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142 comments on DrumBeat: December 6, 2008
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Hello TODer's. A question for the board, having just browsed Dmitry Orlov's site, would it be better to live in a developing country or in a developed country when preparing for peak oil? As I gather from this http://cluborlov.blogspot.com/2008/11/poverty-asset-assets-burden.html guest post. Living in a developing country might make it easier for the transition to occur. AS the local population has low expectations and low standards of living.
The author carries on with his experience with developed countries
He speaks of the Phillipines (which could really substitute for many developing countries and large segments of rural India and China IMO
So the question for TODer's as this is not readily assessed in peak oil literature, what are the effects likely to be on third world countries where the vast majority of the world population lives and are they better off for the coming dark future?
Perhaps you should ask, how long until we become a third world country?
I wrote this last night.
Sabbath eve, December 5, 2008
The first real killing freeze will arrive tonight; we’ve had frosts but this is the real deal. All warm season plants that have not succumbed to the cold, will tonight. For those of you that live further north, you’d consider this a minor event. It’d suggest cold is cold.
I have to watch for compaction colic in weather like this. Horses sometimes don’t drink enough water with the first cold spell—lack of moisture and a belly full of dry hay stops them up. Colic kills horses.
On the way home from Belmont I saw a panhandler walking down the road with a backpack and a plastic five gallon bucket in hand. I wonder where he’s spending this night? How will he stay warm? Peraps I should ask, Will he stay warm?
The newspaper told me we graduated from extreme drought to exceptional drought; the drought map shows a red hole right in the middle of my state. Of course, I didn’t need the newspaper to tell me that.
Pastures are parched. I sold (and loaded) almost 500 bales of hay today at a dollar per bale less than the same hay sold for picked up out of the field earlier this year.
Why sell at that price?
With the drought there’s a shortage of hay. But there’s an overriding shortage of money that seems the more powerful force at the moment. Or perhaps it’s a shortage of confidence that has people hoarding money. Either way, price something too high, it will sit unsold.
Calves that brought $1.40 a pound six months ago now fetch 80 cents a pound. If not, then less. This Wednesday a full-sized horse sold for $50 through the sale ring. A burro sold for $3. The coggins test required to legally sell a horse or burro costs $35. Then there’s the sales commission…
The corn I didn’t want to sell for $5.70 a bushel (thinking the price too cheap) is now valued at $3.09; oil an abysmal $40 a barrel. I don’t know about anyone else—what I do know is that I cannot produce these products at these prices.
I am told the US spent less on Christmas gifts than any time in the last 35 years. That, without adjusting for inflation.
ABC’s Charlie Gibson said over 500,000 people officially lost their job last month on the evening news.
Of one thing I am sure. The real number is higher.
Tim Ervin, a horse trainer I know came by to pick up a check. He says Retama Park, the race track in San Antonio is a graveyard. A gallop hand he knows only got 9 rides for the week. Normally he’d gallop nine or more horses in a single day. Nine rides times $10/ride. The man earned $90. He is employed.
Trainers have horses that need to be galloped, but the horses’ owners have stopped paying their bills. Luxury items are the first to fail in a market like this.
The trainers are employed. They may not be getting paid but they are employed.
The stock market gained over two hundred points.
Nice to see our goddamned government cared enough to bail out Wall Street.
People ask, “What will happen?”
Well, I never would have guessed that oil would sell this cheap again, that grain would be this cheap. I am learning the law of supply and demand does not function in this economic climate. So I am not the one to ask.
But if you require an answer, here’s the best I can come up with:
Expect the unexpected.
These are strange and I fear, terrible times.
I would like to reply to this but there is so much angst in the posters comments that I am hesitant.
I mostly speak on TOD of the hinterlands and what I see here in Ag.
In 2007 hay was unfindable and almost unbuyable. The prices were astronomical. A large round bale could be sold for over $100 in Florida and some here took bales to Florida to sell but we ran out here. We ran out real real bad. I used to bale and sell a lot of hay but gave it up as a losing proposition back in the 80's. I even gave away a 24 acre field last year that produced 60 round bales. Gave it away to get it cut but if I had kept it? I wouldn't have owed a single penny to anyone after selling it. I was out of my mind to give it away as I found out when the real crisis hit. Due to the spring of 2007 and the winter preceeding it when all the wheat was lost,the same events shattered the hay crops.
So it goes. Right now all bets are off. I am expecting something unplanned for 2009 and maybe worse.
"Times are strange"? Indeed they are becoming stranger as unexpected events twist thru the time continuum and wreck havoc in unplanned ways.
Some observations: No birds. They appear to all be pretty much gone.
No geese sighted and by now I would have seen many v wings flying overhead. Not a single honk have I heard so far and last year it was bad but not this bad. I live right close to a flyaway. A very big one.
No ducks to speak of. Woods ducks used to overfly my ponds and raise young there. No more wood ducks do I see. Zippo. Nada.
I think someone is surely realizing something is very wrong! But no. Its not getting much play. Just like the honey bees.
We are right now utterly destroying this planet. Way way beyond tipping points. We have no one really to fight this madness.
I once expected our countries youth to mount up in protest and assemble. They won't. They weren't raised in such a manner as to go that route.
We are alone. All of us old codgers. Those who protested in the 60s?
They won't be doing anything for their time has come around and now gone. They can just dream of how it once was.
