Brad Degroot/Christian Lacroix

A Sequel to World Made by Hand

Kunstler says he's working on the sequel to his post-oil novel World Made by Hand.

Cold, etc.

I'm battling a cold, hence the lack of regular postings. The Hilo weather has often been overcast this summer (consistently clear, sunny days are a hallmark of winters here, especially December through February). People have to get serious yet maintain a sense of joy and lightness.

LewRockwell.com reprints an Iranian interview with Kirkpatrick Sale on secession.

And I'll see what ABC's take is on America's addiction to oil.

"Stand Behind the Mic Like Walter Cronkite"

Exactly.

Wobble Time

Kunstler predicts a mass uprising against the rich, in particular, those who got their wealth on Wall Street.

Empty Boxes

Via Kunstler, who says, "It was obvious years ago that the grotesque spewage of Big Box stores across the landscape would come to this.": "Big Box Closures Leave Big Blight Across U.S."

Cf. DeadMalls.com

Curiously, many of these businesses' websites live on long after their namesake companies go defunct.

11 July update: "This is what a dying mall looks like."

Sheila Jackson Lee

http://thomas.loc.gov/cgi-bin/query/z?c111:H.RES.600:

Man in the Mirror

Michael Jackson, performing "Man in the Mirror" at the thirtieth annual Grammy Awards ceremony, held on 2 March 1988 at Radio City Music Hall.



Magnificent.

Vibe Ends Publication

But Quincy Jones plans to buy it back. Below: The cover of the first Vibe I bought. I believe at the 7-Eleven on Kilauea Avenue.

Le Roi est mort, vive le Roi!

See MichaelJackson.com

and innumerable sites across the Internet.

30 June update: Ishmael Reed jousts with the media bullies who speak ill of a dead man.

Armond White on Michael Jackson's legacy here.

And here (Part 1). (Part 2).

Don't Wanna Fall in Love

Link Updates

I've just found (via ilind.net) and added Honolulu Agonizer (under Local and Hawaiian Culture) and Beard Revue (under Fashion and Appearances). Go to All Links in the sidebar.

24 June update: Paleo-Future ("a look into the future that never was") joins the other links in the Uncategorized section. The future is never quite as we predict it.

Bret Easton Ellis's Tweets

Oh my.



I've been unconvinced either to join or to follow Twitter, but for him I'll make an exception. Not to say I'll join or become a Twitter follower, but I'll tune in regularly.

Brace Yourselves

says this.

However:

While much of the world will be roasting (he prefers the term "global heating"), there will be a few oases to weather out the storm, he says. Island nations, such as his own Britain as well as New Zealand, Ireland and Hawaii, will do fine thanks to the moderating effects of oceans and their rainstorms. Ditto for currently cold northern areas, including parts of Canada and Siberia, which will gain a more hospitable climate.

Island Chevrolet Pictures

Hating on Conan: What's the Point?

James Wolcott says, "Conan O'Brien, who cares." But then he goes on and on: "[I]s there anything worth remembering from O'Brien's multiyear stint on Late Night?" If Triumph isn't memorable, who or what is?

Wolcott's ideal host may be Dick Cavett, but an entire generation watched Letterman (whom he grudgingly accepts), Leno, and Conan. Arsenio, too, but he's largely forgotten today. Twenty years ago, though, Arsenio was the hottest late-night host. (This graph offers more proof of Arsenio's stark rise and fall.) I watched Arsenio all the way through to his last show with James Brown.

Dennis Perrin explains to Conan fans who took offense to his previous post, that he really likes Conan but thinks he's in way over his head as the new Tonight host, and will have to water down his style even more. But he stands by his assertion that Jimmy Fallon's a mediocre host. (No kudos for having The Roots as his band?) As for me, I can't really say. And nobody mentions Carson Daly!

Link Updates

Click on All Links in the sidebar. Among the new links are Professor Zero and Dennis Perrin, whom I've been reading for a while. This is what finally made me decide to add him.

The closest local (i.e., Hawaii) blog to his is Andy Parx's Got Windmills.

Memorial Day Motoring

Traditionally, people drive around on Memorial Day. Kunstler implies that this is the last one for doing that.

Island Chevrolet closed its Hilo and Kona dealerships last week, and I plan to post some photos of the Hilo lot, empty but not yet desolate. For that, there's a gas station on Kamehameha Avenue, closed for several years now. I think it was a Shell.

May 25, 2009
Wishes, Hopes, Fantasies

Something like a week remains before General Motors is reduced to lunch meat on industrial-capital's All-You-Can-Eat buffet spread. The wish is that its deconstructed pieces will re-organize into a "lean, mean machine" for producing "cars that Americans want to buy," and that, by extension, the American Dream of a Happy Motoring economy may be extended a while longer.

This fantasy rests on some assumptions that just don't "pencil out." One is that the broad American car-owning public can continue to buy their cars the usual way, on credit. The biggest emerging new class in America is the "former middle class." Credit kept the remnants of the middle class going for decades after their incomes stopped growing in the 1970s. Now, their incomes have stopped coming in altogether and they are sinking into swamp of entropy already occupied by the tattoo-for-lunch-bunch. Of course, this has plenty of dire sociopolitical implications.

Unfortunately, the big American banks did their biggest volume business in their biggest loans at the very time that that the middle class was on its way to becoming former. Now that the former middle class is arriving at its destination, the banks are so damaged by bad paper that they won't make loans to even the remnant of the remnant of the middle class. In other words, the entire model for financing Happy Motoring is now out-of-order, probably permanently.

Even assuming some Americans can continue buying cars one way or another, I'm not convinced that we can make the kinds we fantasize about. Notice, nobody talks about hydrogen-powered fuel cell cars anymore. Why not? Because the technicalities and logistics could not be overcome at the scale required -- i.e. at the current scale of mass highway motoring and commuting. Sure, you could build a demonstration vehicle and run it around a test track a few times, but could you build a mass production car by the tens of millions that would run for 150,000 miles without a hugely expensive fuel cell change-out? No, at least not within the time-window that the liquid hydrocarbon fuel problem presented. Or could you construct a hydrogen fuel station (and product delivery) network replacing the old gasoline stations? Fuggeddabowdit. Hydrogen, as an element, was just too hard to move and contain. It's teeny-weeny atoms leaked out of valves and gaskets remorselessly and you couldn't pack enough into a tanker truck to make the trip to its destination worthwhile. Schemes to generate hydrogen on-board all ended up in the "perpetual motion" sink.

The current wish is that the dregs of GM and Chrysler will hire low-paid elves with no pension or health benefits and pump out hybrid and/or electric cars. It's conceivable that we could "reverse-engineer" a Prius or an Insight, but considering what a lousy job American car companies did on reverse-engineering everything that Japan or Germany pumped out over the past thirty-five years, the odds are pretty high that these new products will be just lame enough to fail against the established competition. What's more, they also present logistical and technical problems. For the hybrid, gasoline is still an issue (and Jevon's Paradox comes into play: the more efficient you make a means for using a resource, the more of that resource you will use). For both the hybrid and the electric car, the issue of how to get enough lithium for the batteries obtains, at least for now, given the current state-of-the-art battery technology. Most of this rare metal now comes from one place, Bolivia, and everybody wants "a piece" of it. Electric vehicles in large numbers depend on either coal or nuclear powered electric generation, each presenting special hazards. Both hybrids and electric cars would depend on the old installment loan purchase system -- at least to work in the current mode of suburban living, long-range commuting, and interstate highway travel.

Boone Pickens's plan of last year for converting the US car fleet to natural gas was another fantasy with wide appeal. But it depended on the companion fantasy of building massive wind-farm infrastructure on the great plains to shift natural gas use from power plants to vehicles, and the financial crisis has destroyed the capital necessary to even begin planning that project -- it even destroyed a large part of Mr. Pickens own capital reserves. Anyway, I would not be so sanguine about the long-term future of the shale gas plays that this scheme was based on. The depletion rates of these wells is horrendous and the amount of steel needed to keep production up is not consistent with the realities of the available infrastructure.

