Bill Totten's Weblog

Wednesday, October 31, 2007

Assumptions

Clusterfuck Nation

by Jim Kunstler

Comment on current events by the author of
The Long Emergency (Atlantic Monthly Press, 2005)

www.kunstler.com (October 29 2007)


When historians glance back at 2007 through the haze of their coal-fired stoves, they will mark this year as the onset of the Long Emergency - or whatever they choose to call the unraveling of industrial economies and the complex systems that constituted them. And if they retain any sense of humor - which is very likely since, as wise Sam Beckett once averred, nothing is funnier than unhappiness - they will chuckle at the assumptions that drove the doings and mental operations of those in charge back then (that is, now).

The price of oil is up 53 percent over a year ago, creeping up now toward the mid-$90-range. The news media is still AWOL on the subject. (The New York Times has nothing about it on today's front page.) The dollar is losing a penny a week against the Euro. In essence, the American standard of living is dropping like a sash weight. So far, a stunned public is stumbling into impoverishment drunk on Britney Spears video clips. If they ever do sober up, and get to a "... hey, wait a minute ..." moment when they recognize the gulf between reality and the story told by leaders in government, business, education, and the media, it is liable to be a very ugly moment in US history.

One of the stupidest assumptions made by the educated salient of adults these days is that we are guaranteed a smooth transition between the cancerous hypertrophy of our current economic environment and the harsher conditions that we are barreling toward. The university profs and the tech sector worker bees are still absolutely confident that some hypothetical "they" will "come up with" magical rescue remedies for running the Happy Motoring system without gasoline. My main message to lecture audiences these days is "... quit putting all your mental energy into propping up car dependency and turn your attention to other tasks such as walkable communities and reviving passenger rail ..." Inevitably, someone will then get up and propose that the transition to all-electric cars is nearly upon us, and we should stop worrying. As I said, these are the educated denizens of the colleges. Imagine what the nascar morons believe - that the ghost of Davey Crockett will leave a jug of liquefied "dark matter" under everyone's Christmas tree this year or next, guaranteed to keep the engines ringing until Elvis ushers in the Rapture.

The educated folks - that is, the ones subject to the grandiose story-lines of techno triumphalism taught in the universities - are sure that we'll either invent or organize our way out of the current predicament. A society that put men on the moon in 1969, the story goes, will ramp up another "Apollo Project" to keep things going here. One wonders, of course, what they mean by keeping things going. Even if it were hypothetically possible to keep all the cars running forever, would it be good thing to make suburban sprawl-building the basis of our economy - because that's the direct consequence of perpetually cheap energy. Has anyone noticed that the housing bubble and subsequent implosion is following the peak oil line exactly?

It's a bit harder to discern what the assumptions really are among leaders in the finance sector, since so much of their activity the past ten years has veered into sheer fraud. The story line that everyone is putting out - from the Fed chairman Bernanke to the CEOs of the Big Fundz - is that American finance is a python that has swallowed a few too many pigs, but if we jigger around interest rates a little bit more, and allow some more money to be lent out cheaply, the python will eventually digest the pigs and go slithering happily on its way along the jungle trail with a burp and a fart. From this vantage, one sees a rather different story: more like a gang of human grifters sweating through their Prada suits as it becomes increasingly impossible to conceal massive losses incurred through overt reckless misbehavior. My own guess is that a lot of these boyz will be in line for criminal prosecution before too long.

The political assumptions one hears are the most astoundingly naive and ridiculous, especially the ones that involve other countries and our relations with them. New York Times followers no doubt believe, along with Tom Friedman, that the global economy is now a permanent fixture of the human condition, and that soon it will transform itself into a colossal engine of "green" (that is, benign) commerce. Friedman and his followers tend to forget the second law of thermodynamics when spinning their fantasies of a world that can harmlessly manufacture and market an endless number of plastic salad shooters from one side of the planet to the other without incurring any losses to the health of said planet.

My own assumptions are somewhat different. I think we're likely to see a lot of nations scrambling for survival, initially manifesting in a contest for the world's dwindling supply of oil (and oil-like substances). For instance, when viewing the globe, few people consider that Japan currently imports 95 percent of its fossil fuel. Japan has been a "good boy" among nations since its episode of "acting out" in the mid-20th century and has enjoyed a long industrial prosperity since then. But what happens when there is not enough oil in the world to be allocated rationally by markets among the powerful nations? Will Japan just roll over and die? Will they shutter the Toyota factories and happily turn to placid tea ceremonies. I think Japan will freak out, and it's hard to predict exactly who will feel its wrath and how.

Similarly, Europe. Americans view Europe as a kind of theme park full of elderly cafe layabouts swaddled in cashmere as they enjoy demitasse cups in the outdoor cafes of their comfortable art-filled cities (some of them not long ago rebuilt from rubble). Europe has let America do its dirty work for it in the Middle East for the past decade while enjoying tanker-loads of oil coming up through the Suez Canal. Europe has only had to make a few lame gestures in defense of its oil supplies. But the North Sea oil fields, which for twenty years have hedged the leverage of OPEC, are crapping out at a very steep rate. Sooner or later Europe will freak out over oil, and geo-political flat-earthers will be shocked to see that all the nations of cafe layabouts can mobilize potent military forces. God knows whose side who will be on, exactly, when that happens, and where America will stand - if its own military is not so exhausted that it can even stand up.

Personally, I think the world will be growing a lot larger again, and less flat, and that eventually America will find itself isolated once again between two oceans - though incursions by desperate foreign armies in one way or another, is not out of the question as the great struggle for resource survival gets underway. In time, however, I think the current Great Nations of the world will lose their ability to project power in the ways we've been conditioned to think about it.

In the meantime, our own nation has become a society incapable of thinking, and the failure at all levels of rank, education, and privilege is impressive. If you listen to the people running for president - many of them overt clowns - you'd think that that all the comfortable furnishings of everyday life can continue with a few tweaks of the dials. They are cowards and it is possible that they perfectly represent a whole nation of cowards who deserve cowardly leadership. The danger, of course, is that when a non-cowardly leader finally does step forward in a desperate America, he will not shrink from pushing around a feckless people, or doing their thinking for them.

http://jameshowardkunstler.typepad.com/clusterfuck_nation/2007/10/assumptions.html


Bill Totten http://www.ashisuto.co.jp/english/index.html

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