Showing posts with label infrastructure. Show all posts
Showing posts with label infrastructure. Show all posts

Friday, September 08, 2017

Kunstler: Swamp Fever.

Kunstler: Swamp Fever.

Map of section of Florida.


Further proof, as if more were needed, that God is rather cross with the world’s number one exceptional nation: Hurricane Irma is tracking for a direct hit on Disney World. In the immortal words of the Talking Heads: This ain’t no party, this ain’t no disco, this ain’t no fooling around.

Houston is still soggy and punch-drunk, with a fantastic explosion of breeding mosquitoes, and otherwise it’s not even in the news anymore. This week, the cable networks had their scant crews of reporters scuttling around Florida, asking the people here and there about their feelings. “What’s gonna happen is gonna happen….” I think I heard that one about sixty times, and there’s actually no disputing the truth of it.

For the moment, though (Friday morning), it’s a little hard to calculate the effect of a complete scrape-off, wash, and rinse of the state of Florida vis-à-vis the ongoing viability of the US economy. There’s going to be a big hole with dollars rushing into it and that will likely prompt the combined powers of the US Treasury, congress, and the Federal Reserve to materialize tens of billions of new dollars. Overnight the DXY plunged to a new low for the year. {Tweet about this embedded below by me.--P.Z.]

Am I the only observer wondering if Irma may be a fatal blow to the banking system? The mind reels at the insurance implications of what’s about to happen. Urgent obligations triggered by an event of this scale can’t possibly be serviced. Look for it to snap the chain of counterparty leverage that has been propping up the banks, insurers, and pension funds on mere promises for years on end. Finance, both private and public, has been feeding off unreality since well before the tremor of 2008. The destruction of Florida (and whatever else stands in the way up the line) will be as real as it gets.

You’ve heard the old argument, I’m sure, that a natural disaster turns out to be a boon for the economy because so many people are employed fixing the damage. It’s not true, of course. Replacing things of value that have been destroyed with new things is just another version of the old Polish Blanket Gag: guy wants to make his blanket longer, so he cuts a foot off the top and sews it onto the bottom. The capital expended has to come from something and somewhere, and in this case it probably represents the much talked-about necessary infrastructure spending that is badly needed for bridges, roads, water and sewer systems, et cetera, in all the other parts of the USA that haven’t been hit by storms. Instead, these places and the things in them will quietly inch closer to criticality without drawing much notice.

The second major weather disaster this year may not be enough to induce holdouts to reconsider the issue of climate change, but it ought to provoke some questioning about the development pattern known as suburban sprawl, which even in its pristine form can be described as the greatest misallocation of resources in the history of the world. Surely there will be some debate as to whether Florida, or at least parts of it, gets rebuilt at all. The wilderness of strip malls, housing subdivisions, and condo clusters deployed along the seemingly endless six-lane highways that accumulated in the post-war orgy of development was an affront to human nature, if not to a deity, if one exists. There are much better ways to build towns and we know how to do it. Ask the shnooks who paid a hundred bucks to walk down Disney’s Main Street the week before last.

Apart from all that remains the personal tragedy that awaits, the losses of many lifetimes of work invested in things of value, of homes, of meaning, and of life itself. Many people who evacuated will return to… nothing, and perhaps many of them will not want to stay in such a fragile place. But the America they roam into in search of a place to re-settle is going to be a more fragile place, too. A week or so after Irma has gone away, the ill-feeling that heaps this country like a swamp fever will still be there, driving the new American madness into precincts yet unknown.




Monday, February 20, 2017

Kunstler: Fumbling Towards Collapse.

To keep up with how fast things are changing, Kunstler now bookends the week with his column. His latest:
Kunstler: Fumbling Towards Collapse.

In all the smoke and fog emitted by Trump and his adversaries, it must be hard to make out the actual issues dogging this society, and even when you can, to find a coherent position on them. This was nicely illustrated in Paul Krugman’s fatuous column in Monday’s New York Times, “On Economic Arrogance” — the title describes Krugman’s own attitude to a T.

In it, Krugman attempts to account for the no-growth economy by marshaling the stock-in-trade legerdemain of academic economics: productivity, demographics, and labor metrics. Krugman actually knows zip about what afflicts us in the present disposition of things, namely the falling energy-return-on-energy-investment in the oil industry, which is approaching the point where the immense activity of getting oil out of the ground won’t be worth the cost and trouble of doing it. And since most of the things we do and produce in this economy are based on cheap oil — with no reality-based prospect of replacing it with so-called “renewables” or as yet undiscovered energy rescue remedies — we can’t generate enough wealth to maintain anything close to our assumed standard of living. We can’t even generate enough wealth to pay the interest on the debt we’ve racked up in order to hide our growing energy predicament. And that, in a nutshell, is what will blow up the financial system. And when that department of the economy goes, the rest will follow.