All the technologies under consideration are not likely to extend the Happy Motoring era. A prayerful reflection on them can only reinforce the specialness of oil and its byproducts -- cheap oil double-specially -- as well as reinforcing the reality that the cheap energy era itself is over. And, of course, in the play of events over the past several years we can see the relationship between cheap energy and easy credit, and how our entire economy has run aground, one way or another, on resource limits.

The implications of all this in the sociopolitical and geopolitical realms are pretty daunting. As long as we maintain Happy Motoring as the normal mode of existence in this country, we are going to see an ever-growing class of very resentful citizens pissed off at being foreclosed from it. In my oft-repeated scheme-of-things, this leads very quickly to the trap of political extremism, perhaps even corn-pone Naziism, as the system becomes increasingly difficult to prop up except by force. In geopolitical terms it leads to ever more dangerous international contests over the world's remaining oil reserves.

All this leads to two conclusions.

One is to accept the fact that the Happy Motoring era is over and to devote our remaining resources to re-localization, walkable communities, and public transit. It obviously requires a very drastic revision of our current collective self-image, of what we aspire to and who we are. If the car companies have any future at all, it should be based on making the rolling stock for public transit -- and for now the most intelligent choice for us is to fix the existing passenger railroad lines instead of venturing into grandiose new transit systems requiring stupendous capital outlays. Let the car era wind down gracefully. Triage and prioritize the highway maintenance agenda -- we won't be affluent enough to keep repaving the whole existing system -- and let other nations meet the diminishing demand for cars in the USA. This would be a "best case" scenario. (Other nations may decide to go further up the Happy Motoring road at their own eventual peril.)

My second conclusion is not so appetizing, namely that the bankruptcy of General Motors may set in motion a chain of events that will accelerate the destructive unwind of the bad credit economy, the damage to our bond values, the loss of faith in our currency, and the authority and legitimacy of our leaders. This last dire outcome might be allayed if, say, President Obama directed his policy efforts to the items in the paragraph above, that is, a reality-based agenda for true change in how we live -- but who can feel confident about that happening these days? Maybe it will take a horrifying chain of events to get Mr. Obama there. And then, tragically, he may be overwhelmed by the chain of events itself. I hope not.

Star-Bulletin Back in Hilo

On the way to the supermarket I saw that the nearby Star-Bulletin vending machine was full. I picked up a copy inside the store. It's in a tabloid format, eighty-plus pages. It reminds me of The Village Voice and The New York Post.

25 May update: Only the Sunday paper is available in Hilo. Better than nothing, I guess. It's now two dollars a copy, jumping fifty cents.

The American Conservative Now Monthly

The current (May 18) issue of the magazine contains an important announcement that bears repeating for on-line readers: The American Conservative, endangered though it has been by the economic collapse, will survive. An outpouring of support from readers (and authors) heartened us to continue; that boost, plus some restructuring and an ambitious plan for fundraising, have enabled us to fight on. And after all, we could hardly absent the field while a struggle is underway for the future of the Right.

There will be a few changes: TAC’s print version is going monthly. (Subscribers will, of course, receive the full number of issues that they signed up for, even on the new schedule — and you’ll be getting a thicker magazine, too, since we’ve upped the page count.) There will be a short hiatus — six weeks — between the current issue and our first monthly issue, which goes to press June 18. In the meantime, we’re going to continue building up the website — the addition this week of John Schwenkler’s Upturned Earth blog is just the first step.

http://www.amconmag.com/blog/2009/05/14/the-future-of-the-american-conservative/

Imagine No Cars

As Ian Lind, on whose blog I found this link, says, "We are so far behind!"

Indeed.

On Television, Then and Now

From ThirdEstateSundayReview.

Adorno, the Flu, and Other Things

I've been reading Adorno these past few days. Thanks to Google Books, among other sites, I've read parts of Minima Moralia and The Dialectic of Enlightenment, as well as Adorno: A Biography and Adorno in America. He's one of the densest (and I don't mean dumb) people I've read, and very fascinating, too.

Other interesting books include Weimar on the Pacific, from which one learns that Adorno lived at 316 South Kenter Avenue in Brentwood (1941-9), then at 803 Yale Street in Santa Monica (1949). And I found a great New York Times article, "Following Weimar to Sunset Boulevard" and a supplementary letter.

==
I'll have something soon on the swine flu.

2 June update: What can I say that hasn't been said about it. I notice that hand sanitizers are used far more frequently. That's about it.

Where He's Been

I've told you where I've been. Readers of Alan McNarie's blog have probably wondered where he's been. Now they know.

My apologies for the infrequent posts lately. I've been heavily engaged in a little research project. I've been going through the campaign spending reports of local legislators, and making my own annotated versions: figuring out what the acronyms of the various political actions committees stood for, who [sic] the individuals worked for, which of them were lobbyists. The results have been pretty eye-opening.

Keep your eyeballs peeled for the lowdown on such funzanoons as Clift Tsuji.

Global Economy Sloughing Away in Big, Horrid Gobs!

The flu takes a lot out of one, hence my absence.

This is Kunstler's latest.

April 6, 2009
Strange Days

Even while a wave of reflex nausea washed over America last week, and the unemployment rolls swelled by much more than another half million, the greatest stock market suckers' rally in seventy years pulled in the last of the credulous. These are strange days. The earth is heaving and the buds swelling again -- at least north of the equator, where most of the action is -- and the global economy, which was supposed to be a permanent new add-on to the human condition, is sloughing away in big horrid gobs. But no one in charge of anything can believe it. The banking fiasco has introduced so much noise into the system that world leadership can't think straight.

What they're missing is real simple: peak oil means no more ability to service debt at all levels, personal, corporate, and government. End of story. All the other exertions being performed in opposition to this basic fact-of-life amount to a spastic soft-shoe performed before a smokescreen concealing a world of hurt. If the "quantitative easing" (money creation) and fiscal legerdemain (TARPs, TARFs, et cetera) happen to jack up the "velocity" of the new funny-money, and the world resumes its previous level of oil use, the price of oil would rise again -- this time astronomically because the previous crash of oil prices crushed the development of new oil projects to offset depletion -- and the global economy will crash again. Only the next phase of the disease is liable to move beyond the financial and into the social and political realms. Disorder of various kinds will rule -- toppled governments, civil unrest, international tension and conflict.

The US is doing everything possible to avoid these awful realities, but probably the worst self-deception is the idea that everything would be okay if we could just "re-start lending." That's just not going to happen. There is no more capacity to service the debt we've already piled on. Americans borrowed too much, and the bankers who made obscene fortunes in fees and bonuses in fraudulent lending managed to leverage this unpayable debt into the greatest collective swindle the world has ever known. The swindle has sent poison into every cell of the macro socio-economic organism, and further swindles are unlikely to revive it.

The rally in stocks, the financials in particular, could go on for another month or two. In the meantime, banks are striving desperately to avoid calling in more bad loans -- especially in commercial real estate, malls, strip malls, Big Box power centers -- because they don't want any more losses on their balance sheets. That can only go on for so long, too. Sooner or later the daisy chain of credibility in the fundamental transactions of business lose legitimacy and something's got to give.

My guess is it will first take the form, sometime after Memorial Day (but maybe sooner) of wholesale liquidations of everything under the North American sun: companies, households, chattels, US Treasury paper of all kinds, and, of course, the S & P 500. We'll soon find out whether an organism the size of the United States can run an economy based on one family selling the contents of its garage to the family next door. My guess is that this type of economy won't support the standards of living previously enjoyed in places like Dallas and Minneapolis.

The socio-political fallout from the inherent anger and disappointment in all this is liable to be severe. The public is already warming up for it, with cheerleaders such as Glen Beck on Fox TV News calling for the formation of militias, and gun sales moving out-of-sight. One mistake that the banking elite and their lawyer paladins made the past decade was their show of conspicuous acquisition -- of houses especially -- in easy-to-get-to places where anyone can see them, for instance an angry mob in Fairfield County, Connecticut, or Easthampton, New York. [Cf. Paul Fussell, whose Top-Out-of-Sights learned long ago to have their estates in the deep country or on islands--P.Z.] Unlike the beleaguered elites of South Africa (where I visited recently), who live behind layers of fortification, the executives of Citibank, Goldman Sachs, J.P. Morgan, and a long list of hedge funds, will be found cringing in their wine-lockers behind a measly layer of privet hedge when the tattooed minions of Glen Beck come a'calling.