Todays yuppies and genXers are going to do nothing. They were raised to let other people take care of their wants and needs. They kissed mgmt ass for far too long to view it otherwise. They believe in the mighty gummint.
So be it. Ka has spoken(whatever that is). We have no sinews left in us. It would likely do no good anyway. The tragedy has gone on too long. Too deep it has ran and far too wide.
Who can bring back wildfowl or honey bees or the big grandfather oak trees or the wild nut trees or even stop the relentless cutting and destruction? No one.
Ag is busy stripping out the land. The runup in grain prices brought this on. The dollar seems to be all that anyone cares about.
Airdale-who hears in the background the haunting strains of 'Waltzing Maltilda'....and wonders...
Thanks Airdale -
I appreciate your posts. (I almost said "I love to read them..." but to love to hear that which you observe would be perverse.) There's been some discussion of hunting in the last week. I believe, based on my experiences and knowledge, that folks are completely deluded if they think ANY edible North American creature could last more than 1 season if even a fraction of our current population decided it was time to hunt and gather.
One thing humans do well is to hunt. Our state of overshoot would be abundantly clear in about 2 days if even a fraction of the population made an effort. This goes for any resource - deer to mushrooms, ducks to trout. We could drive any species to extinction in 2 or 3 years. Fantasies about living off game are just that, utter fantasies.
Fried Green Tomatoes ... it'll be like that.
Funny thing is- lots and lots of deer running around here, everybody has killed one with a car, usually to tune of big bucks for repair ( groan!), and yet people who bitch about too many deer DON'T hunt them!
Right at the moment I have three split carcasses hanging in my coldcave, awaiting my work, and a lot more of my wife's work, to put them into nice little bags for the year's meat.
I tell people we eat no meat but deer and chickens. They shudder in disgust, as if I have confessed to cannibalism-- Jeez. I am sure that in need they would eat deer, or for that matter, rats -or students, but not now, still high on petroleum, they scorn anything but fat sizzling beafsteak.
So, I agree with Orlov- the higher we are flying now, the harder we hit the rocks when we run out of juice. So, for goddssake, people, let's get down to a lower altitude fast, please.
But then I keep coming back to that old bad, bad thought lying back there in my reptile brain- maybe people aren't worth saving anyhow.
My lifestyle doesn't include hunting ATM, but I have in the past and probably will in the future.
Some of my community college classmates and instructor were discussing the different taste of deer. I've always had corn fed deer (Nebraska).
One said his brother had cooked up some deer from, I think, Colorado. The deer's staples were scrub brush and what not. His brother thought the meat was great but classmate strongly disagreed - but didn't have the heart to say anything derogatory about the meat to his brother.
Hi wimbi,
re: "eating deer and chickens"
Something I've wondered about...
The agricultural system is supported by a cadre of soil scientists and other specialists who can advise farmers on both organic and commercial farming.
When it comes to hunting and fishing, (and poultry-raising) there's a similar issue, in the sense of the health of wildlife populations - that they need to be monitored, and also, someone(s) have to understand how to do this.
This is a quote from an undated article on the problem of information.
“While humans have places such as the National Center for Infectious Diseases and the Center for Disease Control and Prevention, biologists aren't as fortunate. Organizations such as The American Association of Wildlife Veterinarians, the National Wildlife Health Center and Wildlife Diseases Association exist to help monitor wildlife diseases. But the weak link in the chain is getting reliable, consistent, quality data to these organizations.”
http://www.createstrat.com/muledeerinthewest/diseases.html
And here are some links on the subject, more generally.
http://wdfw.wa.gov/wlm/cwd/gametrails.htm
http://www.cws-scf.ec.gc.ca/cnwds/ann2_e.cfm
http://www.mnr.gov.on.ca/en/Business/FW/2ColumnSubPage/STEL02_168752.html
So, the question then becomes: How does "peak oil" and the economic consequences of same affect our ability to feed ourselves, eg., specifically, in this case, how do we maintain our ability to apply the benefits of science to our food supply?
I pause in my little chore of cutting up the meat to note that I am a descendent of a very long line of deer eaters, all of whom lived long enough to get to me. In other words, everything is risky, for sure, and maybe I won't make it past my next chomp on a haunch.
My wife worries a lot more about this sort of stuff so I will somewhat reluctantly pass your good links (we thank you for your kind attention) on to her to worry about, hoping she will not shut down our present cosy relation with those deer out there staring soulfully in the window at their passed-on siblings.
The risk I worry about is getting nailed by the toyota piloted by that boozer at the end of the road.
I wonder about crawfish and nutria. In part because of their habitat(s) and limited human access to some of them.
Alan
This is a pretty good read in line with the current "mood".
"Food Is Different"
by Jim Goodman
http://www.madison.com/tct/opinion/column/guest/317215
"The book is dedicated to Lee Kyung Hae, the Korean farmer who took his life in protest against the World Trade Organization on Sept. 16, 2003, at the WTO protest march in Cancun, Mexico."
"Most farmers I know, myself included, have a strong attachment to our farms, the land, our heritage, but it is a life-or-death attachment for very few of us. These peasant farmers are different; they will die for what they believe."
"How could we have let our world slip so far? Why must people die for their right to feed themselves? At what point did the profits of multinational corporations become more important than the lives of farmers? We must get agriculture out of the WTO."
More important than the lives of everyone who isn't part of the rentier class.
