Financial topics

Investments, gold, currencies, surviving after a financial meltdown
Higgenbotham
Posts: 7999
Joined: Wed Sep 24, 2008 11:28 pm

Re: Financial topics

Post by Higgenbotham »

GM said Saturday it is cutting unnecessary spending companywide as it assesses the impact of production disruptions from the earthquake and tsunami in Japan.

The move will help the automaker preserve cash as it deals with the financial implications from shortages of parts made in Japan, a company spokesman said. The cost-cutting effort, which includes travel, took effect last week and will be in place for an undetermined period.
http://www.freep.com/article/20110320/B ... /110320021

http://media.gm.com/content/media/us/en ... 317_update

http://www.dariennewsonline.com/news/ar ... 193889.php
Japan's grip on the global electronics supply chain is causing particular concern. The world's third-biggest economy exported 7.2 trillion yen ($91.3 billion) worth of electronic parts last year, according to Mirae Asset Securities.

"Should the Japan crisis be prolonged, I expect a shortage of electronic parts in the second quarter," said James Song, an analyst at Daewoo Securities, noting Japan provides 57 percent of the world's wafers, used to make the chips that go into mobiles phones, cameras and other electronic devices.

Apple may face shortages of key parts for its newly released iPad 2, according to research firm IHS iSuppli.

Several parts of the new version of the popular iPad tablet PC come from Japan, including the battery and the flash memory used to store music and video on the device.
http://news.yahoo.com/s/nm/20110318/tc_ ... plychain_5
While the periphery breaks down rather slowly at first, the capital cities of the hegemon should collapse suddenly and violently.
thomasglee
Posts: 687
Joined: Tue Feb 23, 2010 11:07 pm
Location: Texas

Re: Financial topics

Post by thomasglee »

John wrote:Dear Thomas,
thomasglee wrote: > I know you're a deflationist and I understand HOW you've arrived
> at your forecast, but at the same time, I often see you reference
> the Malthus effect. Would not the Malthus effect naturally lead to
> inflation? How do you get decreasing availability of certain goods
> and deflation at the same time? If you combine the Malthus effect
> and the effect of Peak Oil, I don't see how we avoid
> inflation.
The Malthus Effect is pushing up food prices, but with deleveraging
and high unemployment, consumers have less money to spend. So they
spend more on food, but less on other things, inhibiting inflation.
Thus, the CPI has remained very low for years, despite near-zero
interest rates and despite the experts' predictions.

The real crisis has not yet occurred. When it occurs, there'll be a
big deflationary shock that I expect will lower the CPI by 30% or so
over a period of a couple of years. At that time, there will be a lot
of people who won't be able to afford any food at all (this is already
true for a lot of people), and we'll see things like soup lines again.

John
Gotcha. Thanks for the reply.
Psalm 34:4 - “I sought the Lord, and he answered me and delivered me from all my fears.”
Lily
Posts: 34
Joined: Wed Jan 26, 2011 1:05 pm

Re: Financial topics

Post by Lily »

I'm sorry this post is so long - there were a lot of things that seemed to require a response at length, and it's been a few days since I've had a chance to post.
vincecate wrote:That documentary is not saying "ones we can eat", it is saying the main ones we are currently eating. In particular top predators. The ocean can make far more sardines than tuna. In fact, getting rid of top predators like tuna can result in far more small fish for us. We may see people moving toward eating more small fish. That is fine by me.

I am rather worried about making it through the next 3 years. I think there is a good chance there are less people alive on this planet 3 years from now. The personal payback for me trying to save the worlds fish just can't justify any personal effort or worry. I think there are still things I can do that can have a payback for me and my family over the next 3 years. So "worlds tastiest fish populations crashing by 2050" is just not that important to me right now. I think it is a perfectly rational position, even if you don't.
Actually, sardines are being fished into oblivion, too. http://www1.american.edu/TED/sardine.HTM Sardine fishing has been uneconomical at least in the American pacific since the 50's because of overfishing. You seem to think that it is the case that when you drive an edible species into extinction, there is always another less preferable one to replace it. This is not true. Please believe that we can and do permanentely degrade the biosphere around us, and please believe that this is massively to our own detriment, and yours.

Isn't limiting yourself to a 3-year planning horizon kind of artificially narrow? I mean, I'd hate to survive with great difficulty for 3 years only to starve because of human-induced drought after 10. But even if we're only talking about 3 years, the collapse of world fishing stocks will become very serious within that time frame. If you can't see why, consider for a moment that we aren't talking about there being less fish, we're talking about there being essentially no edible fish in many places where they were formerly a major food source, including the entire Carribean basin. This condition will not automatically somehow self-correct; you seem to think thast other species will magically zoom in to fill the niche after we smash the environment, but this isn't so. Seafood stocks are being depleted at extremely nonrewnewable rates; nothing of even close to the same nutritional value will be available to replace the resources we are damaging. Anguilla's coral reefs are already in a state of precarious health, if I recall correctly, so an abrupt collapse is entirely plausible.

This is especially true given that major-league social and economic unrest in the United States, as predicted by generational dynamics and your stock market research, will cause the Superpower to have little attention to spare for silly small issues like overfishing in the Carribean. But that sea is already worked by an immense fleet of mostly Asian fishing boats, which is within a hair's breadth of crashing the fish population already. Given that there's going to be food shortages and possible starvation all over Asia, do you reall think that huge, well-equipped fishing fleets will restrain themselves from plundering your natural resources until they are all gone? This could easily happen within a year or two even without a financial crash - it has before.

Consider the case of Somalia. When Somalia's government collapsed in the early 1990's, international fishing fleets pounced, and destroyed seafood stocks off the country's coast within a few short years. The population of former fishermen were left with no means to feed themselves - how could they *not* have turned to piracy? There is no reason to think that this scenario is unique to the third world; for most of history since European contact, the Carribean has, ahm, not been a very peaceful place, and it is likely that we could be in for a return of that situation. If all the US government has to buy food and fuel for its navy is horribly devalued dollars, how will they stop the various armed, mechanized, hungry factions from looting all available natural resources? Coral reefs, once destroyed, are gone. The issue is ultimately global in scope - if there were fish left anywhere else, the starving masses of Asia could turn there for fish instead of coming after yours. But since nearly all major global fish populations have been severely depleted, there are only a few left. Your coral reefs aren't completely destroyed, yet - so they'll be coming for you.

