AS THINGS FELL APART, NOBODY PAID MUCH ATTENTION

The American way of life – which is now virtually synonymous with suburbia – can run only on reliable supplies of dependably cheap oil and gas. Even mild to moderate deviations in either price or supply will crush our economy and make the logistics of daily life impossible. – Jim Kunstler – The Long Emergency

 

Here we stand
Like an Adam and an Eve
Waterfalls
The Garden of Eden

Two fools in love
So beautiful and strong
The birds in the trees
Are smiling upon them


From the age of the dinosaurs
Cars have run on gasoline
Where, where have they gone?
Now, it’s nothing but flowers

Talking Heads – Nothing but Flowers

America was a Garden of Eden with nothing but flowers, trees and vegetation. We bit into the forbidden fruit of oil over a century ago. It has been a deal with the Devil. Oil brought immense wealth, rapid industrialization, 2.7 million miles of paved roads, and enormous power to America. But, now the SUV is running on empty. In the not too distant future the downside of the deal with the Devil will reveal itself. America was the land of the free and home of the brave. Now it is the land of the Range Rover and home of the BMW. In a few years it could be the land of the forlorn and home of the broken down. Our entire society has been built upon a foundation of cheap oil. The discovery of oil in Titusville, PA in 1859 turbo charged the Industrial Revolution in the U.S. The development of our sprawling suburban culture was dependent upon cheap oil. Americans could not survive for a week without oil. Commerce in the U.S. depends upon long haul truckers. Food is transported thousands of miles to grocery stores. The cheap Wal-Mart crap is transported thousands of miles across the seas from China. Americans believe it is our God given right to cheap oil. We are the chosen people. Kevin Phillips, in his brilliant book American Theocracy describes our love affair with cheap oil:

Americans constitute the world’s most intensive motoring culture. For reasons of history and past abundance, no other national population has clumped so complacently around so fuelish a lifestyle. For many citizens the century of oil has brought surfeit: gas-guzzling mobile fortresses, family excursions on twenty thousand-thousand-gallons-per-hour jet aircraft, and lavishly lit McMansions in glittering, mall packed exurbs along outer beltways. Against a backdrop of declining national oil and gas output, Americans consume 25% of world energy while holding just 5% of its energy resources. As the new century began, Americans enjoyed a lifestyle roughly twice as energy intensive as those in Europe and Japan, some ten times the global average. Of the world’s 520 million automobiles, unsurprisingly, more than 200 million were driven in the United States, and the U.S. car population was increasing at five times the rate of the human population. How long that could continue was not clear.

John and Jane Q. Citizen mostly ignore these trends and details, and know nothing of geologist Hubbert’s bell-shaped charts of peak oil. Senior oil executives sometimes discuss them in industry conferences, but elected officials – many with decades of energy platitudes under their belts – typically shrink from opening what would be a Pandora’s Box of political consequences. Oil was there for our grandfathers, they insist, and it will be there for our grandchildren; it is part of the American way.

Ignoring the facts and pretending that we can count on cheap oil for eternity is delusional. It is also the American way. The age of oil is coming to an end.

  

    

There are consequences to every action. There are also consequences to every inaction. Over the next decade Americans will experience the dire consequences of inaction. The implications of peak cheap oil have been apparent for decades. The Department of Energy was created in 1977. The Department of Energy’s overarching mission was to advance the national, economic, and energy security of the United States. In 1970, the U.S. imported only 24% of its oil. There were 108 million motor vehicles in the U.S., or .53 vehicles per person in the U.S. Today, the U.S. imports 70% of its oil and there are 260 million vehicles, or .84 vehicles per person. Jim Kunstler describes our bleak future in The Long Emergency:

 “American people are sleepwalking into a future of hardship and turbulence. The Long Emergency will change everything. Globalism will wither. Life will become profoundly and intensely local. The consumer economy will be a strange memory. Suburbia – considered a birthright and a reality by millions of Americans – will become untenable. We will struggle to feed ourselves. We may exhaust and bankrupt ourselves in the effort to prop up the unsustainable. And finally, the United States may not hold together as a nation. We are entering an uncharted territory of history.”

The land of the delusional has no inkling that their lives of happy motoring are winding down. The vast majority of Americans believe that oil is abundant and limitless. Their leaders have lied to them. They will be completely blindsided by the coming age of hardship.

Factories & Shopping Malls

     

     

There was a factory
Now there are mountains and rivers
you got it, you got it
 
We caught a rattlesnake
Now we got something for dinner
we got it, we got it
 
There was a shopping mall
Now it’s all covered with flowers
you’ve got it, you’ve got it
 
If this is paradise
I wish I had a lawnmower
you’ve got it, you’ve got it

                                     Talking Heads – Nothing but Flowers

If Americans had any sense of history longer than last week’s episode of Dancing with the Stars (how about that Bristol Palin!), they may have noticed that the modern age has lasted a mere 150 years and has been completely dependent upon cheap plentiful oil. This is a mere eye blink in the history of mankind.  American exceptionalism refers to the opinion that the United States is qualitatively different from other nations. Its exceptionalism is claimed to stem from its emergence from a revolution, becoming “the first new nation” and developing “a unique American ideology, based on liberty, egalitarianism, individualism, populism and laissez-faire”. This feeling of superiority stems from the belief that we have a moral superiority and God has chosen our country to be a shining symbol for the rest of the world. It is the ultimate in hubris to think that we are the chosen ones. An enormous amount of credit for the American Century (1900 – 2000) must be given to pure and simple luck.

