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Our Delusional Economy Is Poised To Slam Into The Brick Wall Of Reality

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Our Delusional Economy Is Poised To Slam Into The Brick Wall Of Reality

Will you thrive, merely survive, or fail?

While life has always been uncertain, today our choices matter more than ever. The decisions each of us make today will determine if we thrive, merely survive, or fail during the future time of upheaval ahead.

The window of opportunity to change course for humanity is all but closed.  There’s simpply no more time to hope that somehow, magically, the world’s entire energy complex will suddently evolve to a bountiful and sustainable new plane — whether by market forces, by maverick billionaires like Elon Musk, or by happy accident.

As we hammer home constantly here at Peak Prosperity, energy is everything. Without it, our society simply can’t function.

And it’s critical to appreciate that it takes an investment of energy to migrate from energy solution to another.

Imagine you heat your house with wood, but want to switch to a forced air gas furnace.  Is there energy involved in doing so?  You bet there is.  Besides the obvious new need for natural gas, there’s a huge amount of embodied energy in the manufacture and installation of your new furnace, all the duct work, and the delivery lines that will bring the gas to the furnace.  Further, there will be electricity required to force the air from the furnace, through the ducts, and into your house.

The same is true when making transitions at the national level. What’s involved in the much larger projects of switching industrial agriculture away from the fossil fuel driven process of plowing, planting, fertilizing, irrigating, harvesting, drying or cooling, and then transporting food from the field to your table?

At each stage there’s an enormous amount of energy infrastructure that needs to be rebuilt and reconfigured to run on “something else.”  Let’s examine the current dream that we’ll switchover to powering all of our farming needs with electricity.

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

Fixing Infrastructure Isn’t as Simple as Spending Another Trillion Dollars

Fixing Infrastructure Isn’t as Simple as Spending Another Trillion Dollars

It isn’t easy to add new subway lines or new highways, and so “solutions” don’t really exist.

If there’s one thing Americans can still agree on, it’s that America needs to spend more on infrastructure which is visibly falling apart in many places. This capital investment creates jobs and satisfies everyone’s ideological requirements: investment in public infrastructure helps enterprises, local governments and residents.

Unfortunately, it isn’t a simple as spending another trillion dollars. Spending money is the easy part; actually fixing what’s broken isn’t just a matter of spending more money.

The poster child for spending trillions on infrastructure and getting very little value is Japan, which has funneled much of its fiscal stimulus over the past 30 years into vast and largely needless infrastructure projects: bridges and roadways that are lightly used being just one example.

The reason for the this low-value-creation policy is the political power of the construction industry and the convoluted political structure which gives rural areas inordinate political power over public spending. As a result, enormously expensive and utterly needless highways and bridges litter lightly populated rural communities which have become dependent on construction jobs for what little remains of the local economy.

In other words, what’s broken in Japan remains broken. Spending more on infrastructure hasn’t fixed what’s dragging the nation into permanent stagnation.

If you live in any of America’s major urban centers (or happen to visit), you know that traffic congestion is now off the scale. From Portland to Las Vegas to Atlanta, traffic jams and crushing commutes are now the norm.

Soaring housing costs have pushed workers farther into the exurbs, lengthening commutes and choking highways constructed for a much smaller populace.

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

Climate change, water and the infrastructure problem

Climate change, water and the infrastructure problem

I was watching an episode of the science-fiction noir thriller “The Expanse” recently. Set hundreds of years in the future, the United Nations has now become the world government and its main rival is Mars, a former Earth colony. The UN is still in New York City and a new fancier UN building is now tucked safely behind a vast seawall that protects the city from rising water resulting from climate change.

It’s a world that looks like an extension of our own, but one that has survived the twin existential threats of climate change and resource depletion. But will it be so easy to update our infrastructure to overcome these threats?

The naive notion that we can, for example, “just use more air conditioning” as the globe warms betrays a perplexing misunderstanding of what we face. Even if one ignores the insanity of burning more climate-warming fossil fuels to make electricity for more air-conditioning, there is the embedded assumption that our current infrastructure with only minor modifications will withstand the pressures placed upon it in a future transformed by climate change and other depredations.

That assumption doesn’t square with the facts. Take, for instance, the Miami, Florida water system. One would think that Miami’s first task in adapting to climate change would be to defend its shores against sea-level rise. But it turns out that the most troublesome effect of sea-level rise is sea water infiltration into the aquifer which supplies the city’s water.

