I’ve embedded one of the thirteen presentations I delivered over a span of eight days. It’s my final presentation, excluding Q&A (which might come later), which partially explains my on-and-off incoherence (the remainder is inexplicable, as usual).

The presentation includes a half-hearted pitch of my final book. The book is available, a couple months earlier than anticipated, and can be found at this link as well as the usual online outlets. If all goes according to plan, I’ll receive a few copies later today. The book has already been reviewed by Sandy Krolick, the kulturCritic and Cameron Conaway, the poet. Krolick’s review was picked up by Transition Voice, and Conaway’s review was run by Examiner.

I’m trying to produce video from my presentation at a Harvest Gathering Festival with a barn as venue. I may post it at a later date, if all goes according to plan. It includes no slides, and the material differs considerably from the one above.

Reaction was mixed, as usual. Some people, such as this college student, found my messages unbelievable. Others quibbled with the timing of the sources I presented (I carefully avoided pushing my own predictions). Standing ovations were rare — even though I begged for them — but in the end several people understood the importance of collapse if we are to extend our run as a species.

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Huge thanks to Shelley Youngman, who facilitated, organized, chauffeured, and hosted. A kindred spirit, Shelley was kind enough to make many of the arrangements and also to spend large blocks of time with me. Voluntarily, no less.

Thanks, too, to my many new friends and hosts (in the order I met them): Mike Draney and Vicki Medland (University of Wisconsin-Green Bay), Steve DeGoosh and Brooke Isham (Northern Michigan University), Sarah Redmond and Dan Redmond (Alger Community Transition), Shelley Youngman and Frank Youngman (Transition Cadillac), and Kimberly Sager and Aaron Wissner (Local Future).

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This post is permalinked at Plan B Economics and Survival Acres.

My July essay at Transition Voice summarizes collapse-related information.

I am featured in this article from 14 July by editor Erik Curren at Transition Voice.

I am featured in this article from 4 August at The Good Men Project.

Finally, I will be speaking in the upper midwestern U.S. next month. Details are still in development, and will be posted in this space. For now, the schedule includes the University of Wisconsin-Green Bay (ca. 12-13 September), Northern Michigan University in Marquette, Michigan (14-15 September), Munising, Michigan (16 September), and in and around Cadillac, Michigan (17 September through … unknown). I’d love to see you at any of these events, so please let me know if you’ll be there and available to meet.

After burying our collective heads in the sand for two years, peak oil has crept back into the margins of the national conversation. But it’s too little, too late. The end of the world as we know it already struck when, in 2008, the price of oil skyrocketed. Keynesian economics forestalled some economic pain in the short term, at huge expense to the living planet, but the music’s about to stop playing. Better grab a chair. And don’t say you didn’t see this coming.

Three of the largest companies in the world — Exxon, Shell, and Aramco — admit we’ve passed the world oil peak. The cat’s out of the bag, though we’re working hard to convince ourselves there are no felines in a world awash with Felis catus while investors are trying to determine how to put some more fiat currency into their safe-deposit boxes as the ship goes down.

To use one example from the big oil companies, former Shell Oil president Jon Hofmeister knows the price of oil is headed much higher in 2011 or 2012. Hofmeister has company, too, in the form of energy guru T. Boone Pickens, who anticipates oil priced at $140/barrel, and soon. Financier and author Stephen Leeb is calling for a bullet train to $150 oil. In a stunning display of journalism based in reality, even Newsweek admits we’re headed for $150 oil, though speculators are held responsible (as is often the case when people are looking to cast blame).

Even the Wall Street Journal, which bills itself as the most important publication in the world (mipw), claims OPEC should be alarmed at the high price of oil. Although mipw will never admit as much, I’d bet OPEC is well beyond the point of alarm and into the arena of sheer, eyes-as-big-as-dinner-plates, crapping-their-pants terror, if only because there is nothing OPEC can do about high oil prices: The price of oil already has risen too high, too quickly to prevent dire consequences for the industrial economy, but OPEC will not respond, because it cannot respond.

Mother Jones has finally climbed aboard the peak-oil ship, although — as with most mainstream publications — it confuses the notion of “no more cheap oil” with “no more oil.” Still, Mother Jones is ahead of Forbes, which is sticking to the absurd claim that there are no limits to growth. It’s as if Forbes is vying for political office in the U.S. Even Forbes’ second cousin, Foreign Policy, knows the global industrial economy is dead and gone.