This could perhaps be avoided if someone in authority like US Attorney General Eric Holder took an aggressive interest in the multiple swindles of the decade past, and commenced some prosecutions. But the window of opportunity for this sort of meliorating action may close sooner than the government and the mainstream media believe. Social phase-change, as in the formations of mobs, is nothing to screw around with. Once the first window is broken, all bets are off for social stability. My guess is that the various bail-out gifts to the bankers are long past having gone too far in the eyes of this increasingly flammable public.

We have no previous experience with this type of social unrest. The violence of the Vietnam era will look very limited and reasonable in comparison -- in the sense that it was an uprising on the grounds of principle, not survival. And the Civil War was a wholly regimented affair between two rival factions. This time, people with little interest in principle beyond some dim idea of economic fairness, will be hoisting the flaming brands out of sheer grievance and malice. By the time Lloyd Blankfein sees the torches flickering through his privet, it will be too late to defend the honor of his cappuccino machine.

President Obama will have to starkly change his current game plan if this outcome is to be avoided. I think he's capable of turning off the mob -- of preventing the grasshoppers from turning into ravening locusts -- but it may take an extraordinary exercise in authority to do it, such as the true (not pretend) nationalization of the big banks, engineering the exit of Ben Bernanke from the Federal Reserve, sucking up the ignominy of having to replace failed regulator Tim Geithner in the Treasury Department, and calling out the dogs on the swindlers who had the gall to play their country for a sucker.

As I've averred more than a few times in this space before, the standard of living in America has got to come way down. We mortgaged our future and the future has now begun. Tough noogies for us. But the broad public won't accept the reality of this as long as the grandees of finance and their myrmidons appear to still enjoy the high life. They've got to be brought down hard, perhaps even disgraced and humiliated in the courts, and certainly parted from some of their fortunes -- if only in lawyer's fees. Mr. Obama pretty much served notice to this effect last week, telling a delegation of bankers in the White House that he was the only thing standing between them and "the pitchforks." It's possible he understands the situation.

Not Everything is on the Internet

Believe it or not.

On the Demise of Newspapers

Andy Parx says, 'Keep the bones'.

Time predicts the ten major newspapers that will either fold or go online.

Restaurants in Hilo

Domino's Pizza in Hilo recently reopened under new ownership, soon after the Kona branch reopened. And according to the sign pictured below, Bueno Burrito is soon to open in the Keawe Street space that housed Subway, which moved down the street.



Morgan's Deli, across the street from The Lyman Museum, has apparently closed.

20 March update: Bueno Burrito (969-9955) opened just this morning. It's open Mondays through Saturdays, 9 A.M. to 9 P.M.

Congratulations, Slumdog Millionaire!

Don't overlook the little guy.

==
5 March update:

I found this comment on Philip Weiss's blog:

This is not a political film. It's a romance about destiny. And the dignity it has lent the poor of Mumbai is an achievement that compares with Dickens's treatment of the London slums or Van Gogh's and Millet's paintings of country people, which were considered inappropriate subjects at the time.

As for those who dismiss Slumdog as "poverty porn", I assume none of them are actually from the slums.
==
20 March update: I looked at the 12 October issue of USA Weekend, which briefly reviewed the major movies to be released in late 2008. Slumdog Millionaire was not mentioned at all, despite its limited release date of 12 November and its wide release date of 25 December.

http://www.usaweekend.com/08_issues/081012/081012movies-sneak-peek.html

On the Recession: A Post in Progress

This post is about the late 2000s recession and financial crises that persist to this day. It will be continuously updated.

This CounterPuncharticle asserts that this is a white recession but a black depression.

From The International Monetary Fund: 'World Economic Outlook Update: Global Economic Slump Challenges Policies.'

==
28 February update:
Economy Shrinks at Fastest Pace in 26 Years

Tax-Deduction Plan Won't Hurt Charities During Recession, White House Says

Hard Economic Times a Boon for Libraries
==
4 March update:
What Does the Worst Recession in a Generation Look Like?"

4 August update: Middle-aged white men hard hit by the recession but the recession could cause the black middle class to go extinct. (11 August update: Hattie takes note of this in her post.) See also Muhammad's February CounterPunch article, which link is near the top of this post.

8 August update: The South is the epicenter of job loss. And Britain faces a power shortage. Many, but not all of these links are from the excellent LifeAftertheOilCrash website. Please visit regularly.

More Link Updates

I've removed some defunct links to sites in the Politics of Hawaii category in The Ever-Evolving List of Links. They are:

AkamaiVoters.com, AlohaPolitics, 808AlohaState, HaolesforHawaiians, HunterBishop.com, and MauiTalk.

I have to look at a few links; apparently, one, HawaiiMatters.com, has turned Japanese! Since I don't know Japanese, I can't tell if it's still about Hawaii politics.

For Tough Times

Link Updates

I've added two new sites to The Ever-Evolving list of Links. Under the Fiction and Literature heading, Three Percent and under Culture, General, PopMatters.com. I first found out today about Three Percent from this video interview of Chad Post, director of Open Letter Press, devoted to publishing literature in translation. For some reason, I thought I already had included PopMatters, a natural for the General Culture Category. A quick check revealed otherwise, so I promptly added PM.

Click on All Links in the sidebar to see the latest changes.
==
1 February 2009 update: I've added Get Kempt to the Fashion and Appearance section, and added a Peak Oil section.

Making Chai

Poverty Statistics

Anup Shah, Poverty Facts and Stats, GlobalIssues.org, Last updated: Wednesday, September 03, 2008

Cf. Global Rich List

Happy Birthday to Me

I thought I'd share this poem by Kingsley Amis, which John Derbyshire posted a couple years back. Although the poem addresses newly-minted quinquagenarians--today I turn thirty-three, not fifty--"Ode to Me" speaks to anyone older than thirty.

Ode to Me

by Kingsley Amis

Fifty today, old lad?
Well, that's not doing so bad:
All those years without
Being really buggered about.
The next fifty won't be so good,
True, but for now—touch wood—
You can eat and booze and the rest of it,
Still get a lot of the best of it,
While the shags with fifty or so
Actual years to go
Will find most of them tougher,
The going a good bit rougher
Within the Soviet sphere—
Which means when the bastards are here,
Making it perfectly clear
That all that double-think
(Both systems on the blink,
East and West the same,
And war just the name of a game)
Is the ballocks it always was.
But will it be clear? Because
After a whole generation
Of phasing out education,
Throwing the past away,
Letting the language decay,
And expanding the general mind
Till it bursts, we might well find
That it wouldn't make much odds
To the poor semi-sentient sods
Shuffling round England then
That they've lost what made them men.
So bloody good luck to you, mate,
That you weren't born too late
For at least a chance of happiness,
Before unchangeable crappiness
Spreads over all the land.
Be glad you're fifty—and
That you got there while things were nice,
In a world worth looking at twice.
So here's wishing you many more years,
But not all that many. Cheers!

But I Do!

"Why You Should Know Who Michael Shannon Is"--New York

22 January update: Michael Shannon is a Best Supporting Actor nominee. To explain this post's title, I knew of him from his roles in 8 Mile, Kangaroo Jack, and Bad Boys II. In these movies his characters were all louts but each was distinct: Greg Buehl was the boyfriend of B-Rabbit's mother, Frankie "The Vermin" Lombardo, a mob henchman, and Floyd Poteet, a scuzzy Klansman. Until now, these were his most famous characters.

Kunstler on the Bush Years

Kunstler doesn't hold back.

January 5, 2009
Farewell GWB

...
I never believed that GWB actually tricked the nation on the "weapons of mass destruction" rationale for invading Iraq. Rather, the nation fooled itself into thinking that the war, in the first place, was anything but an act of vengeance for the gross injury of 9/11. After a couple of years, the public adopted the stupid narrative that they were "lied to," rather than recognizing the difficult truth that 9/11 had to be answered with lethal force, that international hostilities are far from wholly rational, and that Saddam Hussein got whacked because he was the Arab head-of-state who was the best candidate for getting whacked. A nation in thrall to psychotherapy, and self-esteem building programs, and the "win-win" bullshit of business Babbitry, couldn't imagine a tragic dilemma when one was staring them in the face.

