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Today’s Contemplation: Collapse Cometh CLIII–Carbon Tunnel Vision and Resource/Energy & Ecological Blindness, Part 3

Today’s Contemplation: Collapse Cometh CLIII

October 6, 2023
Mexico (1988). Photo by author.

Carbon Tunnel Vision and Resource/Energy & Ecological Blindness, Part 3

As ecologist Howard T. Odum argues in the quote above, human ‘progress’ has been the result of our species’ leveraging of available ‘power’[1].

Humans are not unique in this but for a variety of evolutionary reasons, our species has taken this principle to a new (and extremely dangerous) level. In the case of our modern industrial societies and their many complexities, this power has been derived primarily from a finite cache of easily-accessible, -transportable, and -storable hydrocarbon deposits — and continues to rely significantly upon these non-renewable resources.

Rather than attribute much (most? all?) of our modern and very complex society’s ‘progress’ to the fortuitous biogeophysical circumstance of these energy deposits — particularly as it pertains to the commercial exploitation of petroleum that began in the 18th century — humans have created a mythos that it is our ingenuity and technological prowess that has led to all of the ‘advancements’ we consider as modern human progress[2].

(https://en.wikipedia.org/wiki/Progress)

And while there is a partial truth to this belief (as Odum points out, since we had to develop/innovate means of extracting and refining these deposits to ‘power’ our industries and various technologies) it is not the entire truth since we have come to discount/deny the importance of these hydrocarbon deposits to our ‘progress’ and the fortuitous biogeophysical circumstances that were required to create them — to say little about the importance of the planet’s ecological systems to all of this as well.

We have, instead, looked in the mirror and declared what a remarkably wise and intelligent ape we are; in fact, truth be told, we’re meant to rule and lord over the entire planet — including the lesser of our own species. A result of collective narcissism? It would seem partially so.

As I stated at the close of Part 2 of this multi-part contemplation (Part 1):

“Blindness to the importance of hydrocarbon energy to almost all of our complex systems is leading us to offer narratives that most assuredly are making our predicament of ecological overshoot worse. They mostly depend upon tales that highlight human ingenuity, especially with respect to technology, and offer ‘solutions’ to maintain for the most part our status quo systems and complexities…

Why do we do this? Why do we construct stories that, depending upon one’s perspective, could be considered suicidal in nature?”

Let’s now unpack some of the psychology behind this phenomenon.

Story-Telling Apes

Narrative psychology is that branch of psychology that focuses upon the story-telling aspect of our species. It operates “…under the assumption that human activity and experience are filled with ‘meaning’ and stories, rather than lawful formulations…[studying] how human beings construct stories to deal with experiences.”[3]

Basically, in our attempts to make sense of our exceedingly complex world and then give it meaning, humans develop stories that they then share with others[4]. Needless to say, our sensemaking via shared stories is a uniquely human behavioural attribute that is due to our communication abilities and exceedingly complex cognitions.

(https://www.yesmagazine.org/social-justice/2018/10/17/the-power-of-sharing-stories)

This storytelling to help us understand and make sense of our experiences is influenced by self-identity, retrospection, sharing, social milieu/audience, feedback (both internal and external), referential cues, and plausibility.[5]

And what is interesting about the final influence here, plausibility, is that this tends to be favoured over accuracy — what is ‘plausible’ becomes far more important than what is ‘accurate’. In other words, story-tellers tend to be more concerned with the ‘acceptability’ of their story, especially to the audience they are sharing it with, rather than with whether or not it reflects ‘reality’. Basically, we tend to be far more interested in whether the story we are telling resonates with the audience to whom we are sharing our story with than whether the story is accurate or not. Reality takes a back seat to getting our audience to accept, believe in, and react positively to our story.

The audience of a shared story also tends to put the plausibility of the narrative ahead of any evidentiary aspects. When exposed to the story from another person, we look for fit with our personal beliefs and biases. If what is being shared aligns with our preconceived expectations, we tend to believe it since we also tend to seek confirmation of our beliefs[6]. We absorb that which aligns with our preconceived view of things, reinforcing our beliefs. However, if the narrative does not corroborate our view of things, we tend to ignore/rationalise away it and its evidence.

(https://www.dreamstime.com/photos-images/reject.html)

This confirmation bias has a powerful impact upon our beliefs and our acceptance of another’s story, particularly its ‘plausibility’ and whether it is considered as reflective of ‘reality’.

