25 June 2008
It was not the best of times. In fact, it may
have been the worst of times. The golden boom that lasted from the end of
World War II until the first decade of the twenty first century had come
to an end. Hungry, angry Americans were standing in bread lines in the
Midwest. Throughout the southwest people watched the price of their houses plummet.An unprecedented
number of so-called "middle class" could no longer even afford to keep the lights on. In the swank golf
course resort community of Helendale, California, the for-sale signs went
up. While over at it's doppelganger dirt poor, hayseed country bumpkin
cousin the for-sale signs came down. When I moved out here to
Newberry Springs I became the laughingstock of the country club set at the
office. I was mocked daily. I lived with the underclass in a hayfield next
to meth labs and copper wire thieves. Everyone else at the office lived at
Silver Lakes in Helendale or up in the granite boulders of Victorville or
Apple Valley. Some proudly commuted daily from as far away as Hesperia. As
new people came in they looked around Barstow, drove to the outliers, then
bought in Silver Lakes even as the housing market started to slide. They
paid close to $400,000 for houses on the water, an artificial sump, with
about enough space to slip your hand in between their house and their
neighbors. They sat out on their patios, watched their neighbors and
laughed at them. They went golfing on weekends. And now the party's over.
Almost every other house has a for-sale sign in front of it. People who
can't sell either pay a huge mortgage while watching their asset rot or
they rent it out. And you know what that means. Some nasty, dirty,
miserable, brutish, mean, short Scotch-Irish moves in and down go the
property values yet more. Now all the talk of the country club set in the
office break room is about the crime wave. Rich helpless white people are
being beaten to death in their McMansions by the have-nots. All the marks
are crowded close together like ducks on a pond. Out here in
Newberry Springs I watch the wind blow the dirt of the Mojave River up
into the Cady Mountains. I'm dirt poor, my neighbor is dirt poor, why
would a thief burn $4.56/gallon gas to drive all the way out here to try
and beat blood out of us turnips? If he did my neighbor has a big dog and
my other neighbor has a pack of 'em. How many chain link fences would a
burglar have to climb to check to see if anyone's home? And if he was
wrong, how many of us would fill his arse full of buckshot? Yup, I
sit our here and watch the corn struggle to survive. I watch the beans and
peas shrivel up in the heat and the grasshoppers gobble broccoli. But pity
those rich white folks over at Silver Lakes. They don't even have enough
yard to grow a squash. It still doesn't cost much to commute into town.
Just get a hybrid and drive slow. I've been getting about 55 mpg driving
at 55 mph. A tank lasts over 500 miles and costs about $44 to fill up even
at the most expensive place in town. If you come up behind me either pass
or slow down. It could be worse. You could live in Helendale.
- teosinte @ 19:33
21 June 2008
We were told early in our education that humans
and other predators are at the "top of the food chain." Coyotes eat
rabbits, hawks eat rodents, bigger fish eat smaller fish, but humans have
" dominion over the fish of the sea, and over the fowl of the air, and
over the cattle, and over all the earth, and over every creeping thing
that creepeth upon the earth" Some people are foolish enough to
believe this late into life. Other people are foolish enough to move to
the Mojave Desert and quickly learn that ants own this place. People are
somewhere quite a lot farther down the food chain. For the second
time since I moved to Newberry Springs in 2004 my water well went dead in
the first half of June. The first time it was the pressure switch so I got
suspicious, looked closely at it, and sure enough, a long column of tiny
insect communists were trailing in and out of the pressure switch. I
called up Eagle and ask them to come out. I said I thought I knew what the
problem was and, oh by the way, can ants get into the pressure switch and
short it out or something? "You bet, we must replace twenty of
those a day this time of year." He said they pack them full of ant powder,
which by back calculation I figured must last about two years. Eagle
roared out in a big diesel truck and swapped out the part with a new one
that was probably manufactured from pieces made all over the world and
assembled in some place far away. Without them I would dry up and blow
away. Now every year I'm sure to be out there waging chemical warfare at
the wellhead right around the start of Varmint Moon. It seems that
lately dominion hasn't been going so well. In fact it may become necessary
in the near future to renegotiate our covenant. Research departments of
Big Pharma can't seem to come up with new antibiotics as fast as microbial
pathogens can evolve tolerance to the old ones. These days you can go to a
hospital in an ambulance with a bug and leave in a hearse with a superbug.
