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Rather worrying article...

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Rather worrying article...

Unread postby Laurasia » Tue 21 Feb 2006, 22:54:48

Hi: I read this scary article on the Safehaven website today. I did a search but couldn't find anything mentioned about it on this forum. The article is about finances but also talks about Die-Off.

Here is a link: (hope it works)

http://www.safehaven.com/article-4652.htm

Anyway if the link doesn't work the article is called Fear: The Mother of Violence, on the Safehaven website.

Regards,

L.
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Re: Rather worrying article...

Unread postby rogerhb » Tue 21 Feb 2006, 23:18:20

$this->bbcode_second_pass_quote('', 'I')n that case the number of individuals for which innovation will be sufficient will be considerably limited.


Hm, dang, that ol' carrying capacity thing again.
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Re: Rather worrying article...

Unread postby gego » Tue 21 Feb 2006, 23:54:15

On this site I have posted my conclusion that the human population is beyond three standard deviations from its mean value.

If you look at the long term human population chart, which has gone into the vertical part of the growth curve, and you fit a trend to that overall curve, the trend is relatively flat with only a slightly positive slope. Where this trend line is today is the mean historic value and that value is below 1 billion.

Anyone who has an understanding of standard deviations knows that, when applied to a time series, the values cannot exceed three standard deviations from the mean for more than 2 1/2% of the time. Anyone who has seen time series in action knows that the forces of nature will cause a "return to the mean".

In nonstatistical terms, the human population is out on a limb and must return to a sustinable. Statistical tools just tell us that this sustainable level is somewhere under 1 billion.

I have never seen a real life time series that did not return sharply toward the mean after a short visit to the netherland beyond the third standard deviation. A recent example was the break in the NASDAQ composite index from above 5,000 in March, 2000 down to 1,140 in October, 2002, before it stabilized. The mean value in October, 2002, was about 1,400 so actually the break overshot the mean. The last time the value of the NASDAQ composite was at the mean before it went into the steep part of its curve was around April, 1993, so it took 83 months to run up to an unreasonable value, and then took just 31 months to come back down. The collapse time was about 37% of the time the series was in the steep runup phase. Some people look for a 31% relationship to be typical. Since the human population was last at its mean 500 years ago, were the peak in human population to occur now it would probably take somewhere around 170 to 187 years to collapse back down before it stabilized.

It certainly looks like the trigger for the collapse in human population will be peak oil. Don't expect the collapse in population to be a straight line down. Phase one will be one where conservation and substitution mitigate population loss. When conservation and substitution no longer help the second phase will be where huge losses occur. Once the population gets down to a lesser excess and closer to sustainability the rate of death will slow down, but this third phase should be the longest until we finally reach or overshoot the 700,000 to 1 billion level.

If you don't want to understand the danger to the human population from the statistical approach, then go read Richard Duncan's analysis of electrical spikes. The has a computational method to determine how a spike unwinds. If this is applied to long term human population growth, and the spike in human population, the results are not dissimilar to what I described above.

I think the article referenced in this thread must be read with reference to the time frame of the human bubble. We all have a tendency to think things are going to happen overnight, and while in relationship to the history of the human species the bubble unwinding will be "overnight", in relationship to one human lifespan it will be a long drawn out process. You still have plenty of time to wait around to be part of the dieoff.
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Re: Rather worrying article...

Unread postby gg3 » Wed 22 Feb 2006, 08:35:47

Excellent analysis, gego. I like your methods, and I don't have much to add to what you already said.

Except to say that even the long ride down the slope will be a bitch, and it's entirely possible that PO will be supplemented with the effects of disease, wars, other shortages e.g. water, and climate change.

And, I've been thinking that the sustainable level of human population is closer to 2 billion. Time to revise that downward by 50%.

On the other hand, think of the upside. Land will be cheap:-)
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Re: Rather worrying article...

Unread postby linlithgowoil » Wed 22 Feb 2006, 08:56:07

just not entirely sure that your statistical methods apply to human population levels. surely, if we find another energy source or make the transition fairly easily (which we might), then the human population would not collapse. it is more than likely, in my opinion, that the population will level off at some point - not sure what point that would be, but if you look at ricehr countries, many are in negative population growth right now and population growth appears to be slowing naturally.

also, there is a lot of 'fat' to be cut from our current energy usage remember. on the downslope of oil production, i predict massive increases in efficiencies, far less use overall and a big switch to alternatives, which will likely mitigate pretty much all of the problems - apart from the inevitable economic recession that would ensue.
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Re: Rather worrying article...

