Mate, all this doomer stuff is a bit Seppo, yeah? What next, category E firearms license and the bangstick hidden down your trousers?

At worst we have a recession this year. Not a collapse, a recession. Unlike the Americans, we have banking regulations and oversight. Really the main risk to us is indirect stuff - the Americans buy less junk from China so the Chinese buy less iron and coal from us, etc.

But that is mitigated by (for example) China's having about $1.5 trillion of foreign currency reserves, and about twice (IIRC) as much savings in their own currency, so China will just focus a bit more on domestic consumption for a while, knock down their savings for a bit and find new markets.

Don't listen to Lovelock, he's an old hippie from way back, smoke that stuff for long enough you turn a bit mental. He's been sitting in his office in his little house for years, he's not exactly up with all the details of the science like some IPCC reviewer. He's got about as much scientific authority these days as your average anonymous blogger.

Defence is certainly not non-discretionary. During the "recession we had to have" the military was more than halved in full-time members. We just turn all pacifist and start talking about a "lean and agile force", that is a small military flying borrowed choppers.

We're not about to become hunter-gatherers. Bloody hell, mate.

Don't do anything in preparation for a collapse which isn't a good idea to do anyway. It's always good to pay off or at least minimise your debts. It's always good to choose security of employment over a fat paypacket. It's always good to be able to grow a bit of your own food, and fix up bits and pieces around the home, and so on. Just do that sort of stuff, leave the assault rifles and spam in the bunker in the woods to the loopy people who really love it.

Hi Kiashu.
I was hoping to start the year with something that outlined legitimate concerns, but added a bit of levity. Based on your comment, I suspect that I failed and simply produced some muddled writing.

The legitimate concerns:
- Financial. The outside economic world is in trouble. Here in Oz we are somewhat insulated, but in the 2-3 year time frame it is conceivable that we could experience a financial collapse (unlikely, because some Bad Things would need to happen first). This would be comparable to the Argentina economic collapse (http://en.wikipedia.org/wiki/Argentine_economic_crisis_(1999-2002) ) - I am not seriously suggesting that Australia would experience a collapse to "Hunter or Gatherer" status (I considered using "carnivore or snack" in that bit of the text...maybe I should have).

- Resources. We are experiencing diminishing returns, caused by the fact that the oil/mineral deposits that we extract are of a lower quality.

- Climate. Lovelock is at the extreme end. But he is not alone there. I think you should look at the full spectrum of opinions when doing multi-generational planning. However I am not really planning to be Kevin Costner from Waterworld.

Non-technical writing is not my strength. In future I will try to write less muddled narratives with more use of smilies to clearly delineate my moments of more light-hearted whimsy.

The problem is that what you say as a joke, other writers and commenters on TheOilDrum say entirely seriously. So it's a bit hard to tell. You have to be very clear.

Lovelock shares company only with other uninformed people. Informed people are much more moderate in what they say. Of informed people, Hansen's about the most extreme. But even he I think we can look at through the filter of, we'd all be doomers if we'd been talking about these things since the mid-80s and had begun by talking to that bunch of corrupt clowns in the US Congress.

Equally we must discount those obviously in the pockets of Enron etc.

So when we exclude the hysterical doomers and the corrupt cornucopians, we're left with a more sane middle ground. In there we start to look at things in insurance terms. There are high and low probability things, and high and low cost of mitigation things.

High cost Low cost
High probability Yes Yes
Low probability No Maybe

Obviously the things which are high probability, we must pay the cost to mitigate them no matter what - eg oil running short in the next decades. The things which are low probability but would cost a lot to mitigate we shouldn't worry about - eg nuclear war.

The things which aren't likely to happen but which don't cost much to mitigate are the "maybe" category. An Argentine-style economic collapse in Australia is very unlikely. We've an entirely different kind of economy. And you obviously think an Argentine-style economic collapse is unlikely, too, since you decided to keep a high-paying job - the Argentines lost all their savings in their economic collapse. If you really thought you were going to lose all your money then you wouldn't work so hard to get lots of it, would you?

So here you'd only do the things to make it not so bad if they're good things to do anyway. That's why I said I'd choose a stable secure moderate-paying job over an insecure high-paying one - that's always good. It's only if the only alternative to the high-paying insecure job is a low-paying secure one that there's any doubt, you start looking at how much money you could save, etc.

The best solutions to problems are where one solution solves several problems. This is the theory behind the old "teach a man to fish instead of giving him a fish." It's also what some greenish types call "the Theory of Anyway." It's the answer to the climate change or peak oil denialists - the things we do to mitigate the dangers of those things, they're good things to do anyway. Things like consuming less, avoiding debt, walking or biking instead of driving, eating less meat, planting trees - even if the Earth has a creamy nougat center of oil and burning coal gives us vitamin C, these are all good things to do anyway, things which improve our quality of life.

Something worth watching is SBS on Sunday night at 2030, Changing Climate, Changing Times.

To be honest, I think that the most likely scenario for the world, if we just let things drift, is a sort of ecotopia for a wealthy few in the world - probably in western Europe and eastern Asia, and the northeast and west of North America, with a few other outposts elsewhere - but with the nasty undercurrent of exploiting labour from the poorer parts of the world.

Something like what we see in India and many other developing nations - an effectively gated community of well-off people surrounded by slums and desperation. Only with an "ecological" turn to it.

I think this is most likely because the two key parts of an economy are resources and labour. In most countries, one of labour and resources are cheap, and the other expensive. When resources are cheap and labour expensive, we get machines doing nasty work, and humans can live cleaner lives.


No flying cars, but still pretty nice

But when resources are expensive and labour cheap, we get... well...


Shipbreaking supplies 80% of Bangladesh's steel

My fear is that we'll choose to have the second enable the first. Our steel will come from the sweat of their hands. It doesn't have to be that way, but with cheap labour and expensive resources, combined with our own selfish laziness, it's a likely way.

I think it's a nightmarish scenario, to be honest. I don't see how a society can be resource renewable without being socially renewable. Already we in the West live on the backs of the Third World to a large degree. Resource scarcity could make this worse. I don't want to live my life on the backs of other people, nor have others live on my back.

But it seems most likely to me. That's why I do what I can to suggest another way of living, one we can all have. I don't fear Mad Max. I fear Ecotopia.