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Forget the Black Swans; the Vultures already Circling us Are Bad Enough to Kill us

Forget the Black Swans; the Vultures already Circling us Are Bad Enough to Kill us

There is certainly more coming to eat away at your finances as infamous bankster Jamie Dimon laid out quite broadly and plainly this week.

gray and white bird on brown tree branch during sunset
Photo by Abhishek Singh on Unsplash

Jamie Dimon never saw a dying bank he didn’t want to eat. Yet, while I think that Dimon’s name should be pronounced less like the clear, crown jewel of choice and more like the horned fiends of Hades, he does often speak of things likely to bring down the banking world or the economy with more candor than any other bankers, including particularly his partners in crime at the Fed. And you can be sure he has his scavenger eye on those things.

Perhaps it is just because he has unparalleled confidence that he is untouchable like a serial killer who talks to police on the street about how sorry he feels that they have had no luck at all finding the serial killer. He’s just that confident his next big take from hauling in a failing bank at fire-sale prices is so certain, he needn’t worry that warning everyone of the coming failures will get in the way of his business. Thus, he can play the saint for warning us all, knowing the greedy will ignore his warnings anyway, and still wait in the wings for that Friday evening call from Fed Chair Jerome Powell that says, “We have another bank for you. Can we meet tomorrow morning to discuss terms and complete a weekend sale?”

Fitting right in with my theme for this weekend’s Deeper Dive for paying subscribers to be titled “The Apoceclypse,” The CEO of JPMorgan Chase warned the world this week that it faces “Risks that eclipse anything since World War II.” I, of course, couldn’t agree more, so I want to spend this article distilling the Dimon’s annual report down to the most essential risks:

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

The Meltdown of Commercial Real Estate

The Meltdown of Commercial Real Estate

Commentary
In case you’ve still got money in a bank, Bloomberg is warning that defaults in commercial real estate loans could “topple” hundreds of U.S. banks.

Leaving taxpayers on the hook for trillions in losses.

The note, by senior editor James Crombie, walks us through the festering hellscape that is commercial real estate.

To set the mood, a new study predicts that nearly half of downtown Pittsburgh office space could be vacant in four years. Major cities such as San Francisco are already sporting zombie-apocalypse downtowns, with abandoned office buildings baking in the sun.

So what happened?

The Fed’s yo-yo interest rates first flooded real estate with low rates and cheap money. Which were overbuilt.

Then came the lockdowns, which forced millions to figure out new workday patterns. People liked foregoing the long commute (not to mention the free money). Despite every effort, downtown businesses have not been able to get all workers back.

These days, everyone talks about hybrid models of working, some in-person and some remote. But judging from observation, remote is winning. In any case, even a 30 percent reduction in the footprint of office space once the leases are renewed could topple the entire sector.

The restaurant and retail sectors of downtown feel the pinch, with more closures all the time. Adding to the pressure are absurd levels of inflation and ever-riskier streets on matters of personal security. Put it all together and there is ever less reason to slog to the office.

When the Fed panic-hiked interest rates in the 2021 inflation, that put trillions of commercial real estate underwater even without other factors. Add to that crime, inflation, plus remote work, and you have a dangerous mix that could topple cities as we know them.

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

The Fed’s Dovish Twist – Only Surprising on the Surface

The Fed’s Dovish Twist – Only Surprising on the Surface

Rate Cuts, Money Printer Go Brrr, and Biden

“The Federal Reserve is not only too big to fail, it’s too big to be held accountable.”

~ Thomas Massie

Last week at its Federal Open Market Committee (FOMC) meeting, the Fed made it clear that it will go back to stoking inflation.

Leaving the Fedspeak aside, here’s the gist: The Fed wants to cut interest rates three times this year, each time by 0.25%, with the goal of reaching a range between 4.55% to 4.75%.

That’s the plan for 2024. But the Fed’s expectation is to lower them even further in 2025 and 2026.

