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	<title>Raw Materials Econ &#187; Climate</title>
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		<title>No More Pretending</title>
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		<pubDate>Thu, 17 Dec 2009 23:28:02 +0000</pubDate>
		<dc:creator>Jay Greathouse</dc:creator>
				<category><![CDATA[Climate]]></category>
		<category><![CDATA[Economics]]></category>
		<category><![CDATA[Ponerology]]></category>
		<category><![CDATA[collapse]]></category>
		<category><![CDATA[financial services industry]]></category>
		<category><![CDATA[Malthusian Catastrophe]]></category>
		<category><![CDATA[parity]]></category>
		<category><![CDATA[Prompt Corrective Action Law]]></category>
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Delusional hope produces nothing of value. Throughout my life I have sought to see things as they are. The past few months have provided me the opportunity to ponder current events against the tapestry of history.
&#8220;We have destroyed the Holocene biosphere, and it can never be rebuilt. We have inadvertently terraformed Earth into a different [...]]]></description>
			<content:encoded><![CDATA[<p style="text-align: center;"><img class="aligncenter size-full wp-image-562" title="Feet wet" src="http://rawmaterialsecon.com/wp-content/uploads/2009/12/Feet-wet.jpg" alt="Feet wet" width="600" height="200" /></p>
<p>Delusional hope produces <strong>nothing of value</strong>. Throughout my life I have sought to see things as they are. The past few months have provided me the opportunity to ponder current events against the tapestry of history.</p>
<blockquote><p>&#8220;We have destroyed the <a title="Holocene biosphere" href="http://peakenergy.blogspot.com/2009/04/save-holocene.html" target="_self">Holocene biosphere</a>, and it can never be rebuilt. We have inadvertently terraformed Earth into a different planet. This act cannot be undone; it is thermodynamically irreversible.&#8221; <a title="Desdemona Despair" href="http://www.desdemonadespair.net/2009/11/desdemona-at-1.html" target="_self">Desdemona</a></p></blockquote>
<p>I leave it to climate change deniers to explain the recent wholesale collapse of fisheries with the increase in both reef and oceanic dead zones, the desertification of the world&#8217;s most productive land and the rapid transition from forest to desert by mega-fires.</p>
<p>The once frozen &#8220;<a title="methane bomb" href="http://www.independent.co.uk/environment/climate-change/exclusive-the-methane-time-bomb-938932.html" target="_self"><strong>methane bomb</strong></a>&#8221; has already gone off. The <a title="permafrost melting" href="http://www.newscientist.com/article/mg20127011.500-arctic-meltdown-is-a-threat-to-humanity.html" target="_self">Arctic permafrost is already melting</a>.</p>
<p>Large areas of Earth are becoming <strong>uninhabitable to mammals</strong> and their food plants. Most <a title="chrismatic megafauna" href="http://en.wikipedia.org/wiki/Charismatic_megafauna" target="_self">charismatic megafauna</a>, such as elephants, rhinos and whales, will become <strong>extinct in a few decades</strong>. It is entirely likely that <strong>humans will follow them into oblivion</strong>.</p>
<p>For sure, this will be a <strong>bumpy road to total collapse</strong> and a few will manage to arrive in luxury SUVs. The rest of us, the vast majority, will see family and friends fall as we circle the drain together.</p>
<p>There are still resources that could be directed towards easing the necessary <strong>scaling back</strong> of empire and civilization as we know it. <strong>Scaling back</strong> in and of itself would help a great deal, perhaps forestalling <strong>human extinction</strong> as we adapt to an <strong>Earth</strong> that every day becomes more like <strong>Mars</strong>.</p>
<p>While President <a title="Obama takes on the 'fat cat' bankers" href="http://www.lvrj.com/opinion/lend-more-79291757.html" target="_self">Obama takes on the &#8216;fat cat&#8217; bankers</a> the underlying collapse of the <strong>United State financial industry</strong> has yet to be addressed. The root problem is an excessive level of debt in the system at all levels, a level of debt that exceeds capacity to pay.</p>
<p>The problem in a nutshell &#8211; <strong>the banks are still hiding losses</strong> &#8211; <strong><em>big losses</em></strong>. Very little of the debt securitized by the housing bubble has been written off or yet foreclosed upon.</p>
<p>Loans are not being made to <strong>small business</strong> people because they have <strong>no collateral</strong> to pledge.  Being asked to <strong>pledge personal assets</strong> as collateral for a small business loan is standard operating procedure.</p>
<p>With most homes underwater, most small businesspeople have <strong>no assets to pledge</strong> as collateral. Debt problems go beyond the largest banks.</p>