Once that happens the city would have to adopt desalination for its water supply, a process that currently costs two and one-half times more than current water purification processes. And, of course, desalinating water for a city as large as Miami, a city of more than 400,000 who consume 330 million gallons per day, would require a huge, expensive new infrastructure.

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

Permian Bottlenecks Come At The Worst Moment

Permian Bottlenecks Come At The Worst Moment

oil flaring

The growing number of supply outages around the world are causing the oil market to become a lot more volatile, putting extra emphasis on every barrel that does or does not make it to market. That makes the infrastructure bottlenecks in West Texas a global concern.

There is quite a bit of debate about what’s going on in the Permian, and whether or not the shale industry will be able to keep up with heady production forecasts. The IEA predicts the U.S. will add 1.7 million barrels per day in 2018, followed by another 1.2 mb/d in 2019.

Obviously, the bulk of that is expected to come from the Permian, and while the IEA acknowledges pipeline bottlenecks in the Permian, it has not significantly altered its supply forecast. “While producers are bumping up against pipeline bottlenecks, supplies will continue to rise through 2019,” the IEA said in its June Oil Market Report.

(Click to enlarge)

But by most accounts, the pipelines from the Permian to the Gulf Coast are either full or will be full in the next few months. That makes projections like the ones from places like the IEA look a bit optimistic, almost as if growth was simply extrapolated forward.

Others are more pessimistic. “We will reach capacity in the next 3 to 4 months,” Scott Sheffield, the chairman of Pioneer Natural Resources Co., told Bloomberg last month. “Some companies will have to shut in production, some companies will move rigs away, and some companies will be able to continue growing because they have firm transportation.”

The Permian has roughly 3.1 mb/d of takeaway capacity, plus local refining capacity. There is theoretically some 300,000 bpd of train capacity, but a lot of that is being used to move frac sand, according to S&P Global Platts.

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

How Easy Money Is Rotting America from the Inside-Out

How Easy Money Is Rotting America from the Inside-Out

How much of our gleaming new infrastructure will fall into disrepair?

The Federal Reserve has been the main cause of business cycles in America since 1913. For several decades, it has tried to hide the consequences of its policies by enabling easy credit during each recession. As Jonathan Newman wrote yesterday, pouring trillions of dollars into the financial sector obscures the external signs of the recession such as low asset prices and high unemployment and promotes economic malinvestment.

This malinvestment creates the conditions that cause the next recession. Some of the consequences of the Fed’s policies, such as stock market and housing bubbles can be directly attributed to its policies. In other cases, the artificially low interest rates and other “easy money” policies foster an “infrastructure rot” that erodes the efficiency of the American economy, the standard of living of consumers, and eats away at American infrastructure. These effects are difficult to trace back to the Fed’s policies, so let’s concretize some examples to understand how Federal Reserve policies affect America.

At the city level, low interest rates allow cities to fund new public projects such as parks and bridges. While this may seem fine and dandy, all infrastructure projects have a maintenance cost. It’s not sufficient to build a park. One must also have the money to maintain it every year. If there is not enough revenue to pay for maintenance, the park will literally rot until the playgrounds fall apart, the lawns are overgrown, the lights fail, and the park becomes too dangerous for families to play in.

The same thing will happen to streets, bridges, and plumbing. This is one of the ways urban decay happens: easy money policies fund unsustainable urban infrastructure projects which make politicians look good, but end up crumbling a few years or decades later.

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

Canada Builds $300 Million Highway To Nowhere, But Is There A Hidden Agenda?

Canada Builds $300 Million Highway To Nowhere, But Is There A Hidden Agenda?

A new $300-million first of its kind ‘permanent’ highway will officially open in the Northwest Territories of Canada on Wednesday.

This will be the first time in Canada’s history that the national highway system will be linked to all coasts. The completion of the four-year project is said to connect the tiny Arctic coastal town of Tuktoyaktuk with the rest of the communities to provide better transportation for residents.

We think there could be another reason why Canada would build a highway to nowhere.

As explained by one citizen in the video below, the new route is called ‘road to resources’, it’s where major reserves of oil and gas reside, and at one time inaccessible due to poor infrastructure. 

The all-season 137-kilometer highway is the first of its kind that connects Inuvik to Hamlet of Tuktoyaktuk. The traditional route to Tuktoyaktuk involved ice roads in the winter, but as the seasons changed those roads were inaccessible. In the summer, the only way to travel north was by plane, which made it difficult to transport goods. The new road will be a game changer and its size indicates heavy machinery can be transported north, such as oil and gas platforms.