Even some of the certain victories of the past, such as tuberculosis, have
turned into losses. Then we have the hydrological catastrophes, Iowa following Katrina. In this changing climate we
might rebuild the levees to withstand a 500-year flood only to be hit in
the next few years with a 1000-year flood. The question is, how do
we rebuild cities with multibillion dollar damage using fewer,
increasingly worthless dollars, replace grain shortages and ruined
farmland using higher priced diesel and fertilizer, all the while growing
the economy and fighting endless wars for oil? When do we either
renegotiate the covenant or sign the surrender papers? I don't think the
ants will even notice when we're gone.
- teosinte @ 18:56
14 June 2008
June is the month when all of the difficult
animals in the Mojave Desert come out. Round tailed ground squirrels
annihilate every green plant. The houseflies get so thick you can't
breath. Ants swarm through the house. I left a Ziploc bag of banana chips
on the counter thinking it would be OK because it was sealed. Argentine
ants chewed holes through the plastic bag. I opened a tool cabinet and
reached in, stopping just short of grabbing a black widow spider.
Sometimes I think the Mojave is about the second most difficult place to
live in the world, second only to the dry valleys of
Antarctica. The political varmints are out this season, too. John
McNasty is campaigning as a war hero, as if war were something to be a
hero about. We learn that he, with no surprise, is most concerned about
being an elite. Rather than suffering with the grunts in a POW camp as he
would like us to believe, he collaborated with the enemy for special
favors. No wonder supporters of the horrid, power mad, and now
finished, Hillary are lining up behind McCain. And what's to hope for in Obama
but more of the same. Didn't he just go to the American Israeli Political
Action Committee (AIPAC) and claim that Jerusalem was the undivided
capital of Israel? If Dubya doesn't get Iran bombed before January he can
count on Barry to get 'er done and then some. I truly sympathize with the
downtrodden who sincerely believe that Barack will bring real change to
this country. But Obama's change will be a few cents on the dollar. The
sad fact is that the whole sordid business is a hollow façade and the only
ones we can count on are ourselves. Whether it's floods and tornados in Iowa or high fuel prices in
California it's up to us to make do. Corporation America is
concerned only with power, continuity of power, and projection of
power I'd like to offer practical suggestions. I put up screens to
keep the flies out, sprinkle chemicals to keep the ants at bay, fence the
round tailed ground squirrels out of the garden (which takes a bad enough
hit from the wind, heat, and grasshoppers), and I look cautiously for
spiders. But what to do about the politicians? I wish ignoring them would
make them go away. What kind of democracy is it when Edward Dowling
wrote: " The two greatest obstacles to democracy in the United
States are, first, the widespread delusion among the poor that we have a
democracy, and second, the chronic terror among the rich, lest we get
it." The third greatest obstacle to democracy is our
survival, which is the focus of our future.
- teosinte @ 21:05
12 June 2008
In the broad sweep of history we are at a
turning point. The daily slope of the long slide is given by the price of
gasoline. At the station I commute past it ticked up another eight cents
today to $4.599/gallon. It's all over the "news" but not a single source,
none of the broadcasters, dare say that we stand on the brink of the Olduvai Cliff. Richard Duncan's leading indicator is
rolling blackouts on the grid. But there are more demons lurking in the
shadows beside electrical power outage. For no other reason than my own
dark amusement I troll the daily headlines for other leading indicators
and post them here. Climate models indicate extreme weather as a consequence of
global warming. CEDAR RAPIDS, Iowa - Flooding rivers
across Iowa forced more residents to evacuate, with at least 10,000 people
in Cedar Rapids among them as the rising Cedar River burst its banks
Thursday
Rescuers had to use boats to reach many stranded residents
in the city of 120,000, and people could be seen dragging suitcases up
closed highway exit ramps to escape the water. It wasn't clear just how
high the river had risen because a flood gauge was swept away by the
swirling water.It's not so good for agriculture and staple crops such as
corn. So much for ethanol as a gasoline substitute. CHICAGO
(Reuters) - U.S. corn futures soared more than 4 percent to a fresh record
high for the fifth consecutive trading session on Wednesday as flooding
expanded in the U.S. Midwest, harming the 2008 corn crop.