<p><strong><em>China bought zero U.S. Treasury debt in October.</em></strong> Now <a title="Treasury International Capital Data" href="http://www.treas.gov/press/releases/tg443.htm" target="_self">foreigners have become net sellers of U.S. Treasury debt instruments</a>.</p>
<blockquote><p><strong>The problems</strong> began when raw materials producers <strong>stopped receiving parity pricing</strong> and needed to borrow in able to start a new round of production. A principle method of <strong>under-paying</strong>, <strong>paying less than parity</strong>, appears in the form of <strong>paying in debased money</strong>.</p></blockquote>
<p>Meanwhile, here we are, nearly a year under a new administration. <a title="feds 6-figure saleries" href="http://www.usatoday.com/printedition/news/20091211/1afedpay11_st.art.htm?loc=interstitialskip" target="_self">For feds, more get 6-figure salaries</a>, in an attempt to keep up with debasement of U.S. money.</p>
<h3 style="text-align: center;">Seduced And Abandoned</h3>
<p>Both <strong>Democrats</strong> and <strong>Republicans</strong> demonstrate a history of <strong>saying whatever</strong> seems required to <strong>become elected</strong>, <strong><em>seduce the electorate</em></strong>, and upon election conveniently explaining away or otherwise <strong><em>abandoning their earlier promises</em></strong>.</p>
<p>Everyone seems to <strong>condemn this behavior</strong> between <strong><em>individuals</em></strong>. The victims often appear <strong>unable to disengage</strong> on their own initiative. If <strong>fortunate</strong>, their family and/or friends provide <strong>counseling</strong> and <strong>intervention</strong> to help end these <strong>cycles of abuse</strong>.</p>
<p>Yet <strong><em>society as a whole</em></strong> suffers <strong>serial victimizations</strong> by these <strong><em>two mainstream political parties</em></strong>. Ever since the <strong>Reagan Administration</strong> identified government as the problem the resulting <strong>orgy of deregulation</strong> and <strong>bureaucratic bloating</strong> continues unabated from <strong>one election to the next</strong>.</p>
<p>Some wish to call them <strong>incompetent idiots</strong>. Others wish to call them <strong>lying frauds</strong>. I suggest we make peace and call them <strong>incompetent lying idiot frauds</strong>.</p>
<p><strong>The system they destroy</strong> also provides all the <strong>wealth and power</strong> expended in the <strong>destruction</strong>. <strong><em>Literally self-destruction</em></strong>. It seems an entire <strong>spectrum of pathologies</strong> plague our <strong>financialized government</strong>.</p>
<p style="text-align: center;"><strong>Narcissism</strong></p>
<p style="text-align: center;"><strong>Borderline Personality Disorder</strong></p>
<p style="text-align: center;"><strong>Characteropathy</strong></p>
<p style="text-align: center;"><strong>Sociopathy</strong></p>
<p style="text-align: center;"><strong>Psychopathy</strong></p>
<p><strong>Witness the unnecessary</strong> pain, suffering and death. <strong>Unnecessary because</strong> it results from a <strong>financial services industry</strong> that compounds debt exponentially inevitably <strong>demands more</strong> wealth than the total sum of <strong>raw materials</strong> entering the economy.</p>
<p><strong>Unnecessary because</strong> the government fails to enforce the <a title="Prompt Corrective Action Law" href="http://rawmaterialsecon.com/economics/53/william-k-black-american-hero.html" target="_self">Prompt Corrective Action Law</a> and administers regulation in the interest of the <strong>financial services industry</strong> contrary to the interests of citizens.</p>
<p>This occurs simultaneously with a <strong>prison industry</strong> growing faster than it can expand, <strong>militarization</strong> of local <strong>police forces</strong>, the historic first ever active deployment of <strong>U.S. Armed Forces</strong> <strong><em>within the United States of America</em></strong>, <strong>de facto nullification</strong> <strong><em>of the Bill of Rights</em></strong> and an overall heightening of domestic security.</p>
<p>I hope you are <strong>debt free</strong> and likewise <strong>free from any form of wage slavery</strong>. At least that can give you a running start.</p>
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		<title>Timing The Collapse</title>
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		<pubDate>Tue, 16 Jun 2009 01:21:25 +0000</pubDate>
		<dc:creator>Jay Greathouse</dc:creator>
				<category><![CDATA[Climate]]></category>
		<category><![CDATA[Economics]]></category>
		<category><![CDATA[Localization]]></category>
		<category><![CDATA[Ponerology]]></category>
		<category><![CDATA[Post-Carbon]]></category>
		<category><![CDATA[capitalism]]></category>
		<category><![CDATA[collapse]]></category>
		<category><![CDATA[Empire]]></category>
		<category><![CDATA[financial services industry]]></category>