GWB won reelection in 2004 -- running against the weak John Kerry, "a haircut in search of a brain," as Kevin Phillips put it so memorably, who was not smart enough to pander successfully (though he tried) to the dominant, Jesus-soaked Nascar fans who inhabit the Moron Crescent that runs from West Virginia south through Dixie and then west into Idaho. GWB was still riding pretty high when Hurricane Katrina slammed into the swamps and beaches east of Lake Ponchartrain, and the president failed to direct anybody to so much as air-drop bottled drinking water for survivors dying on rooftops and highway overpasses in New Orleans. The Left, once again, adopted an idiotic narrative to explain the event -- that Bush acted to punish African-Americans -- when plain incompetence combined with grandiose expectations for a televised happy ending to instead produce tragedy.

The fiasco in New Orleans was matched by the apparent failure to police Iraq back to stability, making the whole project appear feckless and futile, and GWB began his long swoon into discredit. But two other conditions were intensifying in the background, one the consequence of the other: peak oil and peak credit. As the primary resource of industrial capitalism reached its all-time production peak in 2005, the managers of the US economy allowed borrowing-from-the-future to replace productive activity as the basis for everyday life.

GWB barely acknowledged this compound problem. He asserted that America was addicted to oil, but he failed to take the idea a step further and say that our vaunted "way-of-life" could no longer be taken for granted. If anything, he endorsed the popular idea that a suburban lifestyle and WalMart consumerism was a Jesus-driven entitlement, and his circle in governance did everything possible to replace the industrial economy with an economy based on suburban land development and credit card spending -- which was enabled by fantastic experiments in finance that proved to be nothing more than an impenetrable web of swindles.

Those swindles began to unwind in 2007 and they now threaten to sink the USA as a viable enterprise. Their exact extent and nature still remain obscure, like the algorithms used to engineer the "alphabet soup" of fraudulent securities and recondite derivatives. In this stupendous failure, GWB is joined by his cohorts and minions in Republican polity, whose flamboyant misfeasance continues to make the credit blow-up worse by the minute. He leaves his successor, Mr. Obama, a predicament so dismal that the secession crisis of 1860 begins to look like a mere procedural quarrel in comparison. And despite the temporary crash of oil prices, the peak oil problem still looms very large in the background and has barely begun to work its hoodoo on what's left of the US economy.

...

To me, GWB will remain the perfect representative of his time, place, and culture. During his years in Washington, America became a nation of clowns posturing in cowboy hats, bethinking ourselves righteous agents of Jesus in a Las Vegas of the spirit, where wishing was enough to get something for nothing, where "mistakes were made," but everybody was excused from the consequences of bad choices. The break from that mentality will be very severe, and we may look back in twelve months and wonder how we ever fell for the whole package. The answering of that question will occupy historians for ages to come.

One Word

In a few weeks a much-discussed biographical movie should be coming to Hilo. Its subject is a man, who in his brief time upon the national stage, had everyone talking. Just as he was about to reach new heights of achievement, he was brutally gunned down. The title of this movie is only one word. But one word can say it all.

Kunstler's Forecast for 2009

Reprinted in full. Curiously, there's no mention of Dubai, so extravagant it makes Las Vegas look like an Amish village.

December 29, 2008
Forecast for 2009

There are two realities "out there" now competing for verification among those who think about national affairs and make things happen. The dominant one (let's call it the Status Quo) is that our problems of finance and economy will self-correct and allow the project of a "consumer" economy to resume in "growth" mode. This view includes the idea that technology will rescue us from our fossil fuel predicament -- through "innovation," through the discovery of new techno rescue remedy fuels, and via "drill, baby, drill" policy. This view assumes an orderly transition through the current "rough patch" into a vibrant re-energized era of "green" Happy Motoring and resumed Blue Light Special shopping.

The minority reality (let's call it The Long Emergency) says that it is necessary to make radically new arrangements for daily life and rather soon. It says that a campaign to sustain the unsustainable will amount to a tragic squandering of our dwindling resources. It says that the "consumer" era of economics is over, that suburbia will lose its value, that the automobile will be a diminishing presence in daily life, that the major systems we've come to rely on will founder, and that the transition between where we are now and where we are going is apt to be tumultuous.

My own view is obviously the one called The Long Emergency.

Since the change it proposes is so severe, it naturally generates exactly the kind of cognitive dissonance that paradoxically reinforces the Status Quo view, especially the deep wishes associated with saving all the familiar, comfortable trappings of life as we have known it. The dialectic between the two realities can't be sorted out between the stupid and the bright, or even the altruistic and the selfish. The various tech industries are full of MIT-certified, high-achiever Status Quo techno-triumphalists who are convinced that electric cars or diesel-flavored algae excreta will save suburbia, the three thousand mile Caesar salad, and the theme park vacation. The environmental movement, especially at the elite levels found in places like Aspen, is full of Harvard graduates who believe that all the drive-in espresso stations in America can be run on a combination of solar and wind power. I quarrel with these people incessantly. It seems especially tragic to me that some of the brightest people I meet are bent on mounting the tragic campaign to sustain the unsustainable in one way or another. But I have long maintained that life is essentially tragic in the sense that history won't care if we succeed or fail at carrying on the project of civilization.

While the public supposedly voted for "change" this fall, I maintain that they underestimate the changes really at hand. I voted for "change" myself in pulling the lever for Barack Obama. I regard him as a figure of intelligence and sensibility, but I'm far from convinced that he really sees the kind of change we are in for, and I fret about the measures he'll promote to rescue the Status Quo when he moves into the White House a few weeks from now.

Where We Are Now

Without reviewing all the vertiginous particulars of the year now ending, suffice it to say that the US economy fell on its ass and that the "global economy" did a face-plant as well. The American banking sector imploded spectacularly to the degree that investment banking actually went extinct -- as if a meteor landed on the corner of Madison Avenue and 51st Street. The response by our government was to shovel "loans" onto the loading dock of every organization that pretended to be something like a bank, while "bailing out" an ever-longer line of corporate claimants with a pitiable song-and-dance. The oil markets went on a roller coaster ride. The housing bubble collapse grew to avalanche velocity (taking out whole colonies of realtors, mortgage brokers, and construction contractors in its path), the commercial real estate sector developed hemorrhagic fever, retail drove off a cliff on Christmas Eve, the stock market fell in the toilet, jobs and incomes went up in a vapor, and tens of millions of ordinary citizens addicted to revolving credit found themselves in a life-and-death struggle for the means of existence. None of this is over yet.

The Year Ahead

Much of what has been lost in 2008 will not be recovered: enterprises, personal fortunes, chattels, reputations.

I expect a period of euphoria to mark the early weeks, perhaps months, of the Obama team. It will be a relief to have a president who speaks English correctly and has experienced something like real life prior to politics. Restoring credibility and legitimacy in leadership will be a big deal. If nothing else, we may recover a collective sense of consequence from a president who tells the truth, even the harsh truth. The age when it was enough to claim that "mistakes were made" might be over. A sign of this sort of change may be the commencement of prosecutions for misdeeds in banking and securities that are now destroying the entire system of deployable capital. A good place to start will be an investigation of Henry Paulson for insider trading stemming from Goldman Sachs's shorting of its own issued mortgage-backed securities when Mr. Paulson was the company's CEO. Beyond his case, there should be enough work at Attorney General Eric Holder's office to employ a line of law school graduates stretching from Brattle Street to the planet Mars. It will be salutary for the nation to see those who engineered the banking collapse come to greater grief than the mere surrender of their Gulfstream jets and Hamptons villas. By the way, being allergic to conspiracy theories, I don't believe for a minute that there is some kind of shadow elite of "Bilderburgers" standing in the background to protect these grifters -- and I also believe the reason these paranoid notions persist is because it is otherwise hard to account for the extravagant irresponsibility of the Bush circle and its servelings.

