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David Stockman on Washington’s Fiscal Doomsday Machine

David Stockman on Washington’s Fiscal Doomsday Machine

Washington DC

Here’s one that will make your hair stand on end: The US Treasury closed the books on FY 2023, bringing the four-year cumulative deficit to $9.0 trillion!

That’s right. During the last 1,461 days (FY 2020 thru FY 2023), Uncle Sam has generated $6.2 billion of red ink each and every day including weekends, holidays and snow-days. For anyone keeping score at home, that’s $4.2 million of red ink per minute.

For the purpose of perspective, here’s how long it took to generate the first $9 trillion of US government debt: It took all of 43 presidents and 219 years to reach $9 trillion of public debt in July 2007. So the national debt clock has now accelerated to hyper-drive.

Market Value of Public Debt Outstanding, 1940 to July 2007

And, yes, we do mean accelerate. It turns out that when you remove the budgetary Mickey Mouse from the numbers, the federal deficit for FY 2023 clocked in at over $2.0 trillion, or double the comparable level in FY 2022. The reported numbers, of course, do not look quite as alarming, posting at $1.4 trillion last year and $1.7 trillion this year.

But as The Wall Street Journal cogently explained recently, that comparison is very misleading because it includes a $380 billion budgetary shuffle between the two years. It seems that Sleepy Joe’s student debt cancellation got recorded as a cost in September 2022, but then got canceled by the courts in FY 2023, turning it into a giant “savings”!

When the Biden administration announced its plan to forgive federal student debt held by 40 million Americans in September 2022, it logged the long-term cost of the program, $379 billion, on the budget all at once, even though effectively no money was spent on it that year… But in June 2023, the Supreme Court tossed the debt-cancellation program, meaning most of that money wouldn’t actually be spent. Rather than update last year’s deficit numbers, though, the Treasury recorded the changes as a $333 billion spending cut in August 2023.

…click on the above link to read the rest…

U.S. Financial Death Spiral – John Rubino

U.S. Financial Death Spiral – John Rubino

Analyst and financial writer John Rubino has a new warning about being fooled into thinking the economy is improving because inflation and interest rates have fallen some recently.  Rubino says, “If the U.S. government is running crisis level deficits, which it is right now, borrowing money and paying interest on it means we are in a financial death spiral.  The debt goes up, the interest on the debt goes up and that raises the debt even further, and you just spiral out of control.  We are there right now.  The official U.S. debt is $33.5 trillion.  It’s growing by $1.7 trillion a year, and $1 trillion of that is interest costs.  Interest costs are rising as the overall debt goes up.  Then throw in this incredibly reckless military spending in the guise of foreign aid, and you get a society that has completely lost control. That’s where we are now.  We are in the blowoff stage of a 70-year credit super-cycle.  Those things do not end with a whimper, and they certainly do not end with a soft landing.  They end with a bang, and the bang is going to be centered on the currency.  People are going to look at this and say, ‘Do I really want to hold the currency or bonds of a country that is destroying its finances at this trajectory and this scale?’  The answer will be ‘No.’  At that point, it is game over for a deeply indebted economy.  We are headed that way fast, and these wars are taking us that way even faster.”

If the Fed keeps raising interest rates, the economy tanks, but you protect the dollar.  If you cut interest rates, you spike inflation even more, and the U.S. dollar tanks.  Rubino says in the end, we get a “massive reset,” and the everything bubble explodes.

…click on the above link to read the rest…

Today’s Contemplation: Collapse Cometh CLXV–Rackets: Keeping the Curtains on Reality Drawn


Today’s Contemplation: Collapse Cometh CLXV

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

Today’s Contemplation is my comment on The Honest Sorcerer’s latest article that looks at the financial nature of our modern world.


Rackets: Keeping the Curtains on Reality Drawn

Excellent summation of our predicament and how reality is being ‘hidden’ by the story-telling nature of our species — especially the stories being disseminated by those benefitting most from our current practices and trajectory.

I’ve come to believe almost everything today is a racket of one form or another. And by racket, I defer to what U.S. Marine Corps Major General Smedley Butler stated about this phenomenon with respect to war: “A racket is best described, I believe, as something that is not what it seems to the majority of people. Only a small inside group knows what it is about. It is conducted for the benefit of the very few at the expense of the masses.”

And this is where humanity appears to stand at the moment in our history on this planet: rackets are everywhere.

We are surrounded by rackets meant to keep the wealth-extraction/-generation schemes going and remaining in place in one form or another for at least another quarter or election cycle. And the stories associated with them are not only meant to keep the masses ignorant of the fraudulent nature of our practices and institutions, but to get the masses to support and cheerlead them on while ostracising and shouting down the voices that dare challenge or expose them.

And as our descent down the Seneca Cliff speeds up (due, of course, to the limits you discuss), the rackets are expanding in number and size in order to not only siphon more and more wealth from the masses towards the few at the top of our wealth and power structures, but to compensate for the expanding nature of our decline as the surplus energy needed to pursue growth quickly fades.

A perfect positive feedback loop expediting our descent and ensuring the inevitable ‘collapse’ is all the more spectacular and all-consuming in nature.

