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The narrative about Catalan independence is that two major cities, Madrid and Barcelona, are competing for power, and one has decided that the best path forward is to declare independence from Spain and free itself of Madrid’s dominance.

There is certainly something to this narrative. As CNN reports:

Catalonia accounts for nearly a fifth of Spain’s economy, and leads all regions in producing 25% of the country’s exports.

It contributes much more in taxes (21% of the country’s total) than it gets back from the government.

Independence supporters have seized on the imbalance, arguing that stopping transfers to Madrid would turn Catalonia’s budget deficit into a surplus.

Catalonia has a proven record of attracting investment, with nearly a third of all foreign companies in Spain choosing the regional capital of Barcelona as their base.

But the spread of independence-seeking across Europe points to something more than just sibling rivalry. In 2016 British voters shocked the world by voting narrowly to withdraw from the European Union (EU). Just this month two of Italy’s richest regions held non-binding referendums on seeking increased autonomy from the central government. More than 95 percent of those voting said yes.

The immediate effects of Britain withdrawing from the EU and of Catalonia becoming independent (if, in fact, either actually ends up happening) could be quite negative economically, cutting both off from established trade arrangements that power their economies. (The vague desire for more autonomy among the provinces of Veneto and Lombardy in Italy does not yet spell economic and political divorce.)

Given this outcome, why would the people of Britain and Catalonia seek to disconnect from central authorities? For Britain perhaps the impetus was that most of the people of Britain did not feel they were sharing in the prosperity generated by the country’s affiliation with the EU.

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

An ecological view of Trump’s trade war

October 22, 2017

An ecological view of Trump’s trade war

Whether you regard President Donald Trump’s rejection of America’s trade agreements as a good thing or a bad thing, few people understand what canceling them would mean. From an ecological point of view, abruptly pulling out of trade agreements, agreements which have resulted in innumerable long-term investments and commitments, is the ecological equivalent of a reduction in scope.

A reduction of scope means that occupational niches which arise specifically to facilitate trade in shipping by land, sea and air, manufacturing for export, warehousing, finance, insurance, government employment (such as customs officials and coast guard forces) and other trade-related occupations, all are endangered when the scope of their activities is reduced as a result of new trade restrictions.

To understand what this means, we need to understand the flipside of scope reduction, scope enlargement. From an ecological perspective the increase in world trade over the last few centuries has in a manner of speaking allowed local populations to escape the tyranny of Liebig’s Law of the Minimum. In the mid-19th century, Justus von Liebig observed that plant growth was strictly governed by the least available of a plant’s necessary nutrients. Adding other essential nutrients simply wouldn’t overcome the limitation imposed by the least available one.

In the absence of trade, Liebig’s Law acts like a brake on a local community, preventing it from expanding beyond the carrying capacity afforded by its least available essential resources. In dry areas, it might be water. In others it might be arable land. In yet others farmland might be plentiful, but a lack of metal mines might prevent the widespread use of metal tools that could enhance agricultural and manufacturing productivity.

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

The Italian experiment and the truth about government debt

October 9, 2017

The Italian experiment and the truth about government debt

Money is a slippery concept. Today we think of it as paper certificates and coins. But actually, anything that is generally accepted in trade can be considered money. The rise of cryptocurrencies is demonstrating this truth. In wartime scarce but desirable and easily transported commodities such as cigarettes, alcohol, jewelry and valuable paintings can act as currency.

Debt is defined as money owed to another person or entity such as a corporation. It is an obligation to pay the money back, usually by a specified date at an agreed rate of interest. Certain kinds of debt, especially government bonds, are traded daily in the world’s money markets. So confident are investors that some government bonds, especially U.S. Treasury bonds, will pay the agreed interest and be redeemed in full at maturity that they treat them as if they were cash—because they can be converted into cash in an instant in world markets.

But is government debt what we think it is? Consider the poor Italians who recently announced that they will try paying for government services with tax credits—essentially reducing a person’s tax bill in exchange for services rendered or products delivered. The reason is simple. The Italian government is hard pressed for revenue which is paid in Euros, a currency which the government does not control and therefore cannot create more of.

The tax credit scheme gets around this inconvenience. But it also makes possible a far more interesting possibility. As the writer of the linked piece points out, what if instead of making book entries in a taxpayer’s account, the Italian government issued paper tax credit certificates that could be used to pay taxes?

