The world has changed faster than anyone realizes, and it's happened in slowly graduating increments. These events have been happening all around us and we've grumbled through the inconveniences, we've scrambled and made due with what we've had; but the time of reckoning is fast approaching. The dry spell recessions of the 1970's were just hiccups in history compared with what lies ahead. The dawn of a new age is upon us, the trade and financing rackets of recent decades are over. The extravaganza of economic hyper growth based on cheap resources is over. The promiscuous swapping around of risk and rewards is over. There is no global institutional framework for managing the impairment left in the wake of this financial mess. It will be up to the individual nations now to figure out their own national lives and livings; and that's why the G-20 leaders from around the world convened in Washington recently.
I BELIEVE: we're heading into what could easily be the most vicious and unpredictable financial cycle of the past 150 years. The rising Cold War on the shores of the Caspian (refer to my blog about the History of Georgia)...new terrorism and oil killings in Saudi Arabia...a coming military conflict over offshore oil under the South China Sea...Cuba has been reported to have discovered large oil deposits, these are all just shadows of a dark future. Even the most bright-eyed optimist KNEW these days would come eventually. But only a handful are plugged in enough to realize...that it's already here. I regard the most dangerous fantasy in North America right now to be the wish that we can keep running things just the way they are now. If you've got a few resources, some money tucked away, then this is the time for you to start taking significant steps towards not being so DEPENDENT when hard times come.
- Grow the food, store non-perishables, get a good how-to survival guide, water-purification, stored energy sources - invest in SURVIVAL.
NOTE: You have very little time before the last of the banking and automotive companies lose all their credibility. You have even less time than that to get ready. Because the panic doesn't begin when oil runs out. It begins on the day the rest of the world understands the historical "wealth reversal" we're in for when "cheap oil" becomes a thing of the past.
Oil has shaped America and it has shackled it at the same time. More than the Internet. More than the stock market bubble of the 1990s. More than the Japanese bubble of the 1980s. More than the real estate bubble that's just burst under our noses. Oil is what makes America vulnerable, America is an oil junky. Without oil, America shuts down. Farms close. Hospitals don't open. Streetlights don't burn. Trains and trucks don't run. Planes don't fly. This isn't some fantastic doomsday scenario. It's just a simple fact. How will president elect Obama or any other promising politician curb a 30 billion barrel per year addiction? Even 90% of the chemicals America uses for farming, making drugs and making plastics come from oil.
FACT: Some of YOU commute 100 miles per day to and from work. Six billion people on this earth driving 700 million cars. Every day, each car uses four times more energy in fuel than people need for food. At the airport, a thousand planes a day take off and land, each carrying as much as 24,000 gallons of fuel. Passenger jets alone burn about 1,200 gallons of fuel each hour.
The phones, televisions, washers, dryers, refrigerators and stereos in our homes. Ambulances, firetrucks and police cars. Hospitals and hospital equipment. The trucks, trains, and ships that deliver food to our supermarkets...our factories, tractors, turbines and compressors...Hot showers and Hot coffee. Fried eggs and bacon. Air-conditioned skyscrapers and air-conditioned theaters. Late nights reading in bed by lamplight or while on the computer reading my BLOG (smile). None would exist or arrive without oil.
FACT: At the start of this year, oil had doubled to around $100 per barrel. And George Bush had gone personally to Saudi Arabia, to beg the royal family to crank up production and lower prices. There are no politics to fix. No quotas to double or contracts to sign. The day when cheap oil disappears forever is not only coming. It's here. Come and gone.
HISTORY TEACHES US: Libya peaked in 1970. Iran peaked in 1974. Romania — once Hitler's prize petroleum conquest — peaked in 1976. Brunei peaked in 1979. Peru in 1982. Cameroon in 1985. Indonesia peaked in 1997. So did Trinidad. Out of the 65 biggest oil-producing countries, 54 have already slammed into the wall of peak production. That's serious. On average for the whole European region, the peak year for oil production was back in 2000. For the whole Asian-Pacific area, it arrived back in 2002. Even for the former Soviet Union, the oil peak came back in 1987. And the peaking dates for the rest of the major oil regions — including the Middle East — are right around the corner! Forget what politicians tell you, I can't stress that enough, because their all liars.
Recessions might give us a break on demand, now and then. But shrinking energy supplies always add up to rising prices. And what I'm showing you here adds up to a permanently shrinking supply.
Smart People aren't fuckin around...
Part 2
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