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PeakOil is You

PeakOil is You

Crashing the Global Economy

Discussions about the economic and financial ramifications of PEAK OIL

Postby backstop » Tue 12 Oct 2004, 06:21:30

Jato

It seems to me that the key issue, advancing the sustainable economy, wasn't addressed in Canuck's post.

The judicious raising of fuel taxes to suppress frivolous oil demand (including racing petrol cars for fun) and using the proceeds to fund sustainable energy projects, seems only sensible.

Obviously taxing the fuel-dependent consumer has its limits of usefulness: we won't get the energy industry turned round until we tax specifically those who profit from production, namely the shareholders.

Where I may differ with Canuck is in my inference (maybe wrong) from his post that such an advance of the sustainable economy can't happen until the old economy is trashed. Plainly Sus. enterprise has been denied investment thus far, but I'd say under present circs. we have more chance of this now than ever before.

Equally plainly, innovative investment during a depression tends to be pretty rare, so the next few years appear critical to the advance of that sustainable economy.

regards,

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Postby JohnDenver » Tue 12 Oct 2004, 06:40:51

$this->bbcode_second_pass_quote('jato', 'G')ood morning JD.


Morning Jato.

$this->bbcode_second_pass_quote('jato', '')$this->bbcode_second_pass_quote('', 'W')e could happily survive consuming a lot less, but the economy can't survive it. If the economy can't survive neither can we.


I read this as: Humans can make due with consuming less fossil fuels. Our economy can't. We need a new, overhauled economy. If we are lucky and make it though the coming economic crash, I we are going to see a new economy rise from the ashes (so to speak). What form that will take...I have no clue.

To sum it up: Canuck is not talking in circles.


I see what you mean, and it's a good reason to be optimistic about peak oil. It means that the "trap" we are facing is not entirely based on physics and geology. We may be able to greatly improve our position simply by modifying our economic system, and there's nothing physically impossible about that.

On the other hand, we don't have a new economic system at the moment, and it seems to me that we can't really deeply conserve oil until somebody comes up with an economic system that allows it. Crashing the current economy without having the new one ready yet doesn't sound like a good idea.
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Postby gg3 » Tue 12 Oct 2004, 06:59:34

Jato's got it exactly right with "Humans can make due with consuming less fossil fuels. Our economy can't. We need a new, overhauled economy."

An economy is nothing more than a system for exchanging and allocating resources among humans. In other words it's a tool. When the tool ceases to perform the job it was designed for, it's time to fix it or replace it with a tool that works. When the nature of the job changes such that the tool you're using isn't appropriate, it's time to replace it with the appropriate tool for the job. You dig a hole with a shovel and cut a fence-post with a saw. If someone tried cutting a fence-post with a shovel we would recognize them as incompetent or insane.

Presently we have a tool that only works when it's stuck in a positive feedback loop called growth. Think of a home heating system that only works when it can keep adding three degrees Fahrenheit to whatever the current temperature is: eventually it makes the house uncomfortably hot, and after a while, it causes the house to burn down.

The rationale for economic growth is that it keeps making life better for more and more people. That in turn is predicated on "more and more people," another assumption that is also killing us. Assuming population holds static, the only remaining rationale for growth is to make life better for the existing number of people.

At which point you have to ask, "what does *better* mean"? Does it mean that I can go to the store and buy a soda-pop bottle opener that contains a battery and sound-chip, that plays a little song when I open my soda? Or does it mean that children in Kenya have clean drinking water? And who decides? (Someone, after all, does decide: whether deliberately, or "by default" as a "side-effect" of behavior directed toward different ends.)

Increasing growth may be "necessary" (a-priori assumption) for the *present* economy, but it's *not* going to be necessary (in fact it's not going to occur) for the future economy, whether we like the outcome of that or not. At which point comes the question of distributional equity. Or to put it in terms of my example, the tradeoff between me wanting my singing soda-pop bottle opener, and Joe Kenya wanting clean water so he's not constantly sick with dysentery.