So, the real issue hidden in plain sight is how America — indeed all the so-called “developed” nations — are going to navigate to a stepped-down mode of living, without slip-sliding all the way into a dark age, or something worse. By the way, the Ole Maestro, Alan Greenspan, also chimed in on the “productivity” question last week to equally specious effect in this Business Insider article. None of these celebrated Grand Viziers knows what the fuck he’s talking about, and a nation depending on their guidance will find itself lost in a hall of mirrors with the lights off.

So, on one side you have Trump and his trumpets and trumpistas heralding the return of “greatness” (i.e. a booming industrial economy of happy men with lunchboxes) which is not going to happen; and on the other side you have a claque of clueless technocrats who actually believe they can “solve” the productivity problem with measures that really only boil down to different kinds of accounting fraud.

You also have an American public, and a mass media, who do not question the premise of a massive “infrastructure” spending project to re-boot the foundering economy. If you ask what they mean by that, you will learn that they uniformly see rebuilding our highways, bridges, tunnels, and airports. Some rightly suspect that the money for that is not there — or can only be summoned with more accounting fraud (borrowing from our future). But on the whole, most adults of all political stripes in this country think we can and should do this, that it would be a good thing.

And what is this infrastructure re-boot in the service of? A living arrangement with no future. A matrix of extreme car dependency that has zero chance of continuing another decade. More WalMarts, Target stores, Taco Bells, muffler shops, McHousing subdivisions, and other accoutrement of our fast-zombifying mode of existence? Isn’t it obvious, even if you never heard of, or don’t understand, the oil quandary, that we have shot our wad with all this? That we have to start down a different path if we intend to remain human?

It’s not hard to describe that waiting world, which I’ve done in a bunch of recent books. We’re going there whether we like it or not. But we can make the journey to it easier or harsher depending on how much we drag our heels getting on with the job.

History is pretty unforgiving. Right now, the dynamic I describe is propelling us toward a difficult reckoning, which is very likely to manifest this spring as the political ineptitude of Trump, and the antipathy of his enemies, leaves us in a constitutional maelstrom at the very moment when the financial system comes unglued. Look for the debt ceiling debate and another Federal Reserve interest rate hike to set off the latter. There may be yet another converging layer of tribulation when we start blaming all our problems on Russia, China, Mexico, or some other patsy nation. It’s already obvious that we can depend on the Deep State to rev that up.

* * *

Monday, November 14, 2016

Kunstler: "What Now?"

Kunstler on the election aftermath. All emphases mine.--P.Z.

Kunstler: "What Now?"

Not to put too fine a point on it, America coughed up Hillary Clinton like a hairball last week — the catch being it then had to swallow the Cheeto-colored bolus called Donald Trump. It was worth it to see the fog of Hillary-smuggery lift across the cable TV networks since the “I’m With Her / It’s Her Turn” fog was a cover for the looting operation that the permanent Washington DC establishment had turned into, including the Clinton Foundation.

Obviously, the nation is reeling from this emetic, struggling to process the meaning of it all. The big “tell” for me came at a moment in last week’s Slate Political Gabfest, a leftish-oriented podcast, when moderator David Plotz asked his sidekicks John Dickerson (of CBS News) and Emily Bazelon (of The NY Times) what the Democratic Party might do to regain legitimacy after this electoral disaster. Dead silence on the air. Nothing came to mind.

Something came to my mind as a long-time disaffected (registered) Democrat: jettison the stupid identity politics and get back to reality. Alas, that may be too much to ask. For now, the party lies in ruins without a single figure of stature to represent a coherent set of ideas other than boosting the self-esteem of its favor-seeking constituent groups. Here’s my idea: how about forming a credible opposition to the so-called Deep State, the matrix of racketeering and empire-building that has drained the life out of this polity. That was impossible with the racketeer-in-chief leading the blue electoral ticket, but now the dynamic stands naked and obvious, answering the question: what to do next?

Another catch, of course, is that opposing the Deep State of Rackets is pretty much what Mr. Trump has promised to do, if “draining the swamp” means anything. He never quite articulated it clearly beyond that metaphor, but you can bet that’s what the DC establishment is so alarmed about. Trump’s behavior on the campaign trail is now being hailed in the media as a kind of genius. To me, it still seems oafish to an extreme, and it remains to be seen how such a blunderer might finesse our escape from the empire of rackets and the racket of empire. He begins to look like a man in a tunnel staring down the harsh light of the onrushing gravy train.