Everything characteristic about the condition we call modern life has been a direct result of our access to abundant supplies of cheap fossil fuels. Fossil fuels have permitted us to fly, to go where we want to go rapidly, and move things easily from place to place. Fossil fuels rescued us from the despotic darkness of the night. They have made the pharaonic scale of building commonplace everywhere. They have allowed a fractionally tiny percentage of our swollen populations to produce massive amounts of food. All of the marvels and miracles of the twentieth century were enabled by our access to abundant supplies of cheap fossil fuels. The age of fossil fuels is about to end. There is no replacement for them at hand. These facts are poorly understood by the global population preoccupied with the thrum of daily life, but tragically, too, by the educated classes in the United States, who continue to be by far the greatest squanderers of fossil fuels. – Jim Kunstler – The Long Emergency

Every accomplishment, invention, and discovery of the 20th Century was due to cheap accessible fossil fuels. The American industrial age was powered by cheap plentiful oil. One hundred and ten years after the discovery of oil in Titusville, PA an American walked on the moon. We harnessed the immense power of oil and rode it hard. An empire was born and grew to the greatest in history through the utilization of oil and oil byproducts. It is no coincidence that U.S. GDP has been dependent upon the growth in fossil fuel consumption over the last 150 years.

       

The self centered delusional myopic American citizenry see no parallel between the American Empire built on a foundation of oil and the Dutch Empire built upon wind and water or the British Empire established on the discovery of vast quantities of coal. The Dutch Empire of the 1600s had 6,000 ships and 1,000 windmills generating power. The British Empire used coal to power steam engines, pumps, locomotives and ships and forged a great empire in the 1700s and 1800s. Today, the Netherlands has a GDP lower than Mexico. The U.K. has a GDP on par with Italy. You can be sure you are no longer an empire when your GDP is on par with Mexico and Italy. The United States has grown its GDP to $14.7 trillion by exploiting fossil fuels. The American Empire is clearly waning as its dependence on foreign oil slowly bankrupts the country. We consume 140 billion gallons of gasoline every year keeping our suburban sprawl mall based lifestyle viable.

Cars, Highways & Billboards

     

Years ago
I was an angry young man
I’d pretend
That I was a billboard

Standing tall
By the side of the road

I fell in love
With a beautiful highway

This used to be real estate
Now it’s only fields and trees
Where, where is the town
Now, it’s nothing but flowers

The highways and cars
Were sacrificed for agriculture
I thought that we’d start over
But I guess I was wrong

                                    Talking Heads – Nothing but Flowers

Americans believe our ingenuity, brilliance and blessings from God have led to the elevation of our country to eminence as the greatest empire in history. But, in reality it was due to a black sticky substance that we stumbled across in 1859. Those who believe in American Exceptionalism scoff at the idea that our empire would not exist without oil. They prefer to ignore and downplay the impact of oil on our society. Too bad. Here are the facts from www.lifeaftertheoilcrash.net/.

  • Approximately 10 calories of fossil fuels are required to produce every 1 calorie of food eaten in the US. 
  • Pesticides and agro-chemicals are made from oil. 
  • Commercial fertilizers are made from ammonia, which is made from natural gas. 
  • Most farming implements such as tractors and trailers are constructed and powered using oil-derived fuels. 
  • Food storage systems such as refrigerators are manufactured in oil-powered plants, distributed using oil-powered transportation networks and usually run on electricity, which most often comes from natural gas or coal. 
  • The average piece of food is transported almost 1,500 miles before it gets to your plate. 
  • In addition to transportation, food, water, and modern medicine, mass quantities of oil are required for all plastics, all computers and all high-tech devices. 
  • The construction of an average car consumes the energy equivalent of approximately 20 barrels of oil. 
  • The construction of the average desktop computer consumes ten times its weight in fossil fuels. 
  • According to the American Chemical Society, the construction of single 32 megabyte DRAM chip requires 3.5 pounds of fossil fuels. 
  • Recent estimates indicate the infrastructure necessary to support the internet consumes 10% of all the electricity produced in the United States. 
  • The manufacturing of one ton of cement requires 4.7 million BTUs of energy, which is the amount contained in about 45 gallons of oil. 

Our entire civilization will collapse in a week without oil. Try to imagine life if the 159,000 gas stations in the country ran dry. We are running on fumes and refuse to acknowledge that fact. We sooth our psyche with delusions of green energy (solar, wind, ethanol); drill, drill, drill mantras; abiotic oil theories; and vast quantities of shale gas. The concept of energy required to extract an amount of energy completely goes over the head of media pundits and those who prefer not to think. If you expend 2 gallons of gasoline in your effort to extract 1 gallon of gasoline, you’ve hit the wall. We have sacrificed our future in order to maximize our present, as William James concluded in the late 1800s:

“The most significant characteristic of modern civilization is the sacrifice of the future for the present, and all the power of science has been prostituted to this purpose.”

Americans have a fatal character flaw of desiring others to think they are successful because they drive an expensive gas guzzling automobile and reside in an immense energy intensive McMansion in suburbs 30 miles from civilization. Delusional Americans have convinced themselves that the appearance of success is success. Leasing $50,000 BMWs for decades and borrowing $500,000 to live in a $300,000 house has already pushed millions of egotistical to the edge. Of the 250 million passenger vehicles on the road today, 100 million are SUVs or pickup trucks. The average fuel mileage is 17 mpg. Approximately 70% of Americans drive to work every day, with 85% driving alone. They spend 45 minutes on average commuting to and from work and drive 15 miles to work. The average home size increased from 1,400 sq ft in 1970 to 2,300 sq ft today, despite the fact that the average household size decreased from 3.1 to 2.6. The bigger is better fantasy will be devastating on the downward slope of peak oil.    

