Monday, December 31, 2012

Kunstler's New Year's Forecast

Here.

"...Two hundred years of cheap fossil fuel programmed mankind to expect limitless goodies forever on an upward-swinging arc of techno miracles. Now that the cheap fossil fuels have plateaued, with decline clearly in view, the hope remains that all the rackets of modernity can keep going on techno miracles alone.

"Meanwhile, things and events are in revolt, especially the human race's financial operating system, the world's weather, and the angry populations of floundering nations. The Grand Vizier of this blog, that is, Yours Truly, makes no great claims for his crystal ball gazing (Dow at 4,000 - ha!), but he subscribes to the dictums of two wise men from the realm of major league baseball: Satchel Paige, who famously stated, 'Don't look back,' and Yogi Berra, who remarked of a promising rookie, 'His whole future's ahead of him!'"

...

"The bottom line for shale oil is that we're likely to see production fall in the years directly ahead, to the shock and dismay of the 'energy independence' for lunch bunch. 2012 may have been peak shale oil. If the price of oil does go down to a level that seems affordable, it will be because the US economy has been crushed and America is mired in a depression at least as bad as the 1930s, in which case a lot of people will be too broke to even pay for cheaper oil. Hence, the only possibility that America will become energy independent would be a total collapse of the modern technological-industrial economy. The shale oil and gas campaign therefore must be regarded as a desperate gambit by a society in deep trouble engaging in wishing and fantasy to preserve a set of behaviors that can no longer be justified by the circumstances reality presents."

...

"My forecast for China in 2013 is a widening crack in the political façade of the formerly omnipotent ruling party, organized agitation by unemployed factory workers (with government blowback), bullying of their senile neighbor (and historical enemy) Japan, and sullen, peevish behavior toward their ailing trade partners, Europe and especially the USA. Worldwide economic entropy cancels out China's putative advantages in cash reserves, stockpiles of "stuff," and government that can do what it pleases without a loyal opposition tossing sand in its gears."

"Contrary to the wishful thinking of Tom Friedman, globalism is winding down. The great contraction leads back to a regional and local reorganization of activity in all nations. The world becomes a bigger place again with more space between the players and a larger array of players as big nations break up into autonomous states. This is really a new phase of history, though it is only just beginning in 2013."


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