		<category><![CDATA[Karl Marx]]></category>
		<category><![CDATA[Malthusian Catastrophe]]></category>
		<category><![CDATA[resilience]]></category>

		<guid isPermaLink="false">http://rawmaterialsecon.com/?p=81</guid>
		<description><![CDATA[Population overshoot, financial collapse, agricultural collapse, extinction of non-renewable hydrocarbons, climate change and the machinations of the global power structure to stay in power creates an environment ripe for rampant deadly new diseases.]]></description>
			<content:encoded><![CDATA[<div id="attachment_447" class="wp-caption aligncenter" style="width: 610px"><a href="http://www.flickr.com/photos/pmartel/422520977/sizes/o/"><img class="size-full wp-image-447" title="time_spiral_600x200" src="http://rawmaterialsecon.com/wp-content/uploads/2009/06/time_spiral_600x200.jpg" alt="time_spiral_600x200" width="600" height="200" /></a><p class="wp-caption-text">FNORD</p></div>
<p style="text-align: center;">
<p>For anyone without income, a home or even hope, <strong><em>the collapse has already happened</em></strong>. The number of those people on the ropes certainly seems to be increasing daily.</p>
<p>On the other hand, in this personal sense, you may not experience collapse during your lifetime. <em>Of course that is not what the doom and gloomers say.</em></p>
<p>I used to be a doom and gloomer, an authentic doomsday freak pointing out the failures of our system and its <strong>imminent collapse</strong>. I&#8217;ve learned to temper my fears simply by <strong>living long enough</strong>.</p>
<p>However, in a larger more empirical sense, we may ask what exactly constitutes a <strong>societal collapse</strong>. Here we are asking about the nature of the collapse of the <strong>Euro-American Empire</strong> indicated by the ongoing disintegration of its <a title="hegemony" href="http://en.wikipedia.org/wiki/Hegemony" target="_self">global hegemony</a>.</p>
<p style="text-align: center;"><strong>If you are someone who does not want to</strong><strong> read </strong><strong> social criticism, stop now.</strong></p>
<p style="text-align: center;"><em>If you are worried about you head exploding when you are presented with new information, stop now.</em></p>
<p style="text-align: center;"><strong>OK, now that I know you are willing to deal with this, I will continue.</strong></p>
<p>As a first step, we have to acknowledge certain conclusions by <strong>Karl Marx</strong>. I know he is widely disparaged in the mainstream media, at community colleges nationwide and in state universities structured to provide <strong>occupational training</strong> in technical fields.</p>
<p>Rest assured, at <strong>elite institutions</strong> training the nest generation of leaders <strong>Karl Marx</strong> is read and discussed. The children of the <strong>hegemonic elite</strong> destined to inherit the reigns of power over <strong>99.5% of the rest us</strong> know and study his work.</p>
<p>Well, they do if they actually did the work and didn&#8217;t just have <strong>their families purchase their degrees</strong> with another endowment. <em>But that is another issue.</em></p>
<p>Sure, <strong>Karl Marx</strong> gets a bad name because of the abuses of the word &#8216;<em>communist</em>&#8216; by <strong>authoritarian megalomaniacs</strong>. To be honest, <strong><em>the world has never seen an authentic communist system in operation</em></strong>.</p>
<p>Part of the problem is that in the day and age of <strong>Karl Marx</strong> communication was a problem for those living in rural areas. <em>Most people living today cannot imagine the isolation</em> experienced by those living <strong>outside of city limits</strong>.</p>
<p><strong>Karl Marx</strong> proposed an <strong>urban workers&#8217; vanguard party</strong> to represent those in the hinter lands. This idea of a <strong>vanguard party</strong> has been much abused by <strong>totalitarian regimes</strong> around the world that bear little resemblance to his <strong>proposed communal life</strong>.</p>
<p>He was spot on in exposing the <strong><em>fatal flaw in capitalism</em></strong>. Bear in mind that <strong>Karl Marx</strong> thought capitalism was a good thing <strong>at the time</strong> and a step in the right direction away from the <strong>manorial serfdom</strong> that was the previous norm.</p>
<p style="text-align: center;"><strong>Anyway, capitalism depends upon continuous growth.</strong></p>
<p style="text-align: center;"><strong>The capitalistic system just does not function as a steady state model.</strong></p>
<p>Growth is required to <strong>pay off the interest</strong> charged on the debt incurred during the capitalization of industry and business. <strong><em>Without growth, only enough profit is made to pay off the principle</em></strong>.</p>
<p><strong>Karl Marx</strong> realized that the earth is finite and possesses limited non-renewable resources. <em>Once capitalism went world-wide it was destined to collapse.</em></p>
