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Assumptions

October 29, 2007,
When historians glance back at 2007 through the haze of their coal-fired stoves, they will mark this year as the onset of the Long Emergency – or whatever they choose to call the unraveling of industrial economies and the complex systems that constituted them. And if they retain any sense of humor – which is very likely since, as wise Sam Beckett once averred, nothing is funnier than unhappiness – they will chuckle at the assumptions that drove the doings and mental operations of those in charge back then (i.e. now).
The price of oil is up 53 percent over a year ago, creeping up now toward the mid-$90-range. The news media is still AWOL on the subject. (The New York Times has nothing about it on today’s front page.) The dollar is losing a penny a week against the Euro. In essence, the American standard of living is dropping like a sash weight. So far, a stunned public is stumbling into impoverishment drunk on Britney Spears video clips. If they ever do sober up, and get to a “…hey, wait a minute…” moment when they recognize the gulf between reality and the story told by leaders in government, business, education, and the media, it is liable to be a very ugly moment in US history.
One of the stupidest assumptions made by the educated salient of adults these days is that we are guaranteed a smooth transition between the cancerous hypertrophy of our current economic environment and the harsher conditions that we are barreling toward. The university profs and the tech sector worker bees are still absolutely confident that some hypothetical “they” will “come up with” magical rescue remedies for running the Happy Motoring system without gasoline. My main message to lecture audiences these days is “…quit putting all your mental energy into propping up car dependency and turn your attention to other tasks such as walkable communities and reviving passenger rail….” Inevitably, someone will then get up and propose that the transition to all-electric cars is nearly upon us, and we should stop worrying. As I said, these are the educated denizens of the colleges. Imagine what the nascar morons believe – that the ghost of Davey Crockett will leave a jug of liquefied “dark matter” under everyone’s Christmas tree this year or next, guaranteed to keep the engines ringing until Elvis ushers in the Rapture.
The educated folks – that is, the ones subject to the grandiose story-lines of techno-triumphalism taught in the universities – are sure that we’ll either invent or organize our way out of the current predicament. A society that put men on the moon in 1969, the story goes, will ramp up another “Apollo Project” to keep things going here. One wonders, of course, what they mean by keeping things going. Even if it were hypothetically possible to keep all the cars running forever, would it be good thing to make suburban-sprawl-building the basis of our economy – because that’s the direct consequence of perpetually cheap energy. Has anyone noticed that the housing bubble and subsequent implosion is following the peak oil line exactly?
It’s a bit harder to discern what the assumptions really are among leaders in the finance sector, since so much of their activity the past ten years has veered into sheer fraud. The story line that everyone is putting out – from the Fed chairman Bernanke to the CEOs of the Big Fundz – is that American finance is a python that has swallowed a few too many pigs, but if we jigger around interest rates a little bit more, and allow some more money to be lent out cheaply, the python will eventually digest the pigs and go slithering happily on its way along the jungle trail with a burp and a fart. From this vantage, one sees a rather different story: more like a gang of human grifters sweating through their Prada suits as it becomes increasingly impossible to conceal massive losses incurred through overt reckless misbehavior. My own guess is that a lot of these boyz will be in line for criminal prosecution before too long.
The political assumptions one hears are the most astoundingly naïve and ridiculous, especially the ones that involve other countries and our relations with them. NY Times followers no doubt believe, along with Tom Friedman, that the global economy is now a permanent fixture of the human condition, and that soon it will transform itself into a colossal engine of “green” (i.e. benign) commerce. Friedman and his followers tend to forget the second law of thermodynamics when spinning their fantasies of a world that can harmlessly manufacture and market an endless number of plastic salad shooters from one side of the planet to the other without incurring any losses to the health of said planet.
My own assumptions are somewhat different. I think we’re likely to see a lot of nations scrambling for survival, initially manifesting in a contest for the world’s dwindling supply of oil (and oil-like substances). For instance, when viewing the globe, few people consider that Japan currently imports 95 percent of its fossil fuel. Japan has been a “good boy” among nations since its episode of “acting out” in the mid-20th century and has enjoyed a long industrial prosperity since then. But what happens when there is not enough oil in the world to be allocated rationally by markets among the powerful nations? Will Japan just roll over and die? Will they shutter the Toyota factories and happily turn to placid tea ceremonies. I think Japan will freak out, and it’s hard to predict exactly who will feel its wrath and how.
Similarly, Europe. Americans view Europe as a kind of theme park full of elderly café layabouts swaddled in cashmere as they enjoy demitasse cups in the outdoor cafes of their comfortable art-filled cities (some of them not long ago rebuilt from rubble). Europe has let America do its dirty work for it in the Middle East for the past decade while enjoying tanker-loads of oil coming up through the Suez Canal. Europe has only had to make a few lame gestures in defense of its oil supplies. But the North Sea oil fields, which for twenty years have hedged the leverage of OPEC, are crapping out at a very steep rate. Sooner or later Europe will freak out over oil, and geo-political flat-earthers will be shocked to see that all the nations of café layabouts can mobilize potent military forces. God knows whose side who will be on, exactly, when that happens, and where America will stand – if its own military is not so exhausted that it can even stand up.
Personally, I think the world will be growing a lot larger again, and less flat, and that eventually America will find itself isolated once again between two oceans – though incursions by desperate foreign armies in one way or another, is not out of the question as the great struggle for resource survival gets underway. In time, however, I think the current Great Nations of the world will lose their ability to project power in the ways we’ve been conditioned to think about it.
In the meantime, our own nation has become a society incapable of thinking, and the failure at all levels of rank, education, and privilege is impressive. If you listen to the people running for president – many of them overt clowns – you’d think that that all the comfortable furnishings of everyday life can continue with a few tweaks of the dials. They are cowards and it is possible that they perfectly represent a whole nation of cowards who deserve cowardly leadership. The danger, of course, is that when a non-cowardly leader finally does step forward in a desperate America, he will not shrink from pushing around a feckless people, or doing their thinking for them.