Now, this is quite a turn… and quite an odd one at that in terms of the timing. First, you’ve got the stock market recently hitting all-time highs. Gold and Bitcoin are also hovering near their all-time highs.

And hold on a second, isn’t the Fed supposed to be fighting inflation? Didn’t it come in pretty hot recently?

It did.

The PCE (or Personal Consumption Expenditures) — the Fed’s preferred gauge for measuring inflation — jumped by 0.4% in January, hitting its fastest pace in almost a year.

The inflation report for December was not great either.

Leaving aside the fact that the whole core PCE thing is a sham because it excludes food and energy (the two things Americans depend on the most), the Fed, being all “data-dependent,” is shrugging off the data it doesn’t like.

Alright, that’s pretty noteworthy on its own, but that wasn’t the only jaw-dropping news from the Fed last week.

It came from Fed Chair Jerome Powell himself, who suggested that the central bank could ease quantitative tightening (QT) “fairly soon.”


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

“We Will Have A Hard Landing At Some Point. I Guarantee You That.”

“We Will Have A Hard Landing At Some Point. I Guarantee You That.”

Can you guess who the quote in the article title is from?  I will give you a hint.  It wasn’t me.  I know that it sounds like it could have come from me, but it actually comes from a very big name on Wall Street.  Ellen Zentner is Morgan Stanley’s chief U.S. economist, and she is the one that said it.  During an interview with CNBC she warned that “the tightening impacts from monetary policy” will have enormous consequences for the U.S. economy in the months ahead…

“We will have a hard landing at some point. I guarantee you that. We’re all wondering: When does that come?” she said. “The point that Dimon makes is that there are these cumulative impacts that build over time, and we are in the camp that we haven’t yet seen all of the tightening impacts from monetary policy,” she added, referring to the impact of Fed rate hikes.

She makes a really great point.

The consequences of interest rate hikes are felt over time.

Higher interest rates have certainly started to cause a lot of problems, but if rates are not brought down soon the level of pain that we are experiencing will begin to go up dramatically.

Unfortunately, the Fed is not likely to reduce interest rates any time soon because inflation continues to run hotter than expected

Inflation increased by the largest amount in almost a year, according to the Fed’s preferred measure – confirming expectations interest rates will not be cut until around June.

The so-called core personal consumption expenditures (PCE) index – which excludes volatile food and energy prices – increased 0.4 percent between December and January.

Marko Kolanovic, the chief market strategist for JPMorgan Chase, believes that the U.S. economy could be headed into “something like 1970s stagflation”

…click on the above link to read the rest…

In Brief: The energy death spiral grows; Another bad omen; Hobsons choice

In Brief: The energy death spiral grows; Another bad omen; Hobsons choice

The energy death spiral grows

Although it is far from obvious, Ofgem – Britain’s energy regulator is supposed to act in the interest of energy consumers.  As the UK government explains:

“The Office of Gas and Electricity Markets (Ofgem) regulates the monopoly companies which run the gas and electricity networks.  It takes decisions on price controls and enforcement, acting in the interests of consumers and helping the industries to achieve environmental improvements.”

This will come as a surprise to the millions of UK households struggling to pay energy bills which are – now state subsidies have been withdrawn – higher this winter than last.  Indeed, we are now entering our third winter of eye-wateringly high energy prices, with no obvious respite in sight… the only consolation being that the closure of Britain’s heavy industries has at least prevented widespread power outages so far.

On the downside though, among the millions of households struggling to pay their bills are thousands – and growing – of households who are in default.  Not least because increased energy costs are hitting just at the point when general inflation has eaten into wages, when the Bank of England has jacked up interest rates (causing rents and mortgage payments to spike) and when governments (national and local) have decided to raise taxes to cover their own excessive debt.