Pizza Huts, Dairy Queens & 7 Elevens

     

   

 
Once there were parking lots
Now it’s a peaceful oasis
you got it, you got it
 
This was a Pizza Hut
Now it’s all covered with daisies
you got it, you got it
 
I miss the honky tonks,
Dairy Queens, and 7-Elevens
you got it, you got it

And as things fell apart
Nobody paid much attention
you got it, you got it

                                     Talking Heads – Nothing but Flowers

How will Americans survive without the 7,500 Pizza Huts, 5,000 Dairy Queens, and 8,000 7-11s that dot our highways? The average Joe is so busy tweeting, texting, and face-booking on their iPads, Blackberries, and laptops, watching Dancing With the Stars on their 52 inch HDTV bought on credit, or cruising superhighways in their leased Hummers to one of the 1,100 malls or 46,000 shopping centers, that they haven’t paid much attention as peak oil crept up on them. The globalization miracle of cheap goods produced in China and shipped across the world by cargo ship and then trucked thousands of miles to your local Wal-Mart is wholly reliant upon cheap oil. Our own military has concluded that:

By 2012, surplus oil production capacity could entirely disappear, and as early as 2015, the shortfall in output could reach nearly 10 MBD. – Joint Operating Environment Report 

When worldwide oil demand slightly exceeded worldwide oil supply in 2008, prices surged to $145 per barrel. A 10 million barrel per day shortfall is unfathomable by the purposefully ignorant masses. The sprawling suburbia that now houses the American population will become not viable when oil prices rise above $200 per barrel. Out-of-town shopping and entertainment malls will be deserted. The prosperity borne from the advent of oil is waning. Jim Kunstler explains the end game in The Long Emergency:

The entropic mess that our economy has become is in the final blow-off of late oil-based industrialism. The destructive practices known as “free market globalism” were engendered by our run-up to and arrival at the world oil production peak. It was the logical climax of the oil “story”. It required the breakdown of all previous constraints – logistical, political, moral, cultural – to maximize the present at the expense of the future, and to do so for the benefit of the very few at the expense of the many. Even mild to moderate deviations in either price or supply [of oil and gas] will crush our economy and make the logistics of daily life impossible.

The United States is already tottering, as the oligarchy of the Wall Street banking syndicate, global mega-corporations and corrupt political hacks in Washington DC have pillaged the wealth of the country and left a middle class gasping for air. The mood of the country is already darkening as The Fourth Turning gathers steam. The recognition by the masses that peak cheap oil is a fact will contribute greatly to the next stage of this Crisis. Fourth Turning periods always lead to war. American troops are not in the Middle East to spread democracy. They are the forward vanguard in the coming clash over depleting oil resources. We are entering an era of strife, war, chaos and destruction. The facts of who controls oil supply and who needs oil (U.S. – 25%, China – 10%) are clear. Kunstler bluntly deals with the facts:

Fossil fuel reserves are not scattered equitably around the world. They tend to be concentrated in places where the native peoples don’t like the West in general or America in particular, places physically very remote, places where we realistically can exercise little control (even if we wish to). The decline of fossil fuels is certain to ignite chronic strife between nations contesting the remaining supplies. These resource wars have already begun. There will be more of them. They are very likely to grind on and on for decades. They will only aggravate a situation that, in and of itself, could bring down civilizations. The extent of suffering in our country will certainly depend on how tenaciously we attempt to cling to obsolete habits, customs, and assumptions – for instance, how fiercely Americans decide to fight to maintain suburban lifestyles that simply cannot be rationalized any longer. –  Jim Kunstler – The Long Emergency

Mr. Kunstler believes that the U.S. will be forced to downscale, localize and adapt to a new reality. I wholly support his attempt to warn the American people and would urge those who chose to think that preparing for a more agrarian lifestyle that will be forced upon us by circumstances is essential. No technological miracle will save us from our fate. Decades of inaction will have a price. I truly hope that his optimism that hardship will renew the American spirit will reveal itself:

“But I don’t doubt that the hardships of the future will draw even the most secular spirits into an emergent spiritual practice of some kind.”

As I live in the outer suburbs and commute 30 miles per day into the decrepit decaying city of Philadelphia every day, I’m less optimistic that the transition will be smooth or even possible. Kunstler’s view of the suburbs is accurate:

“The state-of-the-art mega suburbs of recent decades have produced horrendous levels of alienation, loneliness, anomie, anxiety, and depression.”

Families stay huddled in their McMansions, protected from phantoms by state of the art security systems. Their interaction with the world is through their electronic gadgets. Neighborhoods of cookie cutter 4,000 sq ft mansions appear deserted. Human interaction is rare. Happiness is in short supply. As I sit in miles of traffic every morning during my soul destroying trek to work I observe the thousands of cars, SUVs, and trucks and wonder how this can possibly work when the peak oil tsunami washes over our society in the next few years. Then I reach the bowels of the inner city and my pessimism grows. This concrete jungle is occupied by hundreds of thousands of uneducated, unmotivated, wards of the state. They live a bleak existence in bleak surroundings and depend upon subsistence payments from the depressed suburbanites to keep them alive. How will they survive in a post peak oil world? They won’t.

The Hirsch Report and Jim Kunstler’s  The Long Emergency both were published in 2005. M. King Hubbert warned U.S. leaders decades in advance about the expected timing of peak oil. The warnings have fallen on deaf ears. We were busy with our wars of choice, home price wealth, gays in the military, and the latest episode of Jersey Shore.

And as things fell apart
Nobody paid much attention
 

NOTHING BUT FLOWERS

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106 Comments
Tampa Gold
Tampa Gold
November 19, 2010 9:48 am

Top spot right now at zerohedge.com

Here come the track backs!!!

WAKE UP PEOPLE!!!

KaD
KaD
November 19, 2010 10:44 am

Based on this article you might find this one relevent also; about wealth disparity and corruption in the US:

http://www.marketoracle.co.uk/Article24280.html

Robmu1
Robmu1
November 19, 2010 10:44 am

Jim,

A 5-point buck showed up by my shed the other day. When the oil runs out and the supermarket shelves are empty, you are invited to come over and help me kill it, and we can have a feast. You bring the beer.