Now what about that question of "decreasing consumption"...? Humans are hard-wired with an "instinct for increase" since the days when we lived in caves and never had "enough" of anything. "Enough" was always "more than" what we had, so over time it came to be that "more" used the same brain-circuitry as "enough." Fixing this is going to be as difficult as fixing the population crisis, since the latter also depends on a piece of archaic brain-wiring called the orgasm, which we have to learn to disentangle from its usual reproductive consequences. Our ape-instincts are powerful masters but we have got to stop being their slaves.

So the first place to start, is to ennumerate exactly what is meant by decreasing consumption. "Drive slower." Okay, I can drive at ...well the general traffic speeds are about 70, so I can safely manage 60 without getting rammed, but that's a start. Install more efficient appliances. Okay, out go the incandescents, in go compact fluorescents; and repeat process for the fridge, washing machine, etc. Do not buy stupid trinkets that are pure waste. Okay, bye-bye singing soda-pop opener (by the way this horrid little piece of pure waste really does exist, I saw them the other day), and at the same time, hello clean water for Joe Kenya. Fix & re-use rather than disposing & replacing. Check, done.

What this also means is, people who have more to start out with, have a larger responsibility to do something about it. A tenant in an apartment can do little about replacing the inefficient washing-machines in the basement laundry room; only the owner can do that. A working poor family with a 20-year-old inefficient car can do little about buying a hybrid, but taxes and transportation policy can change, so there's a reliable bus that runs by their block regularly.

This is merely an application of the moral principle of responsibility: you are responsible for those things you have control over; the more you control (including the more you own), the greater the level of responsibility. The attempt by anyone to gain control (or gain ownership) of anything, without simultaneously taking on a commensurate share of responsibility for what they have gained control (or ownership) of, should be seen as an immoral act similar to abandoning a child.

Let's not forget that the entitlement mentality runs through our entire economy. It's not just "welfare mothers," it's anyone who thinks that they have a "right" to an endless increase in their level of resource throughput.

The key question that needs to become part of the foundation of our entire moral code as a civilization, is: "When is enough enough?"
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Postby backstop » Tue 12 Oct 2004, 07:21:02

gg3 - Some pivotally good news for you -

There is no credible evidence I've seen in thirtyfive years' interest in the issue of "wanting more" being hard-wired into peoples' brain circutry.

On the contrary, for the million years we lived without defensive walls or an arms race there is no archaeology of escalating material wealth. In the ten millenia since, we've gone from hunting weapons to the present obsenities, and from a huge variety of highly evolved dwellings to the mass production of suburbia stuffed with endless tat.

The point about "wanting more" being a reflex conditioned by propaganda rather than by instinct is maybe best illustrated by the number of indigenous peoples who actively strive to maintain their independence of the present materialist cock-up. Older values still endure.

One of the few bits of the coming crash I look forward to is the end of mass propaganda. Sadly it will predictably be fairly late in the process as its critical to the status quo.

regards,

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Postby chris-h » Tue 12 Oct 2004, 10:04:28

We need an ecogreen culture instead of a capitalistic culture.
We need biomachinery instead of a machine civilization.

The problem is that nothing like that is going to happen unless a major major disaster happens first.

If peaple can have oil all the time regardless of the price no change is going to happen.
Major oil disruptions are needed to convince the X George consumer that change is needed.
How can a suv owned be convinced that he/she has to change cars ?

Simple. Only stones thown at his car by small car owners when everybody is waiting to refill gas and there is not enough gas for everybody will convince him.

Lets see them how safe hummers really are. :twisted:
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Postby lowem » Tue 12 Oct 2004, 10:21:23

$this->bbcode_second_pass_quote('chris-h', 'W')e need an ecogreen culture instead of a capitalistic culture. We need biomachinery instead of a machine civilization.


Totally off-topic, but at this point when reading this I am imagining the bio-organic Vorlons [Babylon 5] versus the machine Borg [Star Trek] ... :lol:

$this->bbcode_second_pass_quote('chris-h', 'M')ajor oil disruptions are needed to convince the X George consumer that change is needed. How can a suv owned be convinced that he/she has to change cars ?


Hmm, was thinking of that. I don't know about the American context, but in my local context, if total fuel costs per month threaten to surpass, or actually do surpass the actual monthly car loan payments, that would really piss people off, and wake people up.