If your survival plan includes some way of maintaining your existence in the midst of a dense urban population newly unable to afford imported food because of the social/economic collapse and unable to get local food because of the environmental collapse, while simultaneously fending off desperate, heavily armed criminal gangs from all over the region, then sure, go ahead and ignore overfishing and coral reef damage in your local area. But as for me, I wouldn't want to even think of trying that without a fortified bunker, an air force, a navy, and at least a batallion of heavily armed troops. Even then, it's an extremely dicey proposition, since raiding will be the only way to obtain enough water and fuel. Good luck. :)
higgenbotham wrote:I've studied this topic a lot too and maybe you can answer a question. With all the documentaries you watch and reading you do, maybe you've run across "The End of Suburbia" (I haven't watched it) or the concept that suburbia will be a wasteland down the road. With intensive gardening, wouldn't it be possible for every family to grow most of their own food on a suburban lot? You might want to check out urbanhomestead.org formerly path to freedom if you haven't already. Now I'm not saying the suburbs are the optimal arrangement and there may be other problems, but in a lot of areas of the country I think they are reclaimable.
No, suburan lots are mostly not big enough. I believe the average size for a lot is something like a third of an acre? You could grow a graden to supplement your diet with that, but not enough to survive. You can grow very nearly everything you need on not too much space, but people are definitely too close together to live sustainably and independantly in most suburban areas. I'd say that in a good climate with fertile soil, you can probably grow at least 85% if not 98% of what two people need on two or three acres if you squeeze a lot. If you don't want to squeeze at all you can grow it on ten acres for sure. After a quick Wikipedia crawl it seems like the average population density in the suburbs is about 3-5 people per acre, which is too high. This is not a big deal, however, since the population densities in the surrounding wide-open rural areas are a tiny fraction of that. If you've driven down a midwestern US highway recently, you will have noticed a ton of open space. Nearly all of that space is used is absurdly suboptimal ways, even just agriculturally, so we can get a lot more out of it than we are without hurting the land if we'd just be intelligent about it. Provided that we can switch to sustainable agricultural practices en masse before we devolve into complete anarchy or unbreakable tyranny, there is nothing to stop us from being able to feed everyone, but the urbanized areas cannot feed themselves.

For reference, metro Detroit, with a population of 4.4 million and an area of 2.5 million acres, has only enough land to grow about an eigth of what the city needs, or maybe a little more. If no one leaves, they will would still need to import 7/8ths of their food to survive. This is not really a big deal, since the population density of the rest of Michigan is much lower - 3.5 acres per person average, counting the cities. So, the cities can never feed themselves, but IF we can avoid an environmental collapse that severely reduces land fertility, we can definitely feed them easily.

Now, if, in some more dramatic (but sadly plausible) scenario, you were forced to try to make a perapocalyptic survival colony in an urban or suburban area, you'd need at least 5-10 city blocks for a group of 30 or so people, plus jackhammers or something to rip up all the pavement. New Orleans did thin out about that much or more during Katrina when I was there, so I guess you could if you had to, but ultimately urban homesteads are impractical outisde of extreme disaster scenarios. Which is not to say that those are unlikely - quite the reverse in fact. But the difficulties are such that I'd be very reluctant to bother trying to survive in built-up areas instead of just avoiding them. I can't think of anything important enough to justify the security issues that couldn't be more easily obtained by a transitory raiding party.
higgenbotham wrote:My guess would be that the largest (non-representative) group that could be put together for the purpose of violent attacks would number around 25; any number over that becomes unwieldy in my estimation, so I kind of doubt the infrastructure gets taken down internally as a whole.
Well, it's correct that 25 people is about the largest size for a single coherent group to function autonomously while maintaining secrecy. However, that's no limitation for a larger overarching organization - you use a cell structure. Your group of 25 people is hopefully divided into mini-cells of about 5 each who know each other very closely and are good at working together - many small tactical operations only need about 5 people. 1 or two people lead the cell of 25, with the sub-cells retaining a high degree of autonomy. There's no reason you can't just copy that cell structure five times over for a total of 125 people and appoint a captain. If you have more recruits than that, get five or ten captains, appoint some leaders, call it a batallion. This scales indefinitely. Provided that the control structure at each level knows the details as to the operations of the cells, the cells do not need to carry each other's secrets. Information security breaches can only affect operations below the highest level of the structure that's been breached, keeping leaks contained. In this manner, provided it is allowed a free flow of information between units and commanded in an intelligent manner, an insurgent network can amass large forces while remaining in the shadows, distributed and difficult to attack decisively. This is, in fact, one of the central lessons of modern warfare.
Higgenbotham wrote:There may be attacks on certain areas or certain entities. By about 2015, at least I estimated at one time, DNA sequencing and synthesizing technology may become cheap enough and available enough for a "lone wolf" to release a pathogen that takes the system down. This or some version of it is I believe to be the most likely "black swan" breakdown mechanism. Check out this article and let me know what you think (in general) on this topic: http://www.washingtonpost.com/wp-dyn/co ... 00580.html
Damn, I didn't know about that. In general, I think that is fucking scary as hell, is what I think. :\ I'm not really that worried about Al Qaeda using something like this, since as an international terrorist group they're 99% boogeyman. A crazy biologist cooking up something in his basement to kill us all seems unlikely but can't be ruled out. I wonder just how many people out there are capable of doing this, though? Maybe we can just pay those people well and keep them in a good mood. :) I'm more concerned, however, that a government might release a gengenieered pathogen to reduce a rebellious populace. I could see either China or the US government deliberately releasing such a thing into US and other cillian populations, but only under conditions of extremely extreme outrageous crisis. That might serve as a terrifying end-game to any resource or dominance conflict that erupts in the next decade or so. Epochal wars do have a habit of being ended with revolutionary new superweapons, and that would certainly serve as a nice mechanism to fix the malthusian crisis. I haven't given this eventuality enough thought, it seems. I'm not at all certain what measures we could take to minimize the effects of such an event, but it definitely bears thinking about. Thanks for sharing.
higgenbotham wrote:I'd estimate the system requires about 3% real growth to sustain itself. That hasn't been achievable since about 2005. That's the reason for all the bubbles and $1 trillion plus deficits. The most likely general breakdown mechanism in my view is that out of necessity people find other living arrangements. As an example of what I'm taking about, there's a little known publication called Traffic Volume Trends that tabulates the vehicle miles traveled in the US. At the end of each monthly publication, there is a long term graph of vehicle miles traveled. I'd be interested to see what you think of this too. It tells me that younger people may be finding ways to live without a vehicle for the very first time, either out of preference or out of necessity. Anecdotally, I'm finding that this is true. Housing and automotive is the backbone of the current economy, so if people increasingly find other arrangements the existing economy will collapse of its own dead weight and something new will take its place.
The switch away from urban housing and heavy fossil fuel use will happen, but I suspect it will be driven less by choice and more by necessity as conditions continue to deteriorate in most inhabited areas. This is an ongoing process that's been happening for a long time. It's not surprising to me that young people are finding ways to to do without vehicles - it's because we're dramatically poorer than average for the population; we can't afford it. I'm about 25, and most of my peers are broke, so we have to make do. I know a lot of couples, including me and my partner, who started with one car for each person but have dropped to one functioncal car per couple in the last few years, because we couldn't afford the upkeep on the other vehicle. For people who live alone in the same income braket, it can really be hard to keep a single car in operation by yourself while trying to survive. This is already a huge drag on the economy, and it will only get dramatically worse. I hope we can switch to other arrangements deliberately before the bottom falls out, but more likely the system will collapse only when enough people are *forced* out, which trend is now starting to really gather steam.