Imagine, for a moment, an audience made up of financiers/economists verses one made up of ecologists/environmentalists, or of physicists. The validity or persuasiveness of a story depends greatly on the message being shared and how well it confirms or challenges beliefs.

For example, if one were discussing the finiteness of a resource to these different groups and arguing that the possibility of infinite substitutability (a mainstay of many economic viewpoints) is impossible due to certain biogeophysical constraints, the plausibility of this view would be either accepted or rejected depending upon which audience such an argument is being presented to.

Within the context of plausibility lie a number of factors that impact an audience’s acceptance of a story, confirmation bias being but one. Does the tale align with our experiences? Does it follow a stereotypical sequence of events or make use of ‘anchors’ that trigger one’s worldview? Does it use examples/precedents that appeal to the listener?

What is also important to our understanding of our story-telling nature and a significant contributing factor to our blindness to particular aspects of reality is attribution theory[7]. This theory focuses more intently upon the processes involved and suggests that humans infer causes and motivations that may or may not accurately reflect reality because of a rather large number of assumptions, heuristics, and cognitive biases that influence our interpretations.

Our tendencies are to attribute behaviours, motivations, and causes in certain ways; not always, but most of the time. And this tendency seems to play a very significant role in our blindness to the importance of energy to our sense of progress.

(https://helpfulprofessor.com/attribution-theory-examples/)

According to attribution theory some of the ways we tend to think about behaviours, because of cognitive biases, include:

1) Assigning the behaviour of others to internal causal factors such as personality, motive, and beliefs (i.e., fundamental attribution error, which is more common in ‘individualistic’ cultures);

2) Assigning the behaviour of ourselves to external factors such as the situation or environment (i.e., self-serving bias, which serves to protect one’s self-esteem);

3) Putting ourselves in the best possible light when telling a story to acquaintances/friends (i.e., interpersonal attribution).

Of particular importance to our stories around energy, resources, human ingenuity, and technology is the self-serving bias. This bias involves taking personal credit for successes (and blaming others when experiencing negative outcomes) and can be influenced by one’s age, motivation, culture, and locus of control.

Perhaps the most influential aspect of this bias with respect to our blindspots about energy and our ecological systems importance is the last one mentioned above: locus of control.

This aspect of our psyche or self-image deals with our beliefs about our ability to control events impacting our life. Do we believe our actions influence our experiences? Or are these events and their outcomes outside of our control?

Such beliefs exist within a continuum from no control to complete control, with people tending towards one end of the scale or the other but also shifting their beliefs based upon the context/circumstances. Add this to the tendency to want to put oneself in the best possible light, and we can begin to see why humans orient towards stories that elevate the importance of our ingenuity and technological prowess when viewing the world in terms of ‘progress’.

We not only want to take credit for perceived ‘advances’ as it builds our self-esteem, but we want to believe we have such control and influence upon the sociocultural ‘evolution’ of our species.

My next post will continue to look at some additional psychological mechanisms as well as belief system development and the role of marketing propaganda to influence our beliefs about energy and what is or is not possible for a species bumping up against (or, should I say, having surpassed) biogeophysical limits on a finite planet.

NOTE: Beginning to post these thoughts of mine also on my website. I began a couple of years ago posting them on Medium exclusively but have found that their subscription practices are somewhat restrictive. I will attempt to post one of my previous Contemplations per day on my website until I am caught up…in the meantime, I will be posting all new Contemplations in both locations.

Recently released:

It Bears Repeating: Best Of…Volume 1

A compilation of writers focused on the nexus of limits to growth, energy, and ecological overshoot.

With a Foreword and Afterword by Michael Dowd, authors include: Max Wilbert; Tim Watkins; Mike Stasse; Dr. Bill Rees; Dr. Tim Morgan; Rob Mielcarski; Dr. Simon Michaux; Erik Michaels; Just Collapse’s Tristan Sykes & Dr. Kate Booth; Kevin Hester; Alice Friedemann; David Casey; and, Steve Bull.

The document is not a guided narrative towards a singular or overarching message; except, perhaps, that we are in a predicament of our own making with a far more chaotic future ahead of us than most imagine–and most certainly than what mainstream media/politics would have us believe.

Click here to access the document as a PDF file, free to download.

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

You can also find a variety of resources, particularly my summary notes for a handful of texts, especially Catton’s Overshoot and Tainter’s Collapse: see here.