So, what to do about the growing outstanding debt to the energy companies?  A genuinely consumer orientated regulator might tell the energy companies to eat the loss – perhaps taking the hit to shareholder dividends or senior management remuneration.  Alternatively, since this issue isn’t going away any time soon, they might tell government that now is the time to bring an end to this quasi-market farce and take the energy monopolies back into public ownership…

…click on the above link to read the rest…

Irony Alert: “Outlawing” Recession Has Made a Monster Recession Inevitable

Irony Alert: “Outlawing” Recession Has Made a Monster Recession Inevitable

Those who came of age after 1982 have never experienced a real recession, and so they’re unprepared for anything other than guarantees of rescue and permanent expansion.

The mainstream view is that recession is caused by economic-financial factors. The mainstream view is wrong, for recession is ultimately caused by Wetware1.0–human nature. Human nature–our innate attraction to windfalls and something-for-nothing, our ability to habituate to extremes and normalize counterproductive dynamics–manifest as economic-financial factors, but these are effects, not causes.

The mainstream view is that recessions are bad, so let’s make sure they never happen. In other words, let’s outlaw them by flooding the economy and financial system with Federal Reserve monetary stimulus and federal stimulus via increased deficit spending.

The history of the past 40 years “proves” these policies effectively eliminate recession: all recessions since 1981-82 have been shallow and brief, basically a spot of bother that lasts one quarter.

Our Wetware1.0 has responded to this “no recession guarantee” in ways that count as unintended consequences. Massive “emergency” stimulus that became permanent policy has created a bubble economy in which low interest rates and unlimited credit for those who are more equal than others has sparked demand for income-producing assets, which then sparked a speculative mania.

We’ve habituated to both the bubble economy and the speculative mania so that these are now considered normal. But behind the comfortable normalization, something counterproductive has taken hold: we’re now addicted to the bubble economy and its crazed twin, speculative mania. If the bubbles pop and speculators go broke, the economy and financial system will both implode.

Without ZIRP (zero-interest rate policy), capital actually has a cost, and the bubble economy cannot survive if capital has a cost. Once capital has a cost, then speculation becomes risky, and speculation cannot survive if risk actually has a cost.

…click on the above link to read the rest…

The Era of Easy Money Ruined Us

The Era of Easy Money Ruined Us

The rot caused by easy money will only become fully visible when the hollowed out institutions start collapsing under the weight of incompetence, debt and hubris.

We have yet to reach a full reckoning of the consequences of the era of easy money, but it’s abundantly clear that it ruined us. The damage was incremental at first, but the perverse incentives and distortions of easy money–zero-interest rate policy (ZIRP), credit available without limits to those who are more equal than others–accelerated the institutionalization of these toxic dynamics throughout the economy and society.

Fifteen long years later, the damage cannot be undone because the entire status quo is now dependent on the easy-money bubble for its survival. Should the bubbles inflated by easy money pop, the financial system and the economy will collapse into a putrid heap, undone by the perversions and distortions of endless easy money.

Easy money created destructive, mutually reinforcing distortions on multiple fronts. Let’s examine the primary ways easy money led to ruin.

1. The near-zero rate credit was distributed asymmetrically; only the wealthiest few had access to the open spigot of “free money.” The rest of us saw mortgage rates decline, but we were still paying much higher rates of interest than corporations, banks and financiers.

If we’d all been given the opportunity to borrow a couple million dollars at 1% and put the easy money into bonds yielding 2.5%, skimming a low-risk 1.5% for producing nothing, we’d have jumped on it. But that opportunity was only available to banks, the super-wealthy, corporations and financiers.

The charts below show the perverse consequences of offering the wealthiest few limitless money at near-zero rates while the rest of us paid much higher interest. The wealthiest few could buy income-producing assets on the cheap at carrying costs no ordinary investor could match…

…click on the above link to read the rest…

The World Is Sitting on a Powder Keg of Debt

The World Is Sitting on a Powder Keg of Debt

The Federal Reserve recently surrendered in its inflation fight. But price inflation is nowhere near the 2% target. Why did the Fed raise the white flag prematurely?

One of the major reasons is debt.

The world is buried under record debt levels and the global economy can’t function in a high interest rate environment.

Fed officials know that and it is certainly one of the reasons they don’t want to raise rates any higher and hope to bring them down as soon as possible.

