acting depressed 2

ACTING DEPRESSED 2

As you are easily and quickly being distracted by fabricated political fights between both sides of the Imperial Party, the economy has been rather busy doing its own thing, which is imploding. The economy that you think is the greatest in the world? You know, that one. The US economy is 70% consumption ( which is an old number. Probably less, more going to services such as medical or financial, or more government. But the remainder sure as hell ain't manufacturing which is in near free fall ) and economies like that have nothing the rest of the globe wants.

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Oh, sure, we make a few bucks selling ChiCom approved films. And we churn out great quality plastics. But primarily our economy was selling Treasury Bills for oil. It really was as simple as that. We don't even have a real Military Industrial Complex to blame everything on any more. What was 10% of the economy, manufacturing shoddy military goods and even worse automobiles, since in decline, doesn't drive the economy and doesn't support areas by their factories anymore. Flint, Michigan water supplies, anyone? Boeing isn't propping up Seattle as much as CIA supported Microsoft and Amazon ( yeah, I love me that spook money! ).

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I'm wondering how much of a coincidence it is that when California lost a big chunk of its Cold War industry, suddenly the Latino flood gates were pried open and immigration was forced on everyone ( even the native Brown folk didn't approve of it, despite the right wing propaganda posters of every Mexican American being a agent provocateur. Not that I approve of ANY immigration based on the 1965 policy change ). Great way to hold down wages and get federal grant money, double wins for the Drought State fat cats.

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Not to mention the pressure on real estate prices. There might be plenty of land, but development is restrained by the water infrastructure. Overpopulation was a growth industry for California for twenty-five years. Unintended consequences are of no interest to the elite, as their wealth is mobile and there are plenty of other California climates globally ( as if that matters. They can afford to heat five thousand square feet in Aspen ). I love how Reno has gotten more Libertarian for the rich, a hot spot for money laundering ( it is bad if it is the Mafia, good if it is for corporate types ), and more totalitarian for the poor.

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At least Nevada has far less water than even southern California, or their economic model would have done a far worse job screwing up the joint. But the point here is that THIS has been the US economy for quite some time, graft and various forms of asset stripping, using up the last of the resources to get rich quick and bail. Our last economic miracle, and one uses the term loosely, only great then compared to now, was throwing up warped wood and trapped moisture sheetrock ( itself toxic Chinese imports ), shoddy sewer and electric connections even further into the suburbs poser homes at insane valuations.

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Five years wages for a crap home needing elevated levels of maintenance, immediately and forever? The only reason these Housing Bubble monstrosities don't fall apart faster than Warren Buffet mobile homes was because they had slightly thicker warped wood walls. And they weren't on a recycled steel ( pot metal ) frame. Building three of these per eligible home owner, back when there was less actual unemployment ( if you believe the official numbers you are a flaming moron ), was our economic miracle.

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Before that, the miracle was wiring the continent for high speed Internet, mostly to benefit corporations with this once again subsidized infrastructure, but at least THAT was backed by real petroleum supply growth ( old timey economies were backed by gold. Today, Black Gold is the true underpinning of wealth ). The housing bubble did okay, the credit creation coasting off the back of the 90's, but when the global GROWTH of oil stopped in 2005, the writing was on the wall for the economy ( seen in hindsight, obviously ).

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Remember your primary lesson from The Crash Course, only economic growth pays for interest on debt. Without more oil, there is no more growth in the economy. Many economists ( of the Real, or unapproved, variety ) believe we have been in negative growth the entire twenty first century ( I can believe that, if Matthew Simmons [ oil finances guru, since dead ] was correct in the Saudi oil production projections, meaning the EROI of global oil is worse than we thought ). Please note that I am NOT a Chinese Apologist, thinking that country is the New Big Cheese.

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China has done a lot of things right, and credit goes where due. They know how to do much more on far less, and they are only communists in the sense that they have a central government that does not subordinate itself to the central bank ( this is my main disagreement with Alt-Market.com ) or corporations which isn't necessarily a bad thing. But their grasp of Peak Oil is about on par with my average minion. As in, “we're not listening, lalalala” ). Why else build an infrastructure dependent on a diminishing resource?

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Now, I know WHY no one wants to admit to Peak Oil, even supposed “survivalists”. Energy Uber Alles means we get to keep our empire and our cheap gasoline. It means the dollar is artificially propped up far longer than would be possible for an economy that produced nothing. Which means you get to keep your cushy job. If it is all geopolitical rather than geology, it means we can simply lazily vote our way out of decline. Hey, do you think I like any of this? My wages are dependent on YOUR wages which is dependent on a depleting resource.

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China is doing better not because they have more energy, but only because they are smarter with what they have. They don't piss it all away on banker's hookers and blow and the economy might be based on using oil but at least they have something to show for that afterwards like food from Africa. They haven't had to support an aging infrastructure on less oil like we've had to do for fifty years. But the oil is still running out, even if you use it more efficiently. Remember, the only oil growth in fifteen years globally is US fracking. But no Peak Oil, right?

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By my math, that means one and a half billion people were born, and we increased our petroleum by 6 million barrels a day. Actually, by releasing those six million to the global needs as we produce that ourselves, plus the two million we don't import anymore anyway since our economic crash in 2008, the globe saw 8 million more barrels to use. That is a ten percent increase with a fifteen percent increase in population. Not terrible, but still a continuation of a per capita decrease in energy that started in 1979.

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Even with a decrease in population growth ( except Africa and India, which is the Africa of Asia ), the energy availability per person globally has gotten worse. Despite the reprieve that fracking gave us, fracking is a ninety year old technology and is only used because we have no other choice. 90% of global oil is under nation state control, not the Seven Sisters of ancient lore, and braking profit lose is not in their interest. If the oil was there to be found it would have been. No, “capitalism” won't always save you.

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When a corporate suit decides to screw over the company for profit in his quarterly bonus, and then gets a golden parachute, that might be motivation to cease oil exploration. When a government needs more revenue from more oil, what would compel them to skimp on exploration? They could be overthrown and executed. The gravy train would end. Now, if there was no more oil to be discovered, THAT would compel them to save money by letting the infrastructure get deferred maintenance. I love how our bridges are collapsing and we point to Venezuela as a socialist hellhole that allowed its oil industry to entropy.

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I wonder, do you think that it is also a coincidence that the PetroDollar is failing at the same time oil production is also? Continued tomorrow, and don't worry. We'll get back to the economy and cover less about oil, even if they are intertwined. I know, you ain't listening ( “lalalala” ).

( .Y. )

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