<p>In the time of <strong>Karl Marx</strong>, world-wide pretty much meant Europe in the <strong>predominant narrow ethnocentric view</strong>. And there were those of his (and later) generations who just couldn&#8217;t wait.</p>
<p>Just like the early <strong>Christians</strong> who grew impatient with God&#8217;s promise to destroy the world and started <strong>setting fires to help God out</strong>, early adopters of the <strong>Communist Manifesto</strong> perceived <strong>revolution as the fast track to post-capitalism</strong>.</p>
<p style="text-align: center;"><strong>That turned out badly for all concerned, both Christians and communists.</strong></p>
<p><strong>Karl Marx</strong> merely pointed out that given the requirements of capitalism regarding growth, eventually it would hit the limits of growth. With this realization he predicted the <strong>certain collapse of capitalism</strong> and projected forward from there, betting on human intelligence to come up with something better.</p>
<p>Of course, he thought he was as smart as anyone and perhaps he was. Anyway, communism was <strong><em>merely his projection into the unknowable future</em></strong> and the actual shape of things to come is totally up for grabs.</p>
<p>It is understandable that capitalists the world over <strong>took offense</strong>. This became the primary driver for <strong>political acrimony and national conflict</strong> ever since, at least as far as the general public was concerned.</p>
<p>Anyway, capitalism did hit the wall in the early 1970s. <strong>China, the last big holdout market</strong>, joined in capitalist expansion and left capitalism with <strong>no place else to grow</strong>.</p>
<p>A whole slew of events indicate the truth in this. Not only did we see the abandonment of the <strong>gold standard</strong> in the U.S. and the free floating of the U.S. dollar but we also saw the beginning of the <strong>first giant debt bubbles</strong>.</p>
<p>I first ran away to the mountains in the 1970s <strong>believing the collapse was in motion</strong>. I was right about that but <strong>wrong about the timing</strong> regarding my personal situation in the U.S.</p>
<p>The capitalistic <strong>hegemons</strong> turned to their own populations and began <strong>capitalistically monetizing</strong> every aspect of personal life, expanding into <strong>spheres of influence long felt to be intrinsically off limits</strong>. They did this with the full support of <strong>governments indebted to their central banks</strong>.</p>
<p>The <strong>FIRE</strong> (<span style="text-decoration: underline;">f</span>inance, <span style="text-decoration: underline;">i</span>nsurance, <span style="text-decoration: underline;">r</span>eal <span style="text-decoration: underline;">e</span>state) sector of the economy merged to form the <em>financial services industry</em> once <strong>government regulations that previously prevented</strong> this were abandoned. We now live in the era when all <a title="biopolitics" href="http://en.wikipedia.org/wiki/Biopolitics" target="_self">biopolitical</a> production falls under <strong>capitalist control</strong> through the <strong>monetization</strong> of the once <strong>common property of social networks</strong>.</p>
<p>Without real growth, growth that is only possible through <strong>capitalist expansion into new markets</strong>, debt accumulates with <strong>no possibility of ever being paid off</strong>. The ballooning consumer <strong>debt</strong>, commercial <strong>debt</strong> and government <strong>debt</strong> are merely <a title="U.S. Debt Clock" href="http://usdebtclock.org/" target="_self"><strong>symptoms of the current crisis of capitalism</strong></a>.</p>
<p style="text-align: center;"><strong>The global debt crisis is a symptom of capitalism reaching the limits of growth.</strong></p>
<p>This largely financial crisis will predictably cause a <strong>great deal of needless pain, suffering and death </strong>but all by itself is something that the human race as a whole can overcome. History is full of examples of empires falling in part due to the <strong>debasement of their currency by corrupt politicians and their financial handlers</strong> yet people survived to prosper again.</p>
<p>However, in the effort to extract greater profits by depressing the price of labor through <strong>population overshoot</strong> to produce a <strong>surplus supply of labor</strong>, other limits have been quickly approached. <strong>Paid labor</strong>, after all, originated after the population collapsed during the <strong>Great Plague</strong> and is part of <strong>the foundation of capitalism itself</strong>.</p>