Unread postby Aaron » Wed 22 Feb 2006, 10:03:33

$this->bbcode_second_pass_quote('', 'a')lso, there is a lot of 'fat' to be cut from our current energy usage remember. on the downslope of oil production, i predict massive increases in efficiencies, far less use overall and a big switch to alternatives, which will likely mitigate pretty much all of the problems - apart from the inevitable economic recession that would ensue.


Strongly disagree...

I also predict "increases in efficiencies, far less use overall and a big switch to alternatives", which will lower relative energy costs enabling more people to consume even more energy than would be possible otherwise...

Adding to the calamity.

Couple this with a growing rich/poor gap, and opposing ideologies... I predict war.

After that... who can say?

There is no empirical evidence that indicates efficiency and oil alternatives will do anything other than expand our energy consumption.

Absent global cooperation or discovery of an oil replacement this idea of marginal efficiency and comparatively poor oil alternatives meeting future demand is day-dreaming.

Human history is an exercise in finding & consuming ever larger amounts of energy.

To assume otherwise is counter-intuitive.
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Re: Rather worrying article...

Unread postby Permanently_Baffled » Wed 22 Feb 2006, 10:45:33

Aaron.

I think you refer to Jevons paradox.

Which I think holds true in an environment of increasing energy availability, ie conservation just make the resource cheaper so we just end up with more energy users but the overall consumption continues to rise.

But , energy availability is about to start decreasing. So does jevons still hold true? You cannot consume what isn't produced. Will prices remain high anyway due to the realisation that the resource is becoming more and more scarce? (investors holding onto oil and restricting supply for higher prices?)

Conservation / efficiency in a declining energy situation will be about getting more out of the energy that is available to economies and societies(less being available because of geology and price). Countries will struggle to finance their oil bills , so the more you can get out of what you can afford the better?

In the end markets and human behaviour are not perfect, but declining energy availability will mean energy will end up reserved for essential uses via government intervention or by pricing, surely people/economies/societies will have to make difficult decisions from bottom to top. For us normal grunts, do you spend your limited income on food or a package holiday? Of course it will be the former and by default oil has been allocated to essential industries.

Of course this is all a bit simplistic. God knows how the financial system will look and how we will find people work to earn money to buy goods etc etc

I also acknowledge your fear of war. History unfortunately backs you up , I just hope the fear of MAD will prevent the big boys kicking off!
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Re: Rather worrying article...

Unread postby Falconoffury » Wed 22 Feb 2006, 11:01:36

$this->bbcode_second_pass_quote('', 'b')ut if you look at ricehr countries, many are in negative population growth right now


Define many. To my knowledge, very few countries are shrinking in population.
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Re: Rather worrying article...

Unread postby Peak_Plus » Wed 22 Feb 2006, 11:15:15

$this->bbcode_second_pass_quote('linlithgowoil', 'i')t is more than likely, in my opinion, that the population will level off at some point - not sure what point that would be, but if you look at ricehr countries, many are in negative population growth right now and population growth appears to be slowing naturally.


Population growth is not slowing - it is already reversing dramatically in all developed countries and China. Only a few have absolutely passed their "Peaks" (Japan, former East Block). If the current development continues in a normal manner (no war, famine, etc...), then the statistical 200 years mentioned above will already bring population levels far below that of the present. In the Third World, however, war, famine, etc.. will most certainly play a much larger role.
Last edited by Peak_Plus on Wed 22 Feb 2006, 11:30:00, edited 2 times in total.
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Re: Rather worrying article...

Unread postby Peak_Plus » Wed 22 Feb 2006, 11:23:38

$this->bbcode_second_pass_quote('Falconoffury', 'D')efine many. To my knowledge, very few countries are shrinking in population.

Population development is like peak oil. We produce now what was dicovered 30-40 years ago. In 40 years, western populations and China will begin losing population horendously - only because few babys have been born in the past 40 years...
p.s. been living in Germay the last 15 years. birth rate? ca. 1.3
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Re: Rather worrying article...

Unread postby MrBill » Wed 22 Feb 2006, 12:15:14

Well, unless you belong to a certain religion that subscribes to the view that more people equals more souls to save, or want your religion/tribe/clan to win the population race, do less people matter? I certainly do not think that 6 billion people is better than 3 billion people and I do think that 9 billion is worse than 6 billion if we are talking about a sustainable planet. I think fewer people living in a sustainable manner is better than more living in poverty?

If you tell me the number is 1 billion, sobeit. I am not in a position to argue with you. Great then let's plan on a smooth transition from 9-10 billion in 50-years to 1 billion in 175-years. I am sure the natural world and the animal kingdom will not miss those extra consuming units. However, as far as 37% and 31% I think if you are referring to fibinacci numbers they are in the magnitude of 38.2% retracements. The most popular fibs are 0.382/0.500/0.618 and they are found throughout expansions and contractions of populations, etc. The so called natural numbers.
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Re: Rather worrying article...