One other thing I've noticed recently - more and more cars on the road, even nice ones, have serious dents and dings, and worse damage more and more often. I think this is happening because people no longer have enough disposable income beyond what they need to survive. Fixing a car after an accident can be hundreds of dollars, and where once people might have been able to afford that once every few years, now they can't. So we can see the process of the system smashing up before our eyes, but thus far people seem to be trying to 'man up' and muddle on rather than changing their behavior.

As a side note, the behavior of those with power in the coming years will decisively shape the new system that arises after the old one collapses. A positive outcome is...unlikely, to say the least. Unless we can sieze control of history and enact a sane system in a popular revolution, (hopefully a peaceful one... ) the 'something new' that arises will be a ruthless, technocratic tyranny dominated by an unaccountable private global elite.
Higgenbotham wrote:PS I checked the graph near the end of the latest Traffic Volume Trends and it goes back to 1985. However, the database goes back further and you can see that even through the oil crisis of the 1970s (when gasoline took up a larger percentage of the family budget at times), traffic volume did not decrease for very long before it went to new highs. I realize there are other reasons traffic volume may be decreasing such as more online banking and fewer trips to the bank but given the pattern of the graph that does not appear to be the whole story.
I'm no expert, but if traffic has beeing decreasingly lately, I'd wager that the cause has a strong relation to the relative prosperity of the middle and proletarian classes. Real incomes for the middle class and everything below it have stagnated since the late 70's, and they drive most of the cars. During the 80's and 90's, those people had at least a little money and were driving more and more. Between 2000 and 2008 they had a lot more money, but it was mostly imaginary monopoly money. Now that the game is back in the box and everyone below upper middle class is either stinking broke or working for the government or both, the very low productivity and consqeuent poverty of most US consumers is becoming evident, which is probably some of why they're driving less. Traffic figures might also bear some relation to consumer spending numbers, which could support this conclusion.
OLD1953 wrote:That population density is what the reply was based on, rolling back to the earliest days of informed agriculture, which is what you are stating, requires a human population of no more than a billion planet wide. That is, assuming there will be no use whatsoever of redistribution of minerals or fixation of nitrogen besides bacterial action or natural electrical events. (I spent a LOT of my life as a farmer, on a KY hill farm, doing this exact thing, I fully understand the limitations and practicalities from a real world standpoint. We COULD feed a large number of people with say 15% as farmers, rather than 5% or less, with the rest living in cities and turn to a more recycle oriented agriculture, but we CANNOT put 90% on the land and feed a large number, people take up too much space, it's an inefficient use of the area. Moreover, if you really wanted to maximize production, you'd be using/doing things that got put aside a long time ago, such as carbon monoxide fuels, which is the universal "green" tech that nobody seems to care about. )
I'm not at all proposing that we roll back to the earliest days of agriculture. I'm proposing that we abandon the old mechanized techiques of the vanished industrial age, which are everywhere on earth causing drought, famine, and environmental degradation, and turn instead to a modern reinvention of enduring techniques that have served humans for thousands of years. It's not like it's just me talking about this - there's a whole movement towards sustainable agriculture all over the world. Perhaps some research is in order for you - it seems like your information on agriculture is badly out of date. Given that industrialized agriculture has reliably lead to environmental damage and consequent greatly reduced yields and crop failures globally, how ELSE would you propose to feed everyone without the adoptation of sustainable techniques? There is simply now way. How can we still pretend that there is nothing wrong with industrialized monoculture farming when Russia's wheat production has completely collapsed due to human-induced drought and land degradation, as has Australias, when North American and Indian agriculture are crippled and barely hanging on, when China's once-fertile farmlands have been converted into sterile wastes? Why do you think the 'Fertile Crescent' is now a desert? Either we switch to a system that works, or we all starve, SOON.

These environmental abuses are just as much a part of the generational dynamics system as anything else. As the Boomers and Gen-X-ers came into power, they allowed new abuses of the environment just as they allowed new financial and corporate abuses. But when your society is immensely powerful, screwing with the environment has more dire consequences than screwing with the economy....
All of this was predictable. In 1991 I wrote a book, Sixty Seconds That Will Change the World, about the consequences of a major earthquake in the Tokyo area, and discovered that the rest of the world would come off far worse than Japan. US treasuries would have to be sold to meet insurance claims and pay for rebuilding, resulting in falling bond prices and rising interest rates. The yen would then rise as these overseas savings were repatriated.
I think we all agree that Japan would not do this if they could avoid it, because they understand that they depend on the US-centric system. However, it's much more realistic to think that China might cause a problem like this deliberately. Given that they see themselves as a challenger to entrenched US global hegemony, and are carefully and laboriously preparing secret plans to attack the US and drive it out of SE Asia and the nearby Pacific, it would fit well into their plans if they started dumping dollars first. They may HAVE to, in fact, since their agriculture is collapsing this year and next year they will be very stretched for food. If China can't sell enough exports on the global economy to cover the cost of having to import basically ALL of their food, and eventually they won't be able to, then they will have to use their stock of dollars. Other countries will almost certainly get in on the sell-off to avoid having their dollar stocks devalued. But the Chinese must know that if they do this, the blow to the US would be severe, and eventual retaliation likely. So, to avoid the wrath of the wounded giant, China must strike decisively and first.