_____

[1] See this recent article for a summary of the Maximum Power Principle that is behind this assertion. Also see this one by Erik Michaels.

[2] Let’s keep in mind that the word ‘progress’ is extremely loaded in its meaning. Depending upon one’s perspective and/or focus, what might be considered ‘progress’ to one person may be quite different to another — for example, an economist’s interpretation verses an ecologist’s.

[3] See this.

[4] See thisthisthisthis, and/or this.

[5] See this.

[6] See thisthisthis, and/or this.

[7] See thisthis, and/or this.

We Underappreciate How Different We Are

Photo by Joshua Fuller on Unsplash

After I started working for my current employer, I met a colleague with whom I simply could not work with. We disagreed on almost everything — not on a factual level, but rather on how we approach working with problems and identify solutions. I felt like that, despite many similarities, we are the diametric opposite of each other.

This was the time when I got interested in fundamental differences regarding how people think and feel about the world and themselves. I started out by trying to better understand myself: somehow I had a hunch that this conflict has to do something with personality types. I filled out countless personality tests, read tens — maybe hundreds — of articles on different methods for dividing people into personality types, on how these can (or cannot) predict future behavior and so on. Finally I settled with the Myers Briggs Type Indicator, largely thanks to a fantastic website promoting the idea (full disclosure: I have no connection whatsoever to the creators and owners of that site and their personality test is free to use).

There were other factors at play, of course, like how differentiated the given personality descriptions are, but the fact that convinced me (and your mileage might greatly vary here) is the system’s ability to predict a certain type’s behavior in new situations, and the vast amount of additional information it revealed beyond the answers given by the participant in the questionnaire.

Figuring out my type (and guessing my colleague’s type with whom I could not work with) has led to one of the biggest revelations of my lifetime. I can still remember the moment. It was a cold but sunny winter day. As I was walking around a building in the campus pondering the issue I had a sudden epiphany. It was like a lighting strike.

…click on the above link to read the rest…

In Brief: Trading safety, An inflection point, The crisis of under-consumption, A reign of decline

In Brief: Trading safety, An inflection point, The crisis of under-consumption, A reign of decline

Trading safety

Within the inner sanctum of one of the world’s oldest and most esteemed universities, an ageing professor sits in a battered leather armchair.  Oblivious to the day-to-day sensations within the room – the slow tick and tock of an antique grandfather clock, the shimmering particles of dust caught in the beam of sunlight making its way through the sash window, or the odour of the worn, dusty and tea-stained carpet – our professor meditates upon the deeper mysteries of the universe.  In the adjacent reception sits a dragon secretary, whose main role in life is to guard the inner sanctum and to ensure that none of the mundane workings of a modern university be allowed to disturb the professor’s haven of tranquillity.

After three decades of neoliberal governments turning universities from bastions of knowledge and inquiry into the individual units of a cargo cult-based Ponzi scheme, this vision of a university may be but a reflection of a lost past.  It is, however, a metaphor for the way in which the human brain works – just like the dragon secretary – to prevent any of the millions of pieces of data that flood in through the senses from disturbing peace of mind.

When the mechanism – which psychologists call the “Affective Signalling System,” which causes us to seek pleasure and avoid danger – works properly, any sudden change in the environment will be allowed to enter the conscious mind.  This is a safety mechanism wired in by ancestors who needed to know if that rustle in the grass or snapping of a twig might indicate the presence of a predator hungry for a hominid meal.  And even within that tranquil inner sanctum, the odds are that our professor will notice immediately if the old grandfather clock stops ticking.

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

5 Psychological Experiments That Explain the Modern World

5 Psychological Experiments That Explain the Modern World

The world is a confusing place. People do things that don’t make any sense, think things that aren’t supported by facts, endure things they do not need to endure, and viciously attack those who try to bring these things to their attention.

If you’ve ever wondered why, you’ve come to the right place.

Any casual reader of the alternate media landscape will eventually come up with a reference to Stanley Milgram, or Philip Zimbardo, the “Asch Experiment” or maybe all three.

“Cognitive Dissonance”, “Diffusion of Responsibility”, and “learned helplessness” are phrases that regularly do the rounds, but where do they come from and what they mean?

Well, here are the important psycho-social experiments that teach us about the way people think, but more than that they actually explain how our modern world works, and just how we got into this mess.

