Mike Folkerth - King of Simple

Western Colorado’s own Humorist / Economist

Solutions From Government? I Think Not:


Good Morning everyone; Your King of Simple News is on the air.

I want to hit reverse for just a moment to make a point that I believe to be one of the best kept secrets on the planet; at least it’s a secret in Washington DC.  The United States had advantages in the early years that are nearly always overlooked when our fearless leadership talks about our future. I say, had, because the sources of those advantages were natural resources which we no longer have.

I’m repeating parts of an article that I wrote in April, but I think it’s important enough to take a second read. This article is a little long, but contains information that is paramount to understanding why we cannot continue on this terrible collision course with reality.

You’ve all seen the fiction movies where a ship disappears into a fog and discovers a land that has been untouched by time. The story of the discovery of America would in all reality pale anything that the screen writers have ever produced.

At the time that the original Colonies were being formed in New England, the European, Asian, and North African continents had been inhabited by advanced civilizations for centuries.

Imagine arriving in an unknown [unknown to the remainder of the world] land as bountiful and unspoiled as North America. One must also consider the extraordinary climate diversity. I can scarcely visualize how glorious it must have appeared to the original explorers.

The indigenous Indian inhabitants were not only comparatively few in numbers, but had remained for thousands of years firmly embedded in the Stone Age. Regardless of arguments regarding total numbers of inhabitants, few resources had been harvested.

With all the countless sources of natural wealth that North America held, traditional beasts of burden were not one of them. This in itself had greatly aided the preservation of the resources. The Indians could not travel further away from an encampment than they could walk back. Nor could they transport anything that could not be carried or drug, as the wheel was not a part of their culture.

After the American Revolution, the United States of America flourished from what must have seemed akin to never ending resources that were easily perceived as providing the means to an unending utopia.

America’s unique practice of domestic expansion by utilizing domestic resources, combined with personal freedoms in a land that was isolated from hostile nations and marauding hordes by vast oceans, gave this country an advantage that will not, and cannot possibly occur again on this earth. We were in fact, “The Last Frontier.”

This unprecedented expansion continued until the infamous year of 1970. In a sense, we caught up with the remainder of the world. We had utilized the single most important propellant of our heralded success to its peak production; that of oil. Many other of our once plentiful resources are now dwindling.

The impact of peak oil, is in the main, poorly understood. The long term consequence of peak oil production was however immediately evident to the powers that be. The impossibility of greater production of the very resource that had made America . . . well . . . America, derailed the American experiment; forever.

While certainly oil was not the only contributing factor, in 1971, the U.S. was forced to abandon the gold standard. Growth could no longer be supported at the ever greater levels that were possible prior to peak oil, and at the same time, back that growth with physical gold.

It was at this juncture that our government leaders and America’s bankers chose to advance our impossible economy by means of, not growth that could be measured in terms of balanced physical expansion, but rather, by expansion of debt. The end of the United States 194 year history of balanced expansion had arrived unscheduled. An era was ended in 1971, when the gold standard was abandoned. Today, no country in the world utilizes a gold standard.

 Did anyone see it coming? Of course; Marion King Hubbert, the most well known American geophysicist of all time, stated in 1949 that the fossil fuel era would be short lived. It was after all, a definable finite resource! As in all things finite that are being harvested in ever greater quantities, there was a beginning and there was a foreseeable end.

In 1956, Dr. Hubbert completed his thesis on peak oil, now known as “Hubbert’s Curve.” In that important paper, Dr. Hubbert predicted that the U.S. would reach peak oil in 1970 and that the world would reach peak around the turn of the 21st century. Dr. Hubbert also warned of the terrible consequences that would result should America choose not to heed his warnings; which our leadership did in fact chose to ignore.

Today, we produce 40% less oil than we did at our 1970 peak and utilize some 40% more! Please consider that the U.S. had previously been a huge exporter of oil, not only were we energy independent, but the sale of oil added Billions of dollars to our annual national wealth.

To mitigate this unfortunate occurrence of peak oil, our esteemed leaders who had been carefully chosen from the whacky social science crowd,  called for unprecedented economic growth and the expansion of our population which of course required ever greater consumption of oil. My mind is unable to comprehend the magnitude of such a delusional course of action; but there it is all the same.

Resource depletion is not some sort of improvable myth; we’ve already completed the experiment using our most important life giving commodity; oil. I wish that I could say that oil was our only problem; however, the list of diminishing resources is long. The Rio Grande and the Colorado no longer flow to the sea. The mighty Snake no longer flows over Shoshone Falls in late summer. What more visual examples does it take to impress upon our leadership that growth is literally killing us?

If we were to run out of oil tomorrow, more than half of our population would literally die within six months. Of course, we aren’t going to run out of oil tomorrow, we are going to run out around 2032. That is, if foreign nations continue to sell us that life giving elixir until 2032; which they won’t.

I remind everyone that the U.S. population represents approximately 4.8% of the humans on earth. We presently consume 25% of all oil produced on earth and it’s not our oil. We also consume 30% of all materials produced on earth. And our leadership’s plan? Grow population and consume more.

Do you have any idea of the harms way that our current and past leadership have purposely put our citizenry in?  Do you understand the full extent of our leadership’s willingness to compromise our children’s future for personal gain?

We are today not only completely dependent on foreign nations for daily energy, but also for daily loans from communist sources to finance our own government! All of this in a land that was with great purpose, stripped of the very resources that made us America. And the solution is growth?

If you are 80 years old, the plight that we find ourselves in probably doesn’t concern you. If you are 30 years old you most likely believe that “they,” will come up with something to save our collective posteriors.tts. I remind you that we have had 39 years to do something about peak oil and we are now not only dependent on foreign oil, but on daily loans from foreign governments to finance our futures. Great, just great.