The occasional right-wing, windbag, talk-show idiot understands slightly more than the editors at Forbes. Sean Hannity knows the price of gas is going up, so he proposes invading (or re-invading) Iraq and Kuwait to “take all their oil.” If printing money is the last resort of an empire, then occupation must be the first.

Price-forecasting pros are predicting oil priced at $150/bbl by Memorial Day. Or perhaps that price will hold off until October. Either way, $150 oil puts the final nail in the U.S. coffin. In fact, $120 oil probably does the trick, as I wrote nearly 18 months ago. As with the last trip to $140 oil, demand is being driven by China, rather than by the OECD countries still gripped by an economic recession.

There is an alternative trigger, albeit with the same outcome: China’s bubble could pop, thus bringing the age of industry to an end.

If demand for oil continues to climb, then high oil prices will contribute to high food prices, thus triggering further food riots around the world. Some pundits claim food riots are coming to America, whereas others claim the high price of fuel will break out the riot gear.

I’m guessing we can’t be bothered to tear ourselves away from the television screen long enough to notice increasing prices, much less act. After all, we keep ignoring a federal government that throws trillions of dollars at the giant banks while simultaneously denying support to states and main street. We keep ignoring a Federal Reserve bank that has been laughing at us since 2005, and probably much earlier, while the Fed is busy throwing Americans under the bus.

I am not suggesting the ongoing economic collapse will be complete the day the price of oil rises to $120/barrel or higher. Rather, I suspect we’ll witness a series of convulsions similar to those that transpired in the wake of oil rising to $147.27/barrel in July 2008. In the aftermath of that event, the U.S. industrial economy nearly reached its end several times between mid-September 2008 and mid-March 2009. If we assume a similar series of events in the wake of $140 oil between late May and late October, then western civilization could commit suicide between late July 2011 (two months after late May 2011, analogous to the collapse of Lehman Brothers and the associated near-collapse of the U.S. economy two months after oil hit its record high) and late June 2012 (eight months after late October 2011, analogous to near-capitulation of U.S. stock markets in March 2009 eight months after the price of oil peaked). In the middle of these dates lies the 14-month-old forecast of Société Générale, and March 2011 is right on line with predictions from the 60 or so people I cited in my recent presentation predicting complete economic collapse before the middle of 2012. Hofmeister’s most conservative forecast of a spike in the price of oil in 2012 buys a little more time for the industrial economy. And if “no limits to growth” Forbes is correct, western civilization will hang on until we commit suicide by climate chaos. The latter option is the one preferred by the world’s governments and most people I know.

But not me. I’m hoping peak oil and the consequent high price of crude oil will spell the long-overdue death of western civilization and the associated liberation, for the living planet, from the oppression of industry. Call me quirky — the government’s term is terrorist — but I’m a fan of life.

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This essay is permalinked at Island Breath, Before It’s News, and Running ‘Cause I Can’t Fly.

When I discuss mitigation for ecological and economic collapse, I stress the crucial role of human community. And I’m not the only one: A few students with whom I am working this semester are focusing on how to communicate in community, with full awareness where we are and where we’re headed. They have developed a blog, and I encourage your participation as we struggle to find our way in a world turned inside out.

Louisville, Kentucky public library Tuesday, 28 September 2010

Audio file (special thanks to Nate Pederson for recording and archiving the presentation — may he attract the attention of the government as a result)

Powerpoint (pdf)

International Bioenergy Days 2010 presentation Monday, 27 September 2010

Powerpoint (pdf)

When I present, I divide into bite-sized pieces the slides with considerable text. For example, the first slide below labeled “Climate chaos” is presented in six parts, with a bit of text added to each new slide; herein, I include only the final slide in the series.

I rarely use written notes, much less a transcript, so what you see is what I saw when I was delivering the presentation. I was interrupted by several ovations (some standing, but only because I begged) and abundant laughter. When I’m nervous, I go straight to spontaneous stand-up. Later, I can’t remember a single humorous line, so every presentation is unique. At this point, I couldn’t tell you what I said, but apparently some of it was funny. I’m pretty sure they were laughing with me instead of at me, but one can never be certain.

I visited with several people after the presentation. They liked it, of course, or they wouldn’t have stayed to visit. Reaction generally (very generally) varied with age. However, all age groups failed to recognize we’re already in the midst of economic collapse, that we’ve been here for at least a decade, or that the collapse would be complete soon. Similarly, all age groups failed to appreciate the moral imperative with how we live our lives. Many youngsters from the Aldo Leopold High School were present, and they invariably went to the bargaining phase: I can still have my cell phone, right? People older than me typically went to denial: I’m glad I’m old, so none of this will impact my life. People between those groups expressed appreciation for the human community in this area and disdain for politicians, local through national, for failing to deal with either side of the fossil-fuel coin.