Darrel Nasogaluak, mayor of the Northwest Territories hamlet of Tuktoyaktuk, said the permanent road is “something that’s been on the community’s want list for 40 years.” Nasogaluak might want to take back that statement in a few years, as what we expect the Canadian government could flood the region with oil and gas exploration teams.

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

America Can’t Afford to Rebuild


Adolphe Yvon Genius of America c1870
A number of people have argued over the past few days that Hurricane Harvey will NOT boost the US housing market. As if any such argument would or should be required. Hurricane Irma will not provide any such boost either. News about the ‘resurrection’ of New Orleans post-Katrina has pretty much dried up, but we know scores of people there never returned, in most cases because they couldn’t afford to.

And Katrina took place 12 years ago, well before the financial crisis. How do you think this will play out today? Houston is a rich city, but that doesn’t mean it’s full of rich people only. Most homeowners in the city and its surroundings have no flood insurance; they can’t afford it. But they still lost everything. So how will they rebuild?

Sure, the US has a National Flood Insurance Program, but who’s covered by it? Besides, the Program was already $24 billion in debt by 2014 largely due to hurricanes Katrina and Sandy. With total costs of Harvey estimated at $200 billion or more, and Irma threating to cause far more damage than that, where’s the money going to come from?

It took an actual fight just to push the first few billion dollars in emergency aid for Houston through Congress, with four Texan senators voting against of all people. Who then will vote for half a trillion or so in aid? And even if they do, where would it come from?

Trump’s plans for an infrastructure fund were never going to be an easy sell in Washington, and every single penny he might have gotten for it would now have to go towards repairing existing roads and bridges, not updating them -necessary as that may be-, let alone new construction.

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

Perturbations Anon

Happy Labor Day everybody. Forward from here, things get jiggy. The nation faces a pile-up of events as we turn the corner on summer and head into the spook-house of autumn.

This will be the week when the reeking after-effects of Harvey’s journey through Houston become super-vivid. It’s going to be hot-hot-hot there all week, perfect conditions for mold to creep through untold square-footage of soggy sheetrock and plenty of nutriment in the toxic gumbo of lingering standing water for mosquitoes and bacteria to breed like crazy. Bigger surprises will be waiting for some:

HOUSTON (CNN) — A Texas homeowner returned to his flood-marred home Friday in the aftermath of Hurricane Harvey to a shocking surprise: a 10-foot gator in his living room. Brian Foster made the discovery while assessing how badly the water had damaged his house near Lake Houston, north of Houston….

The news media are already calling Harvey the costliest storm in US history, with estimates running to $180 billion. But damage assessments are incomplete for highways, surface roads, bridges, railroad tracks, water and sewer systems, public buildings, dams (Addicks and Barker), natural gas terminals, and port facilities, not to mention homes and business structures. Texas is the nation’s number one cotton producer and the storm blew away many temporary cotton bale storage modules following a bumper harvest. Corn, soybeans, and cattle were also affected.

The Colonial Pipeline’s hookups to the refineries west of Lake Charles, Louisiana, won’t reopen fully until Tuesday at the earliest. The pipeline conveys 40 percent of the gasoline consumed from Atlanta to Washington, D.C. and extends up to the New York metro area. By next weekend Hurricane Irma looks like she’ll be slamming into the US Atlantic coast somewhere between Jacksonville and the Carolina Outer Banks as a category 3 or 4 event. There’s even talk today of possible cat 5. Will there be enough gasoline on hand for the folks at risk to evacuate? Stand by on that.

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

Scott Cahill: Collapse Risk At The Oroville Dam Is Still Unacceptably High

Bungled repairs and new concerns at the tallest US dam

Remember the crisis earlier this year at the Oroville Dam?

The overflow from California’s winter of heavy rain threatened to overpower our country’s tallest dam. A cascading failure of the dam’s main gates, its primarily spillway AND its emergency spillway had the world watching hour by hour to see if a catastrophic breach was going to occur.

Fortunately, the rains stopped long enough for the situation to be brought under control. The dam remains in place and repair crews have been working all spring and summer.