1. THE MILGRAM EXPERIMENT

The Experiment: Let’s start with the most famous. Beginning in 1963, Yale psychologist Stanley Milgram conducted a series of experiments now referred to as the Milgram Obedience Experiments.

The setting is simple, Subject A is told to conduct a memory test on Subject B, and administer electric shocks when he makes mistakes. Of course, Subject B does not exist, and the electric shocks are not real. Instead, actors would cry, ask for help or pretend to be unconscious, all the while Subject A would be encouraged to carry on administering the shocks.

The vast majority of subjects carried on with the test and gave the shocks, despite the distress of “Subject B”.

The Conclusion: In his paper on this experiment Stanley Milgram coined the term “diffusion of responsibility”, describing the psychological process by which a person can excuse or justify doing harm to someone if they believe it’s not really their fault, they won’t be held accountable, or they do not have a choice.

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

Why We Ignore the Obvious: The Psychology of Willful Blindness

Why We Ignore the Obvious: The Psychology of Willful Blindness

How to counter the gradual narrowing of our horizons.

Why We Ignore the Obvious: The Psychology of Willful Blindness

“Keep your baby eyes (which are the eyes of genius) on what we don’t know,” pioneering investigative journalist Lincoln Steffens wrote in a beautiful 1926 letter of life-advice to his baby son. And yet the folly of the human condition is precisely that we can’t know what we don’t know — as E.F. Schumacher elegantly put it in his guide for the perplexed, “everything can be seen directly except the eye through which we see.” What obscures those transformative unknowns from view are the unconscious biases that even the best-intentioned of us succumb to.

In Willful Blindness: Why We Ignore the Obvious at Our Peril (public library), serial entrepreneur and author Margaret Heffernan examines the intricate, pervasive cognitive and emotional mechanisms by which we choose, sometimes consciously but mostly not, to remain unseeing in situations where “we could know, and should know, but don’t know because it makes us feel better not to know.” We do that, Heffernan argues and illustrates through a multitude of case studies ranging from dictatorships to disastrous love affairs to Bernie Madoff, because “the more tightly we focus, the more we leave out” — or, as cognitive scientist Alexandra Horowitz put it in her remarkable exploration of exactly what we leave out in our daily lives, because “attention is an intentional, unapologetic discriminator.”

The concept of “willful blindness,” Heffernan explains, comes from the law and originates from legislature passed in the 19th century — it’s the somewhat counterintuitive idea that you’re responsible “if you could have known, and should have known, something that instead you strove not to see.” …

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

Life in a Heroic Society

Image credit: Mehdi MeSSrro via Unsplash

We live in a heroic society. Marvel heroes and heroines rule the small and not so small glowing screens, political and war heroes shape our societies future. Or at least, that’s what they think they do.

Inmy earlier posts, written on the subject of the catastrophic Failure of Imagination (Part 1 and Part 2) I have addressed some of the psychological and mythological factors behind the fall of our modern high-tech / high energy civilization. But, as they say: every story and narrative — no matter how false it is — needs a hero or heroine. I originally wanted to include this aspect in my previous article, but the subject proved to be such a rich target, that I decided it deserves a dedicated post. So, here we go!

First, let’s recap the story. In Part 2 I’ve talked about a new belief system — one that has incrementally replaced older religions and gods, and provided the same benefits by easing the believers’ fear of uncertainty and loss.

It did so via the myth of progress — an otherwise false narrative about human history — which states that everything both in social and in technological terms gets better over time, and will continue to get better in the future. According to it, despite various setbacks (wars, crises, fall of empires) the only way to go is up and up.

In contrast, it talks about earlier times as if it were all about being dirty, foul smelling, brutish and ruthless. The story uses the same narrative terms to scare people from misbehaving. It does so by presenting them an unwanted future (aka a dystopia), where dirty and foul smelling people commit brutish and ruthless acts…

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

Deleted Government Report Celebrates How Public Loves to “Conform”

Deleted Government Report Celebrates How Public Loves to “Conform”

Climate change technocrats plan on using same methods that convinced public to obey lockdown.

Alex Segre via Getty Images

A deleted government report exploring how to make the public alter its behavior to accept the new ‘green economy’ reveals how COVID-19 restrictions have created a population with a “deep set reverence” for authority and a “powerful tendency to conform.”