Over a decade of easy money policies incentivized borrowing to “stimulate” the economy. As a result, governments, individuals, and corporations all borrowed to the hilt. That was all well and good when interest rates were hovering around zero, but when central banks had to hike rates to battle the inevitable price inflation, it pulled the rug out from under the borrow-and-spend economy.

Governments around the world are feeling the squeeze as they try to deal with trillions in debt in a rising interest rate environment.

According to projections by the International Monetary Fund (IMF) global government debt will hit $97.1 trillion in 2023. That represents a 40% increase since 2019.

By 2028, the IMF projects that global public debt will exceed 100% of global GDP. The only other time global debt-to-GDP was that high was at the height of the pandemic lockdowns.

Americans like to brag about being number one. Well, when it comes to debt, they’re right.

The US national debt makes up 32.4% of the total global government debt.

According to the IMF, America’s debt-to-GDP ratio stands at 123.3%.

This chart by Visual Capitalist captures the extent of the problem.

THE DEBT SPIRAL

Unless governments dramatically cut spending and/or raise taxes, this debt spiral will only get worse, especially if interest rates remain elevated.

…click on the above link to read the rest…

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

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

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

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

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

Not necessarily.

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

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

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

…click on the above link to read the rest…

Confetti Dollar End of Ponzi Scheme – Bill Holter

Confetti Dollar End of Ponzi Scheme – Bill Holter

Precious metals expert and financial writer Bill Holter says the recent underreported announcement by the UBS CEO Sergio Ermotti in Switzerland that his bank might need a “rescue” is yet another sign on the short road to the end of the global Ponzi scheme backed by the US dollar reserve currency.  Holter points out, “You’ve got a sick bank (Credit Suisse) that is being bailed out by another bank (UBS) that may turn out to be sick.  My question is who is going to bail out these central banks?  You have got the Fed with a $9 trillion balance sheet.  The last time, the Fed went from $900 billion to $9 trillion.  Can the Fed now go from $9 trillion to $90 trillion?  Who is going to bail out the Fed?  Who is going to bail out the US Treasury?  Who is going to bail out the Bank of England, the ECB or the Bank of Japan?  These central banks have completely blown up their balance sheet and have no ability to save anything.  My question is who is going to save them?”

Can’t they cut interest rates again like they did in 2009?  Holter says, “If they cut interest rates from here, you would see the dollar absolutely crash.  The only reason the dollar has not crashed is interest rates have basically gone from 0% to 5%.   They have done that in a year and a half which is the fastest increase in interest rates in all of history.”

So, rate cuts will devalue the dollar.  Can you pay trillions of dollars borrowed in Treasury Bond back in confetti dollars?  Holter says, “Yes, you absolutely can pay back your debt in confetti.  It’s been done many, many times before as currencies get lost…

…click on the above link to read the rest…

Deutsche Bank Economists Say the Fed Will Create More Inflation in 2024

Deutsche Bank Economists Say the Fed Will Create More Inflation in 2024

Deutsche Bank economists say the Federal Reserve will create more inflation in 2024.

OK, that’s not exactly what they said. But that is the implication of their latest forecast.

The Deutsche Bank analyst forecast that the Fed will cut rates by 175 basis points in 2024 in response to a “mild” recession. That would drive the Federal Reserve funds rate down to between 3.5% and 3.75%.

This loosening monetary policy, by definition, would create more inflation.

The Fed currently has interest rates set at between 5.25% and 5.5%.

Most mainstream analysts now think the central bank will cut rates next year, but not as steeply as Deutsche Bank economists.

The dominant narrative today is that the Fed has successfully beaten down price inflation. A cooler-than-expected CPI report for October reinforced this notion. With inflation on the run, mainstream analysts think that the Fed has initiated its last hike and will pivot to rate cuts next year to guide the economy to a “soft landing.” Even before the CPI data release markets were pricing in 75 basis points of rate decreases in 2024.