But should we breathe easy at this point? Not at all, says dam safety expert Scott Cahill. Our readers will remember Scott from the excellent technical assessment he provided in the thick of the crisis earlier this year. In our earlier podcast with him, he explained how the real tragedy at Oroville was that for many years, small and affordable maintenance projects that easily could have prevented the crisis were diverted (in his estimation, the cost of making the needed repairs was quite small — around $6 million. But for short-sighted reasons, the repairs were not funded; and now the bill to fix the resultant damage will likely be on the order of magnitude of over $200 million. Which does not factor in the environmental carnage caused by flooding downstream ecosystems with high-sediment water or the costs involved with evacuating the 200,000 residents living nearby the dam).

And the pattern appears to be continuing. In this week’s podcast, Scott details a number of concerning structural risks visible at Oroville that are again being de-prioritized, or ignored all-together. And as before, straightforward and inexpensive projects that have high potential to prevent a catastrophic failure of the dam are not being pursued:

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

Navigating Through the Storms

NAVIGATING THROUGH THE STORMS

Several weeks ago I had to drive west on the Pennsylvania Turnpike to pick up my son after his sophomore year at Penn State. I’ve made this trip a dozen times over the last few years, since this is my second son attending Penn State, with a third starting in the Fall. It’s a tedious, boring, protracted, four hour trek through the rural countryside of the Keystone State. During these trips my mind wanders, making connections between the landscape and the pressing issues facing the world. I can’t help but get lost in my thoughts as the miles accumulate like dollars on the national debt clock.

More often than not I end up making the trip in the midst of bad weather. And this time was no different. The Pennsylvania Turnpike is a meandering, decades old, dangerous, mostly two lane highway for most of its 360 mile span. Large swaths of the decaying interstate are under construction, as the narrative about lack of infrastructure spending is proven false by visual proof along the highways and byways of America.

The real infrastructure crisis is below ground in urban shitholes where 100 year old water and sewer pipes fail on a regular basis, but bankrupt Democrat politicians divert their steadily declining tax revenues to bloated pensions of government lackeys. Infrastructure spending is only interesting to politicians if they can name it after themselves and have a ribbon cutting ceremony. Replacing water and sewer pipes before they explode isn’t sexy, so it won’t be done.

A winding two lane highway, with a speed limits of 70 mph, and jam-packed with 18 wheelers driven by sometimes sleepy and often aggressive truckers already leads to a pressure packed few hours. Add rain to the mixture and you ratchet up the blood pressure.

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

Obama Ordered Cyberweapons Implanted Into Russia’s Infrastructure

The Horror! The Horror! (Part Two)

THE HORROR! THE HORROR! (PART TWO)

In Part One of this article I detailed how propaganda has been utilized by the Deep State for decades to control the minds of the masses and allow those in control to reap the benefits of never ending war. In Part Two I will discuss recent events, false flags, and propaganda campaigns utilized by the Deep State to push the world to the brink of war.

“We penetrated deeper and deeper into the heart of darkness”Joseph Conrad, Heart of Darkness

The use of graphic images, electronically transmitted across the world in an instant, along with a consistent false narrative promoted by the captured corporate media, is the preferred means of appealing to the emotions of those who want to believe atrocity propaganda. Instigating a march to war through the use of unfounded fear, misinformation, staged photo ops, and appealing to passions and prejudices was as revolting to Albert Einstein  in the 1930s as it is today to normal thinking individuals.

“He who joyfully marches to music in rank and file has already earned my contempt. He has been given a large brain by mistake, since for him the spinal cord would fully suffice. This disgrace to civilization should be done away with at once. Heroism at command, senseless brutality, deplorable love-of-country stance, how violently I hate all this, how despicable and ignoble war is; I would rather be torn to shreds than be a part of so base an action! It is my conviction that killing under the cloak of war is nothing but an act of murder.” – Albert Einstein

It seems the level and intensity of the propaganda campaigns has ratcheted up dramatically in the last half dozen years and appears to be reaching a crescendo as we speak.

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

Obstacles to Trump’s ‘Growth’ Plans


Theodor Horydczak “Dome of US Capitol through trees at night” 1943
For the second time in a few weeks (see ‘End of Growth’ Sparks Wide Discontent), former British diplomat Alastair Crooke quotes me extensively, and I gladly return the favor. Crooke here attempts to list -some of- the difficulties Donald Trump will face in executing the -economic- measures he promised to take in his campaign. Crooke argues that, as I’ve indicated repeatedly, for instance in America is The Poisoned Chalice, the financial crisis that never ended may be one of his biggest problems.

