The BRICS are making their move to shove aside the U.S. dollar (although their own troubles might interfere). The dollar dump is particularly timely in light of recent recognition that U.S. credit verges on junk status, and rates lower than Mexico and several other countries with relatively small industrial economies. And, as pointed out by the Financial Times, the dollar is in graver danger than the Euro. Doug Casey puts the matter quite succinctly: “One sure bet is the collapse of the U.S. dollar.” One near-term interpretation in light of the coming cessation of King Ben’s printing press: “What happens after June? Poof! It’s gone.” Even the ever-clueless folks at the New York Times is concerned about the coming collapse of King Ben’s money-printing playground.
Further signs abound: The industrial economy is in serious trouble. Cats can no longer obtain credit cards. The bond market is nervous as a lizard on the interstate. The influence of the U.S. extends only as far as its military. And, stunningly, oil extraction is limited by availability of carbon dioxide (complexity is expensive).
Europe isn’t exactly a model of financial maturity, either. Throughout the industrialized world, we set ourselves up for financial disaster when we put money-grubbing juvenile delinquents in charge of the checkbooks. The biggest Ponzi scheme in history was the only outcome we could have expected, had we been paying attention.
A crash reminiscent of 2008 is on the way, but this one will be bigger. Why? Because “America’s leaders never learn the lessons of history. Never.” Instead, they purposely distract the willfully ignorant masses. How long must we endure this hokey carnival ride before we finally start focusing on legitimately important issues? Actually, it’s probably too late for that, at least at the level of society. Bring on the next round, American Idol.
As Americans complain about the price of fuel for their personal vehicles, Barack Obama urges oil producers to increase output. Of course Obama knows about peak oil, which is why we’re in Iraq, according to the U.K.’s MI6, and why Obama will almost certainly never authorize withdrawal from Iraq. It’s also why he has us breaking international law to arm Libyan rebels, and it’s why he has chosen to ease restrictions on oil and gas drilling while opting for oil production over human life as the Mississippi River floods. These choices are based on the reality that high prices at the pump fuel voter discontent with presidential leadership, hence could harm Obama’s re-election chances. After all, the U.S. system is all about the four-years-at-a-time approach to politics, even if emissions from burning oil destroys our only home one gallon at a time.
It’s becoming increasingly difficult to deny world oil extraction has peaked, so the Obama administration has employed the timeless strategy used by ostriches throughout history: burying the data by slashing the budget of the Energy Information Administration. As usual, the populace chooses ignorance over reality, collectively whistling past the graveyard of reality even as reality comes up to take a bite.
I mentioned my interview with Adbusters as an addendum for a guest essay, and the transcript is linked here.
In addition, I am one of a few talking heads featured in College Conspiracy, the video embedded below. My inclusion in this video does not imply my endorsement and, contrary to this messages delivered in the video, I think (1) public education should be funded with taxpayer money, (2) making the college market more “free” is a terrible idea, (3) online degrees are lucrative for institutions but usually are worthless for students, (4) stocking up on silver will make you a target, not a wealthy genius, when the industrial economy completes its fall, and (5) the final two minutes are sadly emblematic of much that is wrong with the United States of Advertising. Perhaps I’m just irritated because they cut my best line: “Today’s institutions of higher education are replete with teachers who don’t want to teach and students who don’t want to learn.”