If you think about it, we've not only been mining out the last of the oil, ores, and top soil, but even the health of our people. We feed them an all-corn-all-the-time diet, raised with Frankenchemicals on nutritionally depleted soils, and then suck the people who eat this crap into the for-profit health industry (Big Pharma) for the rest of their lives. (Chris Rock: The money isn't in the cure. It's in the come-back.) The people are malnourished and obese, and to deal with their symptoms we sell them drugs that destroy their livers. Then we sell them drugs to handle the symptoms of their destroyed livers.
All so the rentier class can get a cut of everything we do.
The other day x put up a comment in which he said that the key to dealing with peak oil was increasing utility--what that basically means is we need to get the rentier class off the backs of the people, and put the resources in the hands of the many, where they can do the most good. That's what westexas's ELP prescription actually comes down to as well. If we actually did that, I think peak oil could actually improve the quality of life of most people.
Of course, so far we're doing exactly the opposite--at the moment, the government is throwing everything we've got left at the rentier class.
Yeah. Eat the rich...or compost them if you are on a low-fat diet.
Thanks Airdale. I don't think I could stand to live with ya, but always enjoy reading your posts :-)
I'm glad you are still with us, for now.
Appreciate your comments Airdale.
To follow on the thread of There are No Birds
I'm writing from the heart of the tallgrass prairie-- the duck factory of North America. Geographcially at the confluence of Minnesota, North Dakota, South Dakota.
There was no migration this year. No geese. No duck. No egrets. No pelicans. No cormorants. In other years the sky and wetlands are full of waterfowl. I've called around to my Ducks Unlimited neighbors and talked with hunters. There are no migrating waterfowl this fall.
Local thought is that the migration has moved further north. That could make sense with the warming climate-- but this is the pothole prairie. The shallow lakes region where these animals feed enroute. That landscape doesn't extend much further north.
So Airdale- not sure where you are located. But the same observation holds here on the prairie.
I believe Airdale hails from W. Kentucky.
Hi all,
Now this is just one observation, but here in Vancouver, BC, I overlook an urban park with lots of open grassy fields where the kids play baseball and soccer. Three bird species are in strong supply at this park: geese, gulls and crows. Just yesterday evening, as the cool blue light of dusk began to fade I took a walk around the park, and watched the geese take off, group up in their classic V-formations and head south, probably to the wetlands around Richmond. Recently, I took my daughter to visit a pumpkin patch, and we saw a healthy population of ducks in a local pond. Also, bald eagles continue to occupy the forested areas around the University of British Columbia, with a host of other species.
I enjoy the antics of the three bird species that dominate the park--especially the crows as they are always getting into everything, with a focus on the garbage cans. Occasionally, we are treated to some other bird species, more often than not chickadees, and one time recently a woodpecker. From the urban "frontier" on the Pacific coast, the limited selection of birds that I see appear to be doing fine. At least for now.
Maybe some migration routes are indeed shifting in your area...
-best,
Wolf
Now that you mention it, it's unsettling. Haven't seen or heard the Snow or Canadian geese this fall. This is the time. I hope it's just late. Been warm, relatively snowless.
Checking, Waterfowler says the mallards should have started moving last week with the cold, they don't show much goose movement. Still in Canada.
http://www.waterfowler.com/inportal/index.php?env=-map#
"Haven't seen or heard the Snow or Canadian geese this fall."
I've been schooled not to call them Canadian as the do not hold passports.
Canada geese.
Nit pik out
GenX believe in the government? Riiiight.
Seriously. Anyone my age thinks government is pretty much completely useless. Lying weasels employing lazy bums.
Even the stuff government does relatively well (roads, sewers, policing) doesn't get much credit.
We've never seen an honest politician (although, reading from any time period from ancient Greece to Twain, neither has anyone else). We've never seen a government program do what it was supposed to, end when it was supposed to, or be much of anything other than a way to steal our money.
We, mostly, aren't yet sick or feeble enough to care about the social safety net. We don't remember a time when it didn't exist. We know that the "homeless" are still collecting welfare checks, even if they choose to drink or inject it rather than use it to eat.
Rely on the government? Hardly. Cluelessly dependent on it? Perhaps.
I had a short piece in yesterday's DB on falling land and commodity prices.
As of last spring, the sale barn won't accept horses without a deposit. They are tired of feeding abandoned horses that no one can sell at any price. Between new regulations and closure of an older rendering plant, it is impossible to get rid of them even for a slaughter market.
Feeder calves are lucky to get .80/lb, maybe 250-300 for nice ones. Sheep/lamb $15-20/head in lots, for the fortunate ones. We really don't have a large enough market to test for sheep, they all must be be shipped on to larger sale rings. But try raising at 15/head. I have yet to see anything for a pasture lease. Those cows ate expensive grass all summer, now can't finance it. Welcome to farming.
There's nowhere else in this DB that this fits into, but it has to do with gold being in backwardation, and that being a very, very bad economic omen.
But I don't understand this stuff worth a darn. Anyone can put this in everyday English? If prices go up and down, doesn't a commodity HAVE to go through backwardation regularly? Help a guy out: why is this such a bad thing?
http://www.safehaven.com/article-12012.htm
Even tho I don't get it, this is one of those articles that makes the hairs on the back of my neck stand up... tell me why.
Cheers
According to this Minyanville article, http://www.minyanville.com/articles/index.php?a=20126
There's plenty of fear of a global financial collapse and there's definitely not enough physical gold to meet actual demand if it arose of the need to produce the physical real stuff for the paper type on the futures market. Plus with all the central bank inflation (which may or may not work depending on which country you are in) Gold could easily spike big time.