An earlier leading indictor is society's response to fuel and food
shortages. People aren't bonding well over this hardship.
Worldwide protests over the rising price of fuel escalated
today, with the Philippines presidential palace besieged by lorries,
fishermen burning their boats in Thailand, and Spanish petrol stations
running dry as hauliers blockade major roads.
Violence has already
claimed lives of lorry drivers on either side of the dispute, while one
haulier was nearly burned to death in his cab by strikers.
As store shelves go bare in Western
Civliization.Spaniards fear a strike that has disrupted
deliveries could cause shortages and they are stockpiling fuel and food.
Traders at Madrid's main food wholesale market said supplies of fresh food
would start to run out soon.
This is not a happy world and
this is not a happy blog. You have to pay for fantasy. Reality you get for
free. Shortages will hit the U.S. like a 9/11 or a Katrina. FEMA will
stand down while hired Blackwater Security goons target practice on the
lower class. The last bit of emergency fuel will go for helicopter
evacuations of elites to their fortresses. We're left with mostly
psychological preparation. Of course timing is everything. "When" is the
most important question. If it doesn't happen tomorrow, or next week, or
before the November elections, and it probably won't, then you are welcome
to go back to buying fantasies. Happy endings cost extra.
- teosinte @ 19:43
8 June 2008
If the price of gas doesn't go down soon we may
see commodities traders tarred and feathered, riding down South Wacker
street on rails. This is because a lot of people, looking for someone to
blame, think speculators are behind the high prices. Pundits tell us that
oil is in a "bubble" and will soon "regress to the mean" and become
"normal" once again so that we can go back to driving our Hummers to the
mall. They seem to have about three main arguments for this scenario. One
is that the high prices will make a lot of marginal oilfields economic and
will spur new exploration, which will bring new supplies to market. Two is
that high prices will make alternative energy sources economically
attractive. And three is that high prices will reduce demand. To me only
the third argument makes sense.
Oil discoveries peaked in the U.S.
in the mid thirties. This was in the days before environmental
regulations. Drillers turned every promising patch of geology into Swiss
cheese looking for the black gold. Despite this effort oil production
peaked in the U.S. in 1970. Prudhoe Bay, Alaska, came online in the
eighties and, although production went up for a few years, decline
prevailed and made Alaska oil production a small hump on a downward path.
Worldwide, oil discoveries peaked in the sixties. Now worldwide oil
production is peaking and four barrels are burned for every new barrel
discovered. It doesn't matter what the price is.
We are not looking
for energy in general, we are looking for transportation fuel. Stuff to
squirt in our Beamers to make them fly down the road at 80mph. So what if
we have wind turbines. So what if we have solar panels, low grade coal,
and steam on a stick. You can't put these in your tank. Sure your Beamer
will run on moonshine but some poor schmuck farmer needs a lot of diesel
to grow that corn, there's only so much farmland, and ethanol is really
just a long-winded transformation of petroleum. So let the price go up, it
doesn't matter. Your car still runs on gasoline.
Which leaves
demand destruction and therein lies the rub. Destruction of demand implies
destruction of the economy as we know it. The first to go is the frivolous
– the Sunday drives, cruising Main. Then come the electives, the family
vacation in the big Road Slug. Local economies dependent upon tourism
suffer accordingly. As each wealth class gives up an elective, a lower
class gives up a necessity. Food that farmer is growing costs more because
diesel costs more. So does trucking it to the store. The cost of energy
pervades every consumer item until people are forced to triage. Do I give
up medicine, food, or transportation this week? And where does that leave
us? Do we have anything left for an alternative energy Manhattan Project ?
Can we even repair the damage to irrigation and infrastructure left by the
devastating weather? Or do we simply drop down to the next level and wait
for depletion to up the ante?