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

Puerto Rico: When the electricity stops

October 1, 2017

Puerto Rico: When the electricity stops

When the electricity stops in modern civilization, pretty much everything else stops. Not even gasoline-powered vehicles can get far before they are obliged to seek a fill-up—which they cannot get because gas pumps rely on electricity to operate.

When I wrote “The storms are only going to get worse” three weeks ago, I thought the world would have to wait quite a while for a storm more devastating than hurricanes Harvey and Irma. But instead, Hurricane Maria followed right after them and shut down electricity on the entire island of Puerto Rico except for those buildings with on-site generators.

Another casualty was drinking water because, of course, in almost every location, it must be moved using pumps powered by electricity. In addition, the reason we remain uncertain of the full scope of the damage and danger on the island is that the communications system (powered by electricity, of course) failed almost completely.

The Associated Press reported that as of September 30, 10 days after Maria’s landfall, about 30 percent of telecommunications had been restored, 60 percent of the gas stations were able to dispense fuel and half of the supermarkets were open.

Presumably, these figures represent mostly urban areas where any single act of repair can restore services to many more people than in the countryside where conditions by all accounts remain desperate.

Unless power is restored soon to those areas still without it, many of life’s daily necessities—food, water, medicine—will remain beyond reach for substantial portions of Puerto Rico’s residents. The consequences of this are both predictable and dire. But the expectations are that weeks and months may pass before electricity again reaches the entire island.

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

The solar panel imports case and the future of self-sufficiency

September 24, 2017

The solar panel imports case and the future of self-sufficiency

Last week the U.S. International Trade Commission (ITC) ruled that the American solar panel industry had been harmed by cheap imports though it did not specifically find that the competition was unfair.

The decision has stunned the solar industry which has relied on cheap panel imports to spur the growth of solar power in the United States. It’s not clear what remedies the commission will recommend to President Trump who will have final say about how to respond. But the president’s often articulated antipathy toward America’s existing trade arrangements suggests a punitive response such as a tariff or quota.

Such a response could slow the spread of solar power in the United States by raising the cost of deployment. This would happen just at the point when Mother Nature herself has underlined the need for low-carbon energy sources through the devastating effects of climate-change enhanced hurricanes on American territory in Texas, Florida and Puerto Rico. In fact, in Puerto Rico, hit by two major hurricanes in a row, the damage was so severe that according to The New York Times the island may be facing months without electricity.

The irony, of course, is that had Puerto Rico invested in distributed solar power, a source perfect for a sunny Caribbean island, it might still have had major problems, but not the kind that a devastated centralized power system has visited upon the island’s residents.

The case just decided by the ITC may or may not result in large consequences for U.S. solar deployment. But it highlights another issue which the rise of anti-free trade sentiment has exposed. How self-sufficient should the United States or any other country, for that matter, strive to be?

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

The high cost of an easy-care, low-maintenance world

September 18, 2017

The high cost of an easy-care, low-maintenance world

I may be a member of an endangered species. I prefer a perfect crease in a pair of pants resulting from the use of an actual iron rather than a crease maintained by a toxic brew of chemicals that can make cotton-fiber pants not only “wrinkle-free,” but also “stain resistant.”

Once you finally get such chemically-enhanced britches dirty, you can put them through a wash augmented by artificial perfumes and other noxious chemicals found in liquid softeners and dryer sheets.

The maintenance of clothing isn’t thereby eliminated. It is simply transferred to chemical companies, clothing manufacturers, and purveyors of household products who concoct and apply formulas which require considerable energy to manufacture and deploy. One can adduce many other examples of our obsession with a low-maintenance life. (I will include a few below.) But, I write to contest the whole idea that a low-maintenance existence is in itself a good thing.

In general, entropy obliges us to maintain those objects which serve us. In doing so we must give them attention; we must give them a sort of love. We must become involved with their needs and not only our own.

By abandoning the duty of maintenance we owe to the objects in our lives, we are distancing ourselves from the physical world and essentially sending the entropy elsewhere for someone else to deal with, whether human or non-human.

I used to have an electric razor, the cutting block of which could be sharpened. A jeweler in the building where I worked had the equipment to do it. Later, it was cheaper just to replace the cutting block, and so, equipment that would sharpen it was scarce. Now, a new shaver that I just purchased—after many good years of service from my previous one ended with the motor shutting down—this new one is clearly designed simply as a throwaway.

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

In media res: Houston, Harvey and the catastrophe of climate change

September 3, 2017

In media res: Houston, Harvey and the catastrophe of climate change

“In media res” is Latin for “in the middle of things.” Frequently, it refers to the literary device of plunging readers into some central action of a story (often an epic) and then filling in the details and background later.