But, hey, let’s hear another feel-good story about our human ingenuity and technological prowess ‘solving’ all this and humanity living happily-ever-after, holding hands with each other and Nature…that tale is all lot more fun to listen to and believe in. Even if it is only a fairy tale told to make us feel safe and comfortable as the approaching storm grows in size and intensity.

Today’s Contemplation: Collapse Cometh XXX–Ecological Overshoot and Political Responses


Today’s Contemplation: Collapse Cometh XXX

September 21, 2021

Tulum, Mexico (1986) Photo by author

Ecological Overshoot and Political Responses

Today’s post has been prompted by some thoughts regarding the inability of our political systems to respond in a timely manner to our plight of ecological overshoot penned by Rex Weyler, co-founder of Greenpeace, and posted by Alice Friedemann of energyskeptic.com.


I agree with virtually everything Rex argues, especially the role of self-interest by our political class for their apparent rejection of the notion of ecological overshoot and what needs to be done to address the negative impacts this predicament will have on our societies (we can’t avoid these impacts but we might be capable of mitigating their worst outcomes somewhat). My experience with government (I spent many years involved with unions/federations/councils and their political action committees, including chairing some and being directly involved in negotiating contracts, thus having to deal directly with senior administrators and politicians) and readings pertaining to various sociocultural areas (e.g., economics, geopolitics, political systems, pre/history, etc.) have solidified for me the notion that our sociopolitical institutions are for a variety of reasons the last place we should be looking to ‘correct our course’ and attempt to confront the many complex issues of our overshoot and that are beginning to become more obvious. In fact, it is likely (I believe guaranteed) that our ‘ruling class’ will continue to do the exact opposite of what is needed.

Government systems appear to be a means to an end for maintaining the power (and thus wealth) structures within our complex societies. The ‘elite’ of society uses the various governmental bureaucracies/institutions/agencies (as well as other areas they tend to control such as media, education, entertainment, etc.) to meet their primary objective: the control and/or expansion of the wealth-generating systems that provide their revenue streams. Everything they do more or less is to help meet that end. And, yes, they do throw some bones to the masses periodically if only to keep them mollified, distracted, and less likely to rebel (as Noam Chomsky has argued so well, control of the people is one of the most important concerns of those who hold power and privilege); one of the more ‘effective’ means in my view is the theatrical performance we refer to as ‘elections’ — convincing the masses in ‘representative democracies’ that they have agency via the ballot box is perhaps one of the most successful scams the ruling class has accomplished for as Johann von Goethe observed: the easiest slave is the one who believes he is free.

Growth, the very antithesis of addressing ecological overshoot, is promoted by government to help in their pursuit of both wealth and power. But it also addresses the unfortunate consequence of the way we have sustained growth the last few decades: exponentially-exploding debt (somewhat north of 200 trillion U.S. dollars at present for the globe, and the larger the debt the larger and more sustained the payments to the ‘lenders/creators’ of the world’s various currencies — the financial institutions that seem to work hand-in-glove with our governments). This debt has not only turned our financial/economic/monetary systems into gargantuan Ponzi schemes, it has necessitated the continuation of growth in perpetuity to help pay off the debt (significant revenue for the financiers) and keep the Ponzi schemes from collapsing.

Of course, such infinite growth is a tad difficult on a finite planet so the other options of addressing our financial dilemmas is to increase taxes and/or inflate away the debt. Our feckless ‘leaders’ are attempting all three of these approaches to keep things from collapsing. They cheerlead and encourage growth, telling the masses it has only beneficial properties and minimising, ignoring, or denying the negative aspects. Taxes are expanded continually and applied to increasing numbers of economic interactions, although the wealthy have an almost infinite number of ways to minimise their tax obligations, unlike the masses. Inflation (which in its original form refers to ever-increasing money/credit printing but eventually results in price inflation which is what most people think of) is, in perfect Orwellian language use, said to be a positive force for our economy while it actually debases our currency which serves the purposes of the large debtors (governments and large corporations) but harms the masses because of the debauching of their ‘money’ as is becoming increasingly obvious as wealth inequality continues to explode.

For all of these reasons (and more) it is unlikely (I would actually put the likelihood at zero) our political systems would ever intentionally curtail the pursuit of growth for it is their seed corn. They will pursue and cheerlead it right up until collapse can no longer be denied, and then attempt to push it some more as they tell those experiencing precipitous decline to stop believing their lying eyes; and/or blame our failing societies on some foreign/domestic bogeymen, but certainly not them and their policies.

The government, as with the rest of the ruling class and unfortunately most people, will not hear the arguments about ecological overshoot at all. It matters not how much ‘science’, data, or evidence is thrown at them. Almost everyone but especially the elite are in total denial (or at least feigning it, perhaps just to reduce their cognitive dissonance). This is why I have abandoned any ‘hope’ that our ‘leaders’ will in any way address ecological overshoot even if they do admit it exists — if they do, it will likely be leveraged to pursue activities that not only enrich the ruling class further but make our overshoot worse, such as ‘clean’ energy which is anything but clean and certainly not sustainable as sold. And, unfortunately, the political systems (at least in so-called ‘representative’ democracies) have morphed into out-promising the other parties for what ‘goodies’ they will provide freely to citizens. More. More. More. Which, again, is the opposite of what is needed to counter our going even further into overshoot…not that it may matter much at this point given how far we are likely already past the most important tipping points.