Apart from "cleaning up Dodge," so to speak, and from issues of collective character-and conscience-in-office, I worry that the avalanche of troubles already ongoing will overwhelm Mr. Obama and his people. It's also well worth worrying whether they will pursue policies similar in kind to the ones pursued by Bush, namely throwing money at everything and anything, and it sure looks like they are planning to do just that. I am especially concerned about an "infrastructure stimulus" project aimed at highway improvement at the expense of public transit. This would be the epitome of a campaign to sustain the unsustainable. We need to begin planning right away for a transition away from automobiles, not in order to be good socialists but because Happy Motoring is at the core of our unsustainability trap. The car system is going to fail in manifold ways whether we like it or not, and it will fail due to circumstances already underway. For one thing, it will cease to be democratic as the remnants of the middle class find it impossible to get car loans, or pay for fuel, or insurance, and that will set in motion a very impressive politics-of-grievance setting apart those who are still able to enjoy motoring and those who have been foreclosed from it. Contrary to what you might make of the the current situation in the oil markets, we are in for a heap of trouble with both the price and supply of petroleum (more on this below). And there is no chance in hell that any techno rescue remedy to keep all the cars running by other means will materialize.

A consensus in the blogoshpere says that the stock markets will rebound strongly during the first Obama months. This is possible just on the basis of pure "animal spirits," but the Obama Bounce will occur against a background of continued dismal business and financial news. It will appear to defy that news. By May of 2009, the stock markets will resume crashing with the ultimate destination of a Dow 4000 before the end of the year. Meanwhile, jobs will vanish by the millions and companies will go bankrupt by the thousands, especially in the so-called service sector, and in all the suppliers of such, along with the landlords in all the malls and strip malls. The desolation will mount quickly and will be obvious in the empty storefronts and trash-filled parking lagoons. In the event, two things will become increasingly clear to the nation: that the consumer economy is dead, and that there is no more available credit of the kind that Americans are in the habit of enjoying.

We'll turn around early in 2009 and discover that we are a much poorer nation than we thought because from now on credit will be extremely hard to get for anyone for anything. The businesses that survive will have to keep going on the basis of accounts receivable. This is the area where the crash of giants will be heard. I've been saying since publication of The long Emergency that comprehensive downscaling in all our activities, from farming to business to schooling to governance, will be the categorical imperative of the years ahead. Giant enterprises requiring giant loans to get from quarter to quarter will tend to not make it. Borrowing from the future will become a practical impossibility as past bad debts from previous borrowings continue to unwind, cease performing, and get written off. This argument implies that the federal government will tend to flounder just as General Motors, Citicorp, Target Stores and other gigantic enterprises will tend to flounder. It would be sad to see a President Obama so hamstrung and helpless, and it is largely why I see his role as largely symbolic -- as a reassuring presence encouraging the distressed public to bravely bear their hardships, and to be kind and helpful among their neighbors.

Households, like businesses, will have to pay as they go from earned income. The house as ATM is over. Credit cards are maxed out and credit ceilings are lowering like the ceiling in "The Pit and the Pendulum," preparing to slice-and-dice the old "normal" of family life in America. Bankruptcy will be the new Nascar. A lot of families will lose everything. They will sift and disperse into the housing owned by other family members -- parents, siblings -- and a strange new not-altogether comfortable kind of togetherness will become common. Over time, a lot of people will go looking for casual work "under-the-table"( and probably low-paying). To some degree, these workers will begin to look and act like a new servant class, and before too long they may be absorbed into the households of people who employ them. There will be plenty of room for them there.

Counties, municipalities, and states will join in the bankruptcy fiesta. It would be reasonable to expect collapsing services as a result. This would be a situation fraught with danger -- of rising crime, of public health emergencies as water systems are not kept up and sewage treatment becomes unaffordable. I don't imagine the federal government stepping into every Podunk or Metropolis from sea to shining sea and propping up these services. People will have to cope with danger and deprivation.

2009 may be the point where we begin to understand what kinds of places will be more hospitable to human society further ahead. I maintain that our giant urban metroplexes have way overshot their sustainable scale and will contract severely. With all the economic hardship, we ought to expect a lot of demographic churning, people leaving hopeless places and moving on to something more promising. I believe we will see them move to smaller towns and smaller cities. The reorganization of the rural landscape into smaller-scaled farms has not begun to occur -- though 2009 might be very hard on agribusiness, given the shortage of capital and if oil begins to march up in price by late winter. Eventually, the rural landscape will require the labor of many more people than is currently the case. Whatever else happens, 2009 will surely see a massive return to home gardening as budgets become strained to the extreme. As the New Urbanist Andres Duany said recently, "Gardening is the new Golf!"

The oil scene

Many were stunned this year to witness the parabolic rise and fall of oil prices up to nearly $150 and then back around $36 by Christmas time. Quite a ride. I said in The Long Emergency that volatility would be the hallmark of post peak oil because it was obvious that advanced economies could not absorb super high prices and would crash in response; that at some point after crashing, these economies would respond to the new lower oil price, resume their cheap oil habits, and build to another price rise. . . and crash again. . . in a declension of ever-lower industrial activity.

What I probably didn't realize at the time was how destructive this cycling between low-high-and-low oil prices would actually be in the first instance of it, and what a toll it would take right off the bat. We can see now that our first journey through the cycle took out the most fragile of the complex systems we depend on: capital finance. As a result, a huge amount of capital (say $14 trillion) has evaporated out of the system, never to be seen again (and never to be deployed for productive purposes). It will be harder for the USA to rebound from the grievous injury to this crucial part of the overall system, and Europe has foundered similarly -- though the European nations are not burdened to the same degree by the awful liabilities of suburbia.

Even if these advanced economies -- throw in Japan too -- remain moribund, the price and supply prospects for oil look ominous. My own guess is that the price of oil has overshot on the low end just as it overshot on the high end, and that, when all is said and done, we'll still see an upwardly trending price line over the long haul. The plunge, which began right after the $147 peak in July 2008, was as much the result of banks, hedge funds, and individuals dumping oil investments and positions to raise cash as it was a matter of the markets predicting a sharp fall-off in economic activity (and supposedly oil consumption). The truth is that demand destruction for oil in the USA has been surprising mild compared to the drop in price. Jim Hansen's Master Resource Report says that gasoline consumption dropped from 9.29 million barrels a day in 2007 to 8.99 million barrels a day for 2008. That's not much of a fall-off, especially compared to the price drop.

As Julian Darley of the Post Carbon Institute put it recently: "There won't be any energy bail-out." And, as many other people have noted, the recent plunge in oil prices strongly implies future supply destruction, since so many planned oil projects have been suspended or cancelled because they are economic losers at $40-a-barrel (or even $70). Even projects well underway, such as Canadian tar sand production, have been scaled back or shut down because they don't make sense at current prices. Some of these other newer projects will now never get underway -- they have missed their window of opportunity with so much capital leaving the system -- and so the hope of offsetting very-near-future depletions in old giant oil fields looks dimmer and dimmer.

Those depletions are very serious. For instance, Mexico's super-giant Cantarell oil field, the second-largest ever discovered after Saudi Arabia's Ghawar field, has shown a 30 percent depletion rate in the past year alone. (Pemex had forecast a 15 percent rate entering the year.) Cantarell provides over 60 percent of Mexico's total production, and Mexico is America's third largest source of imports -- just after Saudi Arabia (#2) and Canada (#1). Obviously, Mexico soon will lose its ability to export oil, and as that occurs, America is going to feel more than pinch -- more like a two-by-four upside the head. In short, remorseless depletion is underway and we are less likely now than even a year ago, to make up for it.

At some point, then, demand, even if slightly lower, will catch up with declining supply. My prediction for 2009 is that we will see two things occur, possibly at the same time: a resumption of rising prices, and spot shortages. I say this because the global economic fiasco is sure to produce geopolitical friction, and inasmuch as America has to import almost three-quarters of the oil we use, the prospect for trouble is great.

The tragic part of all this, of course, is that the temporary plunge in oil prices has prompted an incurious American public to assume, once again, that the global oil predicament is some kind of a fraud. Given the flood tide of fraud they have been subject to in banking and investment matters, I suppose you can't blame them from thinking that everything is some kind of a scam. Given feeble car sales this season, there are reports that an increasing percentage of those sold now are are trucks and SUVs.


