On Boneheads

You Bonehead

Yesterday, the leader of the world’s largest and strongest economy called his central banker a “bonehead” for not lowering interest rates below zero.

Today, the European Central bank (ECB), which according to Trump is not led by a bonehead, reduced interest rates and increased money printing:

https://www.bloomberg.com/news/articles/2019-09-12/ecb-cuts-rates-restarts-qe-to-fight-slowdown-as-draghi-era-ends?srnd=markets-vp

The ECB reduced the deposit rate to minus 0.5% from minus 0.4%, and said it’ll buy debt from Nov. 1 at a pace of 20 billion euros ($22 billion) a month for as long as necessary to hit its inflation goal.

Trump and the ECB correctly understand that lower interest rates are required to stimulate growth, and yet rates are already near zero, which suggests real growth is no longer possible.

A non-bonehead would seek to understand the underlying reason growth is constrained. They might begin by reading today’s essay by Gail Tverberg in which she makes 11 important points:

https://ourfiniteworld.com/2019/09/12/our-energy-and-debt-predicament-in-2019/

[1] Our problem is not just that oil prices that are too low. Prices are too low for practically every type of energy producer, and in many parts of the globe.

[2] The general trend in oil prices has been down since 2008. In fact, a similar trend applies for many other fuels.

[3] The situation of prices being too low for many types of energy producers simultaneously is precisely the problem I found back in December 2008 when I wrote the article Impact of the Credit Crisis on the Energy Industry – Where Are We Now?

[4] In the right circumstances, a rapidly growing supply of cheap energy products can help the world economy grow.

[5] It is striking that the period of rapid energy consumption growth between World War II and 1980 corresponds closely to the long-term rise in US interest rates between the 1940s and 1980 (Figure 6).

[6] Starting about 1980, the US economy began substituting rapidly growing debt for rapidly growing energy supplies. For a while, this substitution seemed to pull the economy forward. Now growth in debt is failing as well.

[7] Since 2001, world economic growth has been pulled forward by China with its growing coal supply and its growing debt. In the future, this stimulus seems likely to disappear.

[8] The world economy needs much more rapidly growing debt if energy prices are to rise to a level that is acceptable to energy producers.

[9] The world economy seems to be running out of truly productive uses for debt. There are investments available, but the rate of return is very low. The lack of investments with adequate return is a significant part of what is preventing the economy from being able to support higher interest rates.

[10] Since 1981, regulators have been able to prop up the economy by reducing interest rates whenever economic growth was faltering. Now we have pretty much run out of this built-in source stimulus.

[11] The total return of the economy seems to be too low now. This seems to be why we have problems of many types, ranging from (a) low interest rates to (b) low profitability for energy producers to (c) too much wage disparity.

Having now learned that economic growth is constrained by the depletion of low cost non-renewable fossil energy, a non-bonehead would then focus on renewable energy to determine what is or is not physically possible, and the implications of trying to substitute fossil with solar and wind energy.

They might begin with this week’s essay by Tim Watkins and would quickly learn that the environmental costs of “green” energy are very high, that “renewable” energy is totally dependent on non-renewable fossil energy, and in any case only produces electricity which does not address the other 80% of fossil energy we depend on.

http://consciousnessofsheep.co.uk/2019/09/09/facing-our-inconvenient-truths/

Having now attained an understanding that there is no possible way to resume economic growth, a non-bonehead would then ask what’s the consequence of attempting to force growth with printed money and negative interest rates? A quick review of history would show there is no free lunch and that monetary shenanigans ultimately destroy currencies which leads to wars and revolutions.

Finally, a non-bonehead would integrate all of the above with an understanding of the ongoing collapse of our planetary ecosystem, including the loss of a climate compatible with civilization. They might begin with this week’s interview with Phillise Todd, who has a good grasp of the big picture, despite her occasional and understandable (as explained by Varki’s MORT theory) lapses into denial.

 

Understanding now the intractable nature of our predicament, and comparing reality with what our culture believes, a non-bonehead would conclude they are a genetic mutant and that most of our species are boneheads.

When challenged with the criticism that all they do is discuss problems without offering solutions, a non-bonehead would respond with a clear plan:

What would a wise society do?

And the boneheads would ignore it.

By Nate Hagens: Reality 101 Short Courses

 

Reality Check Ahead

Today Nate Hagens released a new series of short courses on the human predicament created for the University of Minnesota NEXUS ONE freshman program.