Unread postby Peak_Plus » Wed 22 Feb 2006, 12:23:09

$this->bbcode_second_pass_quote('MrBill', 'W')ell, do less people matter?

I don't think any of us are really worried about absolute numbers. I think we are more concerned with how we'll get there - thus the term "die off". Should we be considering how to survive in a Mad Max world? for instance.
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Re: Rather worrying article...

Unread postby MrBill » Wed 22 Feb 2006, 12:35:00

$this->bbcode_second_pass_quote('Peak_Plus', '')$this->bbcode_second_pass_quote('MrBill', 'W')ell, do less people matter?

I don't think any of us are really worried about absolute numbers. I think we are more concerned with how we'll get there - thus the term "die off". Should we be considering how to survive in a Mad Max world? for instance.


Too true, but over the next 175-180 years I predict the die-off of those alive now will be quite substantial in any case. But let's not be coy. There are many places in the world where it is a religious/cultural/status symbol to have large families, the more children the better.

So essentially we are back to discussing the population explosion issues of the 1960/s, except now it is politically incorrect for western nations to suggest that poorer, developing nations might have fewer children. Therefore, short of a die-off talking about it will not change the fact that current trends make it inevitable.

So best to be optomistic and see it as more souls to save. As the Pope would say, who are the unwanted unborn?
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Re: Rather worrying article...

Unread postby Aaron » Wed 22 Feb 2006, 13:07:12

$this->bbcode_second_pass_quote('', 'C')onservation / efficiency in a declining energy situation will be about getting more out of the energy that is available to economies and societies(less being available because of geology and price). Countries will struggle to finance their oil bills , so the more you can get out of what you can afford the better?


I don't think so Perm.

Jevon is a relative measurement... not absolute.

Measured against what would have otherwise been possible, so to speak.

The same argument you make can be applied to the efficiency increases.

If energy supplies are shrinking, then efficiency gains are also muted.

But it's the relative measurement that counts.

Absent any given efficiency gain for example, what would energy price have been?

With any given savings thru efficiency, what price?

The difference is Jevon's paradox.
The problem is, of course, that not only is economics bankrupt, but it has always been nothing more than politics in disguise... economics is a form of brain damage.

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Re: Rather worrying article...

Unread postby Permanently_Baffled » Wed 22 Feb 2006, 18:18:28

$this->bbcode_second_pass_quote('Aaron', '')$this->bbcode_second_pass_quote('', 'C')onservation / efficiency in a declining energy situation will be about getting more out of the energy that is available to economies and societies(less being available because of geology and price). Countries will struggle to finance their oil bills , so the more you can get out of what you can afford the better?


I don't think so Perm.

Jevon is a relative measurement... not absolute.

Measured against what would have otherwise been possible, so to speak.

The same argument you make can be applied to the efficiency increases.

If energy supplies are shrinking, then efficiency gains are also muted.

But it's the relative measurement that counts.

Absent any given efficiency gain for example, what would energy price have been?

With any given savings thru efficiency, what price?

The difference is Jevon's paradox.


Firstly, acknowledged - the price difference between the current price and the price post-efficiencies represent "Jevons Paradox".

But the crux of Jevons , is that through the price becoming cheaper, more consumers end up in the market and consumption MAY actually increase.

In the case of PO though, consumption CANNOT increase , as the resource production is in decline.

Because the resource is in decline, the price will remain high, therefore consumers are still incentivised to curb consumption or look for alternatives.

Also , the price is inflated ahead of the true supply = demand price because of the anticipation of future scarcity. This must be true , otherwise preceding any price increase in oil there would be physical shortages.

Also you acknowledge in your post (highlighted) that efficiency gains are muted when supply is in decline. This means that yes , even though you are more efficient in the use of fuel the price remains the same, so you are incentivised to improve efficiency further to get the same "work" acheived for less or the same money. As I say , it will be about get the most out of the energy you can secure. The more efficiency the more necessary industries that can function while a transition to another energy source is undertaken.

If a country can only physically afford say 1 mpd at $50 a day , then at $100 they can only afford 500K a day.

Therefore consumers in that country will change their behaviour at the new price, this maybe through demand destruction , or it will be through acheiving the same work using less oil (efficiency / conservation).

Normally the price would drop as a result, but as oil production is declining the price still stays at $100 (and beyond), so Jevons assertion of increased consumption doesn't come true.

$this->bbcode_second_pass_quote('', '
')In economics, the Jevons' Paradox is an observation made by William Stanley Jevons who stated that as technological improvements increase the efficiency with which a resource is used, total consumption of that resource may increase, rather than decrease. It is historically called the Jevons' Paradox since it ran counter to Jevons' own intuition, but it is not a paradox at all and is well understood by modern economic theory which shows that improved resource efficiency may trigger a change in the overall consumption of that resource, but the direction of that change depends on other economic variables.