Incidentally, that's also a factor of say, 4x to 5x. Over here, we pay for about $100-$200 per month in petrol, and car loan is anywhere between say $500 to $1000 per month. When petrol goes to $400, $600, $800 per month there'll be a lot of screaming going on ...

There goes the "demand destruction" theory again ... :lol:
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Postby Eustacian » Tue 12 Oct 2004, 16:15:23

$this->bbcode_second_pass_quote('schajw', '
')
Small steps. Reinstate the 55 MPH speed limit in most places. Raise CAFE standards. Eliminate the SUV loophole. Subsidize fuel-efficient or alternative fuel vehicles (and I don't mean a stupid tax writeoff on your 1040, but a real subsidy in the price at the dealership). Instead of growing highways, grow mass transit instead. Detroit can stop building strictly gasoline powered vehicles, and instead produce diesel and flexible fuel vehicles so we can change our infrastructure to use biodiesel and E85 (85% ethanol fuel).

There are all kinds of things that can be done, but we're just not doing it. And I don't think we're likely to. There is too much special interest money in politics and inertia. I think we're going to allow ourselves to crash first.

- Jim


Some things to think about.

A> Conserving (ie. reducing demand) causes prices to drop. So, if we increase mileage standards that will only mean there is more cheap oil for someone to buy and operate another car. Total oil use is unchanged or even goes up. This can only be avoided by regulation which holds fuel prices artificially higher than the market would provide.

B> The US is already running a major budget deficit and you want us to add more subsidies for alternative vehicles? Also, even if that Prius doesn't burn as much oil while driving it takes just as much oil feedstock to build as an equivalent sized conventional vehicle.

C> You talk about special interest money in politics. A lot of special interest money travels from the farmers to their lobbyists into the halls of congress specifically to pass legislature maintaining or increasing biodiesel subsidies.

D> Biofuels for the most part have a negative return of energy. If you can create the biofuel out of waste (corn husks) then it is possibly energy profitable. If you grow an entire crop for the sole purpose of creating biofuel, it will likely be unprofitable.
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Postby Canuck » Tue 12 Oct 2004, 17:31:01

$this->bbcode_second_pass_quote('JohnDenver', '
')My point is that crashing the global economy will cause suffering. Aren't you being a little cavalier toward the people who will suffer? The potential humanitarian problems don't bother you?


Of course they bother me. That is why I follow the subject with great interest. This is a meaningless argument unless you can explain how we get out of this mess without a lot of people suffering I think the choices are suffering, a lot of suffering or suffering on an unimaginable scale.

If the best hope is mere suffering, our best option is to take a course of action that gives us that best hope.

$this->bbcode_second_pass_quote('', 'Y')ou say we could happily survive on a lot less oil, and at the same time, you're saying we can't.

Which is it? If using less oil is inevitably going to crash the economy, then we in fact can't happily survive on a lot less. You can't have it both ways.


Sure I can have it both ways. It is easy to imagine a much simpler western lifestyle and a much simpler decentralised local economy. I have faith we could adapt to life in a sustainable economy, one that involves a much less wasteful and more meaningful standard of living.

What I can't imagine is getting from here to there without a world of pain. I can't imagine it without monetary collapse and the economic fallout from that monetary collapse. I can't imagine the political leadership that is required to push us into that world of pain so that we get from here to there as quickly as we can. I can't imagine the cultural change we will have to undergo and how we will have to redistribute wealth to retrofit the infrastructure. We have to be prepared to negotiate the (North) American way of life and I can't imagine that.

I salute the Richard Heinbergs and the Julian Darleys. I agree with their ideas about powering down and finding sustainability. I try to live a fairly simple life myself. But I can't help but think the environmentalists - and I consider myself one - are pissing in the wind.

Instead of trying to find an sustainable lifestyle, society will scapegoat environmentalists. If only we hadn't stopped nuclear power. If only we cared more about people than the Alaskan wilderness. If only we did not raise troubling questions about LNG safety.

I can imagine lots of ways to make the coming dark age a lot brighter. I can imagine having a decade or two before oil gets so short we have very widespread starvation. I can imagine alarm bells screaming right now and I can imagine crashing together an alternative energy program. I can imagine a stiff gas tax funding that investment. I can imagine many, many people opting for voluntary simplicity. I can imagine preparing for depression by strengthening the social safety net and deciding to redistribute a lot more income. I can imagine setting energy priorities and rationing to assure those priorities.