My guess is that the first winter that China doesn't have enough food, - which may very well be NEXT winter - they will be forced to start dumping dollars. Other countries will get in on it to avoid devaluation of their dollar stocks, and the dollar will collapse. The US treasury won't be able to cover the cost of additional borrowing and will have to print money to pay for all the bonds. At this point the hyperinflation scenario will kick in. I'm not sure if maybe Vince knows how fast this will go more precisely, but I'd guesstimate that prices in the US would rise 5-10x within six months or so just from the increase in the money supply, plus an acceleration factor from rising inflation expectations. The effects of this on the US economy and social system would of course be absolutely brutal. Other states and actors will take advantage of this situation to the maximum extent that their power allows. I won't go into the details of my own projections too much unless someone wants to hear them, but having spent some long months studying Chinese military theory and history, and having analyzed the modern military preparations of the great powers in connection with their cyclical military histories, I think I'm on solid ground to say that World War is likely within a year of this, or more probably within six or seven months. This should give John the conflict he's expecting. China will probably win.
higgenbotham wrote:An interpretation that I think should be watched for is: Participants in the market seem pretty well divided into one group that expects a low near the end of this month and another group that expects a low this week and a new high between about mid April and early June. Therefore, if a panic setup were to occur, it might require that the market move higher, following the pattern of the 1987 chart. This would cause the first group to cover their shorts and the second group to get on board for the new high they expect, providing impetus for the 7 percent or so rally. At this point, the first group is seeing an "early" low and the second group is geared up for a new high in their predicted time frame. This would be the crash setup. If the market were then to head lower, it would provide the fuel for the bottom to fall out toward about April 18, consistent with the 1987 daily pattern. Another thing I'll make note of. Often times bad things happen right around April 19 for some reason (as they often do around October 19 which are on opposite sides of the calendar). Just off the top of my head: Waco, Oklahoma City, Virginia Tech, and the BP oil spill all occurred within a couple days of April 19.
Thus far it seems like you're right - the market is trying really hard to fly into the stratosphere, but the doubters are forming a significant headwind. See how sluggish the rally is today compared to yesterday? Judging by yesterday and today it seems like you're spot-on. If we see stocks rally 7% or so in the next couple of weeks, as seems very likely, I guess we should all hold on to our hats for a possible crash around April 18th - which is the full moon, by the way, as was Febuary 18th when the market peaked.

Around the begining of the year I set on my own expectations, based partially on the 1940 markets. I thought that the first couple of months of this year would be 'risk-on' because of QE2 and the market would keep rising, then in March and April we should see an increasingly sharp downspike as perceptions of risk spread through the memetic pool, and possibly risk of a flash crash. Thus far everything seems to be proceeding according to projections. As people begin to get out of fantasy land and realize the economy is totally blown, the markets start to panic. But in the aftermath of the downspike, after some kind of fake-ass lame policy response from the globalist regime, we should get another upspike in May and June, if only because QE2 is still blazing away and risk comes back on. After another peak towards the end of QE2, everyone should start really panicking in earnest, so I'm guessing risk will turn back off for approximately July and August and there will be a big selloff. Another, bigger but even less useful policy response from the regime should stabilize things for a moment, but not for long or with much solidity. That should result in a kind of Wil-E-Coyote moment for the markets around September and maybe October. Then there will be a huge crash.

Does this jive with your expectations, anyone?
Higgenbotham
Posts: 7999
Joined: Wed Sep 24, 2008 11:28 pm

Re: Financial topics

Post by Higgenbotham »

Lily wrote:
Higgenbotham wrote:There may be attacks on certain areas or certain entities. By about 2015, at least I estimated at one time, DNA sequencing and synthesizing technology may become cheap enough and available enough for a "lone wolf" to release a pathogen that takes the system down. This or some version of it is I believe to be the most likely "black swan" breakdown mechanism. Check out this article and let me know what you think (in general) on this topic: http://www.washingtonpost.com/wp-dyn/co ... 00580.html
Damn, I didn't know about that. In general, I think that is fucking scary as hell, is what I think. :\ I'm not really that worried about Al Qaeda using something like this, since as an international terrorist group they're 99% boogeyman. A crazy biologist cooking up something in his basement to kill us all seems unlikely but can't be ruled out. I wonder just how many people out there are capable of doing this, though? Maybe we can just pay those people well and keep them in a good mood. :) I'm more concerned, however, that a government might release a gengenieered pathogen to reduce a rebellious populace. I could see either China or the US government deliberately releasing such a thing into US and other cillian populations, but only under conditions of extremely extreme outrageous crisis. That might serve as a terrifying end-game to any resource or dominance conflict that erupts in the next decade or so. Epochal wars do have a habit of being ended with revolutionary new superweapons, and that would certainly serve as a nice mechanism to fix the malthusian crisis. I haven't given this eventuality enough thought, it seems. I'm not at all certain what measures we could take to minimize the effects of such an event, but it definitely bears thinking about. Thanks for sharing.
I'll start here as this seems to be the best place to start as we tie some of this in with the big picture of where and how to best survive a collapse.

First, to come up with the 2015 number I estimated the percentage of the population that might want to carry out such an act and where that will cross with the availability of the technology (cost and ease of implemention). That was done several years ago.

But, to be sure, if a government hasn't carried this out by a certain date then an individual will at some point, more or less successfully. A big question here is to what extent this will be successful. Probably not to the extent one would think at first glance. The lethality of an organism is inverse to its survivability. As a result, the population could end up with low grade, non specific, chronic infection problems which are interspersed with sudden bursts of highly localized lethal infections that die out quickly. The most lethal pathogens will be released in the densest population areas, probably in subways and indoor venues. The others will likely spread everywhere eventually and it will be a battle to contain them and neutralize their effects. Keeping one's immune system in top condition will be in my opinion one of the most important priorities anyone can have if they want to survive or live well in this collapse.

I think the scenario under which governments use pathogens has been outlined in your response. Nuclear war has been alternately seen to be "mutually assured destruction" and "survivable" but it seems to me at some point it will be considered not really survivable in a practical sense. What is survivable, though, is targeting the unique gene pool of an adversary. That requires technology which doesn't exist and the question is whether a government can obtain that for the purpose of warfare before a "lone wolf" can target populations non specifically, which is technically possible now but not readily available enough to make it probable.

Now back to general theory. As we know, the 3 ways that populations are reduced are war, famine and disease. To me, it seems that in this upcoming crisis, the most severe route of population reduction is going to be through disease so location preference will need to be decided based on that to a large extent. Before disease wipes out a large swath of the population, though, I would anticipate that war and famine will play their roles. As they do so, the population will get worn down and more susceptible to disease.

As far as the other topics:

I'll accept your opinion that the suburbs aren't really survivable.