As Rex argues, the ‘solutions’ that will matter most to people will be at the local level. Relocalistion of as much production and distribution of goods as possible (but especially potable water, food, and shelter needs — including that which is needed to deal with local weather/climate, such as wood for winter heating) is the best approach to be taking to help one’s community mitigate as much as possible the coming storm. It’s likely to get ugly and ‘government’ will be nowhere to be found to turn to; you will need to depend upon immediate family, friends, and community members so cultivate those relationships and work on getting them to understand our predicament and begin making your local community as self-sufficient and resilient as possible.

Dutch Central Bank Admits It Has Prepared for a New Gold Standard

Dutch Central Bank Admits It Has Prepared for a New Gold Standard

In a recent interview the Dutch central bank (DNB) shares it has equalized its gold reserves, relative to GDP, to other countries in the eurozone and outside of Europe. This has been a political decision. If there is a financial crisis the gold price will skyrocket, and official gold reserves can be used to underpin a new gold standard, according to DNB. These statements confirm what I have been writing for the past years about central banks having prepared for a new international gold standard.

Wouldn’t a central bank that has one primary objective—maintaining price stability—serve its mandate best by communicating the currency it issues can be relied upon in all circumstances? By saying gold will be the safe haven of choice during a financial collapse, DNB confesses its own currency (the euro) does not weather all storms. Indirectly, DNB encourages people to own gold to be protected from financial shocks, making the transition towards a gold based monetary system more likely.

photograph of gold bars on pallets at gold vault of Dutch National BankOld gold vault of DNB in Amsterdam.

How to Prepare for a Gold Standard

In my latest article on this subject—“Europe Has Been Preparing a Global Gold Standard Since the 1970s. Part 2”—I have demonstrated that central banks of medium and large economies in the eurozone have balanced their official gold reserves, proportionally to GDP, to prepare for a gold standard (/gold price targeting system). My analysis was pieced together by scarce quotes from central banks and data of European gold and foreign exchange holdings. My conclusion was that several medium-size economies in Europe (the Netherlands, Belgium, Austria, and Portugal) sold large amounts of gold from the early 1990s to 2008 to come on par with France, Germany, and Italy. I wrote:

…click on the above link to read the rest…

Today’s Contemplation: Collapse Cometh CLXIV–Growth and Denial: A Bad Combination


Today’s Contemplation: Collapse Cometh CLXIV

Knossos, Greece (1993). Photo by author.

Growth and Denial: A Bad Combination

Today’s Contemplation is a glimpse into some conversation between myself and another around growth, denial, and differences in what can/should be advocated for.


Post by GW:
Just saw the sign coming in to town which reads “Country close to the city” it should read “Condos close to the city”

RB: …we need to make sure we are seeing the most responsible planning surrounding that development as we can. I have a growing feeling that some of our areas of intensification are both deviating from our growth strategies and will not be receiving needed services in a timely fashion to ensure complete communities, maximal livability, and minimal consequences.

I have long held a belief that spending time, energy, and breath just opposing growth and development is a waste. Understand the need (and legal requirements) to grow, understand the planning processes and facets of private ownership, and spend your time advocating for the best possible planning to ensure the best possible community living experience as that growth gets underway.

Me: RB, may I suggest some homework to help expand your perspective on the issue of growth and the negative consequences we tend to ignore/deny (and has led us into ecological overshoot):

1) This presentation, entitled Exponential Growth Arithmetic, Population and Energy, by the late Dr. Albert Bartlett that explains our blindness to how exponential growth works and how it has led us into overshoot: https://www.youtube.com/watch?v=kZA9Hnp3aV4.

2) This 30-year update to the 1972 Limits to Growth study by MIT researchers; pay particular attention to the Business-As-Usual scenario that we seem to be tracking almost exactly and the negative consequences of this: https://www.amazon.ca/Limits-Growth-30-Year-Donella-Meadows/dp/193149858X/ref=sr_1_1?crid=82KI5K3MPE34&keywords=30+year+update+limits+to+growth&qid=1700239657&s=books&sprefix=30+year+update+limits+to+growth%2Cstripbooks%2C97&sr=1-1. You can find a synopsis of this text here: https://donellameadows.org/archives/a-synopsis-limits-to-growth-the-30-year-update/.

3) This 1988 academic research text, The Collapse of Complex Societies, by archaeologist Joseph Tainter that highlights the recurrent/cyclical decline that has occurred to every complex society to date due to the diminishing returns that invariably arises as a population attempts to continue growing beyond the resources (mostly energy) that can support it: https://www.amazon.ca/Collapse-Complex-Societies-Joseph-Tainter/dp/052138673X. Summary notes can be found here: https://olduvai.ca/wp-content/uploads/2022/12/Collapse-of-Complex-Societies.pdf.

4) This 1980 text, Overshoot: The Ecological Basis of Revolutionary Change, by William Catton Jr. that outlines the biological principles that invariably impact species that grow beyond their environment’s ability to support them. https://www.amazon.ca/Overshoot-Ecological-Basis-Revolutionary-Change-ebook/dp/B00VVH4UGG/ref=sr_1_1?crid=3UNABBTCM5RCJ&keywords=overshoot&qid=1700239867&sprefix=overshoot%2Caps%2C500&sr=8-1. Summary notes can be found here: https://olduvai.ca/wp-content/uploads/2022/12/Overshoot_-The-Ecological-Basis-of-Revolutionary-Change.pdf

NG: Steve Bull, a more than likely nuclear war should damper population growth.