Many mainstream analysts and financial news network pundits have taken a recession completely off the table. But Deutsche Bank senior US economist Brett Ryan told Reuters he expects the US economy to hit a “soft patch” that will lead to a “more aggressive cutting profile.”

Ryan said he expects this economic weakness to further ease inflationary pressure.

The Problems With the Forecast

There are several problems with the Deutsche Bank projections, and the entire mainstream narrative more generally.

In the first place, the death of inflation is greatly exaggerated. No matter how you slice and dice the data, none of the numbers come close to the Fed’s 2% target. Core CPI is still double that number.

…click on the above link to read the rest…

The Crash Will Be Spectacular

THE CRASH WILL BE SPECTACULAR

“Interest on the federal debt is now so immense that it’s consuming 40% of all personal income taxes… If federal finances continue on their current path, we are only a few years from the entirety of income taxes being needed to finance the debt…”

The government collects $2.6 trillion of individual taxes at the point of a gun and threat of prison. Meanwhile they still operate at an annual deficit of $2 trillion. And this is before interest on the national debt starts to really skyrocket. Our Troll Secretary of the Treasury Yellen had the opportunity to lock in trillions of our national debt for 30 years at 2% rates, but purposely kept rolling it on a short-term basis.

Interest on the debt will surpass $1 trillion annually within the next year, and, as you can see, will be approaching $2 trillion per year in a few more years. The government already spends every dime of the taxes they collect. That means they are already printing more fiat and borrowing from the rest of the world in order to pay the interest on the debt they already have.

Foreign countries, in particular China and India, are not only not buying any new US Treasuries, but unloading the Treasuries they already have. With the BRICS purposefully moving away from the USD for their trade, it’s only a matter of time until our mountain of debt crashes down in an epic avalanche upon the unsuspecting American public. The writing is on the wall, and if you refuse to read it, you will be shocked and devastated when you see your supposed paper wealth evaporate.

Now you know why Biden and his handlers are attempting to provoke wars across the globe against those countries who they realize are engineering the demise of the USD as the basis for world domination and control. We have evil men ruling our nation and they would rather burn it all to the ground than lose their wealth, power and control.

U.S. Financial Death Spiral – John Rubino

U.S. Financial Death Spiral – John Rubino

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

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

…click on the above link to read the rest…

The Future for Fiat

The Future for Fiat

The day of reckoning for unproductive credit is in sight.

With G7 national finances spiraling out of control, debt traps are being sprung on all of them, with the sole exception of Germany.

Malinvestments of the last fifty years are being exposed by the rise in interest rates, increases which are driven by a combination of declining faith in the value of major currencies and contracting bank credit. The rise in interest rates is becoming unstoppable.

Do not be surprised to see a US Government deficit exceeding $3 trillion this fiscal year, half of which will be interest payments. And in the run-up to a presidential election, there’s every sign of deficit spending increasing even further.

We now face America and her allies being dragged into another expensive conflict in the Middle East, likely to drive oil and natural gas prices higher; far higher if Iran becomes a target. With the Muslim world united against Western imperialism more than ever before, do not discount the closure of Hormuz, and even Suez, with unimaginable consequences for energy prices.

The era of interest rate suppression is over. G7 central banks are all deeply in negative equity, in other words technically bankrupt, a situation which can only be addressed by issuing yet more unproductive credit. These are the institutions tasked with ensuring the integrity of the entire system of bank credit.

This is not a good background for a dollar-based global credit system that is staring into the black hole of its own extinction.

The end for the dollar is nigh

There are a number of events coming together that suggest we are about to undergo a major upheaval in world economic, financial, and monetary affairs…

…click on the above link to read the rest…

Today’s Contemplation: Collapse Cometh VIII–Peak Oil and Sociopolitics

Today’s Contemplation: Collapse Cometh VIII

Oct 30, 2020
Chitchen Itza, Mexico (1986) Photo by author

Peak Oil and Sociopolitics

Once again, a comment I posted in response to an article on The Tyee.