Peak Universe

October 22, 2007
    The big Peak Oil conference of the year took place in Houston last week – but before we get to the substance of that, a few words about where we were.  It is hard to imagine a more horrifying urban construct than this anti-city in the malarial swamps just off the Gulf of Mexico.  And it is hard to conceive of a more desolate and depressing urban district, even of such an anti-city, than the utter wasteland around Houston’s convention center.

     Luckily, we didn’t have to enter the convention center itself across the street -- a baleful megastructure the size of three aircraft carriers, adorned with massive air-conditioning ducts to counter Houston’s gym-sock-like climate.  And when I say “street” you understand we are talking about four or six-laners, with no curbside parking, which is the norm for this town. The effect is that every street behaves like an extension of the freeway at the expense of pedestrians – but pedestrians have been eliminated anyway because in ninety percent of Houston’s so-called downtown of glass towers there are no shops or restaurants at the ground-floor level, only blank walls, air-conditioning vents, parking ramps, and landscaping fantasias.  We were informed that in parts of downtown there existed a network of air-conditioned underground corridors with shopping, but that everything in it closed at 7 p.m. when the last office workers straggled home.  Anyway, none of it extended as far as the convention center.  The rest of district was devoted to surface parking.

     It has often been stated that Houston’s ghastly development pattern comes from having no official zoning laws.  But all it really proves is that you can achieve the same miserable results of typical American boneheaded zoning with no zoning – as long as your don’t give a shit how people feel in their daily environments.

     The convention center itself, though, demonstrated something beyond even that degree of thoughtlessness.  Its pharaonic hugeness was a metaphor for the fatal grandiosity at the heart of contemporary life in American today, the utter disregard for a scale of human activity consistent with what the planet has to offer within its ecological limits – and of course the oil issue was at the center of that story.