Me: RB, I would also advise digging deeper and looking behind the curtain with respect to what has ‘supported’ our extraordinary growth the past couple of decades (mostly financialisation of our economic systems; i.e., ginormous amounts of debt that has turned into nothing more than Ponzi financing to keep growth afloat to the tune of hundreds of trillions of dollars currently — a perfect example of what Tainter refers to as diminishing returns and is being felt increasingly by the masses due to the inevitable weight of price inflation/currency devaluation) and centuries (mostly the leveraging and expeditious drawdown of a one-time cache of hydrocarbon energy that has provided a surplus of energy that has allowed us to continue to pursue exponential growth beyond our natural carrying capacity, but that is declining/disappearing at an alarming rate (dive into the issue of Peak Oil) — it’s no surprise that nations rich in these resources are the focus of so much geopolitical chaos.

Then there’s the symptom predicaments of overshoot and the various planetary boundaries we’ve blow past in extraordinary expansion throughout the globe. See this: https://www.stockholmresilience.org/research/planetary-boundaries/the-nine-planetary-boundaries.html

That most believe such growth can continue without dire consequences is not surprising given the amount of conditioning and propaganda we are exposed to about growth (particularly by those that profit from it). That we cannot even challenge such orthodoxy speaks volumes as to our mass denial.

RB: Steve Bull, you and I have had this conversation in past.

If our society suddenly shifts to establishing and enforcing population controls and an economic system that isn’t dependant on infinite growth, I will change my tune.

Until then, I am going to focus my advocacy based on existing realities for best possible outcomes.

Me: RB, we will have to agree to disagree, once again, regarding what is ‘best’ to advocate for. While I would contend that we (especially in so-called ‘advanced’ and ‘emerging’ economies) are unlikely to willingly pursue ‘degrowth’, or even halting growth (for a variety of reasons, but perhaps mostly because we all want the Ponzi to continue), I would also argue that accepting it and trying to work with it is akin to being complicit in mass suicide…which is what the increasing amount of evidence regarding our overshoot is suggesting.

RB: To each their own, of course. And I am most certainly not disregarding your concerns, which are absolutely reasonable. I just have to pick my battles, so to speak. If that makes me complicit, so be.

Me: RB, fair enough. Me, I prefer not to be overly complicit in this tragedy we are embarked upon as a species. While we can ignore/deny the laws of physics, biological principles, and pre/historic evidence, they are ever-present, unforgiving, and will eventually catch up with us.

Today’s Contemplation: Collapse Cometh XXVIII–The Predicament of Ecological Overshoot Cannot Be ‘Solved’, Especially Via ‘Renewables’


Today’s Contemplation: Collapse Cometh XXVIII

August 10, 2021

Tulum, Mexico (1986) Photo by author

The Predicament of Ecological Overshoot Cannot Be ‘Solved’, Especially Via ‘Renewables’

Today’s very brief ‘contemplation’ is a comment I penned on an article that discusses the limits to growth we have probably surpassed, Kuber-Ross’s stages of grief (especially denial and bargaining) that the world seems to be experiencing in the wake of increasing awareness of our existential dilemmas/predicaments, and a call for cooperation amongst the world’s people to address our plight.

I have repeatedly experienced the denial and anger that tends to arise when one challenges another’s personal beliefs. I should know better than to present countervailing evidence/narratives, especially given the defensive psychological mechanisms that arise to preserve such beliefs. We tend to look for confirmation of our strongly-held views by surrounding ourselves with like-minded voices, not disruptive narratives that can lead to cognitive dissonance. Such stories are denigrated and attacked (as the author of the article points out for the Limits to Growth authors).

I do believe, however, that the acceptance of our limits in many aspects leads to a conclusion that degrowth needs to be not only considered and discussed, but widely pursued if humanity is to have any hope of at least some of us transitioning through the self-made bottleneck that is directly ahead of us. Pursing the ‘wrong’ path will only make our predicament far, far more challenging and greatly reduce any opportunities for at least some of humanity to survive.


As I have come to understand our predicaments better (not perfectly of course, but better), I have reached the conclusion that the best way to mitigate our situation (or at least preserve some semblance of human society) is to pursue degrowth strategies. What I have encountered along the way is a very well-meaning but somewhat problematic counterproposal (that is very narrowly focused in my view) that the best way to confront our situation is to throw everything we have at transitioning us from fossil fuels to ‘renewables’ (I put this in quotes since their dependence on non-renewable, finite resources — including fossil fuels — suggests they are not truly ‘renewable’).

This approach appears to be the mainstream one and the one that seems to be getting the most support at this time probably because it is comforting in the sense that ‘others’ are responsible for seeing its funding, development, distribution, etc. and it offers a means of maintaining our complexities without much disruption; at least that is the narrative/perception (but also likely because there is much profit to be made in the attempts to completely replace the fossil fuel-dependent technologies currently employed).

