ve observed is a doubling-down as it were of the processes that have created our predicament: pursuit of perpetual growth on a finite planet, using political/economic mechanisms along with hopes of future technologies to rationalise/justify this approach. While such a path may help to reduce the stress of growing cognitive dissonance, it does nothing to help mitigate the coming ‘storms’ that will increasingly disrupt supply chains.

The inability of our ‘leaders’ to view the world through anything but a political/economic paradigm and its built-in short-term focus has blinded them to the reality that we do not stand above and outside of nature or its biological principles and systems. We are as prone to overshoot and the consequences that come with it as any other species. And because of their blindness (and most people’s uncritical acceptance of their narratives) we are rushing towards a cliff that is directly ahead. In fact, perhaps we’ve already left solid ground but just haven’t realised it yet because, after all, denial is an extremely powerful drug.

Today’s Contemplation: Collapse Cometh XXXIII–Overlooking Ecological Overshoot


Today’s Contemplation: Collapse Cometh XXXIII

November 25, 2021

Tulum, Mexico (1986) Photo by author

Overlooking Ecological Overshoot

Today’s thought was prompted by an Andrew Nikiforuk article in The Tyee and my recent rereading of William Catton Jr.’s Overshoot.


I just finished rereading William Catton’s Overshoot. One of the things I’m coming to better appreciate is Catton’s idea that the ‘Age of Exuberance’ (a time created by human expansion in almost all its forms and mostly facilitated by our extraction of fossil fuels) has so infiltrated our thinking that we tend to view the world through almost exclusively human-created institutional lenses, especially economic and political ones. We have come to think of ourselves as completely removed from nature: we sit above and beyond our natural environment with the ability to both control and predict it; primarily due to our ‘ingenuity’ and ‘technological prowess’.

This non-ecological worldview is still very much entrenched in our thinking and comes through quite clearly in mainstream narratives regarding our various predicaments. Usually it goes like this: our ingenuity and technological prowess can ‘solve’ anything thrown our way so we can continue business-as-usual; in fact, we can continue expanding our presence and increase our standard of living to infinity and beyond (apologies to Buzz Lightyear).

What are by now increasingly looking to be insoluble problems appear to have been solved in the past by two different approaches that Catton describes: the takeover method (move into a different area via migration or military expansion) or the drawdown method (depend upon non-renewable and finite resources that have been laid down millennia ago). On a finite planet, there are limits to both of these approaches.

But because of our tendency towards cornucopian thinking, most analyses overlook the idea of resource depletion or overloaded sinks that can help to cleanse our waste products that accompany growth on a finite planet. It’s all about economics, politics, technology, etc..

Our traditional ‘solutions’, however, have probably surpassed any sustainable limits and instead of being able to rely upon our ‘savings’ we have to shift towards relying exclusively upon our ‘income’ which, unfortunately, doesn’t come close to being able to sustain so many of us. To better appreciate the increasing need to do this we also need to shift our interpretive paradigm towards one that puts us back within and an intricate part of ecological systems. Ecological considerations, especially that we’ve overshot our natural carrying capacity, are missing in action from most people’s thinking.

The first thing one must do when found in a hole you want to extricate yourself from is to stop digging. Until and unless we can both individually and as a collective stop pursuing the infinite growth chalice, we travel further and further into the black hole that is ecological overshoot with an eventual rebalancing (i.e., collapse) that we cannot control nor mitigate. Our ingenuity can’t do it. Our technology can’t do it (in fact, there’s a good argument to be made that pursuing technological ‘solutions’ actually exacerbates our overshoot).

It is increasingly likely that a ‘solution’ at this point is completely out of our grasp. We’ve pursued business-as-usual despite repeated warnings because we’ve viewed and interpreted our predicament through the wrong paradigm and put ourselves in a corner. It is likely that one’s energies/efforts may be best focused going forward upon local community resilience and self-sufficiency. Relocalising as much as possible but especially procurement of potable water, appropriate shelter needs (for regional climate), and food should be a priority. Continuing to expand and depend upon diminishing resources that come to us via complex, fragile, and centralised supply chains is a sure recipe for mass disaster.

Olduvai IV: Courage
Click on image to read excerpts

Olduvai II: Exodus
Click on image to purchase

Click on image to purchase @ FriesenPress