     Oh, one final thing about Houston life per se.  Judging by the local items in the daily newspaper, the so-called city enjoys a level of mayhem that makes Baghdad look like a Sussex garden party.  Sample headlines: “10 Charged in Burglary Spree,”  “Pit Bull Shot Dead After Pony Attack,”  “Jury Gives Man Life in Carjacking Death,” “Two Killed in Home Invasion.” One particularly insane story told of a man who shot and stabbed a visiting friend who “dissed” his dog.  We didn’t see any of that action around the convention center's Hilton Americas, where the ASPO conference actually took place, but the news didn’t exactly make you want to venture out beyond the lobby.  Anyway, you couldn’t buy a stick of gum within a mile walk of the place, and the thought of traipsing past all those surface parking lots in 90-degree heat was like an invitation to reenact the Bataan Death March.

      It was a sublime coincidence of fate and history that throughout the ASPO conference, the price of a barrel of oil surged up through the high eighty-dollars range and briefly touched $90-a-barrel on Friday (just as the stock market was tanking by 360-odd points).  It was also interesting that as all this action was unfolding, MSNBC was running an interview with Senator Larry Craig (R. Idaho), lately accused of soliciting sex from a policeman in an airport toilet.  Apparently what the nation really wants to know about is the Senator’s self-described “wide stance” in bathroom technique.  Perhaps when Craig is finally forced from his senate seat, he can get a job as a “personal toilet coach,” and become the pioneer in a whole new realm of self-improvement science, teaching others how to assume the manly “wide stance” and become more effective leaders.

      So, while the price of oil ratcheted up hour by hour, the ASPO conference members heard from an impressive range of experts who have been leading the public conversation on the Peak Oil story – with no help from the mainstream media or the political sector.  Among them were Robert Hirsch, co-author of the now-famous 2005 Hirsch Report, commissioned by the US Department of Energy, which, much to the consternation of its sponsor, first told the nation in no uncertain terms that it was heading for a catastrophic set of disruptions in “normal” American life if we heedlessly continued energy business-as-usual.  Hirsch went a little further now, two years on, than he had in his famous report, predicting a future of “oil export withholding,” panicked markets, and allocation disturbances that would make the 1973 OPEC embargo look like a golden age.

      Matt Simmons, the leading investment banker to the oil industry, who has worked tirelessly to lift public awareness of Peak Oil, also raised the specter of shortages, telling the audience that market allocation problems in the near future would almost certainly induce “hoarding behavior” among the public that would cripple the economy, lead to enforced rationing, and shock the nation. Simmons compared the current public mood over energy issues to a “fog of war.”  He also repeated his oft-stated opinion that the drilling rigs and other equipment used around the world to pump oil out of the ground are so uniformly old and decrepit that they pose a problem every bit as dire as peak oil itself.  In the meantime, he said, to offset climbing prices, the developed nations have lately dipped so deeply into their accumulated stocks of crude and “refined product” that some countries may breach what is called their “minimum operating levels.”  Offstage, he told me, “We’re too preoccupied trying to figure out the exact date of the peak.  Meanwhile, we’ll drain the gasoline pool and it will be gone forever.”

      The other most significant contribution came from Texas geologist Jeffrey Brown who presented a full-blown version of his theory that world export rates from the countries with oil to sell are liable to decline so much more sharply than their actual production decline rates that the world would be thrust into an oil export crisis within the next five years – and that this export crisis would turn out to be the defining condition of the Peak Oil story.

      There were plenty of other fruitful contributions on subjects ranging from the future of the airline industry to reviving passenger rail service, to the question of nuclear power.  And there was one real clunker presentation by a shill from the Toyota corporation, designed to blow green smoke up the audience’s ass about the future of happy motoring (Toyota’s products will save it from Peak Oil).
      For coverage of the particulars, visit TheOilDrum.com, the nation's best energy discussion website.