Increasingly, however, this storyline is showing many plot holes: energy-return-on-energy-invested close to zero or even negative; non-renewable, finite resource limits; environmental/ecological destruction to procure needed resources; dependency upon the fossil fuel platform for the procurement and processing of necessary materials as well as the distribution, maintenance, and afterlife disposal/reclamation processes. As I attempt to point these roadblocks out to the advocates of ‘renewables’ and suggest degrowth is a more realistic path given the biophysical limits of living on a finite planet, I am quite chagrined with the variety of personal attacks I am subjected to. From being a climate change ‘denier’ to a shill for the fossil fuel industry, the anger/denial that is displayed is quite something.

So, if we are hoping for cooperation and discussion to help us confront our existential dilemmas, there is much, much work that has to be done. What I am experiencing is not unique to those who have accepted our limitations and predicaments. The ‘clean/green’ energy crowd seems unwilling to accept that their ‘solution’ and convictions may in fact expedite, or at least contribute to, the further degradation of the planet and result in the exact opposite of what they believe. I fail to see how this can be resolved in a timely manner when so much of the propaganda we are exposed to by our world ‘leaders’ cheerlead it as a means to continue expanding our growth and ensuring prosperity for all.

Today’s Contemplation: Collapse Cometh XXVII–Ecological Overshoot, Hydrocarbon Energy, and Biophysical Reality


Today’s Contemplation: Collapse Cometh XXVII

July 24, 2021

Tulum, Mexico (1986) Photo by author

Ecological Overshoot, Hydrocarbon Energy, and Biophysical Reality

Discussing ‘renewable’ energy and its shortcomings with those who hold on to the belief that they offer us a ‘solution’ to the predicaments humanity faces is always ‘challenging’. Today’s contemplation is based on a recent dialogue I have had with a few people who seek to hold on to the belief that we can completely abandon fossil fuels and simply shift support for society’s complexities over to ‘renewables, and my response to someone who complimented my viewpoint (an unusual occurrence on the pages of the online media site (The Tyee) I frequent, whose writers/editors/commenters mostly support ‘renewables’ and the promises the proponents of them make). The story is not so straightforward and most don’t want to hear that. You can check out the conversation here.


Thank you. The root cause of our problem appears to be ecological overshoot brought on, primarily, by our exploitation of a one-time energy cache (fossil fuels) that has helped to ‘power’ amazing technological tools and processes that, in turn, have allowed us to exploit the planet and its resources substantially. This has led to a number of positive feedback loops, particularly exponential increases in population, waste (including greenhouse gases), and the speed at which we use these finite resources.

The crowd that insists ‘renewable’ energy (and it’s not truly ‘renewable’ given its dependency on finite resources, and certainly not ‘green/clean’ based on the processes necessary to produce them) can ‘sustain’ our energy-intensive complexities tend to be willfully ignorant of their negative consequences and deficiencies. In fact, my guess is that many have little experience with or knowledge of them (see Alice Friedemann’s work at Energy Skeptic and especially her most recent Springer Energy Series publication, Life After Fossil Fuels) and are grasping for solutions to our predicaments.

The cost, components, capacity, and energy-return-on-energy-invested for ‘renewables’ is nowhere near what most imagine; and I’m thinking most hold on to the belief that governments will ‘pay’ for the massive systems that would be needed to support our complex societies (and there simply aren’t enough finite resources on this planet to do this; to say little about the massive debts already existing within our Ponzi-like financial/economic/monetary systems that themselves are on the verge of collapse and the struggles many people have in just affording day-to-day living expenses). I personally have installed a photovoltaic system as an emergency backup system for our home. I have spent well in excess of $10,000 putting up about 2.2 KwH of panels, connecting charge controllers, deep cycle batteries, and inverters. I am under no delusion that such a system can sustain our household, particularly in our Canadian winters. The power is intermittent. The batteries drain relatively quickly. And charging can take days/weeks when its cloudy and cold, and/or snow builds up on them.

The religious-like adherence to the belief that ‘renewables’ are part-and-parcel of a ‘solution’ to the negative consequences of fossil fuels leads many to ‘attack’ anyone who questions their ‘faith’ (see Mike Stasse’s Damn the Matrix). I have been accused numerous times of being a shill for the fossil fuel industry and even threatened because of this allegation; one person recently wished me the worst possible end I can imagine and then multiply it by 1000 because I questioned the entire ‘renewable’ mantra and didn’t by into his ‘solution’ for addressing the climate crisis.

I usually attribute this to the first few stages — denial, anger, bargaining — of Kubler-Ross’s model of grief, which people who come to realise our predicaments tend to travel through. It is also a result of believing that what we face is a problem that can be solved when in actuality it appears to be a predicament that we are going to have to face and attempt to ‘weather’ (see Erik Michaels’ Problems, Predicaments, and Technology). In fact, I would argue attempts to replace fossil fuel inputs with alternatives is a very misguided and potentially catastrophic path to take. The fossil fuel platform is significantly required for almost all the processes necessary to shift to alternatives. From steel and concrete manufacturing to the heavy machinery necessary in mining and transportation, large fossil fuel inputs are required.

Then there’s the fossil fuel inputs into modern industrial agriculture: the pesticides, herbicides, fertilizers, heavy machinery, irrigation, and transportation that sustain food production in sufficient quantities and keep the just-in-time, long distance, supply chains functioning — to say little about the finiteness of the chemicals required for fertilizers or the drawing down of water aquifers. Food shortages would be guaranteed to be massive should fossil fuel inputs suddenly disappear without local, regenerative permaculture being ready to replace it; something we are woefully blind to. ‘Electrifying’ everything does little to address many of the negative consequences of our overshoot.