The report was inadvertently published by the British government before being hastily pulled down, but numerous journalists were able to retrieve its contents.

The document explored how to weaponize behavioral psychology to ‘nudge’ the public into supporting measures and adopting behavior without them explicitly knowing they’re being manipulated.

The investigation found that the same techniques the government used to force people into accepting lockdown could be used to make them change their lifestyles in the name of preventing climate change.

Under the heading “principles for successful behaviour,” the paper noted;

“Government statements, actions and laws powerfully shape perceptions of normative and acceptable behaviour. For instance, even with public criticism being high, many still perceived government approval as the yardstick for safe behaviour during COVID-19 ‘we’re allowed to do this now [so must be safe]…’. This reveals, for many, a deep set reverence for legitimate government authority, regardless of one’s personal political views.”

While PR stunts such as having officials vaccinated live on television worked to convince people of the narrative, elite hypocrisy (public officials violating lockdown rules) was found to cause significant damage to public trust.

“Perceived hypocrisy can do a lot to undermine efforts to build public engagement and support. This was observed during the COVID-19 pandemic when prominent authority figures broke guidelines, leading to measurable reductions in public compliance as well as shifting attitudes.”

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

The Drivers Of Empire Want To Rule As Greek Gods

The Drivers Of Empire Want To Rule As Greek Gods

Listen to a reading of this article:

Power is the ability to control what happens. The more control you have, the more powerful you are.

That’s why power is like crack for the ego. Egos are all about control; obtaining safety and security so as to ensure the survival and success of one particular human organism. The impulse to exert control over our surroundings is why our recently-evolved brains create egos in the first place.

The more tightly clenched the ego, the greater the desire for control. This can manifest as trying to dominate one’s family and romantic partner with greater and greater totality. It can manifest as starting a cult. It can manifest as trying to shore up massive amounts of wealth. And it can manifest as the pursuit of power.

Those who rise to positions of power tend to be those who’ve placed the pursuit of it above all else, or to have been trained since birth to prioritize power by the powerful families they’re born into. This is especially true in the giant globe-spanning power structure that is loosely centralized around the United States.

The loose alliance of plutocrats and government agency insiders who rule this giant empire pursue power above all else. For all the historically unprecedented power these imperial oligarchs have, it’s still not enough for them.

Their objective is to control everything that happens in any nation on earth; to ensure that everything that occurs on this planet serves them and their interests. That’s what absolute power would look like.

The imperial oligarchs wish to rule our world as Greek gods from Mount Olympus. If any population on earth disobeys them, they want to be able to cause sweeping famines in that nation, or rain down fire upon them from on high. They want to be able to control not just how all humans behave, but how they think as well.

And, for the most part, they absolutely can do this. The drivers of empire can inflict famines upon entire populations by imposing starvation sanctions upon them using their control over international financial systems. They can rain down fire upon any disobedient population using the most powerful military force ever assembled. They can control the way we think, act, spend, consume, and vote to ensure it serves their interests, and their control over our minds is continually advancing.

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

The Climate Crisis: Interview with Social Psychologist Kelly Fielding

Kelly Fielding is a social and environmental psychologist and Professor in the School of Communication and Arts at The University of Queensland, Australia. Her research has included a focus on trying to understand climate change beliefs and identifying ways to address climate change skepticism and inaction. The interview took place 7 July, 2021.

AA: What are your thoughts and feelings about the climate crisis?

KF: I feel a lot of despair. Part of me thinks I’m not supposed to feel that, because I have PhD students working in this area, for example I’ve got a PhD student working on eco-anxiety. Probably like most people who work in this space and really care about this issue, I experience a range of feelings. Those range from, yes we will make it happen to wanting to throw up my hands in the air. A lot of the research on emotions and climate change has focused on the role of hope and the role of fear, and anger and despair and frustration. I feel all of these things in relation to climate change. You know, one of my PhD students did a meta-analysis of all the recent media articles on eco-anxiety. It was interesting that the media articles mainly focus on children and young people. I think that’s because, as an adult, you’re probably better at compartmentalizing. You say to yourself, there is a scary thing over here, climate change, but meanwhile I need to get on with these other things.

AA: You have done much to characterize the underlying attitudes, vested interests and ideologies that relate to skepticism about human-caused climate change. Is that work complete, or is there more to understand? 