Another way to look at it is speculators are being paid a huge premium to go long. Which means commercial traders--those who buy gold to make jewelry or whatever gold is actually used for, apart from its use by goldbugs as a store of value--don't expect to need much in the near future for commercial purposes.
It's probably both. Nobody expects to sell any jewelry after the holidays, and lots of people expect to see a major devaluation of currencies.
It means there is a "price" for gold and there is a real price, and the two have begun to diverge over the last six months or so. There's an ETF based on the "price" of gold, and it is manipulated through fancy financial engineering which I cannot begin to understand. Since no actual metal (or very little) was harmed in the making of the ETF it has only slightly more relation to reality than the price of AIG stock.
OTOH you can call up a broker, visit a coin dealer, or shop around on ebay. What you may find is that the real price hasn't declined nearly as much as the "price". Also, it means that people who have it are simply keeping it and not selling at the current "price". A broker whose web page I visit has no platinum, no palladium, and only intermittent supplies of silver and gold since last summer. You must expect to wait several weeks for delivery and pay a premium over spot price.
But that's just due to a shortage of small coins and the like. If you can take delivery of a greater amount of gold, you can easily get the lower price.
Agreed there is a general reluctance to trade small silver and gold for paper now on a retail basis at the spot. Big lag time on supply of small coins. To me this means individuals are looking for something 'liquid' with which to trade in case of a currency collapse. Locking in a 'strong' paper dollar at today's rates is getting real crowded. Contrast this situation with the other retail spaces in your neighborhood.
Seeing more stuff like this Trading a mint MGA for silver or gold Survival food for silver too.
Why would people having difficulty making mortgage payments go out and buy gold? They cannot pay their mortages in krugerands. As the price of gold went higher all sorts of gold mines opened, even as far away as China. When you buy gold you are paying for large scale mining operations. Huge trucks and shovels, heap leaching pads, gold refining, some middlemen, a whole bunch of employees and hangers on. When the bills come due you need money in the bank instead of paying to open another gold mine. In effect you have to hold currency in cash to pay the bills or borrow when lending standards are tighter, then you have to try to find money to buy gold to make the price go up, at the same time the mines dump cheap gold on the market. Then as backwardation progresses people see the price of gold is going down or as you say "backward" and they start to dump more on the market. Eventually the panic to buy the heavy yellow metal disappears and people panic to sell it. People standing in unemployment lines may need to sell their gold to some gold dealer. Gold was also the target of burglars. Many people did not expect the theif would come and then had great sorrow they were not better prepared.
This is an article written by a gold bug, and therefore is fatally flawed. Just look at the quote: "the gold basis is a pristine, incorruptible ..." There is no such thing. Gold is less useful than wheat (eatable) or crude oil (useful energy): you cannot eat gold, it has no energy content and the industrial uses are limited (more limited that e.g. platinum). Gold has fluctuated enormously in the past (previous peak of the 70s/80s bubble was over $800, then down to $250 in about 20 years, up to $1,000 in a few years and now down to 750.
In the current crisis, cash is king. If you believe in a total collapse, you need land and guns though. Move on to the survivalist sites in that case....
I think the author is referring to the fact that the price of coins is higher than it usually is over the spot price. Much more gold is traded on the paper futures market than is physically moved and delivered. The spot price is determined by these paper trades and as asset classes have been sold to rebuild balance sheets and cover debt the spot price has fallen.
It is true that the physical price of gold bullion coins currently carries a higher premium over spot than it historically has. Many believe this is because the supply of actual coins is less than the demand for them. It is easy to buy a paper contract for gold futures but some believe getting delivery of the underlying asset would be difficult because the different commodity markets do not have enough supply to make delivery if those that held the paper did not roll them over or take cash for their futures contract.
Living off of boiled acorn flour, boiled pokeweed salad, wild onions, and cattail roots is a collapse in the economy. Living off of guns is worse.
You want to be with members of your own tribe when the tribulations start. Moving to a developing country would be a huge mistake.
Hello SolarDude, I am actually from a developing country - Kenya. Though currently I reside in Australia, I am thinking of moving back home.
I think a lot of people will end up going home when push comes to shove. As Mike Ruppert did. He tried Oregon, and Venezuela, and in the end, went back to probably one of the least sustainable places on earth: Los Angeles. But it was home.
Still...Kenya? How is it there these days? I haven't heard much about it, after the riots. Was the press coverage accurage, or were they making it sound worse than it really was?
Well the press coverage was quite accurate but some of it was over the top. Large parts of the country were largely unaffected. It was really a tribal based conflict rather IMO. Even within the capital city there were some hard hit areas especially the slum areas but the middle class/ upper class areas were effectively in a bubble. There were shortages of food, milk etc but not too bad.
When living in a developing country, it's full of paradoxes. We are quite used to power outages, water shortages etc but you'd be hard pressed to find a home in the middle/ upper class without maids and servants - it's just a fact of life. Within 20 minutes of each other you can find grand and luxurious shopping malls and what I believe is Africa's biggest slum - Kibera, with more than a million people. Unemployment in Kenya varies widely given which statistic you take, from 12% to 40%. So we have been in depression since forever? Half the population lives on less than a dollar a day, but life still goes on. The country functions. There are lots of problems related with poverty, including a high crime rate but people are used to the hardship of life there IMO. So the fall could be less of a blow (I could be spectacularly wrong as well, just next door we have Somalia, Sudan with the Darfur genocide and Rwanda, remember the 1994 Genocide?)