Surly1
Surly1
November 19, 2010 11:11 am

You have done a splendid job of tying together a variety of trends, all of which I’ve been following on Kunstler’s blog, zerohedge and the like. (Interesting thread of comments on zerohedge- not for the timid if you like to avoid fistfights). No one can say we weren’t warned.
And now we can surmise what all those FEMA camps and acres of plastic “grave-liners” are for.

john coster
john coster
November 19, 2010 11:15 am

I’m glad to see this post, particularly in the same week in which the NY Times did a special energy feature (Nov. 17) assuring us that we have vast amounts of available fuel here in North America, from tar sands and shale primarily. Yes sir, it’s business as usual according to the NYT. No need to worry. I’m sure the article was very satisfying to all the wall street bankers heading back to their mansions in Greenwich on Weds. evening. I guess the folks at The Oil Drum and those nervous Nellies in the Joint Command are just a bunch of Chicken Littles.

StuckInNJ
StuckInNJ
November 19, 2010 12:20 pm

“They paved paradise and and put up a parking lot, with a pink hotel, a boutique and a swinging hot spot. ”

Joni sang that song in my youthful years.
It became a reality in my latter years.
America, America, I once knew ya ….

russ
russ
  StuckInNJ
January 6, 2017 9:21 pm

I believe that’s “the Pink Paradise”.

rick
rick
November 19, 2010 12:33 pm

As they say in industry terms “dead on balls accurate”.

Reactive
Reactive
November 19, 2010 1:23 pm

I think a return to a more local, agrarian society with little federal government oversight sounds great. Have our lives improved so significantly by being able to buy cheap junk from China? Or driving cars, waiting in traffic, frantically hoping we get to the store before it closes?

Maybe it’s just me, with an agricultural background and 200 acres of land that I escape to on weekends — sans television or any contact with the world outside of our own little community — but I think I’d prefer this way of life. The lefties call this “austerity” and say that it means failure for our country. They want more cheap junk, more taxes, more entitlements for the poor via “wealth redistribution.” They believe owning land should be illegal because anyone who does is “privileged at birth” and therefore one of the “rich” who need to share what they have.

Not for me. I’ll take a low-key existence, with strong family-community ties and as little government intervention as possible. Good-bye, oil. You really weren’t all that great, after all.

Pirate Jo
Pirate Jo
November 19, 2010 1:43 pm

Reactive, just imagine how much less we would all have to work. We really do spend a HUGE amount of time working, just so we can pay the government.

Reverse Engineer
Reverse Engineer
November 19, 2010 2:00 pm

Returning to an agrarian society seems like a grand idea, except for the small problem of all those folks who live in the Suburbs and the Big Shitties. There’s just a few too many of them to drop down on 200 acre properties to do some sod busting. They can’t sell their McMansions to buy some land either, since the McMansion is first off underwater, and second the chain of title was broken in the Fraudclosure mess.

How the folks who are sitting on a piece of property here in the FSofA figure they “own” the property is beyond me. The property is owned and controlled by the state, and the minute the state wants to take control of the property, all they have to do is raise your property tax past what you can afford to pay, and POOF you are another dispossesed peasant. This is how AgriBiz run by the Illuminati consolidated up all the land in the Great Depression.

Anyhow, the bottom line here is you are OWNED by the Fascist State you live in, and unless you have your own private army as well equipped as the Jackboot Thugs of the FBI & ATF, you’ll only be free to live on that land for long as you pay what the State requires you to pay for the priviledge of parking your butt on that piece of property.

To make a long story short, a return to an agrarian lifestyle here is not going to be accomplished without a lot of fighting over who “owns” the land and how the products of that land get distributed out. Besides that, the fighting will have to significantly cull the herd for there to be enough land for the folks still standing to adequately distribute out amongst themselves. There is certainly NO guarantee that the present “owners” of any property will remain the owners in perpetuity, particularly if/when Da Goobermint collapses. After that, you only own what you can Protect yourself.

RE

mega realist
mega realist
November 19, 2010 2:02 pm

Good work Mr. Quinn.
The very few who do not get it need to see Matt Simmons old work “Twilight in the Desert”, and his other PPTs with the decline curves for the elephant fields. Are the majors and Brazil drilling 15,000 foot wells in 5-8,000 ft of water because they like it? Easy shallow goodies are long gone. See the decline curves for North slope Alaska and Mexicos Cantarell. Most of sheeples do not know from decline curves. Jet transport of grapes and other perishables from South america and Mexico will slam to a halt at what jet fuel cost?

What simmons pointed out that few grasped is that the Saudis are maintaining sort of a flat decline curve using secondary and tertiary recovery called water flood. Water cut on Gahwar is increasing b the year. Cannot urge getting Simmons book strongly enough.
I could go on with lots more details, but without fundamental issues in the book it will fall on deaf ears.

Thinker
Thinker
November 19, 2010 2:28 pm

On the contrary, RE — a collapse of our oil-based economy would lead to a collapse of the federal government and strengthening of local governments. Locals are far less willing to get heavy-handed with people’s property because they’re property owners themselves. And they’re closer, meaning they could get shot if they tried to.

Yeah, the people in the cities are a problem, but that will probably take care of itself, if you know what I mean. They might roam within 100 miles of the city, but chances are they’ll kill each other off in sufficient numbers to make the whole thing manageable. And there will still be opportunities for the McMansion folks to grow their own food, raise chickens, etc and enter into a different kind of bartering lifestyle. Some skills will still be needed in exchange for food.

Society may just make a severe correction back to a much more sustainable level. Overall, it would be better for the country and the environment than what we’ve got going on right now.

Apollo
Apollo
November 19, 2010 2:33 pm

The Age of American Exceptionism has ended.