The residents of Houston must have felt that they were plunged into the middle of some epic story as Hurricane Harvey dumped up to 50 inches of rain on them and flooded much of the city. Early estimatessuggest that this hurricane could end up being the costliest natural disaster in U.S. history.

Hurricane Harvey is almost certainly an epic story unfolding before our eyes. That means the significance of events and outcomes surrounding the hurricane will only be filled in later–creating analysis, folklore and perhaps even a cultural output on par with that which followed Hurricane Katrina (think: the television series “Tremé”).

There will be stories about the failure or success of the emergency response effort. There will be denunciations of those officials who recommended staying put and recriminations of those doing the denouncing. There will be riveting accounts of suffering and also of heroic rescues and exceptional kindness. And, there will be stories of lawlessness and cruelty.

Harvey will almost certainly be styled as a tragedy. The storm is undoubtedly a colossal misfortune, and we should have compassion for those affected. But from a literary standpoint, it is not a tragedy at all. A genuine tragedy requires that the main players be unaware of how their own flawed character is leading them to self-destruction. A genuine tragedy depicts an ineluctable course of events. Nothing and no one could have prevented them. Greek tragedians relied on Ananke, the goddess of fate, to drive the action of their plays.

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

Arctic riches: A most insane discussion

August 28, 2017

Arctic riches: A most insane discussion

As climate change rips away the icy armor of the Arctic, nations surrounding the North Pole and companies eager to exploit the area’s mineral wealth–particularly oil and natural gas–are growing giddy with anticipation.

So reports the Associated Press, though the AP is by no means the first to report this story. The slow-motion battle over the increasingly accessible resources of the Arctic is certainly a story. But the prevailing version of that story lacks the proper context, one that is hard to provide since the implications of global climate change are vast and difficult to grasp.

First and foremost, burning additional oil and natural gas made available by receding Arctic ice is nothing short of insane. But in a world that believes that adapting to climate change is merely an engineering problem, this type of talk persists.

Readers of the AP piece are told that those wishing to exploit the Arctic will have to build the necessary infrastructure to service the mining, fishing and tourism interests that want a piece of these boreal riches. (Yes, you read that right: tourism!)

But if development of the Arctic proceeds, it will be a sign that we are doing far too little to abate the very causes of warming that make such development thinkable. That would imply increasingly rapid climate change, something that will almost surely destabilize a world which wants to exploit the Arctic.

In a world plagued with agricultural areas devastated by flood and drought, coastal cities drenched by rising seas, mass migrations from newly uninhabitable areas, spreading tropical diseases, water shortages, and unimaginably long periods of intense summer heat, it is hard to imagine that nations and private companies will be able to provide the systematic focus on Arctic development needed to extract its wealth.

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

Do Saudi Arabia And Russia Really Want Higher Oil Prices?

May 5, 2017

Do Saudi Arabia And Russia Really Want Higher Oil Prices?

The jawboning of oil prices by the Saudi Arabian/Russian tag team should be wearing off after more than a year of actions that don’t measure up to the words. Oil prices slumped recently, dropping from around $54 per barrel to just below $50 as of Friday’s close.

As if on cue, the Russian energy minister announced Friday that Russia has now met its target of reducing oil production by 300,000 barrels per day. It took four months to do something that should have taken just weeks. (The agreement came into force on January 1.) And, of course, we’ll have to see if the Russians have actually done what they say they’ve done.

Only a week earlier, the Saudi energy minister indicated that there is momentum growing in OPEC for extending production cuts beyond June for another six months. This announcement comes only six weeks after the same minister said that OPEC would NOT be considering extending the cuts. This is reminiscent of last year’s run-up to the production agreement in which Russia and Saudi Arabia kept alternating in making often contradictory announcements to sow confusion about the possibility of a production agreement and keep markets on edge without actually having to do anything.

I continue to question the sincerity of Saudi Arabia and Russia who I believe remain committed to undermining the production of tight oil (shale oil) in the United States. Despite the cuts agreed to for this year through June, the March numbers suggest substantial non-compliance among non-OPEC signers of the production agreement and a reminder that major producers Libya, Nigeria and Iran have been exempted from cuts. Do Saudi Arabia and Russia really want prices to rise enough to make tight oil profitable all across the United States (and not just sweet spots in the Permian Basin)? I’m not convinced. Related: Saudis To Boost Oil Export Capacity To 15 Million Bpd In 2018

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

“Reform” won’t solve our biggest problems

April 23, 2017

“Reform” won’t solve our biggest problems

“You never cure structural defects; you let the system collapse.”