Kenya uses about 68,000 barrels of oil per day and has a population of 37 million people, mostly rural. Our largest city has a popn. of 4 million. The thing is that I have close family in the UK, the US and Canada so I could possibly move there. I could stay in Australia if I wanted too but the job market appears bleak for recent graduates and I really wonder whether Developed countries can take the blow, especially with their super high expectations and way of life. Lots to think about. I'm just trying to figure out my place in life and how to best prepare for a future which by reckoning is going to be fundamentally different.
Hi VK,
What most people forget is that our very short and paradoxical petroleum based civilization is what is different. We (or what remains) will be returning to normal.
Find your tribe.
Hi Sterling, thats true. It is easy to forget. I guess having been brought up in an oil based world I tend to forget that these past 200 years have been outliers, a result of extreme fortune in the short run and terrible misfortune in the long.
The question really is how can one adapt to a life post peak and which country is most suitable? Peak oil preparations are normally for people in developed countries and while some issues make sense for developing countries, most do not. The vast majority of Kenyans already live in rural areas and many grow their own food. The big thing than is clean water and healthcare but somehow we have been going without these in large parts of the country forever and ever and life seems to go on, don't ask me how? It just does! Though obviously it is a big issue in the cities.
Even I can't imagine the life of the average Kenyan to be honest, i've had a pretty solid middle class upbringing with some perks and a few downsides too. Hopefully ASPO South Africa can address this issue on lack of literature for developing countries. On a global scale I can see rural china and India quite possibly coping with peak oil but the urban areas will be severely affected I suspect. As international trade and finance dries up, as the fractional reserve system goes bust, as lack of oil for manufacturing hits factories, as the call centers die down, people in these sectors will be greatly affected. While for the poor peasant farmer life could possibly be the same or even better?
A local friend of mine promotes small scale, self-sufficient mini-farming and lives here in Willits. He doesn't get a lot of traction locally, but when he travels to the "developing world" lots of people show up and listen and take training courses and set up local libraries and educational institutes, etc. He has had a lot of following in Kenya (among many other places).
So, he likes these places because he doesn't have to convince anyone that life is going to be hard, fossil fuels and the money system will be rare or unreliable...there's no great preamble to go through. They just want to be better at harnessing water, soil and sunlight to eat better.
Willits CA? Thought I saw this jumping off Post Carbon Inst:
http://www.willitseconomiclocalization.org/
and: http://transitioncalifornia.ning.com/
Probably true. Kenya might be a lot safer. Us spoiled westerners will probably have the most difficult time adapting to even the smallest changes. Last summer Pew Research showed a dramatic drop in those opposed to drilling in ANWR as gas prices rose higher. Precursor to "drill baby drill."
http://pewresearch.org/pubs/884/gas-prices
And we hadn't even suffered any real hardship.
Thanks, interesting info.
And yes, I do think the high expectations people have in the US will be a problem, particularly for the middle class/upper middle class. Even people who sense that something's seriously wrong are doing things like taking on massive student loans to major in things like philosophy or French literature. And then making it worse by taking our more loans for a PhD or law degree while they "wait for the job market to turn around."
Still...the fall might be quite slow. There will be a lot more bailouts coming, between the economic situation and the Democrats taking the reins of power. Expectations could be ratcheted down slowly enough that it's not too much of a shock. Probably will be, because it's in our politicians' interests not to upset people too much.
Hi Leanan, since you've lived in different parts of the world you probbaly know what life is like there. For those TODer's interested.
These two two worlds in any developing country, the reality that a few experience, maybe 20% of the population or less. Could such massive inequality be what the future holds? And the locations in the images are about 20 mins away from each other.(Yes there is massive inequality in developed countries, but it pales in comparison to what the rest of the world may consider unequal)
A collection of Images that you don't really see in the MSM
Additional Image of lifestyle shopping
The other is Africa's largest slum and the massive poverty, which is probably seen a lot on the MSM.
Overlooking slums
Kibera Slum
My guess is yes. That was my prediction four years ago, and I haven't seen much to change my mind.
I could foresee a future where the wealthy live in walled enclaves with their solar, wind turbines, etc., and the poor live in slums outside the walls. I think the middle class will disappear...and the vast majority of us will be moving down, not up.
But remember, the big movement to the slums came from peasants being forced off their land by low crop prices due to industrial agriculture.
Once oil gets more scarce, or money becomes worthless, peasant farmers become valuable again. Small organic landholders are more efficient food growers on a per-acre basis anyway.
I see a future that looks like Cuba. I'm going to Cuba early next year, by the way.
I think we are in overshoot, if we're planning to go back to subsistence farming. Also, the best farmland is now in the hands of agribusiness, and I don't see them giving it up.
My guess is if we go back being peasant farmers, the peasants won't own the land. They'll be working for large corporations as indentured servants, or on government farms in some kind of "workfare" program.
I don't think Cuba is a reasonable model for us. Cuba is the size of Pennsylvania, and about as densely populated. They're tropical, with a year-round growing season. And they're still dependent on imports for staples like rice and beans.
Another danger in the subsistence farming model of the future is that it's likely to reverse the progress we've made on population control. It all comes down to population. If we don't fix that problem, nothing else we do will matter.