Though I give Boone Pickens high marks for stepping up to the leadership plate, I'm not altogether on board with his energy proposal for swapping natural gas for gasoline in motor fuels while we swap out wind power for natural gas in electric power generation. I don't believe that the ballyhooed shale-gas-plays of the last few years will prove-out long-term, as some huckster's claim. They are expensive to drill and run, and they all tend to deplete very quickly -- around one year. I'm not convinced we have the capital or the resources even to come up with the steel necessary to drill for it. Anyway, the last thing we need is a way to prolong our car-dependency.

In the meantime, there are still those who hope (as described above) that various alt.energy systems will insure the continuation of Happy Motoring. This is an idle hope, and 2009 will be very sobering for those who imagine that hybrid cars, or electric cars, or "air" cars, or natural gas cars, or any other kind of car technology will save the day. Even if President Obama mounts an "infrastructure stimulus" program, it will not keep up with all the necessary routine road repair that our highway system requires. The extreme financial hardship faced by localities and states insures that they will have to postpone a lot of expensive highway maintenance -- even if the federal government fixes a big bunch of bridges and tunnels -- and so we face the interesting prospect that our roadway systems will enter their own deadly zone of systemic failure even before the whole car issue is settled.

I am waiting to see whether Mr. Obama will undertake a restoration of passenger railroad service. I've said enough about this in the past, but it's worth reiterating that a failure to get comprehensive passenger rail service going will be a sign of how fundamentally unserious we are as a nation.

The Specter of Inflation

This is the "other shoe" that a lot of people are waiting to drop. Right now we are caught up in a compressive debt deflation as mortgages stop "performing" and loans of all kinds are welshed on. Since money is loaned into existence, and a great many loans are not being repaid, then a lot of money is going out of existence. That's what I mean when I say that capital is leaving the system. At the same time, the Federal Reserve has made good on its promise to drop money from helicopters if necessary to prevent an implosion of the banking system (as all that older money goes out of existence), and so it's now a question as to when the amount of new money will exceed the disappeared old money. (Of course when I say money, I mean "money," because we are dealing here in a shadow realm of assumed value.) In any case, there is bound to be a lag period between the time that the Fed's money is dropped from the choppers and the time it actually filters through the banks and other recipients to the so-called "real economy" of people who buy and sell real things. The credible estimates I hear run between six and 18 months.

I'll only venture to guess that we could see the start of serious inflation sometime in 2009. To some extent, all currencies are now free-falling together, some at slightly faster rates than others, but the situation of the US dollar is so grotesquely dire, and our structural imbalances so monumental, that it is hard to imagine that our currency will not win the international race to the bottom. Gold resumed its movement upward against the dollar a week before Christmas, and that may be an early sign. The government -- and anyone badly in debt -- benefits much more from inflation than deflation, so every effort will be made to avert the latter. The trouble lies in the government's dumb incapacity to control dangerous things that it sets in motion, so that an inflationary campaign to avoid compressive deflation can so easily lead to a fiasco of super or hyper inflation -- the kind that kills governments and turns societies into murderous monsters. I'll forecast the that the US dollar is worth 40 percent of its current value by next Christmas.

Geopolitics

Well, now, who the hell knows what's in store. Aside from a few bombs here and there, and pirates skulking around the horn of Africa, the world scene was miraculously free of major incidents in 2008 -- perhaps the worst being a toss up between the September [November, actually--P.Z.] Mumbai bombings and the fiasco in Georgia, where the US prompted Georgia President Mikheil Saakashvili to send troops into the South Ossetia region and the move was answered by overwhelming force from neighboring Russia, leaving the US looking feckless and retarded for our troubles. But otherwise, there wasn't a whole lot of action out there.

Until the last few days of the year, that is. I'm sure the ever-growing cohort of American anti-semites who send me emails will be tickled when I assert that the Hamas rocket attacks against Israel of recent days guaranteed a sharp response from Israel -- and now, of course, Hamas is playing the crybaby card: "... what'd we do to deserve this...?" Well, you fucking fired a bunch rockets into Israel. Did you ever hear of cause-and-effect? This matter requires no further elucidation, except that it seems to suggest a ramping back up of hostilities. I wonder if it is the beginning of a new coordinated offensive by Islamic extremism aimed at taking advantage of the West's current economic plight (and the West's probable aversion to anything that will complicate its desired recovery). We'll know in a month or so, I think, since any coordinated campaign (if such a thing were possible) might well be aimed at confounding the new American president.

The other hot corner of the world right now is the India-Pakistan border where the 60-year-old rivalry, which has already produced three wars, looks to be gearing up for yet another round. I'm not the first one to say that Pakistan is an extremely dangerous regional player, being an economic basket case, possessing a score or so of nuclear bombs, harboring more Islamic fundamentalist maniacs than any other place in the world, and having a government held together with duct tape and twine. The caper in Mumbai last September could well have been construed as an act of war, but somehow India kept its head. Who knows where this is going. . . .

So far I have only described what is already obviously going on. Add to this the likelihood that Iran is closer to achieving membership in the atomic weapon club. They've been spinning their centrifuges all year and nobody has done anything about it. My guess is that neither the US nor Israel will attempt to take out their facilities in the year ahead. If Iran used a nuclear device against Israel, or anybody else, they would be asking to become, in turn, the world's largest ashtray. End of story. A different story, though, is how Iran might behave if and when the US Military presence in Iraq is reduced. I can imagine Iran doing anything possible surreptitiously to gain control over Iraq's southern oil regions around Basra, but even the Iraqi Shia don't like the Iranian Shia that much. Anyway, iran's economy has suffered hugely from the fall in oil prices. That nation may be in for more internal trouble than they have seen in thirty years since the Shah was tossed out by the minions of Ayatollah Khomeini.

There's been a lot of sentiment the past year that as the US and the Europe fall into economic disarray, China would emerge as the great new hegemonic superpower. While it's come a long way in a quarter-century, China's internal problems are still enormous and worsening. They're in trouble with water, food imports, mass unemployment, and energy. They have locked in some oil contracts around the world, but they are still susceptible to vagaries in the oil markets and Black Swan events. As the US consumer economy falls into a coma, and the shipping containers from China to WalMart get sparser, the Chinese government will face the wrath of millions of unemployed workers. I believe they will struggle through 2009, perhaps growing more surly as the US dollar inflates and their holdings of treasury bills begins to look more like a swindle.

Russia may be suffering economically for the moment due to the crash of oil prices, but they are energy resource-rich -- at least for the next couple of decades -- and if they don't like the current price, they can keep more of their oil in the ground until the price looks more attractive. I think Mr. Putin has the confidence of the Russian people and will survive the current malaise.

Japan remains a riddle wrapped in toasted nori. They're beggaring their own factory workers to stay solvent. Their banking sector has been zombified for a generation. They import 95 percent of the energy they use. Do they have a plan? One can imagine them sliding in resignation back to something like the sixteenth century, giving up the whole industrial circus as more trouble than it's worth, just as they once gave up on firearms.

The over-arching geopolitical theme of 2009 will be the end of robust globalism as we've known it for some time. Reduced trade, competition for energy resources, sore feelings over debts and currencies will drive the nations inward or, at least, direct their energies toward their own regions. Note to Tom Friedman: the world turned out to be round after all.

Conclusion

The big theme for 2009 economically will be contraction. The end of the cheap energy era will announce itself as the end of conventional "growth" and the shrinking back of activity, wealth, and populations. Contraction will come as a great shock to a world of conventionally programmed economists. They will toil and sweat to account for it, and they will probably be wrong. Unfortunately, this contraction will do its work in unpleasant ways, driving down standards of living, shearing away hopes and expectations for a particular life of comfort, and introducing disorder to so many of the systems we have depended on for so long. People will starve, lose their homes, lose incomes and status, and lose the security of living in peaceful societies. It will become clear that the Long Emergency is underway.

My hope for the year, at least for my own society, is that we will transition away from being a nation of complacent, distracted, over-fed clowns, to become a purposeful and responsible people willing to put their shoulders to the wheel to get some things done. My motto for the new year: "no more crybabies!"
===

The Grid

Our Christmas was fairly mellow. It was cold and overcast and I read one of my gifts, An Incomplete Education. Also I watched the marathon of A Christmas Story.