      If there were reporters from the mainstream media present at this event, I didn’t run into of them.  They are apparently uninterested in the fate of industrial economies, at least as long as Senator Larry Craig is out there on the frontiers of toilet coaching science, and Britney Spears is still sparring with K-Fed, and Diddy is beating people up in nightclubs, and people are murdering their friends for dissing their dogs.

The Casino Syndrome

October 15, 2007
     The current mania to expand legalized gambling around the country is a clear symptom of how desperate and crazy this society has become. In a culture where anything goes and nothing matters, it is perhaps hard for the public to understand what's wrong with it. The gambling "industry" itself has very successfully masked its pernicious nature by putting across the idea that it is just another form of innocent "entertainment," on a par with pro sports, theme parkery, and Hollywood. In fact, gambling, or "gaming," as it cynically calls itself, has hijacked elements of all these other activities to conceal its main business, which is the systematic hosing of those who can least afford to be hosed.

      What's wrong with state-sponsored gambling is simple: it promotes the idea -- inconsistent with the realities of the universe -- that it's possible to get something for nothing. It is unhealthy to an extreme for a society to make this idea normal because it defeats another idea that a society absolutely depends on for survival -- namely that earnest effort matters. It conditions the public to magical thinking -- a characteristic of children-- and disables their ability to function as adults. The expansion of gambling is especially tragic at a time when this society faces epochal economic problems that threaten its existence, and by this I mean the permanent global energy crisis that will require us to reorganize virtually all the crucial activities of daily life. This is a time when the nation can least afford to disable adult thinking and earnest effort.

     I was out in Iowa last week, in the vicinity of Waterloo, where the John Deere corporation has laid off hundreds of workers in recent years. The town's solution to this problem was to invite a casino to town, and it now stands out above the cornfields like a grinning Moloch, mocking the aspirations of those who remain in the area -- and reinforcing the other foolish and destructive activity going on there, which is the corn-to-ethanol racket aimed at propping up American car dependency. Of course the idea that the backwaters of Iowa might compete with Las Vegas or even the ghastly Atlantic City for gambling tourism is laughable, so who exactly did the local officials imagine would be patronizing the blackjack tables of Waterloo at eleven o'clock in the morning?

     Plans are on the table all over the US for ever more casinos. In New York, campaigns are underway to put a big new one in the depressed Catskills, and another on the site of what is currently the squalid Aqueduct racetrack in the borough of Queens. We have a video-slot-machine operation here in Saratoga in what used to be a harness racing track, and every day it is filled with retirees pissing away their grandchildren's college tuition (in exchange for "excitement"). Next door
in Massachusetts, new governor Deval Patrick is working tirelessly to set up casinos in the de-industrialized cities of Springfield and Brockton (and Boston, too) -- as a painless substitute for productive work. The Illinois state senate just passed a bill that would put casinos in downtown Chicago and allow additional "riverboats" along the Mississippi River -- really just barges moored in fixed locations.

     Of course, practically every state has some kind if lottery. I have not been in a so-called convenience store (i.e. gas station with snacks) the past year without standing in a long line of grubby, pathetic people spending their scant dollars on lotto tickets (and cigarettes) -- instead of paying the utility bill that would perhaps allow them to bathe and apply for a job.

      I don't entertain fantasies that gambling can be eliminated from any society, but inviting it to operate in the mainstream under state sponsorship is just tragically stupid. There is a rightful place for gambling: on the margins of society -- and the crippling ideas that go hand-in-hand with it belong on the margins, too, like the belief that it's possible to get something for nothing. Real political leadership would take stand on this, even if it was unpopular.

     Anyway, I predict the time is not far off when an even-more-desperate public itself recognizes that we can't afford either the systematic hosing or the suicidal thinking that comes with gambling. They are going to shut it down. When they do, they will do it harshly and violently. They will turn on those behind it and blame them for promoting the idea that anything goes and nothing matters.