I understand the notion of distributed networks and cells in theory. As a practical matter, it still seems too difficult for an organized network to take down the entire infrastructure of the US within a short time. I'd put the probability of that happening at less than 1 in 1000. Today we read that an individual (Stephen Lerner) has been supposedly organizing a cell to target and take down JP Morgan. To me, it seems unlikely that these types of non violent methods will work quickly enough to satisfy the organizers. As expected, this activity will begin with organized resistance as we see here, but then I believe it will devolve to violence. It seems likely to me that future cells will engage in kidnapping, bombings, and disabling of the target's infrastructure. Once this is done, behavior will change, but I think the key in terms of survival is not to become dependent on likely targets. You don't want to bank with JP Morgan if you think they will be going away in 90 days. But I think the most important takeaway from this discussion is that we won't need to worry about domestic terrorists taking down all of the infrastructure (China may later though through an EMP attack or something like that - Vince and I talked about that a few months ago and I can't remember what conclusion we came to, the idea was would China disable the Fed's computers). The ultimate point there being the need to go off grid. My inclination is to think that someone needs to be oriented toward expecting a pre 1900 lifestyle for some period of time and to be set up for that eventuality, say 5-10 years out.
While the periphery breaks down rather slowly at first, the capital cities of the hegemon should collapse suddenly and violently.
Higgenbotham
Posts: 7999
Joined: Wed Sep 24, 2008 11:28 pm

Re: Financial topics

Post by Higgenbotham »

Lily wrote:Around the begining of the year I set on my own expectations, based partially on the 1940 markets. I thought that the first couple of months of this year would be 'risk-on' because of QE2 and the market would keep rising, then in March and April we should see an increasingly sharp downspike as perceptions of risk spread through the memetic pool, and possibly risk of a flash crash. Thus far everything seems to be proceeding according to projections. As people begin to get out of fantasy land and realize the economy is totally blown, the markets start to panic. But in the aftermath of the downspike, after some kind of fake-ass lame policy response from the globalist regime, we should get another upspike in May and June, if only because QE2 is still blazing away and risk comes back on. After another peak towards the end of QE2, everyone should start really panicking in earnest, so I'm guessing risk will turn back off for approximately July and August and there will be a big selloff. Another, bigger but even less useful policy response from the regime should stabilize things for a moment, but not for long or with much solidity. That should result in a kind of Wil-E-Coyote moment for the markets around September and maybe October. Then there will be a huge crash.

Does this jive with your expectations, anyone?
I'll start with the big picture. First, this should help put your mind at ease, but I think you're way off on the cyclical expectation of this being anywhere near 1940. I think I understand how and why you got there though (1929/2000, 1932/2003, 1938/2009, 1940/2011).

I've talked a lot here about what Bernanke has gotten wrong. There is at least one thing he got right, though, and that is the Fed did exacerbate the 1932 collapse and that brought in an early stock market low. You will notice a lot of people work off that 1932 low in doing their cyclical work and it took me years to figure out that's wrong, or at least it needs to be understood that the 1932 low came in early and it did come in unnaturally deep. The fact that it came in early and deep does affect future behavior though.

So what happened in the 1930's resulted in lows in 1932 and 1938, where there ideally should have been one low in 1935. By contrast, the 1929 high came in right on time. Whether by design or not (if the Fed actually understands this and did it deliberately then I will proclaim them to be geniuses), the Fed has actually reinverted the cycles back into their natural forms. So the October 2007 high came in right on time with the September 1929 high. The July 2010 low was a reverberation off the unnatural July 1932 low, and with QE2 Bernanke has inverted the unnatural February 1933 "double bottom" low around Dow 50, which was nearly as low as the July 1932 low that had taken the Dow from 386 in 1929 to 41 in July 1932. If QE2 is the last QE, ideally the market will drop until October 2013 and that may well be the generational stock market low.

There's a lot of debate and variation of opinion on more QE, of course, but consider that yesterday El-Erian, formerly at the IMF and now with PIMCO, said that any further QE (ie QE3) will be suboptimal.

http://blogs.ft.com/beyond-brics/2011/0 ... ing-point/

I think near term, you have it right. Since nothing happened on the flash crash cycle (in other words, it has now passed - the quake didn't happen on the New Madrid or San Andreas fault lines, it didn't hit Tokyo directly, the Mideast thing didn't blow up, blah, blah), most of the air in the market will probably come out in 2 stages - the second half of this year and the second half of next year. There could be a crash first to kick it off, but it seems unlikely. I think it should be watched for though. As far as whether the generational top is in, I'd guess it's 50/50. I know that seems really lame but if we are in the equivalent of August of 2007 there could be one more high. I think we'll know soon whether that will be the case.

Here's a chart to explain the above a bit more: http://oi51.tinypic.com/20p7gb8.jpg
Some of the discussion back on previous pages pertains to this too, especially the discussion about interest rates. In April 1930, the high, drop through the 50 day (10 week) moving average, bounce up to hit near the 50 day moving average, drop back down and one more hit near the 50 day moving average, then collapse is EXACTLY how the rebound high ended before the market collapsed for 2 years into the 1932 low: http://oi56.tinypic.com/30xctxl.jpg There are other similarities. One is the first hit near the moving average from underneath came 19 trading days after the 1930 high and a similar number of trading days (20) after the February 18, 2011 high. If the market continues to move similarly to 1930, it will move sideways until early April, then crash. With QE, though, barring something unexpected, I have to agree that some kind of additional rally attempt in late May/early June to either a lower high or a higher high has to be considered rather than rotely following the 1930 pattern.
While the periphery breaks down rather slowly at first, the capital cities of the hegemon should collapse suddenly and violently.
OLD1953
Posts: 946
Joined: Tue Aug 11, 2009 11:16 pm

Re: Financial topics

Post by OLD1953 »

I'm not at all proposing that we roll back to the earliest days of agriculture. I'm proposing that we abandon the old mechanized techiques of the vanished industrial age, which are everywhere on earth causing drought, famine, and environmental degradation, and turn instead to a modern reinvention of enduring techniques that have served humans for thousands of years. It's not like it's just me talking about this - there's a whole movement towards sustainable agriculture all over the world. Perhaps some research is in order for you - it seems like your information on agriculture is badly out of date. Given that industrialized agriculture has reliably lead to environmental damage and consequent greatly reduced yields and crop failures globally, how ELSE would you propose to feed everyone without the adoptation of sustainable techniques? There is simply now way. How can we still pretend that there is nothing wrong with industrialized monoculture farming when Russia's wheat production has completely collapsed due to human-induced drought and land degradation, as has Australias, when North American and Indian agriculture are crippled and barely hanging on, when China's once-fertile farmlands have been converted into sterile wastes? Why do you think the 'Fertile Crescent' is now a desert? Either we switch to a system that works, or we all starve, SOON.

Given that the statements above are simply false to fact, there's not a lot of response to make.

"old mechanized techiques of the vanished industrial age" : Excuse me? Are you or are you not arguing for abandoning powered farm implements? If you are, then my statement you are stating was not correct is in fact correct, you want to roll back to the earliest days of informed agriculture. If not, then what does this mean?

"there's a whole movement towards sustainable agriculture all over the world" : So? There are movements towards nuclear power and away from nuclear power, people who hate computers and people who embrace them, people who believe solar power is the solution to everything and people who "prove" (if you are willing to fudge numbers you can prove anything) that solar power panels can't ever pay back the power used to make them. (Same people "prove" the industrial revolution never happened by "proving" coal mines take more fuel to mine coal than they produce - silly of course but whatever - they are just simply Luddites who are unwilling to abandon TV and cellphones by themselves, everyone else has to be forced to live as they wish as well.)