As it was snowing on the mainland, so was a storm brewing over Hawaii. About ten, we heard loud thunder and rain. Yesterday, the storm continued. Honolulu had a blackout, which really underscored how much people depend on electricity. Obama already had a generator in place, but HECO brought another one to supplement it.

That brings me to mention the book I bought as a gift for my father: Just in Case: How to be Self-Sufficient When the Unexpected Happens, by Kathy Harrison. The power grid is not as reliable as we think, even as demand for electricity increases. I recommend the book very much.

The Ocean of Babel

http://www.forbes.com/opinions/2008/12/22/internet-media-television-oped-cx_mk_1223kaylan.html

Interesting essay in Forbes about the Internet fragmenting everything. I'll have to read it more thoroughly but can, right now, disagree that the 'Net merely feeds users' tastes and reinforces their previously held ideas. Some things I just wouldn't have discovered without going online.

What Now? Hawaii Free Press Ascends Into the Aether

Hawaii Free Press is becoming a solely online paper. The 7 December print edition is its last. Editor-publisher Andrew Walden attributes his going online to the high cost in money and time of printing and distribution. Interestingly, HFP hadn't had a website until very recently.

Walden also points out the "Big Island newspaper-Democrat revolving door.":

"...[A] couple of quick items from local blogs which illustrate a permanent conflict of interest: reporters are eyeing a job in government. Since almost all elected positions are held by Democrats, this creates an unspoken alliance between journalists and Democratic Party candidates and officeholders."

One should find this dismaying, no matter what one's politics are.

==
11 January update: I just found this Big Island Chronicle post on HFP's becoming online only.

'People Get Ready'

From Kunstler's latest column:

President-elect Obama has announced his intention to kick off a massive "stimulation" program when he hits the White House "running" in January. Early indications are that it will be directed at things like highway repair. If so, we will be investing long-term in infrastructure that we probably won't be using the same way in ten years. But I doubt there is any way around it. The American public can't conceive of living any other way except in a car-centered society. Anyway, some parts of our highway-bridge-and-tunnel system are already so decrepit that they pose a menace right now, and the clamor to direct "stimulation" there is already very strong -- backed by all the fraternities of engineers.

Stimulus aimed at perpetuating mass motoring will be a tragic waste of our dwindling resources. We'd be better off aiming it at fixing the railroads (especially electrifying them), refitting our harbors with piers and warehouses in preparation to move more stuff by boats, and in repairing the electric grid. Unfortunately, our tendency will be to try to rescue the totemic touchstones of everyday life, things familiar and comfortable, regardless of whether they have a future or not.

The ominous forces gathering out there will defeat these efforts and everyday life will reorganize itself some other way consistent with the single greatest trend: the force of contraction. Every sign we see is pointing in that direction, from the inability of the earth's ecology to support more human beings, to the dwindling of mineral and energy resources, to the destruction of farmland, to mischief in the climate. We just don't know how badly things will fall apart in the meantime, or how kind (or cruelly) people will act in the process.

Mr. Obama would be most successful if he could persuade the public how much more severe the required changes are than they currently realize, and inspire them to get with program of retrofitting American life to comply with these realities.
==
A recent article in The Hawaii Tribune-Herald quoted Hilo Harbormaster Ian Birnie on the state of Hilo's piers. I'll try to find the article.

Caught Out There

Lew Rockwell passes along David Gordon's pointing out a mistake by economist Brad DeLong, who then went into defense mode:

Writes David:

Did you see Brad DeLong's attack on Mises? He wrongly said that Mises cited two authors in a misleading way. When I pointed out that he himself failed to note that his citations to Theory of Money and Credit were to the 1944 appendix, not the original text, he almost immediately shut off comments. See the bottom of comments on the Mises entry .
---
All of the quotations from Mises are from the Appendix, "Planned Chaos", written in 1944. This isn't in the original edition.

Posted by: David Gordon | December 03, 2008 at 06:23 PM

OK. Time to cut this off and prune it down to something useful...

Posted by: Brad DeLong | December 03, 2008 at 06:34 PM

Mickslam, are you $%#$ kidding me? Taxes don't create demand, they substitute it. The money that was in the hand of the citizen was to be directed in a manner as he demanded, the government takes the money, and substitutes the demand for a government one, less, of course, the administrative costs of taking and spending it.

This is why the price level is not stable in a Keynesian system, but are in a long term trend increasing with periodic deflationary crashes.

Posted by: Mick | December 03, 2008 at 06:37 PM

could be a lot of pruning.

Posted by: Colin Danby | December 03, 2008 at 06:41 PM

The End of HunterBishop.com

David Hunter Bishop begins his new job as public information officer for Billy Kenoi, almost twenty years after he started writing for the Tribune-Herald.

Meanwhile, Kristine Kubat is poised to become East Hawaii's premier prog-blogger. Despite its absence from Hunter's blogroll, Kubehead is drawing an audience.

Unnecessary Name Changes

Steve Sailer takes on the Name Game:

They couldn't say "Terrorists Strike in Mumbai" because few of the local rag's readers know in what country "Mumbai" is. Readers have heard of "Bombay." They've eaten at Bombay Bicycle Club restaurants and they've bought end tables from Bombay Co. Furniture stores, so they mostly know Bombay is a city in India. But, Mumbai they don't know from Kolkata [Calcutta, naturally--P.Z.] or Chennai [Madras--P.Z.]. So, the headline writer has to refer to "Indian City" because the English-language media recently stopped using the place name that has been used in English for centuries.

The effect, of course, is what normally happens when names are changed. The Name Game just makes most people more ignorant (while giving a few people another reason to self-congratulate over their superior sensitivity). Older Americans who grew up hearing about Bombay can't understand today's news; and younger Americans who are growing up hearing about Mumbai won't be able to understand all the books in the library that refer to Bombay.
==
In his 1991 book, BAD: Or, the Dumbing of America, Paul Fussell opines:

"Intellectuals tend to go in for self-righteous enthusiasms, and it is they (as well as politicians) who lie behind the BAD idea of changing the names of their countries from time to time, making the study of history and geography more difficult than necessary. It is they who decide that Ceylon should now be known as Sri Lanka, Rhodesia as Zimbabwe, and Upper Volta as Burkina Faso."

The (Dis)United States of America

From the Drudge Report:

RUSSIAN ANALYST PREDICTS DECLINE AND BREAKUP OF USA
Tue Nov 25 2008 09:04:22 ET

A leading Russian political analyst has said the economic turmoil in the United States has confirmed his long-held view that the country is heading for collapse, and will divide into separate parts.

Professor Igor Panarin said in an interview with the respected daily IZVESTIA published on Monday: "The dollar is not secured by anything. The country's foreign debt has grown like an avalanche, even though in the early 1980s there was no debt. By 1998, when I first made my prediction, it had exceeded $2 trillion. Now it is more than 11 trillion. This is a pyramid that can only collapse."

The paper said Panarin's dire predictions for the U.S. economy, initially made at an international conference in Australia 10 years ago at a time when the economy appeared strong, have been given more credence by this year's events.

When asked when the U.S. economy would collapse, Panarin said: "It is already collapsing. Due to the financial crisis, three of the largest and oldest five banks on Wall Street have already ceased to exist, and two are barely surviving. Their losses are the biggest in history. Now what we will see is a change in the regulatory system on a global financial scale: America will no longer be the world's financial regulator."

When asked who would replace the U.S. in regulating world markets, he said: "Two countries could assume this role: China, with its vast reserves, and Russia, which could play the role of a regulator in Eurasia."

Asked why he expected the U.S. to break up into separate parts, he said: "A whole range of reasons. Firstly, the financial problems in the U.S. will get worse. Millions of citizens there have lost their savings. Prices and unemployment are on the rise. General Motors and Ford are on the verge of collapse, and this means that whole cities will be left without work. Governors are already insistently demanding money from the federal center. Dissatisfaction is growing, and at the moment it is only being held back by the elections and the hope that Obama can work miracles. But by spring, it will be clear that there are no miracles."

He also cited the "vulnerable political setup", "lack of unified national laws", and "divisions among the elite, which have become clear in these crisis conditions."

He predicted that the U.S. will break up into six parts - the Pacific coast, with its growing Chinese population; the South, with its Hispanics; Texas, where independence movements are on the rise; the Atlantic coast, with its distinct and separate mentality; five of the poorer central states with their large Native American populations; and the northern states, where the influence from Canada is strong.