One way to understand this is to observe that an increase in the efficiency with which a resource (e.g., fuel) is used is effectively equivalent to a decrease in the price of what the use of that resource achieves (e.g., work). Generally speaking, a decrease in price will be associated with an increase in demand. (Thus with a lower price for work, more work will be "purchased".) This increase in demand for the results of using the resource may, or may not, be large enough to offset the original efficiency gain. In the simplest case, if the cost of fuel remains constant, but the efficiency of its conversion into work is doubled, the effective price of work is halved and so more work will be purchased. If the amount of extra work purchased more than doubles, in this case, then the demand for fuel would actually increase, not decrease. A full analysis would have to take into account the fact that a change in the demand for fuel would also have an effect on the price of fuel, and therefore on the effective price of work, also.

In his 1865 book The Coal Question Jevons observed that England's consumption of coal soared after James Watt introduced his coal-fired steam engine, which greatly improved the efficiency of Thomas Newcomen's earlier design. Watt's innovations made coal a more cost effective power source, leading to increased use of his steam engine in a wide range of industries. This in turn made total coal consumption rise, even as the amount of coal required for any particular application fell.
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Re: Rather worrying article...

Unread postby linlithgowoil » Thu 23 Feb 2006, 05:27:11

i dont get how many 'doomers' simply spout things like 'but what about jevon's paradox!' and totally discount any other possible future other than die off.

jevons paradox isnt a law. its an observation which, i would argue, does not hold true in all cases.

i sometimes think people such as aaron simply have this closed off mind and they only select 'evidence' or theories that support their preferred viewpoint - which is 'die off' and the sky is falling.

admit it - you have made up your mind there will be a die off and even if conclusive evidence to the contrary slapped you across the face you'd simply ignore it. and doomers talk about how bad economists etc. are at this? its hilarious really.

and anyway, i wish people would stop believing all the crap that is on the internet. you do realise any idiot can post anything they want on the internet dont you? - ( and i include myself in this before anyone says anything)
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Re: Rather worrying article...

Unread postby linlithgowoil » Thu 23 Feb 2006, 05:27:24

double post
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Re: Rather worrying article...

Unread postby Peak_Plus » Thu 23 Feb 2006, 05:45:59

$this->bbcode_second_pass_quote('', '
')In economics, the Jevons' Paradox is an observation made by William Stanley Jevons who stated that as technological improvements increase the efficiency with which a resource is used, total consumption of that resource may increase, rather than decrease.
"Watt's innovations made coal a more cost effective power source, leading to increased use of his steam engine in a wide range of industries. This in turn made total coal consumption rise, even as the amount of coal required for any particular application fell."

First, I don't find a paradox in the fact that a technology which made coal more viable as a resource increased demand for that resource. Our paradox is one of parallel relationships. And speaking of "ships":
In the second half of the 19th century, steamers were being built in order to take over North Atlantic trade. This development was helped by the use of steel hulls. At the same time, however, the production rate of sailing ships began increasing dramtically. Technology which required a new paradigm (steel and coal) actually increased demand for resources from the old paradigm - sails, wind and wood. (See "As Time Goes By" - an historical treatise on Schumpeterian Kondratiev.)

In our case, the increased use and/or increased efficiency of nuclear energy would increase demand for fossil fuels. Imagine that we discover a way to dispose of or recycle nuclear waste, making nuclear energy more viable - will the use of fossil fuels increase or decrease? Increase! Dramatically!

Now the question is, how are we going to cope with the fact that increased production of the latter is not possible? Demand destruction?!
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Re: Rather worrying article...

Unread postby Peak_Plus » Thu 23 Feb 2006, 06:03:46

$this->bbcode_second_pass_quote('linlithgowoil', 'i') dont get how many 'doomers' simply spout things like 'but what about jevon's paradox!' and totally discount any other possible future other than die off.

I don't see any other future than DieOff, if only from the statistical side of things.

What I don't believe in, however, is a Malthusian version with the cataclismic appearance of the four horsemen. Will there be famine in the US (or Scottland, for that matter)? Somehow I doubt that. In the West, East Block, Asian Tigers and China, die off will have a lot to do with the fact that we have had negative birth rates for over 30 years now...
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Re: Rather worrying article...

Unread postby Permanently_Baffled » Thu 23 Feb 2006, 06:04:17

$this->bbcode_second_pass_quote('', '
') and doomers talk about how bad economists etc. are at this? its hilarious really.


Ironically Jevons was an economist - so yes all sides of the debate are "selective".

Doomers pan economists all the time , quite rightly in a lot cases, but they love old jevons ! :)
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