There are so many negative consequences to our overshoot that we are ignoring — in our zeal to sustain our complexities via ‘renewables’ — that would continue or expand by chasing such ‘solutions’ as widespread adoption of electric vehicles and solar/wind energy. In our rush to justify all the modern ‘conveniences’/‘energy slaves’ we have (especially in so-called ‘advanced’ economies) we are taking the world even further into overshoot which will lead to an even more catastrophic ‘collapse’ when it finally occurs.

We can accept that ‘collapse’ is imminent (and pre/history shows this occurs for every complex society that we have experimented with for the past 10,000+ years — see archaeologist Joseph Tainters’ text The Collapse of Complex Societies) and attempt to prepare for it, or continue the wishful thinking path that ‘this time is different’ and chase actions that will make the situation even more dire. I would prefer the former but my guess is we will attempt the latter for two main reasons.

First, we have been propagandised by what should be called ‘snake oil salesmen’ and their marketers who have taken advantage of our energy crisis. They have created a massive marketing campaign to sell their products and done so on our emotions, particularly fear and the need to have some ‘certainty’ about the future (refer to Dan Gardner’s Future Babble). The marketers have set fossil fuels up as the ‘problem’ and offered a ‘solution’ that just happens to enrich them. As with all such marketing, the negative consequences of their products have been left out of the narrative.

Second, having bought into the sales pitch, most people have created a set of beliefs that serve to help justify their living arrangements and avoid the difficulties that very likely lay ahead. Core beliefs are difficult to challenge. Questioning them creates cognitive dissonance in the adherent which can only be dissipated by clinging more strongly to the belief (usually by ignoring or attacking those challenging them) or reflecting on the beliefs and shifting them towards a more neutral or different stance. Most people tend to protect their core belief systems, regardless of the evidence/facts/data that would suggest they are misguided/misinformed; thus the ire/anger by some when the idea of ‘renewables’ being able to replace fossil fuels is confronted.

For the most part, the future is unwritten. We can accept the challenges of a world without all the energy slaves we have created with our ingenuity and tool-making acumen, and prepare for life with less, far less. Or, we can continue down the ‘business-as-usual’ path and attempt to sustain the unsustainable (see Meadows et al.’s Limits to Growth and its various updates), and that will likely result in far more chaos and difficulty as the bottleneck we have created closes around us (see William Catton Jr.’s book, Overshoot).

I’m increasingly chagrined to see us continue to chase the infinite growth chalice with a belief that this will all work out just fine, thank you, as long as we abandon fossil fuels and shift to ‘renewables’ with a religious-like fervour that completely ignores some harsh, biophysical realities. I am reminded of author Robert Heinlein’s observation that we are rationalising creatures, not rational ones, and we are leading ourselves into a very, very precarious and dangerous place.

Why Civilization Would Collapse Even Without Climate Change

Why Civilization Would Collapse Even Without Climate Change

Even if there were no climate change, civilization would still collapse in the next few decades. Here’s why.
I want to start by emphasizing that I have nothing but love and respect for the millions of climate activists in the world, many of whom work tirelessly to end fossil fuels, even to the point of getting arrested. Organizations like Greenpeace, Extinction Rebellion, Fridays for Future, and countless others have done incredibly important work and deserve our thanks.

However, I’ve noticed that average, everyday climate activists often don’t see the big picture. They are laser-focused on climate change and believe that if we just stop burning fossil fuels and start using green energy, we can save the planet and our civilization.

The truth is that even if there were no climate change, our civilization would still be doomed. And the more time we waste trying to save it, the more damage we’ll do to the biosphere. It’s time to give up on the idea of saving modern, high-tech civilization and instead focus on saving as much of the natural world as possible.

For those who still believe we can continue with business-as-usual using green energy instead of fossil fuel energy, this article will be a wakeup call, and it could be very upsetting. I don’t want to upset people, but it’s important that we face reality so we can make better choices as we move forward.

Okay, take a deep breath, and let’s dive in…

Exponential Growth

Quote by Albert Bartlett on Exponential Function

Before I explain the specific reasons why civilization is doomed no matter what we do, I think it would be worthwhile to review the concept of exponential growth. Most people think they understand it, and they might even give an accurate definition, but they’re not truly grasping the implications of exponential growth in a finite world.

…click on the above link to read the rest…

Today’s Contemplation: Collapse Cometh CLXIII–Keep Calm and Carry On


Today’s Contemplation: Collapse Cometh CLXIII

Mexico (1988). Photo by author.

Keep Calm and Carry On

Today’s Contemplation is my comment on a recent post by Allan Urban that speaks to his experiences attempting to share his learnings on ‘collapse’. For those that have read it, you can likely recognise similar reactions from others; I certainly did.


After years of experiencing the same ‘frustrations’ in attempting to share my ‘insights’ regarding our predicament, I’ve come to understand that we all believe what we want to believe and that regardless of the evidence/facts that point to our inevitable collision with ‘collapse’ most will reject the idea and carry on in the belief that tomorrow (and the future) will be much like yesterday and today. For the most part, that’s a good belief system and one that has been proven correct again and again for people, and how others respond to challenges to this system are fairly typical.