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

COVID and the Noble Lie

COVID and the Noble Lie

“Unethical”… “dystopian”… “totalitarian”…

These are the words of the British government’s primary scientific advisory bunch — the Scientific Pandemic Influenza Group on Behaviour, by title.

These scientific advisors presently droop their heads in shame. For these are the very words they employ to describe their own conduct.

They concede: Last March their wicked counsel encouraged government officials to wildly inflate the true viral threat.

Only a pitiless torturing of facts — argued these men and women of science — could terrify the public into locking themselves in, locking themselves up, locking themselves down.

The London Telegraph:

In March [2020] the Government was very worried about compliance and they thought people wouldn’t want to be locked down. There were discussions about fear being needed to encourage compliance, and decisions were made about how to ramp up the fear.

Fear came ladling out by the ton.

Millions and millions would perish in agonies scarcely describable, they howled. The hospitals would overflow into the streets, they screeched.

Only the near-cessation of all public life could cage the menace.

The halfway men, the men counseling a measured response… were drummed out of court.

“Using Fear Smacks of Totalitarianism”

Group psychologist Gavin Morgan, confessing his atrocities:

Clearly, using fear as a means of control is not ethical. Using fear smacks of totalitarianism. It’s not an ethical stance for any modern government. By nature I am an optimistic person, but all this has given me a more pessimistic view of people.

A pity, it is, that this fellow is not a Daily Reckoning reader.

We would have squeezed the optimism from him long ago… and pumped in an implacable pessimism.

It would have spared him an awful letting-down, a massacre of his innocent delusions.

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

Fantasies, Myths, and Fairy Tales

Fantasies, Myths, and Fairy Tales

Advertisement from the mid-20th century

I have often used this expression (the title) to describe many things people tend to think of as solutions for one thing or another that either are not solutions or are unrealistic at best in terms of actually solving something. For anyone just joining these articles, this post will help get you started so as to be able to comprehend what this article is about.

As I have expressed before, my deep passion is to help explain where we are (as a species), how we got here, why we are in this mess, and what can and/or cannot be done to “solve” these predicaments. My very first post explained the difference between problems with answers or solutions and predicaments (or dilemmas) with outcomes. In it, we discovered that predicaments don’t have solutions, and that every solution proffered for a predicament winds up causing new problems and/or predicaments or comes with unacceptable costs or just simply doesn’t solve anything.

The reason these explanations are necessary is because a very large portion of society is completely ignorant to these facts and tends to buy into industry hype, marketing, advertising, and propaganda. Why does this happen? Because culturally, this is what society has been doing for the last several centuries AT LEAST. In order to sell an item or service, the seller needs to market and advertise the product or service. Making it attractive to the purchaser and making the purchaser feel good about buying it is key to getting the target audience to bring demand for said product or service. Whether the product or service is actually necessary or does more than make the purchaser feel good is often irrelevant in the grand scheme of things…

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

Ponzis Go Boom!!!

For the past few years, I have been critical of the Ponzi Sector. To me, these are businesses that sell a dollar for 80 cents and hope to make it up in volume. Just because Amazon (AMZN – USA) ran at a loss early on, doesn’t mean that all businesses will inflect at scale. In fact, many of the Ponzi Sector companies seem to have declining economics at scale—largely the result of intense competition with other Ponzi companies who also have negligible costs of capital.

I recently wrote about how interest rates are on the rise. If capital will have a cost to it, I suspect that the funding shuts off to the Ponzi Sector—buying unprofitable revenue growth becomes less attractive if you have other options. Besides, when you can no longer use presumed negative interest rates in your DCF, these businesses have no value. I believe the top is now finally in for the Ponzi Sector and a multi-year sector rotation is starting. However, interest rates are only a small piece of the puzzle.

Conventional wisdom says that the internet bubble blew up due to increasing interest rates. This may partly be true, but bubbles are irrational—rates shouldn’t matter—it is the psychology that matters. I believe two primary forces were at play that finally broke the internet bubble; equity supply and taxes. Look at a deal calendar from the second half of 1999. The number of speculative IPOs went exponential. Most IPOs unlock and allow restricted shareholders to sell roughly 180 days from the IPO. Is it any surprise that things got wobbly in March of 2020 and then collapsed in the months after that? Line up the un-lock window with the IPOs. It was a crescendo of supply—even excluding stock option exercises and secondary offerings…

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

adventures in capitalism, ponzi, interest rates, bubble, financial markets, psychology, speculation,

Americans Didn’t Vote Against Trump, They Voted Against More Media Psychological Abuse

Americans Didn’t Vote Against Trump, They Voted Against More Media Psychological Abuse

The word “coup” is being thrown about in American liberal media today, not because US liberals suddenly became uncomfortable with the fact that their nation constantly stages coups and topples governments around the world as a matter of routine policy, but because they are all talking about (you guessed it) Donald Trump.