<p>History indicates that the <strong><em>loss of productive farm land</em></strong> through extractive agricultural methods and the resulting <strong>decrease in productivity</strong>, coupled with <strong>erosion</strong>, also contributed to the <strong>collapse of empires</strong>. Despite so-called advances in food production, <strong>decreasing food value</strong> and <strong>exploding populations</strong> drive us towards a <a title="Malthusian catastrophe" href="http://en.wikipedia.org/wiki/Malthusian_catastrophe" target="_self">Malthusian Catastrophe</a> of global proportions.</p>
<p>The so-called advances in food production have literally been fueled by the <strong>extravagant use of non-renewable hydrocarbons</strong>. Not only that, but civilization itself, especially as we have experienced it, has been literally fueled by the <strong>extravagant use of non-renewable hydrocarbons</strong>.</p>
<p>The remaining <strong>hydrocarbon reserves</strong> are being used by the global hegemonic elite to <strong>maintain their positions of privilege and power</strong> rather than used to enable a transition to another form of civilization. The <strong>U.S. armed forces</strong> is the largest user of <strong>non-renewable hydrocarbons</strong> and it is a safe bet that they will use the last of the extractable reserves <strong>maintaining the privilege and power of the global hegemonic elite</strong>.</p>
<p style="text-align: center;"><strong>This greatly complicates things.</strong></p>
<p>Empires have fallen due to financial collapse and agricultural collapse but <strong>none have faced the exhaustion of non-renewable hydrocarbons</strong>. This evokes the specter of <strong><em>peak oil</em></strong>.</p>
<p>All the statistics surrounding <strong>peak oil</strong> originate from <strong><em>within the oil industry itself</em></strong>. We simply cannot know if <strong>peak oil</strong> is real or simply a clever ploy to increase profits.</p>
<p>In any event, either actual or engineered scarcity will drive huge profits even higher until it is <strong>no longer economically viable to extract hydrocarbons from the earth</strong>. People just are not prepared for that and, in fact, <strong>the global hegemonic elite works against even the possibility of energy independence</strong>.</p>
<p>Then there is the issue of <strong>climate change</strong> as it seems no longer politically correct to refer to <strong><em>global warming</em></strong>. In the end it does not matter if it was caused by people or not because <strong><em>it is happening</em></strong> and the <strong>hegemonic elite refuse to risk their privilege and power</strong> to enable meaningful change.</p>
<p><strong><em>Population overshoot, financial collapse, agricultural collapse, exhaustion of non-renewable hydrocarbons, climate change and the machinations of the global power structure to stay in power creates an environment ripe for rampant deadly new diseases.</em></strong> The next <strong>Great Plague</strong> is now overdue and the ability to globally respond to it with adequate measures simply degrades by the hour.</p>
<p>Plastic pollution, acidification of the oceans and the collapse of one fishery after another are all <strong>further symptoms of an impending global collapse</strong> of Biblical proportions. This situation is real and very few are even thinking about preparing for it.</p>
<p style="text-align: center;"><strong>Think about preparing for collapse now.</strong></p>
<p style="text-align: center;"><em>Do you really want to be dependent on society as it is currently structured?</em></p>
<p>It seems to me that in order to prepare, concerned people need to be <strong>reducing dependence</strong> upon the status quo. This is becoming <strong>increasingly difficult</strong> to do because every effort to disengage from the system will be perceived by the system as an <strong>act of rebellion, criminal and terroristic</strong>.</p>
<p>I believe <strong>some people</strong> will survive and a few will continue to live <strong>relatively well</strong>. But to be able to do so will involve becoming <strong>responsible for all aspects of your own life</strong>.</p>
<p>It may well be that it will be only the minority who actually <strong>does the work to prepare</strong> will become <strong>the few who survive</strong>. And eventually, as the facts of the case become <strong>irrefutable and obvious</strong> to many more people, the <strong>remaining carrying capacity</strong> of the planet <em>will not support those who start too late</em>.</p>
<p>As long as the system prevails, <strong>you will have access to the Internet</strong>. The Internet offers <strong>more possibilities for creating income independent of mainstream employment</strong> than any brick and mortar opportunity in the world.</p>
<p><strong><em>Perhaps you should be thinking about creating your own Internet business sooner rather that later.</em></strong> Then you will have a measure of control over <strong>timing the collapse</strong>, at least as far as your personal life is concerned.</p>
<p style="text-align: center;"><strong><em>What do you think?</em></strong></p>
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