by XOVERX » Sun 26 Aug 2007, 12:46:53
By all production indicators, mankind has reached, and passed, Peak Oil. Peak passed in May 2005. \
So we are in the still early stages of Peak Oil.
PEAK UNRECOGNIZED: May 10025 to the Present
Like waking from a deep sleep, general awareness of Peak Oil is occurring slowing. Slowing but ever surely. From almost no discussion in the corporate media, there is now the occasional story on oil depletion. Sometimes the story actually focuses on Peak Oil. But Peak Oil awareness remains low in these early days. There is much more discussion of Global Warming than Peak Oil, most likely due to Al Gore's efforts. Until gasoline costs become more difficult, unawareness will largely continue.
While oil and gasoline has increased in cost, those increases are simply enough to confuse the general public, not to make it angry. "It's the oil companies." "It's about profit." These seem to be the incipient thoughts of the mainstream about gasoline fluctuations.
The US is one small natural disaster away from gasoline shortages. Gasoline lines. Rationing. Even in 2007, we could see such shortages if a hurricane destroys the wrong part of the gulf.
Shortages will cause the American people to fully arise out of somnolence. Nothing like the frustration of a gasoline line to get people's attention. And those will happen. Soon now.
As I said, I don't think the US is out of the woods on gasoline lines this year with a bad hurricane. And if not this summer, then almost surely next summer. Before the next national election, I should think. General consciousness regarding Peak Oil will change dramatically when gasoline lines emerge.
Also, we are witnessing the crumbling of the home mortgage bubble. "Experts" are now predicting that nationwide property values will decrease nationwide for the first time in US history. The economy driver of home mortgage refinancing is beginning to evaporate. The stock market fluctuates wildly from day-to-day. The cracks in capitalism are widening. And deepening.
THE NEAR FUTURE: 2007 To 2010
The economy will lurch. US households are strained, especially those who lose their homes. The middle class contracts even as the wealthy accumulate more wealth. Service industries shrink as the mass of citizens have less money.
Financial and individual stress, depression, and anger take hold. It becomes difficult to afford to commute. Vacation industries, amusement parks, gyms, and other such businesses face a decreasing customer base. Times become tough for many.
Politics, however, remains critical, if foggy. First, there remains the growing possibility that Bush will war with Iran before his term ends in 2009. Secondly, the 2008 Presidential election must be held.
It seems clear to me that if Bush attacks Iran, not only will Peak Oil come immediately in the public consciousness, but more advanced effects of Peak Oil may be felt earlier than otherwise.
The world cannot afford for the Straits of Hormuz to be shut down for more than about 2 or 3 months. Otherwise the world economy will become severely crippled, perhaps it will not ever recover to prewar levels.
And if the Iranians are able to damage the US fleet, then the use of nuclear weapons is virtually assured. At least if Bush or another Republican is the President.
If war is averted in the Bush administration, then the US election becomes paramount. If a Republican is elected, I think the present form of preemptive diplomacy remains in place. In other words, a war with Iran remains distinctly possible, and the move towards ever greater fascism inevitable.
The Democrats, I think, would pull back from outright warfare, but how successful can they be with Peak Oil? Robert Murdoch controls large portions of the CM. And the rest is clearly right wing.
The Democrats would likely attempt to implement "reforms." First, at the wrong problem: Oil profits. But gasoline goes from 10 cents per cup to 50 cents per cup. People are bewildered. And angry.
All right, enough typing. My thoughts are that we a living in a transitional period. And times are fix'in to get a whole lot tougher.