I think there's abundant evidence we are in overshoot, period. While there may be examples of near-sustainability in the Amish or in Cuba, there's always the caveat: "Well they are importing X". When the US, Russia, Brazil, and China no longer have the means or inclination to export X, there will be shortages.
"It all comes down to population. If we don't fix that problem, nothing else we do will matter." Truer words were never written. Though it's more than 200 years old, this concept needs to be reiterated to the max.
I've read this before, and as someone who has lived both in developed and developing countries, including the Philippines...I don't buy it.
I think many of these countries are in massive overshoot, and this will become more and more evident. Millions may starve in Africa next year; aid organizations are begging for aid, but the countries that usually step up are busy trying to prop up their banks and such. High fuel and fertilizer prices were a problem all over the world...but it was Bangladesh where farmers rioted, not the US or Canada. There were food riots in Africa, not in North America.
Thats true, maybe a case of competitive exclusion? I remember totoneila said that Africa uses 1/6th of the fertilizer per hectare that America/ Europe use.
So those with the financial clout will muscle out the countries with lower incomes for those resources. But eventually as the peak oil situation worsens and the financial crisis gets deeper is that the rich will out compete the middle and lower classes in the US and Canada for resources.
Also I wonder if the peak oil meme were to truly spread, it would bring about collapse much faster? As countries with the oil, fertilizer, coal etc would begin to hoard their resources for themselves and friendly neighbours. As with the peak oil message, net energy exporting countries would than realize that the money they are getting is actually worthless. It would only serve to accelerate the ELM model. I think thats why even though the IEA, EIA may get the message on peak oil, they really don't want it to spread?? Just a thought.
And thats the basis for resource wars, countries desperate for resources struggling to get them from resource rich countries.
VK,
Thanks for your insight into low-energy living in Kenya.
Dividing the population of 37 million by the 68,000 barrels per day oil consumption gives 544 persons per barrel. That's about a teacup per person per day.
Someone might like to do the same calculation for their own country, an exercise which will really bring some perspective to the extent of how western countries differ from developing nations.
Will developing nations will be better prepared to survive any energy crisis? Of course there will be food shortages and disruptions caused to agriculture, but I think that the people naturally have more self reliance than westerners who have had a relatively comfortable last 50 years - fuelled by petroleum.
However, it must not be forgotten that Zimbabwe probably represents the rate at which a country can go to ruins. Interviewed for the BBC last night, Archbishop Desmond Tutu said that "Zimbabwe has gone from being the bread basket of Africa... (long pause for thought) to becoming a basket-case".
Another interviewee, from neighbouring Botswana, suggested that Mugabe and his mob government, could be routed out, possibly within 2 weeks, by denying him, his army and his police force any road fuel. After some consideration, I realised that it was probably only access to fossil fuel, that was keeping his regime in their elevated position above the rest of the population. The effects of a petroleum siege are likely to be quicker than starvation.
2020
VK
Well, I live in Brazil, I would suggest its one of the best places to be once PO hits, but I am biased...
In many developing countries the share of people in the cities is already very large, and the skills to live off the land may go fairly quickly, still a lot more people would be somewhat comfortable around farms - I sincerely doubt, though, that farm communities or small farmers in developing countries know much about "methane generators and other practical applications". This does give room for hope in the sense that technology, even concepts taken relatively for granted can still make a huge difference if put together with the field knowledge of the rural population in many countries, there is a LOT of room to improve things, including food productivity, with education and relatively simple techniques.
(On a side note, the other day I saw on a TV program a guy who had developed a way to create solar water heaters from used milk/juice cartons and PET soda bottles, since in Brazil some 7% of electricity consumed is for heating water in electric showers - and an even bigger part of it constitutes goes into the peak demand loads, as Brazilians shower after coming back from work, or before going to work - the possibilities for saving are expressive...this is the kind of common sense applications that can have a big difference, here is a link with a video:
http://www.designatento.com/design_sustentavel/eco-design/aquecedor_sola...
(in Portuguese, but the diagrams are self explanatory...in the end you see a solar heater installed on top of an army barracks, 1800 bottles for a company of 50 soldiers!)
Besides this lower expectations and ability to "make do" with less while still feeling satisfied, what many developing countries have going for them (even more affluent ones like mine) is less of a propensity for waste and frivolous buying. This is another reason for hope, most of the hard core survivalist types I read from on TOD and other sites sometimes seem to forget that industrial societies have a LOT of "fat to burn" before receding back to the dark Ages, way before we are back to the Quest for fire, we will have abandoned most of the crap that people buy on late night shows in favor or more common sense consumption. Including a pet peeve of mine: "the apple corer". Apologies if I've offended someone but "what are people thinking!!??", its called a knife, and it takes 3 moves to core an apple...or just use your teeth to eat around the core! just to think on the amount of energy used on the steal blades that have one single, meaningless use drives me nuts.
Brazil is a country with nearly 200 million people and of a size larger than the continental US, still, according to a Brazilian magazine- this sounds a little overblown to me, but it is a pretty reputable magazine, so I'll take at face value - American consumption of electricity JUST TO RUN AIR CONDITIONING is superior to the total Brazilian electricity consumption. This lower electricity consumption allows Brasil to have a share of renewable on its electricity mix approaching 80% (45% on total primary energy use, thanks to ethanol, and hydro).