There was a time, on and off, during much of the 20th century, when Exceptionism means a country inspiring people to do great things – discovery, innovation, wonderful infrastructure and products, a compassionate yet rational society, supreme educational achievement and a land of high intelligence. USA was exceptionally good.

Then, bit by bit, Exceptionism was transformed into a land where one can get away with just about anything and everything. All country and people of the world follow on set of rule, except America. Me is ‘in’ and everybody else, even the well-being of the country, is ‘out’. This cultural trend was started by the politics of ‘easy’, bought by an overwhelming majority raised in the Exceptionism mindset, which proceeded to feed on itself in a self-destructive cycle. Before you know it, Americans even believe they can violate physical laws and monetary reality. A society where millions operate on the basis that energy and happiness can be created out of thin air, just like money. USA became exceptionally bad. And amazingly stupid.

Washington Post, a mainstream paper, calls on Obama to declare a one-term presidency. It is a recognition that not only Obama, but no politician, is able to confront less tackle the transition from the Age of Exceptionsim.

http://www.washingtonpost.com/wp-dyn/content/article/2010/11/12/AR2010111202846.html

Here an analysis from a slightly outside view of the above column, which frequently is far more real and healthy than domestic pundits and analysts:

http://www.thestar.com/opinion/editorialopinion/article/893387–gwyn-end-of-american-dream-a-nightmare-for-obama

To highlight the core of the matter that resulted in the end of Age of Exceptionism – housing, the situation is ever more dire. Massive housing price drop and foreclosure will continue for at least two years. Optimistically, the bottom (BOTTOM!) may hit in 2012.

http://www.businessinsider.com/real-estate-markets-drop-the-most-2010-11?slop=1#slideshow-start

“The US banking industry is entering a new period of crisis where operating costs are rising dramatically due to foreclosures and defaults. We are less than 1/4 of the way through the foreclosure process.”

Read more: http://www.businessinsider.com/chris-whalen-picutres-of-deflation-2010-10#ixzz15l3bHye7

I dare you to click the link to see the Powerpoint presentation by Risk Analytic’s Chris Whalen. It is worded in professional financial language. It is not pretty. The conclusion is simple: USA WILL become Ireland in two years, and there is no EU to bail out the unbailable.

http://www.businessinsider.com/chris-whalen-picutres-of-deflation-2010-10

rennerstump
rennerstump
November 19, 2010 2:36 pm

Kunstler gets excited over next to nothing. Vehicles getting 100 mpg are simple to build and use! Our inventive genii will produce as soon as the lazy-assed-loafers are forced to earn their keep, but don’t hold your breath on that!! As soon as the Federal reserve is ended our prosperity will begin!! I will patent my inventions when the patent office is reformed by a Constitutional Congress! Sincerely, RS

Reverse Engineer
Reverse Engineer
November 19, 2010 3:13 pm

@Thinker

You are joking, right? Local Goobermints are just as corrupt as CONgress, just the payoffs aren’t as big. Think the “Dukes of Hazzard” and Boss Hog. Think Frank Serpico. Think the Hon. Mayor Richard Daley of Chicago, soon to be replaced by Rahm-bo. I wouldn’t count on anybody’s property right being enforced once the Fed collapses, especially since you would not be able to know who really owns anything, besides maybe somebody who lives on a family farm held for generations, and even that you could get a claim on by a Native American. Who is going to enforce these property claims? Your local Sherriff? In collapse scenarios, the local cops operate entirely via protection rackets, you either pay up or you are not “Protected”.

Anyhow, I am not disagreeing that we need to go back to a simpler form of living. I’m just pointing out that it is a fantasy to think anybody’s property rights will be respected once the collapse proceeds along here. Of course, if you Gang Up with the other locals and form your own miniature Plutocracy with your own miniature Enforcement Arm you might hold onto the land until somebody bigger and better armed shows up in the neighborhood. How said miniaturized Goobermint is run really is what determines how equitable and free your particular neghborhood will be. Likelihood would be for most of these places that they will become Feudalized, since this is the Land Ownership paradigm. Other areas may become Tribalized, others may become Communal. Completely anarchic organization is unlikely to last too long in any area.

RE

john Tucker
john Tucker
November 19, 2010 3:40 pm

Having spent some serious time in third world countries, dancing, eating, praying, and sleeping with the natives, I can forcefully aver that they tend to be, not just a little, but vastly happier in their lives than my fellow americans. So, I am extremely hopeful about the improvement in our general demeanor as we return to being “a more local, agrarian society with little federal government oversight.” Nor do I have my head in the sand about it. Not too many people care to point out that, in order to arrive at this favorable destination, our population must and certainly will be reduced to around 10% of its present size. That means that the vast majority of people younger than I am are in for a big, big surprise ….

Ted
Ted
November 19, 2010 3:51 pm

groundbreaking interview by Robert Kaplan of KaplanFox–Law firm initiating class action suit against JPM and HSBC for silver market manipulation.

share it with everyone you know investing in silver!!

http://www.contraryinvestorscafe.com/robert-kaplan/

Thinker
Thinker
November 19, 2010 4:03 pm

Sure, RE. Just keep getting all your knowledge of local governments off the boob tube instead of being in such a community in real life. It’s easier to keep the tin foil hat and government conspiracy theories in place.

Smith-n-Jones
Smith-n-Jones
November 19, 2010 4:18 pm

I have to agree with RE on this one (dang). The property you think you “own” is only yours as long as the current government continues to maintain its control. Once that’s gone you only “own” what you can defend. I always smile at all the right-wingers who think there should be no government and no taxes, so they can live in peace on “their” property (my in-laws, for instance). Even if it’s all paid off, you only “own” anything to the extent that the government enforces the rule of law on your behalf. If that government decides to increase your taxes by 10,000 percent and you can’t pay (cuz there ain’t no economy no more), guess what? You are now homeless. If that government fails, collapses or otherwise goes away, so do your property “rights.” If a private army decides it wants your land, who you gonna call? Be careful what you wish for.