People need hope. But what does this
mean when "getting ahead" becomes "not falling behind?" How will the daily
mall cruiser cope when hope means staying alive? I see people somehow
going on like we always have. Whether through the medieval Black Death in
Europe or the earthquake last month in China, people continue on. Hope
comes from the very act of continuing on.
- teosinte @ 18:42
6 June 2008
The wind came up again today after taking a
break for a few hours. Tornados are tearing up the Midwest. The stock market
went down four hundred points and oil took a record two day jump to a new
record high. All of the major trends are holding course. Unemployment also
took a big jump. Israel has become exasperated with trying to goad Uncle
Sammy into bombing Iran and so is fixing to drop U.S. bombs on Iran itself from U.S. planes
flown by U.S trained Israeli pilots. Oh and last month there
was a tipping point of sorts. More
people now live in cities than the country for the first time. These
new urban poor are the ones who are going to have the roughest time of it.
Country people have always had it tough and we're used to it. But the new
urban poor just moved to the city for a better life. They have hope. It's
the dashing of hope that makes things worse. A few of the old
reliable hands appear to becoming even more confused. Bill
Bonner thinks oil is in a bubble and will soon "regress to the mean,"
that is it will become "normal" again. Even though Bonner read Taleb's
book and talked him up, somehow it just didn't register. He hasn't come to
grips with the notion that normal doesn't apply to oil anymore. It's a new
normal just about every day now and Black Swans
are flying in flocks. Trends to watch for. States don't have the
money to pay all of these new unemployment claims. It's like the Boomers
and entitlements. Too many people are hitting under funded, looted
insurance all at once. Hunger is working it's way up the food chain. Just
like peak oil is the ultimate constraint on greenhouse gas emissions, so
is starvation a sure cure for the obesity epidemic. But the media would
have you think there's not much more to worry about than Hillary and Barry
making up. It's a dry wind that's blowing.
- teosinte @ 21:48
5 June 2008
As I get older I'm able to remember less and
less. And I've never been able to see into the future. So if I don't know
what's going to happen and can't remember what just did happen, how can I
even expect to know what's going on right now? At about age 12 or so I
abandoned faith for reason and that looked for awhile like it might work.
But then I started to see holes in that. There's all of this uncertainty.
I got into statistics because it seemed to deal with uncertainty. Except,
as Taleb shows, it only works with known uncertainty, like the variability
in how tall people are. It doesn't work with unknown uncertainty, such as
how rich people are. Suppose, for example, you have a bar full of beer
drinkers and how tall they are is proportional to how much money they
earn. A six foot guy earns $60,000 and a five foot guy earns $50,000.
There's even a varsity basketball player pounding down stout who makes
darn near $70,000. Then in walks Bill Gates and he's almost one hundred
miles tall. You see normal probability distributions don't work with
money. It's all chaos. Though all chaos theory can show you is why
even fully determined systems are unpredictable yet self-organizing. Chaos
theory can't tell you what's going to happen next or predict the
probability that Bill Gates will walk into the local bar. Besides, you
can't possibly know what's going on right now because all of the
information you get is filtered and sterilized. Most of it is outright
propaganda intended solely for the purpose of controlling your behavior.
As we wallow in this sea of misinformation, disinformation, and pure
propaganda, clutching for straws of truth, may I offer this one small
solace. You will know reality because reality bites. Where is this
leading? Us Baby Boomers lost our grip on reality in the sixties and never
regained it. It's just been one fantasy after another: acid trips, disco,
SUVs, dot.coms, house prices that only go up, no money down negative
amortization loans. None of these things were real anymore than CNN is
news. You can feel reality nibble at $4.50 per gallon gas. For most of us
out here a trip into Barstow for groceries now costs at least ten or
twenty bucks, and the cost of those groceries is directly related to oil.
Oil has found new support at over one hundred dollars a barrel. Boomers
are getting old and very few have saved for retirement. How could anyone
save with real estate tanking and the dollar rapidly going south. So
what's next? Debt slavery? Bring back the Sixties!