More information on Nate’s educational initiatives can be found at the Institute for the Study of Energy and Our Future (ISEOF).

You can also find another excellent Reality 101 course by Nate here.

 

Reality 101 Short Course #1: Metacognition in the Anthropocene

 

Reality 101 Short Course #2: The Fossils that Power the Global Economy

 

Reality 101 Short Course #3: The Real Stock Market

 

Reality 101 Short Course #4: Finding Resilience in an Age of Turbulence

By Geoffrey Chia: Open Letter to Extinction Rebellion

Who Wants Change

Extinction Rebellion is the most promising new global organization dedicated to forcing action on our ecological and climate emergency.

Their #1 demand is for governments to stop denying reality:

Government must tell the truth by declaring a climate and ecological emergency, working with other institutions to communicate the urgency for change.

Dr. Geoffrey Chia, in an open letter to Extinction Rebellion, commends them on their good intentions but points out that they are as deeply in denial as the governments they criticize.

http://www.doomsteaddiner.net/blog/2019/06/29/open-letter-to-extinction-rebellion/

h/t James

One of your demands is that official bodies tell the Truth and declare a climate emergency. You were told by the IPCC last year that humanity had 12 years before it would be too late to do anything. That was a LIE. The fact is that it was and is already far too late to prevent global catastrophe. There is NO carbon budget left. These realities were apparent even back in 2013 following the IPCC fifth assessment report, when the only scenarios the IPCC could imagine where disaster could be avoided required time travel into the past or technologies which did not exist and certainly could not be scaled up even if they did exist (as expressed by climate scientists Dr Kevin Anderson and Dr Hugh Hunt). The science based facts behind these assertions are summarised here: 6.

Truth is determined by careful and comprehensive collection of accurate data, by hard objective scientific scrutiny using the principles of Physics, Chemistry and Biology, including mathematical analyses, which must not be polluted by political or economic vested interests. The IPCC processes had long been watered down by political interference, which seriously underestimated the magnitude and speed of global warming, in order to justify foot dragging by national so-called “leaders”.

The reason we have not yet experienced the full horrific consequences of 415ppm CO2 (in reality, there is a much higher CO2 equivalent, around 500ppm) is because of time lag due to thermal inertia. Atmospheric temperature rises have been buffered by the cool oceans and the melting ice masses. Those buffers are being exceeded, they are being overwhelmed, as every second passes. If you think the unprecedented shocking weather extremes over the past 15 years were disastrous at barely 1 degree Celsius atmospheric global average temperature rise, there is far more and far worse to come. More than 4 degrees rise is irreversibly baked into the cake based on EXISTING greenhouse gas concentrations. That is as certain as the law of gravity. Hell is coming no matter what. The best thing you can do is get ready for it. But time is short and you must act NOW before the imminent global economic collapse steals away all your options.

Let us consider the absolute best imaginable outcomes for your group. What will happen if you are immediately 100% effective today in achieving all your social and policy goals?

  • Even if all carbon emissions cease today, the world is still committed to more than 4 degrees Celsius eventual global average temperature rise which will render large scale agriculture impossible. This means civilisation, the hallmark of which is the existence of cities, will no longer be possible. Small scale agriculture in a few selected climate resilient pockets may still be possible.
  • Large scale carbon sequestration is a fantasy and will never be undertaken because our bogus economic system will not allow for it and even if we can develop those technologies, we will not have the energy resources to do it. Geoengineering insanity will cause more problems than they address.
  • Immediate cessation of emissions will also mean immediate curtailment of global food production which is almost entirely dependent on fossil fuels. This will cause billions to starve. In the medical management of patients, knowingly inflicting harm is not an option. However allowing nature to take its course (in some cases – such as untreatable terminal cancer) is acceptable, indeed unavoidable. As a matter of course, billions will die this century due to oil/resource depletion, ecosystem collapse and climate catastrophe and the consequences thereof (warfare, epidemics etc). Inevitable near term economic collapse is also absolutely certain due to institutional fraud and impending energy collapse.  It is those events which will most effectively and drastically curtail carbon emissions, not your activism.

There is absolutely nothing you can do about the looming general die-off. You can however take steps to reduce the likelihood that you and your family and friends will die horribly in the next few decades. Please note that nobody’s survival is guaranteed. All anyone can do is increase the probability of their survival.