Finally there is a pretty reasonable perspective to keep us out of the caves after PO if we learn to use more efficiently available resources while giving people in developing countries a fair chance to prosper...in Brazil we use something like 2% of available agricultural land (this excludes the whole of the Amazon ecosystem) to produce enough ethanol to run half the cars in the country (ethanol consumption topped gasoline in October). It is not a small car market, Brazil is the 10th largest consumer of energy in the world, and this year more than 3 million cars were sold (almost all of them flex fuel), and seating here I can see just from my window that there are a lot of savings that can be done even here, with MUCH better public transportation (mostly diesel buses here, it could be more based on subway systems, and light trains, for instance), better use of water, etc.
I am not sure if this would be applicable to every developing country, but probably in more countries than people think. And I really believe that the whole oil for food debate does not really apply so much to impoverished countries in tropical areas of Africa and Latin America or so strongly in developing countries in general – high density population Asian countries might be a different matter.
In Brazil, some improvements and technological adaptations to specific conditions of tropical countries (some of the most successful ones actually REDUCE the use of fuel in agriculture like the no-till method (check no-till at the World Bank site.) have enabled great leaps in productivity: between 2000 and 2008 grain production increased from 83 million Tons to 140 million tons, chicken, pork and beef have increased by 50%, fruit production also increased significantly, Brazil uses today 62 million hectares for agriculture, and 220 million for extensive cattle raising. With more intensive cattle production (or reduction on beef production) there would be a lot of room to increase production (without touching any more of the Amazon – whose economic/developmental/environmental challenge may be grounds for another post).
Thanks for your input onedip. Brazil seems like a really great place :-), alternative energy, copacabana beach and football (soccer).
One question in my mind though is, that 81%+ of Brazil's population live in cities. So once peak oil really hits hard, a lot of people are going to be unemployed as Brazil's biggest trade partners are Japan, China, USA and Germany I believe. So while people generally have low expectations in most parts of the country, we might see a lot of chaos throughout South America, Asia, Africa etc as the big question of massive unemployment hangs over countries and governments like a guillotine. Once the US, European, Asian economies enter terminal decline and the paradigm on no growth, what I fear most is the instability and rise in crime it may cause.
Even in Kenya, while most may not even notice peak oil and can shift to lower standards of living, a significant part of the population will be affected, accompanied by a rise in crime.
There are a lot of variables and a lot of interactions and predicting the future is really complicated. I reckon that there are going to be hard adjustments made in every country. The degree of adjustment is what will count. Some will be less scathed than others, but all will possibly face instability, unemployment, significant falls in living standards and life expectancy.
I totally agree, no one will come unscathed from PO, rather, all will take a serious bruising ( to put it mildly), while I just tried to convey with my post is that there is still a lot of room for improvement to both rich countries excessive consumerism and waste, and poor countries lack of education and technology for production, etc. Maybe, PO will be a chance for the two separate worlds we live in meet each other "half way".
I also agree with you that one of the main ways all countries will be affected by PO (other than the obvious shortage of energy) will be through commercial contagion, but here too, there might be some room for improvement. One huge (some say the largest) handicap for better and more advanced production in poor countries are the very large subsidies rich nations give to their farmers (to the tune of 1 billion a day).
Well PO will probably raise prices so as to make subsidies unnecessary (as well as seriously constrain governments for cash), so maybe there will be some extra room for improvement there.
Finally, Brazils biggest trade on the aggregate is really with its neighbors, but a lot of commodities go to Asia and Europe (the US is a better market for Brazilian industrial goods). But the country is self sufficient on energy, has a more or less well balanced industrial park with and a huge surplus of food and raw materials (maybe even oil now..if it can be extracted from the presalt). It would have a decent shot at staying solvent and more or less self-sustained until we as a race figure a better way forward...or so I hope.
Cheers,
I also agree with most here, during a crisis, no matter what crisis, there is no place like home.
I lived in the Philippines for over 7 years in the periods of 1982-1987, 1993 and 2000. In that time the population went from 30 million to 80 and now 90 million people. The people seemed happier in the Marcos years, perhaps because there were more resources per person. Then came internet and cell phones and communication of economic disparities. In the large cities, theft became extremely common.
Whereas in the 80s, tuna weighed average 8 pounds, now they weigh 1 pound and look like bait. The have gill netted, trapped, poisoned and dynamited their waters to death. There are no birds anywhere, having been trapped and eaten.
I have a friend who has bought land in central Mindoro and has a lady there to manage his lands. Other expats have joined him and they have a large chunk of perfect farmland under cultivation. Good food , no medical. Another friend in central Mindanoa city of Cagayan de Oro has a lovely estate above the city with adequate food grown and fair medical. Another friend has a walled compound near Manila with no crops but great medical. They all have Philippina "marriages' and families and are hedging their bets while being able to move back to Oz, US, etc. I have sailed everywhere in the Phil. and can only conclude they are massively overpopulated with every eco niche filled to bursting. All infrastructure is failing and the next pandemic will cause chaos. This is a fifth world country. The people are lovely until angered. And anger is building.
If you want a fifth world country, better to pick one with a smaller population or maybe a fourth world country.
IIRC definitions of 'worlds'
First world - N. Amer, Europe, Japan, OZ, NZ
Second world - Soviet Union and Satellite countries
Third world - Those countries capable of becoming first world. IE Singapore, Korea, Taiwan, Brazil,
Fourth world- Countries with the possibility of rising to an adequate standard of living, so so infrastructure, but not the basket case of the fifth world. IE Argentina S Africa, Malaysia, India
Fifth World - Basket cases that are never going to dig themselves out of their problems. IE The Phil, Most of Africa,Indonesia. One step away from anarchy.