Reverse Engineer
Reverse Engineer
November 19, 2010 4:53 pm

Quite right SnJ.

This has nothing to do with using pop culture references to liven up the prose. I’m sure the nice peaceful Conservative Low Goobermint Saxon Land Owners were sure their Property Rights were being violated by those nasty Normans. LOL.

Take away the veneer of our current system and you will just end up with a neoFeudalist land grab just about everywhere. Any particularly good Ag area will no doubt be seized under martial law to feed regiments from your local National Guard or nearby Army Base, run by your own local Poppa Doc or Fidel.

Forget being left alone to live in peace and grow your vegetables. Ain’t gonna happen that way.

RE

no cnbc cretin
no cnbc cretin
November 19, 2010 5:03 pm

Great post! Love the JHK references, since I love reading his posts. As a side note, there are plenty of people hoping electric cars or hydrogen cars, etc. will save us, or at least Happy Motoring. But, the last time I checked, oil / fossil fuels are required to build a car, and the parts. It’s going to be a completely different world, in short order, and I’m glad I’ll be around to see it, and survive it.

Novista
Novista
November 19, 2010 6:16 pm

I found this chart of world GDP, comparing historical key years.

[imgcomment image[/img]

That and this article together suggest a likely outcome.

Novista
Novista
November 19, 2010 6:35 pm

P.S., Jim … I want to be a contributor.

In other news, this is good:

http://www.federalreserve.gov/newsevents/testimony/duke20101118a.htm

“in October 2009 the Federal Reserve began a review of the loan modification practices of loan servicers for which we have supervisory responsibility.”

Opinionated Bloviator
Opinionated Bloviator
November 19, 2010 10:01 pm

Oil is not running out, cheap under $200 US barrel oil is running out. Big difference. A probable scenario, the vital, meaning we all starve if it goes, machinery and chemical processes will be converted to natural gas or lpg via direct injection or even electricity. The sheeple and Free Shit Army can pay through the nose for $10 gallon petrol, catch the bus or train or walk (or buy a 50cc scooter and leave the hummer at home). Those who demand their free shit how or else!, will receive the or else via high calibre rounds to the head, the rest will fall into line or die. Nuclear power will be pushed ahead (over the bodies of protesters?) and California will become a free fire “Black hawk down” zone as starving Mexican peasants free the failed state on your doorstep. THAT will be the straw that breaks the camels back. You share an open border with a future SOMALIA!!. Good luck with that one, you will need it.
Or move to Australia/NZ, we have the ocean to cover our backs and when we buy your nukes off you in exchange for food will use them IF the SHTF (Indonesian invasion, maybe?).

The Titanic
The Titanic
November 20, 2010 5:20 am

Admin – I hope your ship hits an iceberg and goes down, down, down – just like the Titanic! And hopefully the lifeboats were all left back at port. If not an iceberg, maybe the Russians will sink it with a super sonic torpedo! That way, we won’t have to put up with your bull shit propaganda anymore. By the way a-hole, if “the world is running out of oil” how come you’re riding on a boat which requires petroleum fuels to run? Sounds like you are a hypocrite. I bet you sure get around here and there in an automobile too!

The Titanic
The Titanic
November 20, 2010 5:35 am

John Fucker: (make that “Tucker) “Nor do I have my head in the sand about it. Not too many people care to point out that, in order to arrive at this favorable destination, our population must and certainly will be reduced to around 10% of its present size.”

Wow, administrator. You attract (and cultivate) complete wackos! Here’s to you John Fucker, and to you administrator: Do us all a favor! Go out, buy a nice shiny pistol and “off” yourselves (hara kiri). You will “save the planet” and you will decrease the world’s consumption of oil.

You guys are sick people.

Novista
Novista
November 20, 2010 5:56 am

Jim, thank you.

OB: the only time to invade the land of oz is on Melbourne Cup arvo — the day everything stops.

And btw, Titanic, GFY. That’s a cultivated recommendation.

Hope@ZeroKelvin
Hope@ZeroKelvin
November 20, 2010 10:51 am

Great article as always, Mr. Quinn. Hope you are enjoying your well-deserved down time!

Peak Oil used to be the territory of the tinfoil hat brigade but, thankfully, no more.

Your excellent article is a great step in moving Peak Oil into the consciousness of our fellow Happy Motoring Americans. If they can be crowbar’ed out of their cheese-doodle-eating-American-Idle-watching-comas that is!

However, I fear that civilization downsizing effects of Peak Oil, and they will be catasrophic if quick, will be upstaged by the imminent financial chaos. With a few computer keystrokes the Fed can, and has, cranked the printing presses up to warp 10. Our bankers, the Chinese, are extremely pissed about that. With every bank on the planet interfaced with every other bank, a crash even in a small economy like Ireland, Greece,or any of the insolvent PIIGS, has the potential to take them ALL down. And if the US goes down, the globe will burn. Let us pray to whatever Gods are listening for a slow crash and some time to adapt and downsize.

I am a healthcare worker, living on the Gulf Coast and with experience in delivering health care in the aftermath of Tropical Storm Allison, and Hurricanes Katrina, Rita and Ike. Medical facilities are at the end of a very long and vulnerable supply chain, a supply chain totally dependent on cheap oil/transport to keep going. There are plenty of examples from recent events to study how quickly the medical system goes tits up when the supply of food and stuff is gone. Like in 48 hours.

Imagine what would happen to the already high cost of medical care when oil goes north of $100/barrel, or God forbid, on the day that the EROEI goes negative. It will simply cease to exist other than a country doctor level, sorry, but no more operating rooms, chemotherapy, joint replacements, drug manufacturing, nursing homes, etc.