The Grass Roots Syndrome

October 8, 2007
Because I wrote a couple of books about the design of cities (and the shortcomings of suburbia), a lot of blather comes my way about what towns around the nation are planning for the future -- and, off course, I hear plenty on the subject in my own town, Saratoga Springs, New York, which is a classic "main street" type town. I also happen to travel a lot and actually see what's going on far from home. Almost everything I see and hear is inconsistent with what I think reality has in store for us.

Most American towns, including my own, are obsessed to the point of mania with the issue of parking and more generally the management of cars, and much of their spending is directed to those ends. Municipal leaders (and the public they serve) have no idea what kind of problems the nation faces with oil. Because life in the USA has worked a particular way all their lives, they assume that it will continue to operate that way. Not only will they be disappointed as happy motoring spirals into history, but they will create a lot mischief in the meantime in planning things based on faulty assumptions.

My own town, for instance, relies heavily on tourism, in particular tourism based on happy motoring. There is not the slightest apprehension among the people here, or our leaders in city hall, that automobile-based tourism may not be happening as soon as five years from now. All our political energy is being expended in fighting about what kind of parking structures we will build (with borrowed money) and where to put them, and how these things might incorporate some secondary uses, such as police offices. We have also been debating plans for the expansion of our modest convention center -- in connection with added parking structures. It seems to me that one of the first things to go as the US economy contracts, along with its energy supply, will be activities like boat shows and optometrist's conventions.

Now this town happens to be on a railroad line that connects New York City to Montreal. Before 1950, it was the main way that people came to this town. These days, we get one train a day in each direction. The trains are invariably late, and not just a little late, but hours late. The track bed is in miserable shape and, of course, Amtrak is a sort of soviet-style management organization. There is no awareness among the public here, or our leaders, that we would benefit from improving the passenger railroad service, and around the state of New York generally there is no conversation about fixing the railroads. (Governor Elliot Spitzer is preoccupied these days with arranging to give driver's licenses to people who are in the country illegally.) We are going to pay a large penalty for these failures of attention.

Another aspect of all this has to do with our assumptions about land development. Here in my town, and elsewhere around the country, the assumption is that suburban development will continue just as it has the past sixty years. This assumption is shared both by the developers themselves and their opponents. The developers expect the current "downturn" to reverse before long. From the opponents' point of view, the assumption is based on their legitimate fears and heartaches about what they've seen heedless development do to the American landscape. Consequently, whatever mental energy is left after the parking debates get tabled is dedicated to fighting over projected suburban expansion.

My personal view about this is apparently radical -- though I am a man of modest habits and philosophy. My view is that the suburban project, per se, in the United States is over, finished. Like, totally. You can stick a fork in it. What you see is basically all that we're going to get. Not only do we not need anymore of it, but we have way too much of what is already on the ground. We don't need anymore suburban housing pods, and the ones already out there are going to hemorrhage value (and usefulness) as far ahead as anybody can imagine. We need more retail like we need 300-million holes in our heads. Ditto suburban office capacity. Ditto new roads and highways.

The projects that people see under construction now are things that went through the torturous permitting process at minimum a year ago and generally even further back. I would imagine that many of the developers of these few remaining projects -- whether they are condo villages or strip malls or chain store "power centers" -- are in deep melancholy as they read the news and desperately search for tenants. Their lenders must be equally depressed -- and in some cases cutting off further injections of capital. What remains is what bankers call "the workout" -- where the financial chips fall when people's hopes and dreams collide with reality's separate agenda.

In connection with the imminent collapse of our investments in suburbia is the fate of all the laws and codes that have governed the creation of it. I think it is a waste of effort at this point to attempt to reform what we generally refer to as "the zoning laws." They will simply become irrelevant. As we get in trouble with oil, and driving becomes more of a problem, it will be self-evident that regulations geared to keeping cars happy can no longer be followed. My guess is that for a period of time we will see a condition of stunned paralysis in the council chambers and planning boards. Eventually, if we are lucky enough to retain effective local governance, a new consensus will emerge that will be more reality-based by necessity.