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A pdf version of the Powerpoint file is archived here, courtesy of Keith Farnish. Thanks, Keith!

Of course, had stock traders known the dire nature of AIG, for an easy example, the economy would have completed its ongoing collapse long ago. Fortunately, Americans prefer presidents and presidential candidates who lie about the likes of AIG (and, as nearly as I can distinguish, everything else).

But back to the smoke-and-mirrors recovery. It’s fizzling out and there is worse to come. The Wall Street Journal predicts collapse will come in 2011. Over on CNBC, the recommendation is to buy barbed wire as the endpoint of devaluation appears. Others prefer a different phrase: the next step down, also known as a dead end. If you’re a part of Saudi Arabia’s royal family — welcome to the blog, by the way, and feel free to post a comment — it’s time to get out before the apocalypse comes to the kingdom.

For the imperialist-in-charge, what to do, what to do? Now that the Keynesian approach has about run its course, Obama is set to re-open offshore drilling program in a feeble attempt to keep the current game going. And there’s undoubtedly more stimulus headed our way, even though we already passed the point of debt saturation: each new dollar of federal debt now subtracts 45 cents from GDP.

If you’re having a tough time swallowing the notion that the economy can go from apparent recovery to the toilet in a few years, remember what most people believed in 1930: they thought the bad economic news was behind them, too. It’s looking a lot like 1930.

Even usually clueless Americans are getting nervous about the economy — apparently they’re no longer watching television. But even the ever-soothing voices on the tube are pointing out that the gusher in the Gulf is getting worse by the day, with economic implications bound to bury the coast for decades. The BP spill is probably gushing on the order of 100,000 barrels per day, not the 70,000 bpd reported by BP, a number that keeps going up as they keep repairing the problem. The spill certainly exceeds estimates by ultraconservative marine scientists.

But even the latter scientists agree about the existence of the undersea plume (or cloud). I am definitely not applying the “scientist” label to anybody working for the Obama administration: those former scientists gave up their integrity card when they started lying in the name of political fortune. Their new jobs are to hide the facts, not reveal them.

Despite the ongoing game of obfuscation, striking similarities have emerged between the financial collapse of 2008-2009 and the Gulf disaster. Among other characteristics, BP is paralleling the actions of the big banks, aided by the Obama administration, in covering up the truth. It comes as no surprise that BP CEO Tony Hayward has racked up a “greatest hits” list of quotes only a politician’s mother could love.

Energy analyst Matt Simmons predicts BP will declare bankruptcy within a month. That would be one way to escape paying for damages. The more likely approach, in my opinion, is a full-scale bailout by you and me. That route is already wending its way through Congress, although GOP House leader John Boehner is shying away from the idea he proposed earlier.

In a stunning bit of good news — in the category of throwing us a bone — BP finally released the list of toxins in the dispersants. Now that I’ve seen the list, though, I’m not particularly happy about it.

Finally, a single article from the mainstream points out that maybe we should re-think our oil-drenched lifestyles. Oil drilling threatens our future, as even the BBC has determined. Will that be enough to get us off the devil’s excrement? Certainly not if Barack Obama or the politicians in Louisiana have their way.

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This essay is permalinked at Energy Bulletin and Island Breath.

As adults know, hope is for little kids and tooth fairies.

Today’s panic-infused stock-market crash was an ode to days economists thought long gone. But those economists continue to be stunned at every substantive event, as if passing the world oil peak couldn’t be expected to generate any economic consequences.

“High prices will cause the market to generate substitutes,” they cry. I guess we can expect a comprehensive substitute for crude oil to show up any day now. Or perhaps these long-predicted swings in the price of oil will continue to destroy capital and therefore lead to one canceled alt-energy project after another.

I suspect we’re back on the stock-market rollercoaster with a general trend down. Probably way down, by year’s end. But the crash that completes the collapse of American Empire could come any day, and today was a near miss after a six-month series of near misses came to a halt last March. The Dow lost about a thousand ticks today in a 15-minute span before the plunge protection team (PPT) took quick action to save the imperial day.

Oh, wait, there’s no PPT. It wouldn’t be completely legal for the federal government to buy stocks in the beloved free market, would it? And certainly not when the mantra is hope change transparency. I guess those traders just came to their senses and regained confidence in the markets. Lucky thing, too, from the imperial perspective: Another hour without intervention from the PPT and we’d be looking out over the smoldering ashes of the industrial economy this time next week.