But energy is not the election issue. Bush and Kerry aren't talking about sustainable development. Both promise more growth and more of the same. There is no easy way to get from where we are to where we have to go and absent easy answers, we will take the path of least resistance. We will cross our fingers and try to grow our way through a brick wall.

I can imagine a soft landing into a different, better sustainable lifestyle. I just can't see it happening.
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Postby schajw » Tue 12 Oct 2004, 17:35:09

$this->bbcode_second_pass_quote('Eustacian', '
')
Some things to think about.

A> Conserving (ie. reducing demand) causes prices to drop. So, if we increase mileage standards that will only mean there is more cheap oil for someone to buy and operate another car. Total oil use is unchanged or even goes up. This can only be avoided by regulation which holds fuel prices artificially higher than the market would provide.

B> The US is already running a major budget deficit and you want us to add more subsidies for alternative vehicles? Also, even if that Prius doesn't burn as much oil while driving it takes just as much oil feedstock to build as an equivalent sized conventional vehicle.

C> You talk about special interest money in politics. A lot of special interest money travels from the farmers to their lobbyists into the halls of congress specifically to pass legislature maintaining or increasing biodiesel subsidies.

D> Biofuels for the most part have a negative return of energy. If you can create the biofuel out of waste (corn husks) then it is possibly energy profitable. If you grow an entire crop for the sole purpose of creating biofuel, it will likely be unprofitable.


Talk about a bunch of negative people around here.

OK, then. It's simple - we're fucked. There is absolutely nothing that can be done to save anything even remotely resembing our economy. There will be riots in the streets, every square inch of countryside and wilderness on the entire planet (and even the entire surface of the moon and Mars) will be burned to ashes by the marauding herds, and anyone unlucky enough to survive the coming holocaust will live a Stone Age existence with 60 foot cockroaches preying on them. Everyone might as well go ahead and commit suicide now, since we're fucked.

In other words, there is no answer to JD's original question. No fuel substitutes. No measures that can be taken to lessen the impact of PO. Absolutely nothing we can do.

No wonder Matt left this forum. I'm thinking of joining him.

- Jim
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Postby backstop » Tue 12 Oct 2004, 17:43:46

I'm damn sure people need to dare to hope and, ignoring the self-pitying piffle about all hope leading but to hope's betrayal, take resolute action towards hopes fulfillment !


My two pennorth.


regards,

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Postby schajw » Tue 12 Oct 2004, 18:02:28

$this->bbcode_second_pass_quote('backstop', 'I')'m damn sure people need to dare to hope and, ignoring the self-pitying piffle about all hope leading but to hope's betrayal, take resolute action towards hopes fulfillment !


My two pennorth.


regards,

Backstop


I agree. My reaction was based on reading a number of negative jabs at essentially everything I've said today here. I'm getting tired of people pissing in my Wheaties.

I will agree that it's very unlikely that the US (at least the government, anyway) will find the political will to come up with even interim solutions (like alternative fuels) to soften the landing and power down gracefully. And (from the Planning for the Future section) most people today couldn't survive in the wilderness (however, the Indians did it just fine, thank you very much). So, if these are true, then yes, many, or even most, people in the US are fucked. Too bad, so sad. I don't know about anyone else here, but I plan on being adaptable and surviving, even if I have to study Indian crafts and culture. Yes, I have hope. And it's not going to die.

- Jim
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Postby Canuck » Tue 12 Oct 2004, 19:27:45

$this->bbcode_second_pass_quote('schajw', '
')OK, then. It's simple - we're fucked. There is absolutely nothing that can be done to save anything even remotely resembing our economy.


I agree with this.

$this->bbcode_second_pass_quote('', 'T')here will be riots in the streets, every square inch of countryside and wilderness on the entire planet (and even the entire surface of the moon and Mars) will be burned to ashes by the marauding herds, and anyone unlucky enough to survive the coming holocaust will live a Stone Age existence with 60 foot cockroaches preying on them.