But hey! Obamacare will save us!! (sarcasm alert)

Welshman
Welshman
November 20, 2010 11:43 am

Titanic,

Ditto from California

Welshman
Welshman
November 20, 2010 12:02 pm

Mankind 5 to 25 million years, civilization 10 to 12 thousand years, oil maybe 20 decades, and then ?. Going to be a very big down sizing of the population and restructuring how we survive.

Enjoyed most of the comments, and Quinn please asked the first enginner how much fuel the ship consumes per hour?. I think I remember the correct amount of fuel my aircraft carrier used in the Navy, it consumed 800 gallons per minute at top speed of 34 knots.

Punk in Drublic
Punk in Drublic
November 20, 2010 2:21 pm

StuckNinja, glad to see you posting again. I hope all is going well with you and your son, been keeping you in my thoughts.

The Titanic
The Titanic
November 20, 2010 3:24 pm

Or maybe the cruise ship will “go dead” like that one did off the coast of California a few weeks ago. They lost power, had no warm water, could not cook food and were stuck out in the ocean. If that happens, you most likely won’t have internet to post your rubbish comments.

Administer, you remind me of Al Gore. He touts global warming (a complete myth) and then was consuming massive amounts of energy to power his home in Tennessee. He gets out and about in a jet plane also. You see, it’s only the “little worms” that need to “off themselves” and stop using oil. The elitists want to use all the energy they can, and they want to brainwash the rest of us into thinking we need to kill off 90% of the population in order to “save the planet” (refer to John Fucker’s comment above). Global warming is a lie! Peak oil is a scam!

Dano
Dano
November 20, 2010 3:47 pm

I have long believed Kunstler is wrong on the whole food issue, and here is why.

Urban areas are a wastelend so far as arable land for planting crops. A city of say 3 million cannot grow enough in their yards, parks, and highway bufferes to feed themselves. they are completely dependent upon industrial agriculture for their food.

As Robery Hirsch covered in his recent book (and an excellent interview on Financial Sense Newshour), fuel will eventually be rationed. First will come the military, then agriculture, followed by essential transport (rail, trucking of food/clothing), essential services(fire/police/ambulance) and way down at the end of the chain will be the 50 mile urban commuter, who will get totally hosed.

When one considers the essentials in life, we have to start with the FEW (food,energy,water). Since energy is the essential part of the rest of the equation, and the world will go on quite well without more iPads, we will eventually see that those nations that can produce food at a reasonable cost (ie. not from marginal land with highly expensive input additives) will benefit to the extent that they will get energy in much larger allocations than nations that cannot do so.

The myth that we will all return to the land, and grow our food on our ten acres plots (that no longer exist) is just that, a myth. Over time we will conquer the wastefulnees of auto travel thru other means, and free up (or price out those who cannot afford it) petroleum energy for the uses it is best suited for, like tractors and transport. the transition will be expensive and ugly, but we will get there. In addition, a farmer with a small tractor and small plot of land is much less efficient than a big ag farmer with undreds and thousands of acres when it comes to production and latter distribution.

As a “gentleman farmer” with both a small plot of urban land as a hedge (9 acres) plus large industrial wheat/soy land, I am betting against Kunstler on his thesis because he fails to keep in mind economies of scale and distribution costs. Time will tell who is right.

StuckInNJ
StuckInNJ
November 20, 2010 5:43 pm

Thanks Punk! SJ is doing much better. After seeing both a psycholgist and psychiatrist several times here in NJ we have been told that the Paranoid Schizophrenic diagnosis was totally bogus. “State (Washington) psychiatrists that are dumb and run amok.”, is what he said. Doc said there was zero physiological or emotional evidence. Unreal. So, I’m actually relieved he suffers only from compulsive disorder and ADD. Those we can handle. LOL !
Peace

llpoh
llpoh
November 20, 2010 7:00 pm

Stuck – glad things are better for you. Good to see you post.

Titanic – I believe you may be the first poster to ever wish violence on anyone. Well done. You are a low life asswipe. Go fuck yourself you sorry piece of shit.

SSS
SSS
November 20, 2010 7:24 pm

Who in hell gave a thumbs down to Punk’s comment, “StuckNinja, glad to see you posting again. I hope all is going well with you and your son, been keeping you in my thoughts”?

Punk was just expressing concern for Stuck’s son’s well being. What could possibly be wrong with that?

Smokey
Smokey
November 20, 2010 7:40 pm

The Titanic eats shit.

Oil lies
Oil lies
November 20, 2010 8:12 pm

More of the same old crap. If in fact there ever is a so-called shortage of oil. It will be entirely a fraud perpetrated by the global elite. They have for years been putting lands off limits to oil exploration. Frozen wasteland in Alaska( I mean pristine wilderness) is an example. The masses are not stupid enough to believe this contrived shortage.

llpoh
llpoh
November 20, 2010 8:33 pm

SSS – no understanding people sometimes. I disagree with lots of folks, but wouldn’t ever consider thumbs downing a well wisher.
And wishing someone dead is just insane. RE pisses me off to no end, but I hope he lives to be 120 in total peace.

Smokey – glad to see you lurking about. Been a bit dead of late around these parts.

ragman
ragman
November 20, 2010 9:09 pm

Peak oil is about running down, not running out. If I have to pay 5frns to put Tony the Tiger in my tank, I will either choose to do so or not. If I want to drive somewhere I must pay the price. Food and everything else will go up too. The FSA will become increasingly agitated and they just might come to a neighborhood near you and steal your gas or your food. I think this is the scenario we will face, probably sooner than later.

Reverse Engineer
Reverse Engineer
November 20, 2010 9:19 pm

@LLPOH

Highly unlikely I make it to 120 in peacetime or war.