The list of psychological mechanisms to avoid anxiety-provoking thoughts is almost endless. And the idea of ‘collapse’ is most certainly anxiety-provoking. Fight or flight. Groupthink. Going along to get along. Deference to authority/expertise (especially the ruling caste of our societies — e.g., government, legacy media). Cognitive dissonance reduction. Stages of grieving (particularly denial of reality and bargaining). These are next to impossible to overcome.

So, while I write about the situation (see https://olduvai.ca) and my perspective on it, I don’t engage too many others — especially in my personal, social circles — with my views. The exception being those who respond to my writings and are interested in the topics involved.

I have also completely abandoned any ‘hope’ that our political systems (or even most (all?) non-governmental ones) are the place to look for ‘salvation’. These systems are designed for the most part (and motivated by) self-preservation and the status quo. There are few if any that truly aim to ‘deconstruct’ our extractive/exploitive systems that have led us to where we our. That’s not their role; in fact, quite the opposite.

Our governing systems in particular are pre/historic institutions in place to maintain/expand the control of wealth-generating/-extracting systems that provide revenue streams for a select few. Their current iterations weave comforting narratives about ‘representation’ and beneficent policies/actions for the masses, but these are propaganda meant to appease and mollify — nothing more. Their aims are primarily oriented towards growing these systems of extraction and exploitation, regardless of the social and/or ecological systems costs.

We have not only cyclical complex society ‘collapse’ processes to contend with in our modern-day experiment of a globalised (and financialised) system, but the various symptom predicaments of ecological overshoot as well — especially depletion of probably the most fundament of resources to our modern complexities: hydrocarbons.

If pre/history is any indication of how things will unfold (and I would contend it very much is), then most of us will deny/ignore the signals long after our decline is well and truly underway — as many argue it already is. We will carry on in our ignorance and complicity, believing things will improve and someone, somewhere will ‘solve’ all this. Keep calm and carry on.

Keeping the ruling caste’s feet to the fire is commendable (if the pressure directs them in a way to degrow our existence, not grow it via even more ‘green/clean’ technology) but ultimately will not result in system changes. It will be Nature that corrects our Overshoot, as it always does with species that blow past its natural carrying capacity.

Perhaps our energies are best focused upon attempts to mitigate the consequences as best we can for our local communities. Relocalise and simplify, or as John Michael Greer has suggested: Collapse now and avoid the rush.

The Apocalypse Is Not What I Expected

The Apocalypse Is Not What I Expected

Hollywood movies gave me the idea that if the apocalypse were imminent, people would spring into action. The reality is much more grim.

“What looks like apocalypse in prospect often feels more like grim normality when it arrives in the present.” – David Wallace Wells

When I was a kid, I watched a lot of movies about the end of the world—Mad Max, The Terminator, Day of the Dead, Deep Impact, Independence Day, stuff like that.

Watching these movies, I internalized the Hollywood view of the apocalypse: People running to the stores, stripping the shelves, and trampling one another as they flee for their lives. Oftentimes, there’s a scene where a child drops a teddy bear or something, reminding us that the end of the world is sad.

Meanwhile, the people in charge meet in dimly-lit rooms full of blinking lights and monitors. Scientists in white lab coats explain the situation while military generals smoke cigarettes and scowl. The President listens carefully as advisors tell him his options. The goal is always to minimize the loss of life or at least save the human race from extinction.

Of course, now I understand that these are just movies and nothing like real life. Even so, I’m still shocked at how different the apocalypse is from what I imagined.

I didn’t realize the world is ending until 2020. I had spent months reading up on climate change in order to find out how bad it was and whether humanity could avoid the worst-case scenario.

For years, I had assumed that renewables would replace fossil fuels, but by the summer of 2020, I realized that was impossible. Humans were hopelessly addicted to oil. Without it, we would return to pre-industrial lifestyles, only on a planet with way more people and much worse weather.

…click on the above link to read the rest…

The Debt Reaper

The Debt Reaper

Debt is an integral aspect of modern economies and has long been hailed as a catalyst for growth. When wielded judiciously, it stands as a potent tool for economic development, providing the means to finance projects, expand operations, and invest in essential sectors like education, health, and housing. In the right context, debt fuels economic growth, creates jobs, and fosters innovation. Furthermore, during economic downturns, it offers a safety net for individuals and organizations, helping them weather financial storms.

Source: GettyImages

The ghost of future wealth

Governments have traditionally argued that as long as debt remains manageable and serviceable without difficulty, there’s little cause for concern. While this notion holds some truth, the reality is that recent growth has largely been fueled by an insurmountable increase in debt. Particularly since the Global Financial Crisis of 2008, the creation of what seems like wealth has resulted in soaring asset prices, including equities and real estate, contributing to an alarming rise in wealth inequality. However, there exists a disconnect between perceived wealth and actual wealth, a scenario unlikely to endure. Distinguished economists have persistently argued that debt for consumption essentially borrows demand from the future. This borrowed debt inevitably must be repaid, heralding a probable future slowdown in demand. However, debt allocated for investment purposes differs significantly, capable of fostering future growth and potentially curbing long-term debt.