Where does this leap come from? I can't see Mad Max happening in even my most pessimistic scenarios. That is a Hollywood fantasy, not real life. I agree with what you say about hope, but it is this leap that destroys hope. It also leads to denial. I think we have to be realistic about both the upside and downside and do our best to force things towards the upside. Without political leadership, doing our best won't do much. That's realistic, too.

I pin my hopes on the next economy and the next civilization. I think we've pretty made a hash of this one anyway. If it was not for the pain involved, I'd be happy to see it go.

I'm planning to survive too.
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Postby Eustacian » Tue 12 Oct 2004, 19:28:06

$this->bbcode_second_pass_quote('schajw', '
')
Talk about a bunch of negative people around here.

OK, then. It's simple - we're fucked. There is absolutely nothing that can be done to save anything even remotely resembing our economy. There will be riots in the streets, every square inch of countryside and wilderness on the entire planet (and even the entire surface of the moon and Mars) will be burned to ashes by the marauding herds, and anyone unlucky enough to survive the coming holocaust will live a Stone Age existence with 60 foot cockroaches preying on them. Everyone might as well go ahead and commit suicide now, since we're fucked.

In other words, there is no answer to JD's original question. No fuel substitutes. No measures that can be taken to lessen the impact of PO. Absolutely nothing we can do.

No wonder Matt left this forum. I'm thinking of joining him.

- Jim


Which Matt do you speak of? If it's Matt Savinar then I don't think he would have left due to our negativity. Sure it's a lot of negative information but Matt's been immersed in it for a while and I know he's got ways of coping (from his website). Of course, he also knows that "it is what it is". The situation has already been created, we just have to deal with the results.

And you are right, there is pretty much absolutely nothing we can do. There are not very many fuels that have a positive rate of energy return and of those that do we are near to depleting most of them. Oil will go first, then likely natural gas, coal and uranium. What we will have left are the same energy sources that our forefathers had - wood, animal dung, moving water, etc and a few new ones that we've come up with (wind, maybe solar has a positive energy return as well).

It's not that everybody will die, but our economy will not resemble anything like it does today. We will either fall back to a level of pre-industrialization if we are lucky or we will fall farther (stone age) if we aren't so lucky.
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Postby MonteQuest » Tue 12 Oct 2004, 19:31:27

$this->bbcode_second_pass_quote('', 'I') can imagine a soft landing into a different, better sustainable lifestyle. I just can't see it happening.


Canuck,

Very good retort. I feel the same way. The asset inertia and our cultural direction is a brick wall. Conservation, improved efficiencies and demand destruction only become viable actions if the market is not allowed access to the new supply created as a result.

schajw,

I can't speak for everyone, but I am not trying to be negative. I have been trying to do something about this for over 30 years! If we had faced our future years ago, perhaps we could have avoided the crisis before us. Now, we must learn to adjust and cope the best we can. I am a realist, and over the years, I have hopefully gained the wisdom to recognize what I can change and what I cannot.

We cannot save any of our present economy because it and our monetary system are based upon a false premise; that energy and resources were infinite. But we can organize and support each other to best weather the transition. We can't change the big picture, but we sure can change how it affects us, our friends, and our family in some very positive ways and degrees.
A Saudi saying, "My father rode a camel. I drive a car. My son flies a jet-plane. His son will ride a camel."
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Postby Eustacian » Tue 12 Oct 2004, 19:33:42

Oh, and by the way, I have hope too!

A human being, having gulped his last breath of air and slowly sinking to the bottom of the ocean will also be filled with hope - hope that he will somehow be saved. Even though the situation is futile, hope persists. That's human nature.
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Postby backstop » Tue 12 Oct 2004, 20:08:53

There a wonderful post that starts a thread called Hope (in case anybody didn't see it). It expresses beautifully how Hope, in the absence of Action, is all too often lethal.

To the extent that this society is running on just such a hope (that the politicians won't really screw up, again, that my job won't be taken by a slave-labourer in China, etc).

Most people don't dare to hope for a way of life that is qualitatively better than this - most are too busy dealing with ever-rising pressures of an ever more unstable society.

In this we're different from many in that we do dare to hope. Yet if we don't face the potential disappointments of taking action for something larger than ourselves and our own generation, I reckon our hopes are as vain as the dumbest airhead yuppie on coke.