"Human induced drought has collapsed Australia and Russian farming" : ? Just whom is making that claim? Have they evidence past "we believe this"? And both Australia and Russia have periodic droughts, their history is full of them. Moreover, Australia is the poster child for "horrible results of invasive species", comparing their agriculture or flora/fauna to any other spot on the planet is always apples vs oranges.

"Given that industrialized agriculture has reliably lead to environmental damage and consequent greatly reduced yields and crop failures globally" : Really? Odd how the US keeps on producing then. Mechanized agriculture was adopted here before anywhere else, what's the factor that keeps the USA from starving? Why cannot the rest of the world make use of this same "magic" that has kept the US working for so long?

"Why do you think the 'Fertile Crescent' is now a desert?" : Because of a climate shift shortly before the beginning of the Christian Era, which caused rainfall to move northwards. This, coupled with overgrazing by goats has caused desertification to take place. I'm a bit flummoxed if you are implying this was caused by modern farming methods. Ancient practice coupled with a long ago climate shift caused that problem. Continuing overgrazing has caused the desert to grow, often exacerbated by the Western practice of donating money to dig wells in remote villages. Wells mean they can grow more goats, which means the overgrazing increases and the desert grows. Again, ancient practice with a limit removed by well meaning Westerners.

One final note, I do not accept anthropologists as experts on nuclear energy (though our press seems to) I do not accept politicians and Hollywood figures as experts on anything outside politics or Hollywood, I do not believe physicists know much about chemistry, I don't believe chemists know physics, and I am really tired of people who know NOTHING about a subject being quoted as authorities - and that goes for ALL of them from Arnold to Al Gore. If you want to argue with me, please give me something from someone who has some knowledge in the field, I may disagree with them, but at least I'll respect them and your arguement. No, I'm not saying you've done that previously, but many of your statements do tend to make me believe you've accepted persons as authorities on certain subjects who simply are not qualified to make any sort of definitive statement on those subjects.
Higgenbotham
Posts: 7999
Joined: Wed Sep 24, 2008 11:28 pm

Re: Financial topics

Post by Higgenbotham »

Getting back to something that was being discussed before the nuclear plant disasters in Japan.
This is from a post I made over 2 years ago. It still seems to me that a complete restructuring of all systems might be required in order to achieve the next level of advancement.
On the subject of technology and the development of complex societies in general, we could look back to the heyday of the Roman empire and I believe that from a technological standpoint the Romans had the beginnings of a basic industrial society coming into form. As I understand it, the Romans had built water wheels that were capable of producing power and had invented a crude steam engine. Some might opine that the Romans were not able to make the transition to an industrial society because they did not have the proper political and social development in place to do so, and the cleansing process of the Dark Ages was required in order to develop the proper political and social framework that allowed the Industrial Revolution to take off about 15 centuries later. And as our society transitions from an industrial to an information society, might a similar cleansing and political and social development process be required?"
This Bloomberg article from yesterday is one of several that have come out of the woodwork since the Japanese nuclear disaster to illustrate this problem. The title of it is: Fukushima Engineer Says He Covered Up Flaw At Shut Reactor

http://www.bloomberg.com/news/2011-03-2 ... actor.html
The vessel had sagged so that its height and width differed by more than 34 millimeters, meaning it should have been scrapped, according to nuclear regulations. Rather than sacrifice years of work and risk the company’s survival, Tanaka’s boss asked him to reshape the vessel so that no-one would know it had ever been damaged. Tanaka had been working as an engineer for the company’s nuclear reactor division and was known for his programming skills.

“I saved the company billions of yen,” said Tanaka, who says he was paid a 3 million yen bonus and presented with a certificate acknowledging his “extraordinary” effort. “At the time, I felt like a hero,” he said.
The system works if you're trying to keep a horse alive or repair a shovel or a tractor.
While the periphery breaks down rather slowly at first, the capital cities of the hegemon should collapse suddenly and violently.
OLD1953
Posts: 946
Joined: Tue Aug 11, 2009 11:16 pm

Re: Financial topics

Post by OLD1953 »

That a social shift is coming seems obvious to me, as robotics replace humans in industrial production we are going to see massive numbers of people with no job they are capable of performing. The distribution system will break down due to the simple fact that you can't store goods forever, they have to be removed from the supply pipeline. Either we will create "jobs" as we have done in the past that have little relation to true need for those jobs, or we'll give up and simply distribute goods. Or we could see a decline in population over the next 50 years - much depends on what exactly is done by governments and what the resulting attitudes of the citizens are. We do live in interesting times.

I read the news on those reactor construction issues several days ago, and it does open a can of worms for Japan, especially since the engineer in question was breaking open the entire scandal several years ago. It well illustrates why you should not allow government agencies to become captive to the industry they are supposed to regulate. Japan's nuclear regulatory group has been captive of the industry since it was created. This has allowed a host of problems at Japan's nuclear plants to be swept under the rug.
Lily
Posts: 34
Joined: Wed Jan 26, 2011 1:05 pm

Re: Financial topics

Post by Lily »

I'll deal with the agricultural things first since they are objective and fact based rather than projective. If it seems we're going too far afield with this discussion, I apologize. I think all of this stuff, though, is intimately related to the best manner of surviving after a financial meltdown, so it's worth discussing.
OLD1953 wrote:"old mechanized techiques of the vanished industrial age" : Excuse me? Are you or are you not arguing for abandoning powered farm implements? If you are, then my statement you are stating was not correct is in fact correct, you want to roll back to the earliest days of informed agriculture. If not, then what does this mean?
Let me answer that question in pieces; it's a little complex. :)

I'm not arguing for abandoning powered farm implements entirely. I'm just saying if we want to avoid an even worse global catastrophe, we ought to retire machines that do more harm than good, which is many of them, but surely not all.

I don't have anything against powered farm implements qua powered farm implements. My objections are to practices that unnecessarily damage the living environment, and to practices that are unsustainable. When I get a chance to bulid my farm, for instance (hopefully by the later half of this year :) ) I intend to use heavy machinery for landscaping and architecture; I wouldn't want to try to dig a hole big enough for a house foundation by hand, certainly.

However, fossil fuels are unsustainable. This has been true for a long time, but people blatantly ignored it, and now the long-term unsustainablity is becoming short-term unsustainability. Peak *conventional* oil was reached in 2008, (1) and since then all global consumption increases, plus enough to compensate for accelerating conventional production declines, have been coming out of more marginal, difficult, and dangerous alternative sources like deepwater drilling, arctic drilling, shale oil, 'fracking' for natural gas, etc, almost all of which are incredibly dirty, expensive, and horrifyingly bad to the environment.

Welcome to the worst-case scenario. (2)

Combine the effects of a financial meltdown, the collapse of the dollar, and dramatic increases in the cost of oil, and you have a dangerous combination if your food production systems depend on fossil fuels.