Mr. Trump might not know it yet, but his chief task will be managing contraction. It would appear to be problematic, since his chief promise — “to make America great again” — is based on restarting the epic expansions of the 19th and 20th centuries. Well, things have changed. This is no longer a virgin continent filled with motherlodes, untapped oil bonanzas, and fabulous soils begging to be exploited. In fact, we’re close to being played out where those resources are concerned. And the techno-industrial economy engineered out of those assets is wobbling badly.

There is a Great Wish that this system might be replaced just-in-time with some as-yet-unrealized Green Alt Economy of solar-charged driverless electric cars — but, of course, the unchallenged pathetic idiocy of the assumed car dependence at the center of this fantasy ought to tell you how exactly unreal it is. The contraction we face has mandates of its own, and it doesn’t include the continuation of Happy Motoring on any terms. I’m quite certain that the Trump forces haven’t even imagined it.

I would propose three meta-matters in consideration of how America might survive the disorders of the Long Emergency: the financialization of the economy, the burdens of empire, and the fiasco of our suburban living arrangement.

The financialization of the economy is already playing into its disastrous climax as I write, with bond markets tanking all over the planet. What this means is that the long-ignored chickens of risk associated with debt are coming home to roost. As they do, they are going to shit over everything on the financial landscape. Industrial societies have been borrowing from the future to a grotesque degree for decades, pretending that these debts were assets rather than liabilities. That perception is about to change, and with it an enormous amount of presumed notional wealth is going to disappear. That will manifest in rising bond yields (and falling bond values), cratering currencies, panicked capital flows, banking emergencies, and weird action in markets. If that seems too metaphysical, you can also think of it as contracting economies and the withering of global trade relations. There’s also the chance it will express itself in kinetic conflict, i.e. war.

My sense of things is that this meta-predicament alone could overwhelm the Trump government from the very start. We could have problems with money orders of magnitude worse than anything FDR faced in 1933, with bank closures, the seizing of accounts, and the paralysis of everyday business. That would easily lead to civil disorders, a breakdown in law, and the immiseration of most Americans. It could also lead to previously-unimagined political outcomes, such as a discontinuity of government. This is connected with the second meta-problem, the burdens of empire.

The USA is squandering its vitality trying to maintain a half-assed global empire of supposed interests, economic, ideological, and existential. Lately, this hapless project has only resulted in wars with no end in places we don’t belong. It includes reckless experiments such as the promotion of regime change (Iraq, Libya, Ukraine, Egypt, Syria), and senseless, provocative exercises such as the use of NATO forces to run war games near Russia’s border. The monetary cost of all this is off the hook, of course, redounding to the financial mess. Reigning [sic--P.Z.] in these imperial impulses could be on the Trump agenda, but his own gold-plated imperial pretensions suggest that he might actually make the situation worse by conflating a reduction of our empire with a loss of the very “greatness” he wants to reclaim. As it happens, America may be forced by economic circumstances to yield the burdens of empire. The world is about to become a bigger place again as globalism winds down and the larger nations establish more realistic spheres of influence. We better get with the program.

Thirdly comes the question of how Americans inhabit the terrain: the suburban fiasco and all its accessories and furnishings. You can just stick a fork in that. The great project awaiting this country is how we might redistribute our people into re-scaled walkable communities with re-localized economies, including re-scaled agriculture. It’s going to happen whether we like it or not. It’s only a matter of how disorderly the process may be. Obviously all the suburban crapola out there also represents a tremendous load of presumed wealth. The vested “value” in suburban houses alone is the underlayment of structured finance. There is almost no conscious political awareness in any party — including the Greens — as to how we might attempt to work this out.

But, for example, and for a start, Mr. Trump might consider the effect that national chain “Big Box” shopping has had on Main Street America. It literally destroyed local commercial economies all over the land, and with it numberless vocational niches and social roles in communities. He can’t sign an edict against the Big Box empire, but his people might start imagining the process of rebuilding local networks of commerce and actively de-incentivizing the Big Box business model. That model has many other ways to fail, incidentally, and already is failing to some degree between the impoverishment of its customers and the growing problems with global supply lines. But anything that might lubricate the transition would be better than the stark collapse of the current arrangement.

The chatter this week has been all about the upcoming “infrastructure” orgy that Trump will undertake. That depends first of all on how badly the financial sector cracks up. I hope we do not squander more of our dwindling capital on the accessories of car dependence, because that addiction is on the way out. One thing Mr. Trump might get behind is restoring the passenger railroads of America so that we can at least get around the continental nation when the Happy Motoring fiesta grinds to a halt. It would put an awful lot of people to work on something with real long-term benefit — it ties into the restoration of Main Street towns and their economies — and it is a do-able project that might give us the needed encouragement to get on with the many other necessary projects awaiting our attention.

In case you were wondering, I was not jumping up and down cheering the Trump victory, amazing as it was. I figured the good news was that Hillary lost and the bad news was that Trump won. Now, we just have to roll with it.