In saying this, I imply that societies go through cycles of collective thinking that range from being fairly consistent with reality to being dangerously out of whack with it. We're at the latter end of the cycle these days. One of the symptoms of this is the fact that so many Americans believe the only thing wrong with America is George W. Bush, and that if only we could wiggle out of "his" war, every day would be Christmas, with Nascar around-the-clock, time-outs for shopping sprees down the aisles of the Target store, 5000-square-foot houses for all (for $750 a month), and three BMWs parked in the driveway. . . with fries, and supersize it!

In reality, there's a lot more wrong with how we live and how we think about how we live than the mere presence of George W. Bush at the head of the federal government. Our expectations are deeply out of phase with what the earth can provide for us and what the future has in store for us, and this failure of our collective imagination goes down to the grass roots.


Two Clues for the Clueless

October 1, 2007
     The first clue came during a routine NPR news broadcast on Friday, which had presidential candidate Mitt Romney retailing the shopworn idea that our nation "is dependent on foreign oil." We've heard this a million times, of course, and we accept it without thinking. But if you venture forward mentally one baby step, you will quickly come to see that, no, this dependence on foreign oil is not itself the problem. The problem is that we have adopted a living arrangement so hopelessly centered around cars and incessant motoring and one of the consequences is an addiction to oil, which we happen to have a declining supply of in our own land.

     In other words, the problem is not the fact that two-thirds of the oil we use comes from other nations, but is about our own behavior in our own nation. In a reality-based existence, it is more effective to modify one's own behavior than to try to govern the behavior of other sovereign individuals and entities. It ought to be a test of anybody applying for the position of president to realize this, and to communicate it to the public. One might expect a Republican candidate to artfully avoid this reality -- since car-dealers and suburban sprawl developers are among the heartiest Republicans. But it's disgraceful for the Democratic opposition to ignore this reality.

     The gravest problem this nation faces, therefore, is the inability of the American public and its leaders to confront the fact that we can't continue to live the way we do -- and, by the way, when I say "leaders," I don't restrict myself to political leaders. Our failures of leadership are comprehensive, including leadership in my nominal sector, journalism. For two weeks in a row, the price of oil on the futures markets has closed above $80-a-barrel, and for these two weeks The New York Times Sunday Business Section has failed to run one story on the consequences of oil rising into this uncharted territory of high price. Are the Times editors on crack? Surely $80-plus oil will thunder through the American economy.

      The second clue for the clueless came over the weekend when President Bush declared that the chaos reigning in America's airports had reached such an intolerable level that the federal government might have to step in and whip the airlines into shape by regulating routes and apportioning flights. Again, the inability of the public and its leaders to extend a thought one inch beyond the horizon of a given problem is really striking. It's as if the entire nation had suffered a lobotomy -- and perhaps we have, through the agency of excessive TV-watching.

      Has it occurred to anybody that if we could run choo-choo trains between cities a few hundred miles apart -- say from Cleveland to Columbus Ohio -- we could decongest the airports overnight? That, by so doing, Americans could travel much more pleasurably and affordably between the places they travel to most often? It certainly hasn't occurred to anybody running for president, or any of the editors-in-chief in the news media, or even any executive in what remains of the the railroad industry. But I'll try to boil it down to a digestible sound byte for them: the best way to relieve the current agony of air travel is to get the passenger trains running again. Let the airlines do what they do best: really long-range trips. Let trains do the rest. We will consume less foreign oil. The jobs now hemorrhaging out of the US auto industry could move into the passenger rail and rolling stock sectors. Everybody will be much happier.

      The people I know complain endlessly about how stupid President George W. Bush is, and how badly he has lied to the public about this or that. But a casual observer from Mars would have to conclude that President Bush perfectly represents a nation that shows such a thoroughgoing incapacity for thought, and such an aversion to the truth about its own behavior. A people so hopelessly unwilling to get its act together deserves to suffer.