If all goes well, the U.S. will be forced into hyperinflation or default even before the next oil-price shock brings down the industrial economy. If we’re really in the midst of the empire’s last dance, soon enough we won’t be forced to choke down lines such as these:

“There’s more war in America’s future — a great deal more, judging by the Obama Administration’s reports, pronouncements and actions in recent months”

“U.S. exempted BP rig from environmental study”

“The world may be on the brink of biological disaster after news that a third of US bee colonies did not survive the winter”

“Scientists and environmentalists from around the world assessed the state of global biodiversity and found that it has been in steady decline”

“An American Chernobyl”

And so it goes, headline after headline, until the process of killing the planet to transfer money from the poor to the rich finally succeeds in killing us, too. Until, if the corporatocracy running the industrial show has its way, the last human on the planet accumulates all the material wealth and celebrates gleefully with his last breath.

This story could end another way, if only we’d let it. If only we’d trade in hope wishful thinking for action, the culture of make believe for the reality of the real world, insanity for reason, the horrors of extirpation and extinction for the living planet, a dead-end road in a hellish future for the heavenly wonders of life itself.

I still keep hearing, “If things get bad, I’ll move to ….” And then fill in the blank with your favorite fantasy or nightmare, including these and many more:

“my sister-in-law’s property in Kansas”

“Mexico”

“the wilderness”

“a central America country”

“southern Europe”

“the coast”

First, let’s consider how “bad” things have to get. The first significant warning shot came in the 1970s, when people in the industrialized world felt the impacts of the U.S. losing its status as the world’s swing producer of crude oil. We were visited by expensive gasoline and long lines at the pumps, simultaneous inflation and economic contraction, a president who encouraged conservation, and many other consequences of relying heavily on crude oil for economic growth. More recently, we’ve witnessed a housing crash, bank failures, oil priced at nearly $150/bbl, near-collapse of the industrial economy, sovereign debt crises throughout the industrialized world, and hundreds of other symptoms of passing the world oil peak.

If you keep your eyes closed, you’re going to run off the road. This society has already driven into a ditch, but you are not required to join the crash. Again, then: How many warning shots do you need?

We could spend a lot of time pointing out the lunacy of all the safe havens listed above. Moving in with the in-laws? Have you even asked? Isn’t there a reason you don’t live with them already? Have you discussed economic collapse with them, or do you continue to ignore the most important topic in the history of western civilization, opting instead for polite conversation?

How ’bout them Red Sox? Nice weather we’ve been having, doncha think?

Stop me if I’ve mentioned this one before: If you keep your eyes closed, you’re going to run off the road.

And Mexico? Do you speak Spanish? Fluently? Do you think you’ll be welcome there, gringo? Do you think continuing our history of occupation is a good idea, even at the personal level? Again, as before, why don’t you live there already, if it’s such a great place to be?

The wilderness? Really? Without a grocery store?

And so on, down the list of ludicrous options.

Here’s a thought: How about starting to prepare for a world without ready access to cheap fossil fuels? That would entail securing a personal supply of water and food for you and your family. For the rest of your life, and theirs. If that’s simply too daunting a task for your lizard-like brain, you can take the route pursued by about half the people to whom I speak: “I’ll save a bullet for myself.”

Really? Evolution suggests otherwise. I foresee a lot of my “friends” showing up at the mud hut, unprepared and unrepentant, but too consumed with personal survival to take the promised Hemingway out. A friend in need, ….

Better days lie ahead for those of us who desire to see the living planet make a comeback. But if you believe life is not worth living in the absence of empire — in the absence of our unrelenting intent and ability to destroy every non-industrial culture and non-human species — why wait? Why not take the Hemingway out now, while you still can get a decent imperial funeral?

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This essay is permalinked at Counter Currents, Information Clearing House, Hidden Mysteries, and Island Breath.

As should be clear by now, we cannot grow the industrial economy while reducing use of energy. As a result, we cannot grow the economy while reducing greenhouse-gas emissions. Thus, we’re stuck in a politically untenable situation: To save the living planet, including habitat for our own species, we need to shrink the industrial economy. But the industrial economy requires growth. Recent research indicates we need to shrink the industrial economy to oblivion to save our species. In other words, what we really need is to kill the industrial economy before it kills us. And by us, I mean all of us: the entire collection of wise apes. As a society, clearly we have made our choice. But as an individual, you can choose to the contrary, with benefits for your psyche and quite possibly your survival.