- teosinte @ 21:47
4 June 2008
How long? It's the most important question. You
may have been absolutely sure in 1980 that gas prices would go way up. But
you would have had to wait almost 30 years to see it happen. About that
time Howard J. Ruff wrote a book along the lines of 'Repent ye the End is
Nigh' only to become a laughing stock for the next three decades. Though I
see now that he has recently released a new version in time for our
current oil related crisis. People who followed his advice in the
seventies, and it was very good advice, would have missed out on the
dot.com boom and the housing bubble. They're in their sixties or seventies
now, hunkered down in their fallout shelters, eating stale MREs. If you
bought gold in 1980 you would also have had to wait 30 years to get your
money back. Timing is everything. If you bought in 2004 you would have
doubled the cash value. Although, realistically, I think gold stayed even
and the dollar lost by half. Now we have the Peak Oil crowd coming
into their own. Some, like Colin Campbell, have been gloomy for a long
time. Others are recent converts. As the curtain draws we see these actors
caste in two roles. One has the wheels coming off the wagon this year
while the other has us in Kunstler's "Long Emergency." By the way, after
reading James Kunstler's
latest screed, "We Were Lied To" posted June 2, 2008, I began to
wonder if the poor fellow has finally lost his marbles. You see the timing
of this peak oil question is of critical importance. If we have twenty
years then be calm. If it's more or less now, which seems from the
evidence to be the case, then batten down the hatches or run for the
hills. The shape of the downward spiral is also important. For
example, drought and water shortages are a serious problem in the Mojave
River basin. Groundwater levels in Newberry Springs are dropping at a rate
of about one foot per year. So you do a calculation of your probably life
span, drill your well a little deeper, and you'll be fine. Climate change
is a similar issue. I can't get really worked up about a few degrees by
2050 because death by that time will have interfered with my concern. But
if the wind doesn’t stop blowing here in a day or two everyone I have to
deal with will get a little irritable. We're coming up on one of
our faux turnovers in the quadrennial election cycle and a lot of people,
especially African Americans and perhaps recently disappointed feminists,
are looking forward to a sea change. I wonder how hard the truth will hurt
when they realize that Obama is more of a president for Israel than
America. You don't have to look very hard or far to see whose
interests our elites are serving.
- teosinte @ 19:30
3 June 2008
Madness on the cusp of desperation. I'm sure
that's what a few million folks are feeling these days. You may not be
able to squeeze blood out of a turnip but you sure can squeeze the piss
out of poor people. Something like about 4.5 million poor people are
getting ready to starve in Ethiopia, as usual. Just as long as it stays
there on the teevee where it belongs, right?. Still we feel the squeeze as
we squeeze the pump handle and watch those dollar signs spin. I drove by a
sign yesterday advertising diesel for the low price of $5.04 a gallon.
Then I came across this object lesson from the Pentagon. Don't even think about
protesting. Colonel Kirk Hymes demonstrated the weapon by
staging what CBS somewhat oddly called "a scenario soldiers might
encounter in Iraq" -- a handful of military volunteers, dressed as
civilian protesters, who carried signs saying "peace not war" and threw
objects at a small group of soldiers. A series of raygun blasts from half
a mile away disrupted their chants and finally sent them
running.We're "into the Buck Rogers scenario," he gloated.
Buck Rogers was the good guy, remember, and the good guys are the ones who
want war, not peace as George Orwell foretold. Then Joe Bageant posts this great story about his neighbor
that illustrates well the points I was trying to make in my own brief run
in with the justice system on the flip side of the coin. Joe's buddy
slipped up once and now he's an indentured servant forever in the prison
profit industry. You might read this and then watch out for that banana
peel in your own life. You don't have to look hard for bad news
these days and I think the Pollyannas must be getting new extra thick
prescription rose colored glasses. I wish I could tell you that life will
be easier for those of us who have been expecting this now for several
years. But the truth is that we'll suffer almost the same as those whose
heads have been up their arses the whole time. It's like the difference
between one who knows and anticipates the time of their death and one who
lives for the moment. They both suffer the same fate, only the one who
lives for the moment is happier while it lasts.
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