In conclusion, let me explain who “they” are. “They” are the same people who said that America would grow exponentially forever. “They” are the same people who robbed you of your employment with such agreements as NAFTA and the WTO. “They” are the same people who robbed you of your retirement incomes, Social Security, and Medicare promises with a black heart and a ballpoint pen. “They” are the same people who assured you of safeguards against the U.S. entering recession and depression. “They” are the same people who promised in the 1950s and 60s that Americans would enter a life of leisure through the wonders of technology.

Wake up America, “you” are the only ones that can do anything about “they.” Get up on your hind legs and speak out; this is your final boarding call.

 

 

 

 
Comments
1.
On June 25th, 2009 at 11:03 am, Mike Folkerth said:

Hotrod posted this excellent comment yesterday and got caught momentarily in the spam trap (multiple links sometimes do that as the trap thinks it is advertising). Keep the links coming however and here is what Hotrod posted.

I have been studying the rise and fall of past civilizations and find it very relevant to understanding civilizations today because even though history does not repeat itself, it does have patterns that repeat. Archaeologist Joyce Marcus calls the patterns a “Dynamic Model,” in which civilizations advance, decline, and are then replace by other civilizations. For example, Mesoamerica the rise and fall of Teotihuacan, followed by the Toltecs, and eventual the Aztecs.
I highly recommend reading Joseph A. Tainter book, The Collapse of Complex Societies. Tainter argues that all society eventually become too complex and reach a point of diminishing marginal returns. This happened to the most systems in the United States during the 20th century. For example, healthcare had a declining marginal return of 57% between 1930 and 1982. This book was written in the 1980s and things have only got worst since then.
The complexity of government can also be seen in the employment sector. In the 1950s, GM was the largest employer in the U.S. Today the largest employer in the U.S. is the Federal Government (http://www.bls.gov/oco/cg/cgs041.htm, accessed June 25, 2009). This shows the increase the “hierarchical specialization” and decrease in marginal returns of bureaucracies. In the 1950s, there was a saying, “As goes GM, so goes the nation.” GM filed for bankruptcy last month, is the United States Government far behind? If you look debt ratio of the U.S. government, It is obvious that it is actually worst off than GM. However, unlike GM the government can print more money whenever it needs or wants too. But how long is this debt going to be sustainable? Here is a link to a chart that shows how bad the U.S debt to GDP is http://www.chrismartenson.com/blog/crisis-explained-one-chart-debt-gdp/11570.
As Mike said, it doesn’t matter whether a system is capitalistic, socialistic, or even chiefdom. A system that relies on growth, especially exponential growth is bound to fail. On course, I am hoping it fails soon because when civilizations fail they become simpler and more equalitarian. Just as Mike always says when we finally collapse we will all have to “live simple and live well.”

2.
On June 25th, 2009 at 11:29 am, WmA said:

Just a small point, and you touched on it..

Oil is not the most valuable resource.. Pure drinking water may be, but certainly is much more important than oil.. BTW, we are running out of that also.. And the food grown with good water and soil..

Brought to us by the best government can buy..
WmA..

3.
On June 25th, 2009 at 11:43 am, Billyb said:

The coming events will be quite exciting for those who have prepared. Not always pleasurable, but very exciting never the less. These individuals who are preparing at this time are an extreme rarity however.

Those who may “Get up on your hind legs and speak out”, as Mike has indicated above are virtually nonexistent. And at this stage is not really a viable option, since it is too late to avoid a major crash and the folks in office have no intention of changing the direction they have us all headed anyway.

The wealthy will come out of this crash with a false sense of security, since the transfer of wealth from the middle class to the wealthy is taking place right now under the guise of stimulus and bail programs. The playing field will be (not might be)leveled no later than 2030 however when the end of the oil era comes home to roost. This event will never happen again, so it would be wise and very prudent to be well prepared so as to be able to enjoy the last great show; probably the greatest show on earth. Obviously there will be many events leading up to the main event that will require thourough preparation. Today would not be any too early to begin formulating a plan for a very changed lifestyle in the near future. -bb

4.
On June 25th, 2009 at 11:47 am, George45-70 said:

Solutions From Government? I Think Not!

Here’s a few examples of our government’s solutions.

The first is a Map of the US showing:

1. Unemployment % by state
2. Foreclosures by state
3. State Government Debt

http://money.cnn.com/news/storysupplement/economy/gapmap/index.htm

So much goes unreported or under reported that I think you could ad 30% to 50% to all of the numbers.

Second; Barnie Frank is asking Fannie and Freddie to relax condo loan rules so more low income earners can buy a condo. Haven’t we gone down this path before? Aren’t we still in the mess from the first Fannie and Freddie loan fiasco?

http://www.reuters.com/article/GCA-Housing/idUSTRE55L39120090622

Well, there’s ‘Your’ government at work. I’d recommend that we take the ‘Your’ part seriously and put down the pen and paper and start knocking on doors of your elected officials offices and make appointments in person. Bring friends and family too.

5.
On June 26th, 2009 at 10:18 pm, hotrodinoh said:

As bad as peak oil appears it is a small problem compared to some of the other peaks we will be reaching soon. Mike mentioned soil and water and here is a good article on peak soil http://towardfreedom.com/home/content/view/1496/64/

Most of the world’s soils are aridisols and are unproductive without extensive irrigation. Even the soils in the bread basket of America are losing much of their fertility and if we have a few years of drought it will likely mean another dust bowlhttp://www.washingtonpost.com/wp-dyn/content/article/2009/04/22/AR2009042203685.html

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  1. Solutions From Government? I Think Not: – Mike Folkerth – King of … | Quality Solutions on June 25th, 2009 at 11:09 am
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