Source: IMF (2022)

The trajectory of global debt, as depicted in the chart above, illustrates an unrelenting rise in both government and private debt over time. Up until the 2000s, the surge in debt was primarily attributed to burgeoning private debt, empowering a substantial improvement in living standards, especially in developed nations. Since 2000, private debt has plateaued, whilst government debt has sharply ascended, sustaining the growth in living standards. Yet, the overarching question remains – at what cost? However benign they might seem, debt levels can swiftly move from being a seemingly manageable concern to a formidable challenge once they surpass a particular threshold.

…click on the above link to read the rest…

Doug Casey on the Imminent Bankruptcy of the US Government

Doug Casey on the Imminent Bankruptcy of the US Government

Imminent Bankruptcy of the US Government
International Man: Everyone knows that the US government has been bankrupt for many years. But we thought it might be instructive to see its current cash-flow situation.

The US government’s budget is the biggest in the history of the world and is growing at an uncontrollable rate.

Below is a chart of the budget for the most recent fiscal year, which had a deficit of nearly $1.7 trillion.

Before we get into the specific items in the budget, what is your take on the Big Picture for the US budget?

Doug Casey: The biggest expenditure for the US government are so-called entitlements. It’s strange how the word “entitlements” has been legitimized. Are people really entitled to the government paying for their health, retirement, and welfare? In a moral society, the answer is: No. Entitlements destroy personal responsibility, legitimize theft, destroy wealth, and create antagonisms.

The fact is that once people have an “entitlement,” they come to rely on it, and you can’t easily take it away. The Chinese call that breaking somebody’s rice bowl. In the case of the American welfare state, it’s more a question of breaking a whipped dog’s doggy bowl. It’s a shame because many have come to rely on their mother, the State, not entirely through their own fault. The US has become pervasively corrupt.

The World Economic Forum (WEF)—a pox upon them—isn’t entirely incorrect when it arrogantly calls most people “useless mouths.” An increasing number produce absolutely nothing but only consume at the expense of others. Courtesy of the State.

…click on the above link to read the rest…

The Psychological Pain of Inflation

The Psychological Pain of Inflation

The Bureau of Labor Statistics (BLS) tomorrow morning will report its Consumer Price data from October. The Producer Price Index (PPI) appears the following day.

There will likely be no real surprise here: inflation will still be running hot around 3.7 percent, confirming what I and many have suspected. Inflation is overall accelerating over the declines earlier this year. That’s bad economic news because it further confirms lower living standards and continues to vex average people juggling multiple jobs, high interest payments on debt, and increased unaffordability of just about everything.

 (Data: Federal Reserve Economic Data (FRED), St. Louis Fed; Chart: Jeffrey A. Tucker)
(Data: Federal Reserve Economic Data (FRED), St. Louis Fed; Chart: Jeffrey A. Tucker)

“Inflation has given us a few head fakes,” Fed chair Jerome Powell said at an International Monetary Conference over the weekend. He further swore that he would continue to use the power of the Fed to beat back this monster. But notice that he took no responsibility for inflation at all, despite the factual record showing that he enabled some $5 trillion in debt purchases from a spending-mad Congress, and soared the money stock in ways we’ve never seen.

This is the first time that I can recall the Fed chair having anthropomorphized inflation, as if it has a will of its own, has a head on its body, while using clever tricks to get around the defense front line, which of course is the Fed.

The line about “head fakes” pertains not to inanimate inflation but to the very human and oddly devious Fed itself. To understand Powell’s remark here fully requires a refresher lesson from Freud in what it means to project one’s failings on something else. It’s really childish—the young child blaming the monsters under the bed for the mess in his room—but it works due to the economic ignorance of the public.

…click on the above link to read the rest…

Watchdog Has Grim Winter Warning: There May Be Blackouts

Watchdog Has Grim Winter Warning: There May Be Blackouts

  • North American Reliability Corp: As much as two-thirds of the United States could experience blackouts in peak winter weather.
  • Earlier this year, NERC issued a blackout warning for some parts of the U.S. over the summer, citing extreme temperatures.
  • The regulator points to the lack of gas transport infrastructure as one of the main challenges for the U.S. grid this winter.
Electricity

As much as two-thirds of the United States could experience blackouts in peak winter weather this and next year, the North American Reliability Corp has warned.

These warnings have become something of a routine for the regulatory agency lately. Earlier this year, NERC issued a blackout warning for some parts of the U.S. over the summer, citing extreme temperatures.

This latest warning also has to do with extreme temperatures. Yet it’s not just the temperatures themselves that are the problem. It’s the power generation mix that is making the grid more vulnerable.

In its latest assessment, NERC cited recent data showing that up to a fifth of generating capacity could be forced offline in case of a cold snap over areas that do not normally get this kind of weather.

The regulator points to the lack of gas transport infrastructure as one of the main challenges for the U.S. grid this winter as it compromises the security of generating fuel supply. The report also notes historical evidence that extreme winter weather can also affect the production of natural gas and, as a result, reinforce the effect of weather on power supply security.

It is not just natural gas that is problematic, however. The massive buildout of wind and solar capacity has also had an impact on electricity supply reliability and could turn into a problem during the winter.

…click on the above link to read the rest…

Olduvai IV: Courage
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Olduvai II: Exodus
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