(Carbon monoxide fuel won't save anyone from this, either, since it has to use coal as a fuel source. We have plenty of coal in the US, but extraction is really destructive. We are already literally BLOWING UP MOUNTAINS to suck the coal out of their exploded corpses. (3) (4) Adding all of our agricultural energy needs, not to mention consumer fuel needs, to our existing coal requirements would be, um, insane.)

So that's one objection to powered machinery, but it's only a partial one. Soon, people will discover how simple it is to use carefully designed algae cultivation systems to produce algae biodiesel, which can easily replace fossil-fuel based diesel. In fact, Rudolph Diesel originally intended his Diesel engine to run on biofuels! The filthy 'diesel' we have now was invented by oil companies looking for a way to use the engine with their existing products. Once we switch to biodiesel, powered machinery will be sustainable again, but this won't happen overnight. Without poular political support, it won't happen for years if at all, given how aggressively the powerful oil industries are pushing against it. Individuals will be able to adopt it on a small scale, however.

But for the next 5-10 years, at least, it's going to be very inadvisable to allow your ability to feed yourself to depend on your ability to aquire many gallons of fossil fuel. This is true not only because of global supply concerns but because of local logistics issues in connection with the economic/industrial/environmental/political/social collapse.

If the dollar goes, (it's happening right before your eyes) and John's war comes, (isn't it basically in the early stages already?) and the droughts don't end, (they won't) and the storms and disasters keep getting fiercer (they will), and the oil supplies keep drying up (they will) where is anyone going to GET enough fossil fuel to run a mechanized farm? I am pretty sure I will be able to keep my trucks, lights, and machinery running by manufacturing biodiesel, but the fuel needs of a conventional industrial-style farm are many times greater per unit area than those of an organic farm, and I'm not sure that it's even practical to produce enough biodiesel locally to run one. I know I wouldn't want to try it, for sure.

Of course, if one is a large agribusiness, one can probably consort with various governments and black or grey market operations to get enough fossil fuel to survive even in a collapse scenario. But being part of the system in such times carries its own compromises...and most of us don't have that option, anyway.

My other objection to the use of powered machinery in farming is that it can severely damage the soil. Why on earth would you want to rip up and kill all of your living dirt like that? Just because you can't be bothered to plant nondestructively? Organic yields for nearly every crop are not far enough behind 'conventional' mechanized annual monoculture yields to justify the extremely-difficult-to-reverse soil damage. Here's some data on that. Some example crops, showing minimal difference between organic and 'conventional' yields. (5) Some data on soil degradation. (6) Note that arable land is declining globally for numerous reasons. "Agricultural activities" accounts for 28% of the loss. The primary mechanism of action for that category is through soil damage, leading to erosion and desertification. Doing things that damage the soil, like tearing it up with giant tractors or dumping hundreds of gallons of poison on it, are foolish, because they destroy the productivity of the land. This is why we are in a global food crisis.

To understand the solution, start here: (7)
OLD1953 wrote:"there's a whole movement towards sustainable agriculture all over the world" : So? There are movements towards nuclear power and away from nuclear power, people who hate computers and people who embrace them, people who believe solar power is the solution to everything and people who "prove" (if you are willing to fudge numbers you can prove anything) that solar power panels can't ever pay back the power used to make them. (Same people "prove" the industrial revolution never happened by "proving" coal mines take more fuel to mine coal than they produce - silly of course but whatever - they are just simply Luddites who are unwilling to abandon TV and cellphones by themselves, everyone else has to be forced to live as they wish as well.)
Umm, this paragraph seems to be ranting against a handful of straw men you've invented. I didn't say or imply any of those things. Perhaps you should do more research before broadly writing off a large group of people as loons. I don't propose to force you to live as I want to live - I merely propose that unless we make a different manner of living possible, we will find that our current one collapses around us.
OLD1953 wrote:"Human induced drought has collapsed Australia and Russian farming" : ? Just whom is making that claim? Have they evidence past "we believe this"? And both Australia and Russia have periodic droughts, their history is full of them. Moreover, Australia is the poster child for "horrible results of invasive species", comparing their agriculture or flora/fauna to any other spot on the planet is always apples vs oranges.
Here's some data on human-induced drought in general, along with its mechanisms of action and effects. (8)
Here's more data on the scientifically established connection between climate change and drought, including the ongoing Russian and Australian ones. (9)
More specifics on Australia. (10)
Data on soil loss and erosion in Russia (11)
The point is scientifically well-established, and well-understood by most educated people. To pick a random example (12). It's a fact that poor agricultural practices, most especially including modern mechanized annual monculture, damage the soil, leading to erosion, desertification, and drought. Handle it.

For deadly-serious information on drought globally, read these, especially the second one, and try not to weep. (13) (14)
OLD1953 wrote:"Given that industrialized agriculture has reliably lead to environmental damage and consequent greatly reduced yields and crop failures globally" : Really? Odd how the US keeps on producing then. Mechanized agriculture was adopted here before anywhere else, what's the factor that keeps the USA from starving? Why cannot the rest of the world make use of this same "magic" that has kept the US working for so long?
It's not working in the US, either. The USDA says it is, but they are lying. Read the links.
(15)
(16)
China is having a human-induced drought, too. This is a very dangerous situation!
(17)
Can you accept reality yet? Industrialized agriculture sucks. It inevitably bites itself in the ass by destroying the health of the land. Then the people dependant on it starve. If that's the entire world, you get wars breaking out in every little goddamn place, increasingly desperate and lethal. Welcome to Earth.
OLD1953 wrote:"Why do you think the 'Fertile Crescent' is now a desert?" : Because of a climate shift shortly before the beginning of the Christian Era, which caused rainfall to move northwards. This, coupled with overgrazing by goats has caused desertification to take place. I'm a bit flummoxed if you are implying this was caused by modern farming methods. Ancient practice coupled with a long ago climate shift caused that problem. Continuing overgrazing has caused the desert to grow, often exacerbated by the Western practice of donating money to dig wells in remote villages. Wells mean they can grow more goats, which means the overgrazing increases and the desert grows. Again, ancient practice with a limit removed by well meaning Westerners.
So, you acknowledge the effects of overgrazing but ignore those of soil exhaustion and subsequent erosion? Many bad practices play a part, but you can't get the whole story if you intentionally ignore agriculture as a factor. Middle Eastern societies in general have been predominantely settled and agricultural, with pastoralism on the fringes or in more marginal areas. Attributing the entire desertification problem to goats implies that the inhabitants have never been more than goatherds, which is surely false. They do and have done a heck of a lot more than that, and it's those other activities that are mostly responsible for shift in climate there.