As I contemplated this proposition taken from a recent piece by Nassim Nicholas Taleb, I realized what profound implications accepting it would have for all those engaged in attempting to address our current social, political and environmental ills.

If it is true that modern capitalism is incompatible with effective action on climate change, if it is true that top-heavy, bureaucratic nations always eventually become captive to their wealthy citizens, if it is true that our centralized, complex, tightly networked systems in finance, agriculture, shipping and manufacturing are exceedingly fragile and prone to failure–if these all represent structural defects, then they cannot be addressed by tinkering or “reform.” Those in charge cannot be persuaded to “do something” which is contrary to the structural necessities built into these systems.

The choices then are: 1) Do nothing, 2) insurrection (for which you might be jailed or worse) or 3) start building a decentralized replacement. Since I’m discarding choices one and two, I’ll address choice three.

First, adopting choice three doesn’t mean we should abandon critiquing the current systems under which we live. Quite the contrary. Those systems are where future adopters of decentralized replacements currently do business. They are the Brand X against which new systems can and need to be compared.

Second, we have good evidence that small-scale governments can actually respond to climate change when large-scale governments can’t. Citizens of seaside communities experience the rising ocean waters first hand and have direct access to their elected officials as do those who experience droughts. And those cities have actually taken significant (but still inadequate) steps toward addressing climate change. It is counterintuitive that decentralized governments could act more quickly and effectively on issues of international scope than national governments until we see them in action.

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

Split personalities: We like some science, but not all of it

April 18, 2017

Split personalities: We like some science, but not all of it

We modern folk are in a bind. We embrace what the sciences and the technology that flows from them have to offer, but we refuse to believe that we live in the world described by those very sciences.

Here I’m not merely talking about climate change deniers who, of course, fit this description. They merrily dial number after number on their cellphones, but they do so without realizing that in their climate change denial they are rejecting the very same science that underpins the phone they are using: physics.

But so many others live in this dual world as well. We humans imagine ourselves set apart from the natural world. And yet, our very bodies are the subject of scientific investigations. So we turn to our minds which we imagine set us apart from the natural world. But what is the mind? Do we not place the mind in the body? Are its manifestations not speech, writing, music, dance, and graphic arts which require the body for their expression.

The science of physics tells us that we live in a thermodynamic system. The universe is a thermodynamic system and so by definition must our Earth be one. Thermodynamic systems produce entropy, lots of it. Some two-thirds of all the energy we use in the United States is wasted. That’s right, wasted. That entropy shows up as climate-changing carbon dioxide in the atmosphere which is also acidifying the oceans. It shows up as barren landscapes left behind by coal and other mining. It shows up as waste heat and waste products flowing from our factories, our homes and our vehicles.

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

Communications breakdown: Can we even talk about our environmental and energy problems?

April 2, 2017

Communications breakdown: Can we even talk about our environmental and energy problems?

Conversations that seek genuine understanding by all sides ultimately require a common frame of reference. If we aren’t talking about the same things, how can we understand one another?

We usually refer to this as talking past one another. Sometimes this happens because we haven’t taken the time to understand what our conversation partner is trying to say. We are distracted and focused on something else. Increasingly, our public discourse–that which we all see on the airwaves, on the internet and in print–is mere polemic in service of some political or economic interest. There is no genuine attempt to explore the issues, only to advance a particular view of them–often for pay as is the case with public relations agencies and also fake think tank academics who merely parrot the positions of their funders.

We like to regard ourselves as living in an age of enlightenment. But enlightenment only occurs when we are intellectually honest. What intellectual honesty requires is the ability to entertain ideas and accept evidence that contradict our current views and to evaluate those ideas and evidence on some basis other than a financial or political interest.

The late William Catton, the sociologist and ecologist who stands as the 20th century prophet of our predicament, laid out this problem in his last book, Bottleneck: Humanity’s Impending Impasse. By bottleneck Catton means a dramatic reduction in human population over the coming century due to climate change, fossil fuel depletion, soil erosion and other problems and the attendant chaos these will bring to our current governance and economic arrangements.

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

Risk, double-edged swords and imagining the worst

February 11, 2017

Risk, double-edged swords and imagining the worst

A friend of mine recently said that intellectual honesty often requires imagining the worst. Of course, in the study of climate change and natural resources one needs only to read the analyses of scientists to imagine the worst.