Here, again, is Alastair Crooke:

We are plainly at a pivotal moment. President-Elect Trump wants to make dramatic changes in his nation’s course. His battle cry of wanting to make “America Great Again” evokes – and almost certainly is intended to evoke – the epic American economic expansions of the Nineteenth and Twentieth centuries.

Trump wants to reverse the off-shoring of American jobs; he wants to revive America’s manufacturing base; he wants to recast the terms of international trade; he wants growth; and he wants jobs in the U.S. – and he wants to turn America’s foreign policy around 180 degrees.

It is an agenda that is, as it were, quite laudable. Many Americans want just this, and the transition in which we are presently in – dictated by the global elusiveness and search for growth (whatever is meant now by this term “growth”), clearly requires a different economic approach from that followed in recent decades.

As Raúl Ilargi Meijer has perceptively posited, greater self-reliance “is the future of the world, ‘post-growth’, and post-globalization. Every country, and every society, needs to focus on self-reliance, not as some idealistic luxury choice, but as a necessity. And that is not as bad or terrible as people would have you believe, and it’s not the end of the world …

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

Intelligence Insider: How To Protect Your Assets From Critical Infrastructure Failure: “Power Grid, Banking System, Cyber Financial Warfare”

Intelligence Insider: How To Protect Your Assets From Critical Infrastructure Failure: “Power Grid, Banking System, Cyber Financial Warfare”

cyber-warfare

Intelligence insider Jim Rickards has previously warned of asymmetric attacks using cyber warfare, financial warfare and domestic disasters involving chemical, biological or radiologicial events. The threat is multi-faceted and the consequences of such an attack, whether it takes the the form of state-sponsored cyber financial warfare or a rogue terrorist group detonating a dirty bomb, could act as a destabilizing event that wipes out everything from our power grid to the wealth stored in your digital financial profiles.

Having worked directly with intelligence agencies simulating and war-gaming the potential fall-out that could result, in his latest interview with Crush The Street Rickards explains the distinct Doomsday scenarios that could instantly collapse life as we know it in America today… and how to prepare for them.

These things are actually happening and your digital wealth is vulnerable to a number of calamities… critical infrastructure failures… whether it’s power grid, banking system, cyber financial warfare, etc.


(Watch At Youtube)

Last month cyber thieves figured out a way to steal $100 million from the central bank account of Bangladesh via the U.S. Federal Reserve. They could have gotten away with $900 million more had it not been for a small typo. The point, as Rickards notes, is that there is a realistic possibility of a much larger-scale attack that targets not a central bank, but the direct holdings of every bank account in America.

The only tool you have at your disposal to protect from such an attack, says Rickards, is gold:

You never want to go all in… I am saying that 10% of your wealth… put it into physical gold… put it in a safe place and that will be immune from power grid outages, exchange closures, digital asset seizures and cyber financial warfare.

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

We’ll all be Flint Michigan someday: U.S. water infrastructure is falling apart

We’ll all be Flint Michigan someday: U.S. water infrastructure is falling apart

[ According to this Free National Research Council report, most water systems and distribution pipes will be reaching the end of their expected life spans in the next 30 years.

With nearly a million miles of utility water infrastructure, 5 million miles of private home and building infrastructure, 154,000 storage facilities, and more,  it will be hard to replace within 30 years, and the EPA estimated the cost would be over $205 billion dollars.

This is important because one of the main reasons lifespan rose above 50 years last century was clean drinking water.  Residents in Flint who drank lead-poisoned water may not only have their lifespan shortened, but their quality of life reduced as well. Being able to harvest your own rainwater and store it is one way to protect yourself. Excerpts from this 404 page document follow. They are not in order. ]

U.S. Water infrastructure is falling apart (my title)

TABLE 4-7 Material Life Expectancies

Distribution System Component Typical Life Expectancies,years
Concrete & metal storage tanks 30
Transmission pipes 35
Valves 35
Mechanical valves 15
Hydrants 40
Service Lines 30
SOURCE: EPA (2004). EPA’s Note: These expected useful lives are drawn from a variety of sources. The estimates assume that assets have been properly maintained.

The extent of water distribution pipes in the United States is estimated to be a total length of 980,000 miles (1.6 x 106 km), which is being replaced at an estimated rate of once every 200 years. Rates of repair and rehabilitation have not been estimated.

There is a large range in the type and age of the pipes that make up water distribution systems. The oldest cast iron pipes from the late 19th century are typically described as having an expected average useful lifespan of about 120 years because of the pipe wall thickness.

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

Olduvai IV: Courage
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Olduvai II: Exodus
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