Where to begin? I realise this article is primarily about a federal political party and its future but there are two underlying issues that are discussed that need far more exploration and understanding if we are going to be projecting where a particular party or even government will be down the road (let alone the entire world).

If we are going to be discussing energy and Peak Oil then there is SO much more to bring into the conversation. Yes, politics plays a role (as it always does) but the topic is vastly wider than sociopolitics. It encompasses virtually everything in our complex, globalised industrial world. Everything. From the way we create potable water, to how we feed ourselves, to how we build and heat our homes (I’ve purposely focused on the three items we NEED to live…everything else is icing but just as dependent on energy, especially fossil fuels).

First things first. There is NO substitute for fossil fuels. At least not one that can sustain our current world the way it is configured. No, alternatives to fossil fuels cannot do it. They are not ‘clean’ as the mining, refinement, and manufacturing processes for them are environmentally damaging. They have a low energy-return-on-energy-invested (EROEI) and provide little ‘bang for the buck’. They cannot fuel many important industrial processes such as steel and concrete production. They depend very much on continued exploitation of fossil fuel, both upstream and downstream. They are NOT a panacea.

We are stuck with fossil fuels, until and unless we are ready and willing to give up probably 90% or more of what we consider ‘modernity’.

Then there’s the fiscal aspect discussed here. While it may be ‘progressive’ to be discussing and believing that money grows on trees (or at least within the 1 and 0s of computers), this infinite money growth that is being bandied about as another wonderful panacea for our world that’s gone sideways carries with it enormous consequences.

Let’s agree for the sake of argument that we can indeed just print as much money as we want to ‘pay’ for all that we want and desire — and we can, we just create it from thin air. Presto. More money.

I think most would see that if everyone was suddenly in receipt of, say a million dollars, there would be knock-on effects in the price inflation we would experience; after all, more money chasing the same amount of goods and services would, as most economists would agree and experience has shown, result in higher prices experienced by the population (unless of course it just gets left in the computer data banks and accumulates interest; oh wait, interest rates are zero or lower).

Okay, so let’s say price inflation hits. Solution: we deposit another million, or maybe two million in everyone’s new digital bank account…same problem.

In fact, we’re probably beginning to experience hyperinflation; and experiments in this realm have never ended well. The surest way to bring about a loss of faith in fiat currency and eventual economic collapse is through currency debasement, which is exactly what endless money printing does. But, again, for the sake of argument, let’s say that doesn’t happen (miracles do sometimes occur; although I’m not sure the Leafs winning the Stanley Cup is one of them).

So are the creation of goods and services ramped up to meet demand since everyone has money to buy things? Likely. Here is where we get back to the first issue.

Every dollar spent requires energy to produce the goods or services provided. Think this doesn’t happen? Take a look at GDP and energy use. They are correlated almost perfectly. They increase together. Think alternative energy will meet this demand? Hardly. Increased alternative energy production has not even been able to keep up with increasing demand. The world has had to continue to ramp up fossil fuel use to meet demands. The more money that is created and spent, the more demand there is for energy and resources.

But we have a slight problem. We live on a finite world with finite resources but especially fossil fuels which underpin our current world and all of its interconnected complexities. Our world as designed and functioning currently is fubar without fossil fuels.

It doesn’t matter what party is in charge of things. It never has. The Liberals, NDP, or Greens for that matter can wrap themselves in cloaks of green (to give the illusion of being environmentally friendly; or, of having lots of money; or, both perhaps) and promise a green/clean economy where everyone has everything they want and need, and it won’t mean a damn thing in the end. We could all sit around the campfire holding hands and singing kumbayah but that won’t keep the impending cliff at bay.

These inconvenient truths, as it were, are already biting us and we can only ‘paper’ over them for so long. At some point we have to realise that like Wile E. Coyote we left solid ground some time ago and have been running on air with nothing holding us up. Until a tipping point of people come to this realisation it will be business as usual and the telling of comforting narratives to reduce our mass cognitive dissonance and avoid the pain of reality.

Rant concluded.

Olduvai IV: Courage
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Olduvai II: Exodus
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