Imagining the worst in not necessarily the same as believing the worst is inevitable or even likely. It can be merely a standard part of both scenario and emergency planning. Of course, imagining the worst can also be a double-edged sword with a sinister edge, sometimes eliciting Richard Hofstadter’s paranoid style of politics.

When we imagine the worst concerning our political opponents or our enemies (sadly often placed into the same category), this is merely a reflex designed to justify our own hatreds and also a tool for broadly smearing those with whom we disagree. Clearly, this is not the same as seeking out solid evidence and using logic to construct a worst-case scenario.

In scenario planning the whole point is to consider seriously a range of possible outcomes and formulate plans for dealing with those outcomes. For example, the U.S. Energy Information Administration (EIA) reference case for world oil production (defined as crude oil and lease condensate) shows it rising from about 76 million barrels per day (mbpd) in 2012 to 99.5 mbpd in 2040. The low production case is 92 mbpd and the high production case is almost 103 mbpd.

You may feel that this range doesn’t reflect more extreme scenarios, but at least the agency offers a range. Some forecasters pretend to know to the second decimal point the future of oil production and reserves decades hence. It’s hard to put this down to anything but hubris.

Compare these forecasts to a forecast based on much sounder data, this one made by an EIA researcher in 2009 about how much oil we would have to find and deliver to meet rather extravagant future demand expectations:

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

To confront power, one must first name it: Neoliberalism and the sustainability crisis

January 14, 2017

To confront power, one must first name it: Neoliberalism and the sustainability crisis

Recently, Wisconsin Gov. Scott Walker ordered references to human-caused climate change be deleted from the state Deparment of Natural Resources website. Scientific findings concerning the natural world have become an embarrassment for the neoliberal world view. The answer in this case seems to be to delete them.

But what is the neoliberal world view and why is it important to understand? Paraphrasing theologian Walter Wink British writer George Monbiot explains that in order to confront power, one must first name it. The power Monbiot has in mind is the power of those enacting the neoliberal agenda. He explained in a talk last year that this ideology is embraced by leaders of both the political right and left throughout much of the world.

More disturbing is that few people are aware of this fact, and fewer still can define what neoliberalism is. It’s important to understand that this ideology animates much of the governing class on the planet. It’s important because this ideology almost completely opposes doing anything serious about climate change or any of the other environmental and social ills which afflict us.

First, neoliberalism should not be confused with modern-day liberalism which is generally associated with tolerant social policies and governmental intervention in and regulation of the economy. To the contrary, neoliberalism harkens back to 19th century classical liberalism. Neoliberals champion a return to laissez-faire economics by means of the privatization of public services and property, fiscal austerity, deregulation and, of course, free trade.

Neoliberalism was first enunciated in the late 1930s as a response to fascism and communism. Only later did neoliberal ideas find their full expression in the presidency of Ronald Reagan and the government of Britain’s Margaret Thatcher. For obvious reasons neoliberal ideas have been championed and lavishly supported by wealthy corporate interests.

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

Deepwater Horizon and our emerging ‘normal’ catastrophes

October 16, 2016

Deepwater Horizon and our emerging ‘normal’ catastrophes

While watching the recently released film “Deepwater Horizon” about the catastrophic well blowout in the Gulf of Mexico that caused the largest oil spill in U.S. history, I remembered the term “fail-dangerous,” a term I first encountered in correspondence with a risk consultant for the oil and gas industry.

We’ve all heard the term “fail-safe” before. Fail-safe systems are designed to shut down benignly in case of failure. Fail-dangerous systems include airliners which don’t merely halt in place benignly when their engines fail, but crash on the ground in a ball of fire.

For fail-dangerous systems, we believe that failure is either unlikely or that the redundancy that we’ve build into the system will be sufficient to avert failure or at least minimize damage. Hence, the large amount of money spent on airline safety. This all seems very rational.

But in a highly complex technical society made up of highly complex subsystems such as the Deepwater Horizon offshore rig, we should not be so sanguine about our ability to judge risk. On the day the offshore rig blew up, executives from both oil giant BP and Transocean (which owned and operated the rig on behalf of BP) were aboard to celebrate seven years without a lost time incident, an exemplary record. They assumed that this record was the product of vigilance rather than luck.

And, contrary to what the film portrays, the Deepwater Horizon disaster was years in the making as BP and Transocean created a culture that normalized behaviors and decision-making which brought about not an unavoidable tragedy, but rather what is now termed a “normal accident”–a product of normal decisions by people who were following accepted procedures and routines.

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

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