The remainder of Chia’s letter is a little too over the top with hyperbole for my taste but the gist of his advice to extinction rebellion members is probably correct: It’s too late to save civilization, focus on saving your members.

Here is another post by Geoffrey Chia that I thought was pretty good.

By Geoffrey Chia: What you should not say in public…

 

By Gail Zawacki: On Themism and Seeking Scapegoats for Reality

Themis

Gail Zawacki in her latest excellent essay introduces “Themist”, a new name for doomers, that tiny group of mutants with defective denial genes, that I belong to.

Gail succinctly summarizes why we Themists believe know what we believe know, and discusses a new trend to blame Themists for causing civilization’s imminent collapse.

I’m a Themist and proud of it. Come and get me you denying idiots, I’m right here.

http://witsendnj.blogspot.com/2019/07/in-praise-of-themis.html

1. Consciousness and Denial

In tandem with consciousness, humanity developed a deeply embedded penchant for denial. It’s a terrific survival strategy that evolved to help blind us to the pain of animals we hunt and eat, the terror of the victims of wars we wage on our neighbors, the monstrosity of slavery, the injustice of male chauvinism, the senselessness of death, and ultimately the fearsome gaping maw of meaninglessness in the vast unfeeling universe.

Our denial, entrenched in our genes, also enables – even requires – us to believe fantasies, to embrace spirits, to shun truth, to subscribe to the illusion of free will, to follow charlatans, and to pretend our hopes and prayers can shape reality.

 

2. WASF

Fact: there exists no natural mechanism that will slow the acceleration of anthropogenic global heating in any timeframe useful to life on earth. It is only reasonable to expect that it’s going to get hotter and hotter, faster and faster, for at least hundreds of years. Even if anthropogenic emissions cease today or in a decade, heating will still increase at an accelerating rate. Amplifying feedbacks such as albedo and forest die off and methane release from melting permafrost combined with the longevity of CO2 already released assure an uninhabitable climate in the fairly near future.

Once you understand that greenhouse gases will continue to trap energy from the sun as long as they persist, everything else – climate sensitivity and latent ocean warming and inertia in the system – is so much hoohah. The idea that technology yet to be invented will remove CO2 is no better than a religious tenet, and it will never be deployed at a scale that matters given the vast quantities that have already been released (and continue to be released).

 

3. Humans are incapable of change

As convincing as the physical effects documented by science are, it’s also and crucially ever more irrefutable that humans are simply not equipped to behave any other way than to grow without voluntary restraint, until we deplete the resources we need to survive, and overwhelm the environment with pollution until it is so toxic that it is poisonous to virtually all forms of life. We are basically an invasive species with no more self restraint than yeast.

This is where even the most dire voices about climate change often err.  It’s not libertarianism, or capitalism, or western civilization that has led us to this predicament – rather it is humanity’s exponential growth, in numbers and complexity, in technological capability, medical advances, and consumption.  The imperative to grow and consume is primordial and we cannot eliminate that biological trait despite our desire to believe in free will.

 

4. Apocaloptimists attacking doomers – as worse than deniers 

Overwhelming evidence – that impacts are faster and sooner than predicted, that tipping points have been irrevocably crossed, that amplifying feedbacks are beyond human influence, that global warming is run amuk with no natural mechanisms or magic technology to ameliorate inexorable heating – is leading more people to conclude that civilization (if not our species and most others) is doomed. Right now, there is an increasingly vocal contingent who are vigorously attacking the nebulous doomer community.

Much of the sniping and scapegoating begins with the hostile accusation that doomers, merely by existing, are encouraging inaction. This is patently absurd, since inaction has been and remains the default position ever since humans first noticed that burning fuel has consequences. No contribution by doomers towards defeatism accounts for the ever-increasing Keeling curve that measures CO2 concentrations, or the refusal of governments to meet climate treaty goals.

 

5. No fun

An especially pernicious assertion by this “shoot the messenger” crowd is the common claim that doomers are secretly desirous of a catastrophic end for humanity. I doubt there is a single doomer who finds any comfort whatsoever in either the inevitability of extinction or their own individual role in it. Every doomer I’ve ever interacted with, and there have been many, has agonized and mourned – and some have even gone crazy with grief and guilt and committed suicide. It’s not fun being a doomer, which is why there are so few of us.