To be clear, none of the high-powered influencers who have been promoting the use of this word actually believe there is any possibility that Donald Trump will somehow remain in office after January of next year when he loses his legal appeals against the official results of the election, which would be the thing that a coup is. There is no means or institutional support through which the sitting president could accomplish such a thing. This is not a coup, it’s a glorified temper tantrum. Trump will leave office at the appointed time.

The establishment narrative managers are not terrifying their audiences with this word because they believe there is any danger of a coup actually happening. They are doing it because it’s their last chance to use Trump to psychologically abuse their audiences for clicks.

Last year the Pacific Standard published a report on “Trump Anxiety Disorder” or “Trump Hypersensitive Unexplained Disorder,” which it describes as follows:

As the possibility of a Hillary Clinton victory began to slip away—and the possibility of a Donald Trump presidency became more and more certain—the contours of the new age of American anxiety began to take shape. In a 2017 column, Washington Post columnist Dana Milbank described this phenomenon as “Trump Hypertensive Unexplained Disorder”: Overeating…

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

The Economic Superorganism: Excerpt

For the last 200 years, increasing global energy consumption has translated to increasing global GHG emissions. While this might not be the case in the future, how do we consider the conflict between our instincts to react to immediate circumstances (i.e., consume more energy now, grow the economy now) and the political will to choose a different path based upon a future goal (i.e., limit human-caused climate change)? As Daniel Dennett asks in Freedom Evolves:

Where does the oomph come from to overrule our own instincts? Tradition would say it comes from some psychic force called willpower, but this just names the phenomenon and postpones explanation. How is “willpower” implemented in our brains?64—Daniel Dennett (2003)

Psychologists and economists use the term discount rate to describe how people make decisions, within our brains, when there are multiple options that present benefits at different points in time. Do I want one dollar now or two dollars ten years from now? Largely driven by natural selection and perhaps some idea similar to the maximum power principle, humans tend to have “steep” discount rates indicating that we tend to select rewards that come sooner rather than later.

Dennett uses the story of Ulysses and the Sirens in Homer’s The Odyssey to demonstrate the link between willpower and the idea of the discount rate. The goddess Circe warns Ulysses that during his journey home, he will sail past the Island of the Sirens. The Sirens appear to have exquisite beauty and a sweet song that lures sailors to their shores. But on approach, the sailboats crash on the rocks, and the sailors remain on the island, unwilling to leave as they listen to the song of the Sirens until they wither and die.

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The Psychology of Systemic Consensus

We are all too familiar with established views rejecting change. It has nothing to do with the facts. Officialdom’s mind is often firmly closed to all reason on the big issues. To appreciate why we must understand the crowd psychology behind the systemic consensus. It is the distant engine that drives the generator that provides the electricity that drives us into repetitive disasters despite prior evidence they are avoidable, and even fuels the madness of political correctness.

Forget the argument, look at the psychology

A human prejudice which is little examined is why establishments frequently stick to conviction while denying reasonable debate. Anyone who addresses the unreason of the establishment risks their motives being personally vilified and attacked. There are many fields of government where this is demonstrably true.

Leadership is too often based on prevailing beliefs, with minds firmly closed to any evidence they might be wrong. Even Galileo was forced by the Inquisition in 1633 to recant his scientific evidence that the earth revolved around the sun – a thoroughly reasonable and logical though novel proposition to the independent mind. But it wasn’t until 1992 that the religious establishment at the Vatican forgave him for being right.

That was 359 years later and long after it mattered to Galileo. Fortunately, when the establishment view departs from the facts it rarely survives as long. Socialism, economics, climate change and Brexit show the same static opinions insulated from inconvenient contradictions. This is not to say the establishment need be judgemental. Democratic government at its best tries to remain neutral and reflect a balance of opinion. But there are times when it loses sight of firm ground and becomes subverted by the psychology of its own established but unfounded beliefs.

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Olduvai IV: Courage
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Olduvai II: Exodus
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