Far as Death is concerned, its forced on the impoverished folks of the world all the time as their resources are captured and stolen by the Capitalist class. The only message I deliver is that this is not likely to be the case in perpetuity, since what goes around comes around and there is no escaping Eternal Justice.

Its not a matter of “wishing someone dead”. MANY people are going to die here as the resources become ever more scarce and ever more maldistributed. The only real questions lie in who dies in what numbers and how they die in what timeframe. I just make a few value judgements on who should be the first dead and how they should die, and then describe it in virtually ENDLESS prose 🙂

RE

Smokey
Smokey
November 20, 2010 9:23 pm

LLPOH—-Thanks. Been out of town for a few days helping a relative settle an estate.

llpoh
llpoh
November 20, 2010 9:37 pm

RE – you still piss me off, your last post case in point. Capitalism is just another chapter in the never ending story of survival of the fittest. It has worked wonders in extending human life, and even in allowing it to multiply. It has been misused in some cases, for sure, but your anti-capitalist crap simply isn’t reflected in reality.
Have we reached a point where populations have exceded natural resources? Perhaps. But I believe technology will overcome in the end, and that the population will collapse back naturally to more sustainable levels as world-wide birthrates fall over the next 100 years.
The bigger threat to me seems to be the FSA that breeds non-contributors, and of course idiot politicians. Survival of the fittest needs to be the nature of the game, there needs to be compassion, but fully fit adults need to all pay their own way.

You keep coming back to the ills caused by capitalism. You must really be blind. Check out life expectancy tables for the last few hundred years to see just how well capitalism has actually worked.

Reverse Engineer
Reverse Engineer
November 20, 2010 10:04 pm

Extending life expectancy has increasing demands on the society as a whole. In order to achieve it, our medical apparatus has become bloated to the point of being unaffordable. Aging demographics in all the industrialized countries require the younger generations being born to shoulder an ever increasing number of the aging population that is no longer productive. These are the vast preponderance of the “non-contributors” you revile so much, since they are the outsized demographic which results from a lengthening life span.

The anti-capitalist spin I write IS reflected in reality. It has in fact already failed, or rather it never existed in the first place depending on how you want to phrase it. What really exists is a manipulated market run by a small Plutocracy for their own benefit, which masqueraded for a few years as a “free market” while Oil was plentiful, but now has been exposed as the lie it always was.

The world will eventually achieve a balance again, and you can count on the fact that balance will not include aging Alzheimer victims living off their Pensions and Investments while legions of young people have no work to support those Pensions and Investments. The artificially extended lifespan averaging 75 or so now in the industrialized world will soon enough drop back down to its pre-industrial average in the 50s or so. That might be sustainable for a while, assuming our agricutural resource hasn’t been too depleted. After that, count on a pre-agricultural lifespan of maybe 35-45 years as average. At typical human reproductive rates, those are the sustainable numbers, not calcified 75 year olds who repeat the same failed platitudes over and over again.

RE

Loneviking
Loneviking
November 20, 2010 10:24 pm

Great article full of truth that far too many aren’t paying attention too. When oil prices climb into the stratosphere, and our economy continues to collapse, things are going to get very strange. I have no doubt that lots of folks are going to die, and probably most of them will be the once weathy surbabanites being offed by the criminals and gangs. Starvation will also be a factor and something that hasn’t been seen in America for decades. The biggest obstacle to the new future will be the mindset of so many suburban Americans. I was reading posts over on the Unemployed Friends forum. You would think that if you are unemployed, hungry, living hand to mouth and getting foodstamps that you might want to supplement your diet by hunting. Nope! That’s a big foo-pah and there are lots of anti-hunting posts over there. These folks will sit in their tent cities, waiting for a government handout and pontificating about the evils of hunters! Americans like this will be among the first to die off and I would guess that Americans like this number in the millions. Until this mindset changes, a return to an agricultural farming and hunting society just isn’t going to happen. Some folks have some hard lessons ahead to learn.

Dalriada
Dalriada
November 20, 2010 10:57 pm

My hat’s off to you Jim. Keep up the good work. Just ignore the nay sayers, and help save those that can still be saved. You may lead a horse to water, but you can’t make it think.

How anyone can still deny a fast approaching peak in oil production after last weeks IEA report just validates what I’ve long thought about Americans: The mainstream of America is irrationally optimistic, and believe technology will save them from virtually everything; and they know history about as well as they understand economics and finance.

See you on the other side my friend…

Punk in Drublic
Punk in Drublic
November 20, 2010 11:00 pm

Stuck
That is good news indeed. A bad diagnosis from a state/government employee… Gee, that isn’t a central theme here on TBP….

SSS
This thumb button pusher is killing me. I am a really sensitive guy, every red thumb I get hurts me a little more than the last. Did you see that he zapped a comment by Avalon a few days back? Avalon! No honor with that one.

llpoh
llpoh
November 20, 2010 11:10 pm

RE – not surprised you can’t see the flaws in your position. It is laughable that you see increased life expectancy as a failure. It is a godsend. And it was made possible only by the capitalist way. You really can twist reality to suit your science fiction view of the world.

Kill Bill
Kill Bill
November 20, 2010 11:32 pm

~~ It is a godsend. And it was made possible only by the capitalist way ~~

I respectfully disagree as A: God was not a capitalist, and B: According to Genesis people lived much longer back then sans capitalism.

Its often said necessity is the mother of invention.

If anything disease did, and still does, bring about the necessity [or desire] to increase life expectancy.

Kill Bill
Kill Bill
November 20, 2010 11:40 pm

~~ Extending life expectancy has increasing demands on the society as a whole. ~~

Not sure I follow.

Lets take Walmart for example. They tell their employees to go to the government for medical care. the majority of those workers arent near retirement age. That may result in lower prices but in the end increases demands on society that has nothing to do with increased life expectancy.

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