So, just what are the most creative actions to be pursued ?


regards,

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Postby schajw » Wed 13 Oct 2004, 09:27:10

From today's headlines on the front page of this site:

http://ogj.pennnet.com/articles/web_art ... _ID=213553

$this->bbcode_second_pass_quote('', 'T')he unstated "Plan B" consists of whatever energy bridges can be built to sustain all current energy sources, even in small volumes, until replacements can be developed.

"'It can't make a big difference' is bad thinking," Simmons said. Among the world's immediate needs are the realization that there is no bad energy source, conservation breakthroughs, an environmental-energy treaty, and access to all areas where drilling has been banned. (emphasis mine)


This is what I'm talking about, and it comes from one of the energy gods you bow down to around here, Simmons himself. And this is why I'm thoroughly disgusted with the negativity around here. Several of you keep telling me why things can't work, when I want to try to explore what can and will work. And that is what JD was looking for when he started this thread. If I was your boss, I'd fire every one of you fuckers for that kind of attitude. Don't tell me why something won't work. Give me something that will.

I can't change the world, but I can control my own little piece of it. And I intend to do just that. Goodbye.

- Jim
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Postby bart » Wed 13 Oct 2004, 15:30:36

We are little people, afraid of shadows.

Consider yourself in the Soviet Union in 1942, a poor country under a totalitarian regime. Your country has been invaded by the seemingly invincible power to the west.

Time to give up?

$this->bbcode_second_pass_quote('', '
')The Battle of Stalingrad was a major turning point in World War II, and is considered as the bloodiest battle in human history. The battle is taken to include the German siege of the southern Russian city of Stalingrad (today Volgograd), the battle inside the city, and the Soviet counter-offensive which eventually trapped and destroyed the German and other Axis forces in and around the city. Total casualties are estimated at between 1 and 2 million. The Axis powers lost about a quarter of their total manpower on the Eastern Front, and never recovered from the defeat. For the Soviets, who lost well over one million soldiers and civilians during the battle, the victory at Stalingrad marked the start of the liberation of the Soviet Union, leading to eventual victory over Nazi Germany in 1945.


http://en.wikipedia.org/wiki/Battle_of_Stalingrad
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Postby Canuck » Wed 13 Oct 2004, 17:47:38

$this->bbcode_second_pass_quote('schajw', 'T')his is what I'm talking about, and it comes from one of the energy gods you bow down to around here, Simmons himself. And this is why I'm thoroughly disgusted with the negativity around here.


I think you mean you are disgusted with the reality around here.

$this->bbcode_second_pass_quote('', 'S')everal of you keep telling me why things can't work, when I want to try to explore what can and will work.


Great. Find something that can and will work. If you keep suggesting things that can't work, what do you expect?

$this->bbcode_second_pass_quote('', 'A')nd that is what JD was looking for when he started this thread.


No, he wasn't. He was explaining why the Darley solution can't work. He was the one being Mr. Negative Nellie. I support Darley even though I realize his set of ideas won't really solve the problem. He's trying to find the best way to adjust to the problem. So is Simmons with his call for a Plan B. And the biggest problem with Darley's solution is a lack of political will. Simmons was a Bush adviser. If he can't change the political will, who can?

$this->bbcode_second_pass_quote('', 'I')f I was your boss, I'd fire every one of you fuckers for that kind of attitude. Don't tell me why something won't work. Give me something that will.


Donald Trump, I presume.

Some problems are not solvable no matter what the attitude.
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Postby JohnDenver » Wed 13 Oct 2004, 20:16:33

$this->bbcode_second_pass_quote('Canuck', ' ')And the biggest problem with Darley's solution is a lack of political will.


No, the biggest problem with Darley's solution is the following, which you still haven't responded to:

Suppose you are a single mother, or a truck driver, or one of the other millions and millions of ordinary people who are going to get it in the neck when we intentionally crash the global economy. You're going to lose your job, and your home, and everything else you have, and you're going to have to live on the street and eat at the soup kitchen (if you're lucky). Can you explain to a person like this why it is better to crash the system now, rather than wait?
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