He even suggested that "we could claim Alaska - it was only granted on lease, after all." Panarin, 60, is a professor at the Diplomatic Academy of the Russian Ministry of Foreign Affairs, and has authored several books on information warfare.

Developing...

What Now?

As far as I know, Hunter Bishop isn't linking to Kristine Kubat's new blog, Kubehead. It's as if he's hoping, maybe if I don't link to it, Kubehead will wither and die. Though off to a rough start, Kubat has this interesting post on the recent mmeting of Public Works and Planning. The Tribune-Herald reported on similarly lively meetings about Mauna Kea and the military.

Meanwhile, Ian Lind gives Andrew Walden props for his reporting on Hawaiian mortgage scams.

I have to credit Andrew Walden, who all too often slips far over the edge into ideological territory, for sticking largely to the record in his review of information available online concerning Mahealani Ventura-Oliver, the woman in the middle of an alleged scam aimed at Native Hawaiians. Walden follows many of the same sources cited here the past two days and is able to paint quite a picture of Ventura-Oliver and the larger network of which she is a part.

U.S. News & World Report

U.S. News & World Report will go monthly.

Overused Typeface: Copperplate Gothic

I had a hunch that Copperplate Gothic is overused. Searching online for "overused Copperplate Gothic," I found others who think so, too. But unlike those who want to get rid of it completely, I think CG is appropriate in some places. Papyrus, however, needs a long hibernation.

More later.

The Wastrel Show: Cancelled?

Boomie of The Wastrel Show blog has endorsed McCain, praising him in many of her recent posts. So I wondered how she was taking Obama's victory. Apparently the blog's been taken down, which I find curious.

Neither candidate really was (or is) an advocate of frugality in government. Boomie might've considered Chuck Baldwin of the Constitution Party. After Ron Paul (who endorsed Baldwin), he was the thriftiest-minded presidential candidate this year.

From Wikipedia:

Economy
Baldwin says he would end all federal income taxes and phase out the Internal Revenue Service.[34]

Regarding tariffs, Baldwin has made conflicting statements. In an interview, he said "what I would propose is an across-the-board, general 10-percent tariff on all imports and that would meet the Constitution's prescription for financing the federal government—duties, imposts, tariffs"[47] which, he claims, would also help keep jobs in the United States.[48] But Baldwin's website says that "a tariff on foreign imports, based on the difference between the foreign item's cost of production abroad and the cost of production of a similar item produced in the United States, would be a Constitutional step toward a fair trade policy that would protect American jobs and, at the same time, raise revenue for our national government."[49]

He has said that as president he would streamline the federal government, and tap oil reserves in Alaska, the Dakotas, and the Gulf of Mexico. He believes the United States should return to the gold standard.[34]

Here He Comes!

Go to 5:54 in the video.

Election Eve

Kunstler's Election Eve column, with the really good stuff bolded.

November 3, 2008
A Nervous Nation

This is a nervous nation. Though I'm usually allergic to paranoia, something makes me think that there's a back office in the US Treasury that is buying the entire Dow Jones Industrial Index at opportune moments -- like fifteen minutes before the closing bell -- at the direction of Mr. Paulson. He seems to easily spend $50 billion a day on other dubious hand-outs. At that scale, buying the whole Dow would just take his walking-around money. The idea behind it, my paranoid fugue goes, is to jack up the stock market enough around election day to give the dimmer members of the voting public the idea that the financial fiasco is over and happy days are here again. You can't put this past the Republican party, despite John McCain's friendly turn on Saturday Night Live, consorting with "the enemy" for laughs.

Apart from that, McCain has run the flat-out most scurrilous campaign I've ever seen, despite his reputation as a war hero and a sterling fellow among the senators. He's run a campaign of malicious innuendo and slander, seemingly aimed at voters who would have trouble qualifying for the Special Olympics. And you have to wonder whether he actually requested Vice-president Dick Cheney to lay that "kiss-of-death" endorsement on him at the last moment. It could only have been better if Mr. Cheney borrowed some trick-or-treater's Darth Vadar costume for the grand occasion.

What many people are nervous about, of course, is the chance of shenanigans with the voting tally. Just one minor feature of the general paralysis gripping this society has been our inability to get rid of those mischievous Diebold computerized voting machines that leave no paper trail. By the way, these touchscreen voting units are an example of the diminishing returns of technology. There was nothing wrong with the old mechanical units, but by making over-investments in complexity we've just created more problems for ourselves. This ought to be a warning to those in the thrall of techno-triumphalism.

People are nervous not just because Mr. Obama might be swindled out of a victory, but because John McCain might get elected. Credibility in his judgment dissolved about eleven minutes after he picked the Bombshell from Wasilla to be a heartbeat away from the oval office. Anyway, the Republican Party needs to crawl off to a dark hole somewhere and either pupate into something better or die -- as the Whigs did in 1856. The Republican Party is not through wrecking America. They have three more months to destroy the US dollar and the economy that runs on it. And with Mr. Paulson shoving out pallet-loads of bundled dollars to the likes of JP Morgan, so they can continue doing the very thing that provoked this financial fiasco -- lending money recklessly to anyone with a pulse-- they might just "get her done!"

Other people are afraid that Mr. Obama will hand out bales of money, too, only to a different class of people. I suppose he will. I hope he will show restraint and apply it to public works that benefit all Americans -- such as my pet project of restoring passenger railroad service so people don't have to drive, for instance, from Atlanta to Louisville or Cleveland to Columbus. Even so, the new President will face not only a tide of woes created by his predecessor, but very likely, too, an obese and ineffectual federal bureaucracy unable to carry out even well-intentioned programs.

He will take office in what may be the darkest economic year this country has ever faced. 2009 shows every sign of being worse than this one, with house foreclosures and car re-pos accelerating, companies hemorrhaging jobs, oil prices heading back up (with shortages possible), and a large new group of the formerly middle class growing restive and sore in the background. It will be an historic act of governance if he can keep the lid on all this. Many people will be worrying, of course, whether he will even survive. The ghost of JFK and the dashed hopes he represented (however real or illusory) still haunt this nation.

Apart from the awful debt deflation and probable rebound hyper-inflation that will whipsaw the nation cross-eyed, the new president will face the energy question. I hope he learns the fundamental lesson: that the only way we can hope to become "energy independent" is to severely reform our car-dependent living arrangements and live more locally. Anybody who believes we're going to run the interstate highways and WalMart on solar, wind, tar sands (which belong to Canada, by the way), oil shale, methane gas, algae-diesel, or used fry-max® is going to be disappointed. We'll have to inhabit the terrain of North America differently -- in traditional towns, villages, cities (scaled smaller, to a lower energy diet), as well as a productive agricultural landscape that will require more attention from live human beings (and maybe help from our friends, the animals).
Much of the real work of the next president will be guiding a transition out of obsolete habits, practices, and expectations that we must shed whether we like it or not. The painful downscaling of the financial sector, from a bloated 20+ percent of the US economy back to something more in the 5 percent range, is only the first of these agonies. The transition away from suburbia -- our tragic misallocation of resources in an infrastructure for daily life with no future -- will be even more harrowing because of the psychology of previous investment, which will provoke a misguided effort to sustain the unsustainable, and squander our dwindling resources in the process.

I reject the label "gloom-and-doomer" where these difficult transitions are concerned. There's a lot about the way we live now that is disgusting, degrading, demoralizing, and socially toxic -- from our suicidal diet of processed fat, salt, and corn syrup byproducts to the spiritually punishing everyday realm of the highway strip to the fantastic loneliness and alienation of a people made hostage to a TV-consumer nexus of corporate colonialism. Were done with that. We just don't know it yet. Mr. Obama may not know it, either, but he is a trustworthy soul to hold our hands as we enter this unknown territory.

What Now?: Alan McNarie's Blog

Former Hawaii Island Journal writer Alan McNarie follows the lead of Hunter Bishop, et al. and has set up a blog, which I just found this Sunday evening. Most of the posts so far are his previously published articles, but McNarie has original stuff, like a commentary on Sarah Palin.

22 February update: This is Alan's site devoted to his fractured Christmas carols.