Best idea, stick to where you have a circle of friends who know how to handle themselves.
Dave on Meander.
I teach a course with students from all over Asia. Many Chinese, Vietnamese, Laotians, Myanmar, also people from the former Soviet Union (Uzbekistan, etc.) My students tell me that their countries generally all have 60-70% of their population in farming. Many farmers use all kinds of horses and cattle in their work. Many families have only one car or often no cars. Lots of countries have most people living in villages, where commerce means the market square, where people often walk to trade their wares. When I explain to them about how I grew up in a suburb of NYC, with two cars and food coming from miles away in trucks, they are amazed. They don't have suburbs, generally.
I have no doubt that long after many Americans have experienced the most abject poverty and starvation, people in the countries where my students come from will still be buying and selling useful things they make and grow, just as they have for centuries. The majority of people in the world have been practicing ELP all along! I'm not saying peak oil won't touch them, but since they don't use that much to begin with, it's not much of a stretch. Orlov is thus correct.
I noticed that in the NYT today there's an article about how wealthy parents in the USA are trying to send their children off to college in Scotland and other foreign countries. Of course, cheaper tuition plays a part, but I think there is also a desire to get the kids somewhere else, where life has more chance to flourish without high energy inputs. These parents are rich and smart, they can read the situation very well, even if they don't articulate it on TOD or even know about TOD.
Years ago, on my honeymoon, I had a revelation in Kyoto. My new husband took me to one of the most famous temples, it's called Kiyomizu. I took one look as we started to ascend on foot the winding road leading up the hill and I saw no huge parking lot (actually no parking lot at all) (I was expecting--you may laugh-- something like the parking lot at Disneyworld in Orlando). "If this temple is so famous how come there's NO PARKING LOT???" I wanted to ask but before I could form the question the answer hit me with the force of a bullet train: these people had been doing everything without cars for millenia. From then on, I "got it" and when I moved here I was anxious to do without a car (it's been very easy for us and since my husband hates cars (he hates driving) I never need to worry that he'll buy one on the sly!) I make constant notes when I visit a new town in Japan about how much a car is needed, how much food is local, etc. Even before I found TOD I've been focusing on these things because it's been my life.
As for the idea that one is going to go home when things get tough, I would argue that it's a generalization that is probably just as untrue as it is true. For one thing, where is "home" for a married couple with families in two countries and extended family in five countries? And after 13 years in a new country, just where is home? And even if I were to go "home" actually my parents have moved to a new location (as Americans often do) which is not in any way my home at all, even if it is in America. And furthermore, as things really change in America, as people become producers like so many of my students' compatriots are, then it will not be like the home I left even if the location is somewhat in proximity.
My advice is to find a country which you like, even if it is America (which is after all very big and even though it(s so dependent on oil now it won't be after a while). And then call it home. Make it home. Voila it is home. Your home. Because you like it and you want to stay. And after a while you won't have a choice anyway because your mobility will be reduced, as will the numbers of cars and planes that made it possible. But that's OK because you are home.
I'm in total agreement with the views you have quoted. I've made this point before on TOD, but there's no harm in making it again. Unless you've actually lived in it or traveled through it (as I have) it is hard for anybody from the "first" world to understand what real poverty is. People who have nothing except the land they live on, a garden, some chickens, maybe goats, and if you're super-wealthy, a few cows/bulls. Peak oil will pass these people by practically unnoticed. There will be no medicines coming from the outside, life expectancy will drop a little, but otherwise, life will go on.
Those of us who have enough free time and access to post messages on TOD live in a world made possible by our energy supplies. Peak oil/energy naturally freaks (some of) us out because it really does spell a change in the way we live. Some respond by stockpiling guns and food. All power to them. Hopefully they will quickly eliminate themselves from the gene pool through gunfights and starvation. I know what is potentially coming, so I'm not too worried about peak oil and preparations I make are centered around primary skills such as growing stuff, preserving/pickling, and making stuff (e.g., carpentry).
What you haven't mentioned is climate change. If/when this change really kicks in, the people who live in the third world are really screwed. A prolonged drought comes and crops fail. Mass starvation and displacement will follow. There will be no food aid from the first world to save the day. Frankly it will be a holocaust on a scale never witnessed. That is what I don't look forward to. I just hope I'll be dead before then. I honestly don't think we'll experience significant effects of climate change for another century or so. But as I've mentioned before, predicting deadlines in a complex dynamical system is an exercise in futility. Things may turn bad in 40 years, it make take 200 years.
Presuming you are an American, keep in mind that a angry mob might not understand or take any note of the difference between a good American, a bad American, or a former American.
Why? Is there an angry mob in my vicinity which I should be on the lookout for?
Actually I was not born in the US but I was raised there by foreign born parents. Now we are all Americans, but it's so nebulous anyway. I really think many people all over the world look past citizenship. At least a lot of people I know do.
No angry mobs at the moment, but there may be in the future.
I don't think citizenship will be the big issue, but "fitting in" in general may be. When times get tough, people become less generous. Race, religion, country of origin, political affiliation, class...who knows which fault lines will be the ones people glom onto.
Kunstler gets a lot of abuse for his dislike of southern culture, but from his standpoint, he's probably correct. He would not fit in in Georgia or Alabama, while he does fit in in upstate New York. For some people, it would be the opposite.
He said he's from Kenya.