I'm not exactly sure what you're trying to say in that last paragraph other than that you dislike some celebrities? As something of a physicist myself, I can assure you that most of us have to know chemistry and vice versa, but I'm not sure how this is relevant...?

Anyway, I think my point is fairly well-established now. If this isn't enough hard data for you to accept it, I dunno what would be.

A last point.
OLD1953 wrote:That a social shift is coming seems obvious to me, as robotics replace humans in industrial production we are going to see massive numbers of people with no job they are capable of performing. The distribution system will break down due to the simple fact that you can't store goods forever, they have to be removed from the supply pipeline. Either we will create "jobs" as we have done in the past that have little relation to true need for those jobs, or we'll give up and simply distribute goods. Or we could see a decline in population over the next 50 years - much depends on what exactly is done by governments and what the resulting attitudes of the citizens are.
OR we could deurbanize, recolonize the remaining fertile lands, resuscitate the marginal and degraded or poisoned lands, and create an economy where human beings can actually feed, clothe, shelter, and heal themselves without an advanced degree and permission from the imperial senate. There is no need for us to be dependant plebians! The productivity of the land and modern technology is enough for us all to live comfortably, with dignity, and well, with robots as our assistants rather than our replacements.

Citations:
(1) http://www.theoildrum.com/node/5177
(2) http://www.theoildrum.com/files/uppsala_model.gif
(3) http://en.wikipedia.org/wiki/Mountaintop_removal_mining
(4) http://www.blog.thesietch.org/wp-conten ... val520.jpg
(5) http://books.google.com/books?id=RGkdPx ... re&f=false
(6) http://www.globalchange.umich.edu/globa ... d_deg.html
(7) http://en.wikipedia.org/wiki/Permaculture
(8) http://www.physorg.com/news67096594.html
(9) http://www.climateavenue.com/cl.extr.drought.htm
(10) http://www.smh.com.au/environment/weath ... 170ml.html
(11) http://www.weru.ksu.edu/symposium/proce ... rionov.pdf
(12) http://uncommonscolds.wordpress.com/201 ... ly-stupid/
(13) http://www.ucsusa.org/global_warming/sc ... hange.html
(14) http://www.edf.org/documents/3566_Abrup ... Change.pdf
(15) http://www.marketskeptics.com/2009/12/2 ... mmies.html
(16) http://www.rumormillnews.com/cgi-bin/ar ... ead=147444
(17) http://www.wheat.commoditynewszone.net/ ... in-us.html
jcsok
Posts: 134
Joined: Sat Nov 08, 2008 6:51 am

Re: Financial topics

Post by jcsok »

Lily wrote:I'll deal with the agricultural things first since they are objective and fact based rather than projective. If it seems we're going too far afield with this discussion, I apologize. I think all of this stuff, though, is intimately related to the best manner of surviving after a financial meltdown, so it's worth discussing.
My other objection to the use of powered machinery in farming is that it can severely damage the soil. Why on earth would you want to rip up and kill all of your living dirt like that? Just because you can't be bothered to plant nondestructively? Organic yields for nearly every crop are not far enough behind 'conventional' mechanized annual monoculture yields to justify the extremely-difficult-to-reverse soil damage. Here's some data on that. Some example crops, showing minimal difference between organic and 'conventional' yields. (5) Some data on soil degradation. (6) Note that arable land is declining globally for numerous reasons. "Agricultural activities" accounts for 28% of the loss. The primary mechanism of action for that category is through soil damage, leading to erosion and desertification. Doing things that damage the soil, like tearing it up with giant tractors or dumping hundreds of gallons of poison on it, are foolish, because they destroy the productivity of the land. This is why we are in a global food crisis.
OLD1953 wrote:"there's a whole movement towards sustainable aTo understand the solution, start here: (7)

Umm, this paragraph seems to be ranting against a handful of straw men you've invented. I didn't say or imply any of those things. Perhaps you should do more research before broadly writing off a large group of people as loons.
OLD1953 wrote:"Human induced drought has collapsed Australia and Russian farming" : ? Just whom is making that claim? Have they evidence past "we believe this"? And both Australia and Russia have periodic droughts, their history is full of them. Moreover, Australia is the poster child for "horrible results of invasive species", comparing their agriculture or flora/fauna to any other spot on the planet is always apples vs oranges.
Here's some data on human-induced drought in general, along with its mechanisms of action and effects. (8)
Here's more data on the scientifically established connection between climate change and drought, including the ongoing Russian and Australian ones. (9)
More specifics on Australia. (10)
Data on soil loss and erosion in Russia (11)


The point is scientifically well-established, and well-understood by most educated people. To pick a random example (12). It's a fact that poor agricultural practices, most especially including modern mechanized annual monculture, damage the soil, leading to erosion, desertification, and drought. Handle it.

For deadly-serious information on drought globally, read these, especially the second one, and try not to weep. (13) (14)
OLD1953 wrote:"Given that industrialized agriculture has reliably lead to environmental damage and consequent greatly reduced yields and crop failures globally" : Really? Odd how the US keeps on producing then. Mechanized agriculture was adopted here before anywhere else, what's the factor that keeps the USA from starving? Why cannot the rest of the world make use of this same "magic" that has kept the US working for so longIt's not working in the US, either. The USDA says it is, but they are lying. Read the links.

Can you accept reality yet? Industrialized agriculture sucks. It inevitably bites itself in the ass by destroying the health of the land. Then the people dependant on it starve. If that's the entire world, you get wars breaking out in every little goddamn place, increasingly desperate and lethal. Welcome to Earth.

Anyway, I think my point is fairly well-established now. If this isn't enough hard data for you to accept it, I dunno what would be.?



We all have different opinions. However, to troll and state misleading ideas as "facts" is not appropriate. I looked at some of the links. I have a pretty good understanding of agriculture. I can't stand by with my usual lurking when I read your misleading agenda. Lets see.......we are headed for disaster because the USDA has lied to everyone. Modern agriculture production is now declining... you'll state broad based objective facts, rather than projective.....Its not working in the US....Can you accept reality yet.......and finally, I'm going to perjure your quote and reply to you "Anyway, I think my point is fairly well established now. if this isn't enough hard data for you to accept it, I dunno what would be."

You also stated the USDA was "lying" about current production. These are the facts. US corn production in 1983 was about 4 billion bushels. The USDA "lies" of "only" approximately a 13 billion bushel crop don't support your declining production agenda. US soybean production in 1983 was 1.6 billion bushels. The USDA "lies" of "only" about 3.5 billion bushels don't support your agenda.

When I see glaring misinformation such as yours, I see your agenda. I won't read it in the future, won't waste my time. And to quote you once more, "Perhaps you should do more research"
Last edited by jcsok on Thu Mar 24, 2011 9:38 pm, edited 1 time in total.
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