Many doomers began as former devoted progressives, who fought long and hard before awakening with enormous ambivalence to the sad verity that humanity is not going to change. I personally learned about the tenacity of denial the hard way, first from trying to alert the world to the death of trees (a massacre that seemed perfectly obvious to me over a decade ago but invited unending ridicule) and second, from encountering so many “light” doomers – who will forever remain convinced, no matter how much archeological evidence refutes it, that the noble primitive and peaceful and sustainable indigenous savage was ever really a thing.

Saving the World by Recycling My Garbage

 

Recylcing

A year ago I wrote an essay that tried to capture the depth and breadth of our predicament, and that offered a simple idea for increasing awareness, gratefulness, and temperance.

If you’re not an engineer the essay may be a painful read because my goal was to communicate maximum content with minimum words in a single sentence, and it thus reads like a computer program.

Nevertheless I like the essay because it touches on, and integrates, every topic that citizens should understand, but almost none do.

The essay did not get much traction when it was published, so I’m recycling it today for the pleasure and enlightenment of the millions of new readers that now follow this blog.

I make the bold claim that this essay holds the all-time world’s record for the highest number of important ideas in a single sentence, and the highest ratio of important ideas to words in any essay, with 86 important ideas and 1290 words it’s ratio is 6.6%.

I’m confident that readers will not be able to find another essay that unseats my world record, however if I’m proven wrong, I will publicly admit that I have the same denial genes as the rest of you monkeys.

Here’s the link to my world record essay….

On Burning Carbon: The Case for Renaming GDP to GDB

Mashup

Keep Calm and Carry On It's Just a Mashup Mix

 

Notice the tight correlation between CO2 emissions per person and standard of living:

That’s not a coincidence as physicist Tim Garrett has explained:

https://un-denial.com/?s=Tim+Garrett%3A

So if we ever decide to do something effective about climate change (assuming it’s not already too late due to self-reinforcing feedback loops) then that solution must include some combination of a lower standard of living and a lower population.

When was the last time you heard a leader or climate scientist speak with such clarity?

Probably never because most are in denial as explained by Ajit Varki’s theory:

https://un-denial.com/denial-2/theory-short/

Unfortunately, reducing our standard of living is not as simple as tightening our belts because of the large amount of debt we use to support our lifestyles and economy.

Contraction means a depression at best, and more likely some form of crash:

https://un-denial.com/2016/01/30/why-we-want-growth-why-we-cant-have-it-and-what-this-means/

So the choice is severe economic hardship from a voluntary contraction, or collapse and possible extinction from climate change.

But it’s not so simple.

Our lifestyle and economy is totally dependent on burning non-renewable fossil carbon and we have already depleted the best low-cost reserves:

https://un-denial.com/2018/02/08/on-burning-carbon/

The best minds predict we will have 50% less oil to burn in 10 years:

https://un-denial.com/2018/07/29/on-oil/

This means our lifestyles and economy will contract soon no matter what we choose to do.

So the real choice is do we want to try to control our decline in a civil and humane manner, or do we want to let nature force an uncivil and inhumane decline?

The correct choice seems obvious:

https://un-denial.com/2016/06/27/what-would-a-wise-society-do/

The correct choice is even more clear when you consider the many other negative side effects of human overshoot besides climate change:

https://un-denial.com/2017/01/06/you-know-you-are-in-trouble-when/

But of course there is no choice because we are collectively unable to acknowledge or discuss our predicament due to the denial of reality behavior that enabled our unique brain:

Which probably explains why we have found no other intelligent life in the universe:

https://un-denial.com/2015/03/25/are-we-experiencing-the-peak-of-what-is-possible-in-the-universe/

It’s also probable that complex multicellular life, like plants and animals, is extremely rare in the universe because it depends on a rare “accident” to create the eukaryotic cell:

https://un-denial.com/2016/03/29/book-review-the-vital-question-energy-evolution-and-the-origins-of-complex-life-by-nick-lane/

Which means our planet really is special.

And you reading and understanding this essay is a miracle, but we don’t need God to explain this miracle, just physics and biology, plus billions of years and trillions of planets to enable several low probability events to occur:

https://un-denial.com/2016/11/14/on-religion-and-denial

To sum all of this up, if you have the rare ability to break through the human tendency to deny reality, then you should be in awe of being alive to witness and understand this rare event in the universe, and you should be grateful for the good food and other comforts we enjoy.

https://un-denial.com/2015/11/12/undenial-manifesto-energy-and-denial/