Crude oil is the master material, the energy source that provides access to all others. Economic growth requires ever-increasing supplies of crude oil. As availability of oil declines the price goes up (with considerable variability, as we have observed during five years since we passed the world oil peak) and the industrial economy starts to sputter. When the price gets high enough, long enough, the economy simply, finally, expires. The world has been on an undulating plateau of oil availability for several years, but that plateau leads to a cliff. According to the U.S. Department of Energy and the U.S. military’s Joint Forces Command, the cliff comes in 8 months or so.

I know no energy-literate person who thinks we’ll be able to avoid the post-industrial Stone Age by 2025. Assuming a conservative 4% annual decline rate of crude oil between now and then indicates we will have access to the same amount of oil in 2025 as we did in 1970, when the planet held half as many people as it now does and the world was considerably less industrialized than it now is. And that’s merely the gross rate of decline, whereas the net rate of decline will be much more rapid because it takes so much energy to extract and deliver energy. Oil priced a $147.27 per barrel nearly brought down the industrial economy five times I know about, and we’re hardly out of the woods yet. There is little hope for the industrial era to persist more than a few years, and the next spike in the price of oil could very well be the trigger that brings the industrial era to a sudden close in an unprepared nation.

I suspect we’ll pass through a new Dark Age en route to the post-industrial Stone Age. Indeed, many countries in the world are already there because they lack the world’s reserve currency and the world’s largest military. Bully for us: We have both, thus ensuring a steady supply of fossil-fuel-driven energy into every city and town in the United States. Well, so far.

As an aside, how long do you think we can maintain a military and a functioning industrial economy if we keep spending 58% of our budget on the former? We could stop our involvement in wars, but that would be quite un-American, wouldn’t it?

The costs of maintaining the non-negotiable American way of life are huge, even beyond simple economics. The American suburbs are the antithesis of durable living, as they require us to live far from work, far from play, and far from the places we shop for disposable items in our throw-away culture. They require obedience at home and oppression abroad. American Empire is city living (i.e., civilized), writ large.

The relatively few people paying attention to the undercurrents of the industrial economy know the ship is taking on water faster than the governments can run the printing presses. As the industrial economy continues to lurch and stumble, the vaunted American consumer loses the ability to consume (in part because inflation is rampant on items that actually matter, notably including food). Because ours is a consumer culture, with personal consumption accounting for 70% of the industrial economy, the ship is listing. The next financial crisis is already unfolding — notwithstanding absurd reports from politicians, media, and the irrational exuberance, again, in the stock markets — and governments have nearly exhausted their supply of tools to deal with economic issues. We hit the iceberg of peak oil and, as government administrators busily rearrange the deck chairs, it’s time to launch the lifeboats, even if you believe consumption is a good thing. Personally, I think it’s not, in part based on the definition:

Consume:

1. To do away with completely; destroy

2a. To spend wastefully; squander
2b. Use up

3. To waste or burn away; perish

Consuming gives most people a temporary emotional “high.” We’re addicted to shopping. But I trust it’s clear why rational people want no part of the consumer economy. If we cannot terminate the industrial economy, and soon, we’ll exhaust all habitat for humans on Earth by the end of this century (and, if the models are to be believed, much sooner). Along the way, if we have our way, we’ll destroy every non-industrial culture and every non-human species.

In the face of a contracting industrial economy and the knowledge we’re headed for a situation with extremely limited access to fossil fuels, a quote from Peter Drucker comes to mind: “You can either take action, or you can hang back and hope for a miracle. Miracles are great, but they are so unpredictable.”

What’s an individual to do, in light of the imminent collapse of western civilization? In addition to hastening the collapse, some tools for which I’ve listed before, I describe four points along a continuum for your own, individual, post-carbon future: (1) transition towns, (2) agricultural anarchy, (3) hunting and gathering, and (4) traveling. I will describe each approach, briefly, as a means of generating thought, action, and perhaps even discussion.

Transition towns allow us the fantasy of keeping the current omnicidal culture going, albeit in slightly different form. This model assumes a long descent that allows time for cities to develop alternative energy sources. Think solar on every rooftop, for starters, and gardens in every suburban lot. For this approach to work, though, the food shed must be sufficiently nearby and sufficiently productive to support all the people in the transition town. This seems hugely problematic in sprawling western cities, especially those with more than a few thousand people. And for areas with limited supplies of water, or water that is several hundred feet below the surface of the ground, it’s difficult to imagine a scenario that doesn’t include massive suffering along the way to a huge die-off. The inability to store energy in the absence of fossil fuels beyond a few years in expensive, transient, and toxic batteries is a microscopic problem relative to the absence of ready access to water and food. And there’s an additional problem with the transition-town notion: I seriously doubt we have access to the fossil fuels needed to create the needed infrastructure for the 250 million city-living Americans, much less the 3.5 billion people who occupy the world’s cities. Solar panels and batteries simply won’t make the grade — there’s not enough oil left to pull this one off.

