Lamentation

Guest Post by Jim Kunstler

An awful lot of sheetrock is going to be permanently ruined over the next few days down along the coast of Dixieland. Following the spectacle of hurricane reportage on TV reveals very little while the event is in progress. The cheapo building materials of the stereotypical strip malls flap around in the gale and the valiant cable news storm-chasers lean into the horizontal deluge in the empty parking lots, but their reportage doesn’t tell much of the real story, which only emerges when the roaring blob of weather moves on and the sun finally comes out.

More than a decade of punishing storms along the US coastline must be wrecking the insurance industry as much as the stuff on the landscape. They’ve been pummeled from another direction for ten years by the supernaturally low interest rates that make it so hard to refurbish their coffers after whole regions like the Houston metro area and the entire island of Puerto Rico get blasted and they have to pay out billions in claims.

This time around, all those vinyl and chip-board McHouses along the Atlantic beaches will not be replaced. But farther inland, far from the roaring surf, along all the overflowing estuaries that drain the coastal plain, the damage will be widespread and epic. It may create a whole new social class of de-housed, displaced Sunbelters who will never again have a decent place of their own to live in. Since many are retirees, the event may even lead to a stealth die-off of people who are just too far along to start over.

The lamentation for the northern part of “flyover” America is an old story now. Nobody is surprised anymore by the desolation of de-industrialized places like Youngstown, Ohio, or Gary, Indiana, where American wealth was once minted the hard way by men toiling around blast furnaces. But the southeast states enjoyed a strange interlude of artificial dynamism since the 1950s, which is about three generations, and there is little cultural memory for what the region was like before: an agricultural backwater with few cities of consequence and widespread Third Worldish poverty, barefoot children with hookworm, and scrawny field laborers in ragged straw hats leaning on their hoes in the stifling heat.

The demographic shifts of recent decades turned a lot of it into an endless theme park of All-You-Can-Eat buffets, drive-in beer emporia, hamburger palaces, gated retirement subdivisions, evangelical churches built like giant muffler shops, vast wastelands of free parking, and all the other trappings of the greatest misallocation of resources in the history of the world. Like many of history’s prankish proceedings, it seemed like a good idea at the time. As survivors slosh around in the plastic debris in the weeks ahead, and the news media spins out its heartwarming vignettes of rescue and heroism, will there be any awareness of what has actually happened: the very sudden end of a whole regional economy that was a tragic blunder from the get-go?

It is probably hard to imagine Dixieland struggling into whatever its next economy might be. In some places, it’s not even possible to return to a prior economy based on agriculture. A lot of the landscape was farmed so ruinously for two hundred years that the soil has turned into a kind of natural cement, called hardpan or caliche. The climate prospects for the region are not favorable either, not to mention the certain cessation of universal air-conditioning and “happy motoring” that made the unwise mega-developments of recent decades possible.

The one salutary effect of Hurricane Florence may be that news of the after-effects will supersede the incoherent manufactured political blather welling up around the coming midterm elections — especially if the financial damage is powerful enough to disturb the debt-fueled occult economic “boom” attributed to the magic powers of our deal-wielding POTUS.

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7 Comments
Harrington Richardson
Harrington Richardson
September 14, 2018 11:38 am

Warren Buffet of all people says in spite of the populace being terrified by the 24 hour news channels turning every rain or snow fall into a nail biting drama, his insurance businesses have seen no overall increase in the average of claims from weather events during this recent era of politicized weather.

NickelthroweR
NickelthroweR
September 14, 2018 11:40 am

Greetings,
Before the FAANG stocks and their phantom wealth we had the FIRE economy made up of Finance, Insurance and Real Estate. I hadn’t given much thought to how the insurance industry was or was not holding up in an interest free economy. Does anyone actually know how well these companies are doing? Can they afford to rebuild region after region? Can they replace over priced McMansions and $75k pickup trucks by the tens of thousands?

If not this time then at some time in the future, an entire region is going to get hammered and there wont be a penny saved anywhere to replace everyone’s stuff – nothing. How many events are we away from this happening? What will be the fallout when a city like Houston is told “just kidding” and to go pound sand after some horrific natural disaster?

Anonymous
Anonymous
September 14, 2018 1:36 pm

My guess is that as Global Cooling takes place. Xoxo Land might be the only place left that can grow food.

Which reminds me. If the US has such a comparative advantage in agriculture. How is having an additional 100 million people here who all have to eat going to positively affect your trade balance?

ursel doran
ursel doran
September 14, 2018 1:36 pm

The big goodie is going to be the credit card companies, as the under class with no savings with their mobile homes wiped will only have one choice for funds.

NickelthroweR
NickelthroweR
  ursel doran
September 14, 2018 7:23 pm

Greetings,
Credit card debt is already at or near record highs. Also, a crisis may entail the loss of power which makes it so that it isn’t possible for anyone to take your credit card. I guess you could use it to order food from Amazon but if your address is now a pile of rubble or under water then I do not see how that is at all going to help. As for myself, I’ve put away some items to trade should everyone be in that kind of position and I’ve staged these items in numerous places should one or more be taken out.

robert h siddell jr
robert h siddell jr
September 14, 2018 10:13 pm

I think Florence fizzled out to a Cat 1 and won’t be a big deal (like a Cat 4). I’m worried about the SW which is expected to go dry about 2020; and the NE which will see a Little Ice Age start about the same time. Both problems could bring growth the the South if we can keep the Federals off our backs and the immigrants will behave and work. Yes, the living is easy and may not last but a Southern Boy can survive.

Harrington Richardson
Harrington Richardson
  robert h siddell jr
September 15, 2018 12:35 am

Buy Kinder Morgan while it is still cheap. They can pipeline all the snow from the NE down to Arizona.