When the lights go out in the city, chaos often erupts. Is your city different? If so, will that difference persist when the lights don’t come back on, ever? I’ve often said and written that I would give my life to terminate the industrial economy, if only to alleviate the burden of oppression on the living world. I’ve no doubt, in fact, that I will make this sacrifice. And that’s okay: My insignificant life pales in contrast to the living planet and the persistence of our species. On the other hand, although I loved city life, my city was not worth dying for. So I left to prepare, recognizing that fortune favors the prepared. In contrast, Michael Ruppert moved to his home city of Los Angeles with full knowledge L.A. would be among the first cities to go up in flames. Ruppert is willing to die for the privilege of comforting the afflicted there.

Agricultural anarchy was offered as a model by Thomas Jefferson, and Monticello was the prime example before it became a museum. Contemporary examples are found in nearly every “third-world” country. A large proportion of the towns and cities in Central America and South America never have had ready access to abundant fossil fuels. As a result, communities have communal water sources and people dig shallow wells and harvest rain from rooftops. On a daily basis, local markets are filled with fresh food brought from nearby gardens and farms. The power goes out frequently, and nobody seems to mind because the towns and cities are actually located in livable areas in the absence of fossil fuels to heat or cool every building (cf. Tucson, Arizona). In short, agriculture has always been, and still is, at the center of everyday life.

Hunting and gathering will doubtless make a comeback for a very few hardy, quick-witted folks. This model resembles the prior Stone Age, and clearly is the most durable approach. It worked for the first 2 million years of the human experience, and we fled from it as recently as a few thousand years ago. But if you can’t find a tribe to go along, you’ll be as lonely as a Saguaro cactus on an ice floe.

Finally, individuals can largely avoid the ravages of collapse by traveling from spot to spot. History has been kind to travelers because people rooted in a particular place hunger for knowledge. If you’re to pursue this route, you’ll need to be quick-witted, good-humored, and willing to lend a hand when needed. Also, you’ll need to recognize and avoid danger. Traveling will be terrifying, but no worse than staying in one location. And you’ll get to see the world and live an adventure-filled life, just as promised by U.S. military recruiters.

None of these options offer a life similar to the one you’ve known. But a different life doesn’t mean a worse life, especially if you give a rat’s backside about anybody besides yourself. There will be plenty of opportunities to serve your community, as there has always been, in the months and years ahead. We’ll be living closer to our neighbors and closer to the living planet that sustains us all. For those courageous, compassionate, and creative souls willing to live in the world rather than in a cubicle, life’s about to get even more interesting. For the vast majority of industrial Americans, though, life is about to become miserable and surprisingly short.

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This essay was inspired by a comment from Danielle Charbonneau. It is permalinked at Counter Currents, Island Breath, and A Climate for Change.

How does one know what to believe, and who to trust? We’re surrounded by lies. During our finest moments, we don’t believe the media, the politicians we elect (from the very small slate of candidates selected for us), or the CEOs and NGOs to whom we give our money. Awash in misinformation yet surrounded by culture’s unrepentant, never-ending message, we vacillate between cynicism and swimming in the powerful current of culture.

Although the happy-talk Obama administration — and its proxy and partner in crime, the mainstream media — would have you believe the industrial economy has recovered, many signs indicate the impacts of the last oil price spike haven’t been fully worked out. The U.S. national debt rises every day, and it already exceeds the value of all currency ever produced and all gold ever mined. It cannot be paid off. Ever. If the notion of a Soviet-style default doesn’t give you pause, consider still-rising foreclosure rates, still-falling home prices, massive unemployment, financial bankruptcy at all levels of government, ballooning entitlement programs, and collapsing pension programs. This is merely the short list of economic issues we face. Needless to say, every single one of them is a profound surprise to the vast majority of neoclassical economists, few of whom saw this economic recession coming (as if passing the world oil peak didn’t provide sufficient warning, well in advance).

Knowing culture will lead us astray, we nonetheless invite scorn when we seek the truth beneath the cultural current of the main stream. Culture does not have answers to meaningful questions. But skepticism for the sake of skepticism is no virtue, either.

Applying reason as a path to knowledge (as I’ve suggested here and here, for example) is easy enough in theory. But in practice, it’s difficult to extract the facts and then synthesize them into a coherent message that guides the way. Much less the Way. And yet, we muddle along, individually and societally, relying on some inexplicable combination of faith and rational thought. For me, the guides include data (recognizing they are undoubtedly massaged before general release), historical anecdotes (ditto), my own dubious moral compass (shaped, necessarily, by culture), and an informed set of predictions from a variety of scholars. As with any gestalt, mine is formed from parts that don’t quite add up to the whole.

So how do we go from this list of economic issues to the notion of economic collapse? I’ve moved from imperialist city educator to economic doomer rural sharecropper in one (damned difficult) step. This move was driven by many factors, including the profound (and profoundly late) realization that we live immorally, buying and selling nature’s bounty at an imperialist whim. Another contributing factor was my strongly held suspicion that we’re headed for a collapse of the industrial economy by the end of 2012. If the industrial age does not end soon, we’re headed for the complete absence of habitat for humans on Earth. Obviously, there is plenty of disagreement with me on both points, and I’ve been asked to make my case. What tea leaves do I read?

I restrict this essay to economic collapse, thus leaving the issue of environmental collapse to previous posts (and perhaps future ones). The data on collapse are clearer than the rest of my guides, so I’ll start with them.

The data interact with other elements: History indicates 10 of 11 recessions since World War II and all 6 recessions since 1972 were preceded by a spike in the price of oil. The lifeblood of civilization, and its price, dictates the direction of the industrial economy. At some point, the price of oil becomes too great to maintain the industrial economy. In fact, a per-barrel price of $147.27 nearly brought the industrial economy grinding to a halt. Only massive, and massively illegal, intervention by the executive branch of the U.S. government kept the lights on in your grid-tied house, the trucks coming to the grocery store, and water coming out the taps. These actions have been written about widely. A quick search on “plunge protection team” is a nice starting point, although the issue is far broader than even omniscient Google reveals.

For information about oil supplies, I rely on Hubbert’s model and data from the U.S. Department of Energy’s Energy Information Administration (EIA). Hubbert’s model indicates we passed the world peak for crude oil in December 2005. Data from the EIA indicate peak month was May 2005. Because the industrial economy is barely limping along today, in far direr condition than when the price of oil exceeded $140, I doubt it will take a second round of $140 oil to bring the industrial age to its overdue close. Several forecasters suggest we’re headed beyond that mark with a year or so.

A little more from history: Empires fall. All of ‘em, so far. Some fall slowly, others rapidly. Some fall with a modicum of grace, others with extreme violence. American Empire is so complex, so dependent on finite materials, and intricately connected with the entire global economy that it’s difficult for me to foresee a long, peaceful decline.

The industrial economy relies heavily on crude oil, and particularly inexpensive oil. We’re perfectly willing to spend $400/gallon for gasoline to support our imperial ambitions in Afghanistan if that’s what it takes to keep the price of oil at a reasonable level for us exceptional Americans. (How exceptional? Check the charts in this essay.) But when the price of gasoline exceeds $4/gallon in the heartland, there’s trouble brewing for our all-important economic growth.

In addition to the near-term price of oil, our empire is threatened by the ever-tightening grip of globalization, which ensures that economic collapse in any of the world’s large economies will lead, domino-like, to economic collapse throughout the industrialized world. This grip was allowed and facilitated by cheap oil, and it’s no coincidence that the end of the cheap-oil era resulted in financial crises throughout the civilized world. Today, Greece is the word. But Portugal, Spain, and Japan hover on the brink (Japan is the world’s second-largest economy). So does the U.S. and the remainder of the industrialized world, though you’d never know it based on mainstream media reports from this country. We have the advantages of the world’s reserve currency and the largest killing force in the history of the world (and the willingness to use it, everywhere, all the time). But when China stops buying U.S. Treasury notes, a process already under way, the de facto rate of interest will rise, taking us inexorably and likely quickly into the land of hyper-inflation. At this late juncture in the industrial era, the only questions of great significance are whether our bubble will pop before China’s, and which of myriad potential events will serve as the proximate cause to the end of American Empire. The price of oil was a trigger event, and it might be again. But it might not, too.

As far as my moral compass is concerned, I’ve written plenty about that. There’s no need to pummel the deceased equine yet again. Check the archives, if you’re interested. Or, for a different take on the situation, read this.

So much for the models, data, history, and my sense of morality. What about those voices I hear words I read?

When I open my browser to start the day, several tabs reveal themselves. Some of these websites give the facts, as accurately as they can be determined: Bloomberg energy prices, American stock markets, and the U.S. national debt clock. Others are information clearing houses with occasional original essays, notably including the sites of Matt Savinar, Mike Ruppert, Rice Farmer, and Chris Martenson, along with Energy Bulletin, Counter Currents, and The Oil Drum. Others provide synthesis and analysis: Business Insider, Baseline Scenario, Dmitry Orlov’s blog, Speak Truth to Power, Economic Collapse Blog, The Automatic Earth, and Zero Hedge. Finally, one tells me what people are thinking out there in the culture of make believe: MSNBC. Needless to say, that’s the scary one.

I’m not foolish enough to read every article, much less read every article linked from these pages. But there is plenty of fodder here, much of it informed by biophysical economics. Biophysical economists, unlike neoclassical economists, know about finite materials. As a result, the former know starvation can kill people. Any self-respecting neoclassical economist assumes the rumbling of his stomach will cause food to appear.

Now let’s pause for a quick story about neoclassical economists.

Four shipwrecked economists wash ashore on a deserted tropical island. The first Asian economist says, “I’ll gather wood and start a fire to keep us warm and cook our food.” The second Asian economists says, “I’ll find water.” The third Asian economist says, “I’ll find food.” The American economist sits down, smiles, and says, “When you’ve got that all taken care of, I’ll consume whatever you produce. You’re darned lucky I’m here: Without me, the entire system falls apart in a hurry.”

Note that confidence among U.S. consumers fell in April. Unexpectedly, of course.

We now return to our regularly scheduled essay.

Among the places these links lead are the following. This summer’s hurricane season likely will contribute to high oil prices. And we might not need the hurricanes: According to the International Energy Agency, world oil demand will set an all-time record this year, exceeding the amount actually being sucked out of the ground by 2.4 million barrels per day. The global financial system is primed and ready to implode. The Fed admits to breaking the law in the name of transferring wealth (and not to me or you). And the Fed, like the U.S., is bankrupt. That alone will cause hyperinflation. “Real estate built America, and it’s going to take it down. Foreclosures will be the wrecking ball for the American economy.” The economic crisis in Greece is just getting started. Recent reports of economic growth are mere mirages from the smoke-and-mirrors cabal behind the curtain (duh). More than half your tax dollars support the military (yeah, that’s sustainable; even an increasing percentage of military personnel is questioning whether they will accomplish their amorphous mission in Afghanistan). Warren Buffett bought the Burlington Northern Santa Fe railroad, calling it an “all-in bet” on the U.S. economy, as if he’d been reading the work of James Howard Kunstler. Buffett’s partner Charles Munger wrote a parable transparently about the U.S. economy titled, “Basically, it’s over.” A large European bank warned its clients about completion of the ongoing collapse by the end of 2011. The U.S. dollar will collapse, causing world economic collapse, by 2012. Catherine Austin Fitts moved from New York City to rural Tennessee to build a doomstead. As should be obvious, “from now on the risk of entering a collapse must be considered significant and rising” (pdf file). And so on. The evidence mounts daily, and it all points in the same direction.

My interpretation and synthesis of these many essays and the data on which they rely suggests the industrial age is near its terminus. How near? Recognizing the difficulty of predictions, and the animus they elicit, I’ll go out on the often-wrong limb of forecast and give us a 99% chance of “lights out in the empire” by 21 December 2012. And I didn’t even look at my Mayan calendar.

Reinhart and Rogoff’s 2009 book, This Time is Different, describes financial crises in 66 nations dating to the 13th century. For a change, I agree with the rallying cry of people subject to previous collapses: This time is different. This time it’s not one of 66 nations. It’s every country in the entire industrial world. Indeed, this time is different.

In short, civilization is only a few days removed from chaos or, if you’re an optimist like me, from anarchy. This has always been the case, for every failed civilization as well as the one left standing. With every passing day, we move further into ecological overshoot and also closer to the end of western civilization and its apex, the industrial economy. For most individual industrial humans, the end will not be welcome. But for the living planet on which we depend, and therefore our very species, the end of industry will bring a welcome relief from decades of oppression. It might even give us back our humanity while granting our species a few more decades of planetary existence.
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This essay was inspired by a comment from Marguerite Daisy. It is permalinked at Counter Currents, Bluegrass reVisions, and Island Breath.