Dec 162016
 
 December 16, 2016  Posted by at 5:44 pm Finance Tagged with: , , , , , , , , , ,  10 Responses »


Parisians duck down to evade German sniper fire following Nazi surrender of Paris, 1945

 

If you ever wondered what the odds are of mankind surviving, let alone ‘defeating’, climate change, look no further than the essay the Guardian published this week, written by Michael Bloomberg and Mark Carney. It proves beyond a moonlight shadow of a doubt that the odds are infinitesimally close to absolute zero (Kelvin, no Hobbes).

Yes, Bloomberg is the media tycoon and former mayor of New York (which he famously turned into a 100% clean and recyclable city). And since central bankers are as we all know without exception experts on climate change, as much as they are on full-contact crochet, it makes perfect sense that Bank of England governor Carney adds his two -trillion- cents.

Conveniently, you don’t even have to read the piece, the headline tells you all you need and then some: “How To Make A Profit From Defeating Climate Change” really nails it. The entire mindset on display in just a few words. If that’s what they went for, kudo’s are due.

These fine gents probably actually believe that this is perfectly in line with our knowledge of, say, human history, of evolution, of the laws of physics, and of -mass- psychology. All of which undoubtedly indicate to them that we can and will defeat the problems we have created -and still are-, literally with the same tools and ideas -money and profit- that we use to create them with. Nothing ever made more sense.

That these problems originated in the same relentless quest for profit that they now claim will help us get rid of them, is likely a step too far for them; must have been a class they missed. “We destroyed it for profit” apparently does not in their eyes contradict “we’ll fix it for profit too”. Not one bit. It does, though. It’s indeed the very core of what is going wrong.

Profit, or money in general, is all these people live for, it’s their altar. That’s why they are successful in this world. It’s also why the world is doomed. Is there any chance I could persuade you to dwell on that for a few seconds? That, say, Bloomberg and Carney, and all they represent, are the problem dressed up as the solution? That our definition of success is what dooms us?

Philosophers, religious people, or you and me, may struggle with the question “what’s the purpose of life?”. These guys do not. The purpose of life is to make a profit. The earth and all the life it harbors exist to kill, drill, excavate and burn down, if that means you can make a profit. And after that you repair it all for a profit. In their view, the earth doesn’t turn of its own accord after all, it’s money that makes it go round.

 

The worrisome thing is that Mark and Michael will be listened to, that they are allowed a seat at the table in the first place, whereas you and I are not. A table that will be filled with plenty more of their ilk, as the announcement of Bill Gates’ billionaire philantropist energy fund says loud and clear:

Microsoft co-founder Bill Gates and a group of high-profile executives are investing $1 billion in a fund to spur clean energy technology and address global climate change a year after the Paris climate agreement. Gates launched the Breakthrough Energy Ventures fund on Monday along with billionaire entrepreneurs such as Facebook head Mark Zuckerberg, Alibaba Chairman Jack Ma and Amazon.com chief Jeff Bezos. The fund seeks to increase financing of emerging energy research and reduce global greenhouse gas emissions to help meet goals set in Paris, according to a statement by the investor group known as the Breakthrough Energy Coalition.

Yes, many of the same folk and/or their minions were sitting at the table with Trump on Dec 14. To see if there are any profits to be made. When a profit is involved they have no trouble sitting down with the same guy they insulted and warned against day after grueling day mere weeks ago. They have no trouble doing it because they insulted him for a potential profit too. It’s business, it’s not personal.

Billionaires will save us from ourselves, and make us -and themselves- rich while doing it. What is not to like? Well, for one thing, has anybody lately checked the energy footprint of Messrs. Bloomberg, Gates, Ma, Zuckerberg, Bezos et al? Is it possible that perhaps they’re trying to pull our collective wool over our eyes by pretending to care about those footprints? That maybe these ‘clean energy’ initiatives are merely a veil behind which they intend to extend -and expand- said footprints?

The ones in that sphere who wind up being most successful are those who are most convincing in making us believe that all we need to do to avert a climate disaster is to use some different form of energy. That all the talk about zero emissions and clean energy is indeed reflecting our one and only possible reality.

That all we need to do is to switch to solar and wind and electric cars to save ourselves (and they’ll build them for a subsidy). That that will end the threat and we can keep on doing what we always did, and keep on growing it all and as the cherry on the cake, make a profit off the endeavor.

 

None of it flies even a little. First of all, as I said last week in Mass Extinction and Mass Insanity, there are many more problems with our present lifestyles than ‘only’ climate change, or the use of carbon. Like the extinction of two-thirds of all vertebrate life in just 50 years leading up to 2020. There’s -close to- nothing wind and solar will do to alleviate that.

Because it’s not oil itself, or carbon in general, that kills; our use of it does. And the rush to build an entire new global infrastructure that is needed to use new energy forms, which will depend on using huge amounts of carbon, is more likely to kill off that globe than to save it. “Carbon got us in this, let’s use lots more of it to get us out”.

The trillions in -public- investment that are would be needed will make us all dirt poor too, except for the gentlemen mentioned above and a handful of others who invent stuff that they manage to make us believe will save us. Still convinced?

 

The lifestyles of the last 10 generations of us, especially westerners, are characterized more than anything else by the huge increase in the use of energy, of calories and joules. As we went from wood to peat to coal to oil and gas, the energy return on energy investment kept going higher. But that stopped with oil and gas. And from now on in it will keep going down.

“Free carbon excess” was a one-off ‘gift’ from nature. It will not continue and it will not return. Different forms of carbon have offered us a one-time source of free energy that we will not have again. The idea that we can replace it with ‘clean energy’ is ludicrous. The energy return on energy investment doesn’t even come close. And you can’t run a society with our present levels of complexity on a much lower ‘net energy’. We must dress down. No profit in that, sorry.

We built what we have now with oil at an EROEI of 100:1. There are no forms of energy left that come remotely close, including new, unconventional, forms of oil itself. Peak oil has been a much maligned and misunderstood concept, but its essence stands: when it takes more energy to ‘produce’ energy than it delivers, there will be no production.

This graph is a few years old, and wind and solar may have gained a few percentage points in yield, but it’s still largely correct. And it will continue to be.

 

 

We have done with all that free energy what all other life forms do when ‘gifted’ with an excess of available energy: spend it as fast as possible, proliferate to speed up the process (we went from less than 1 billion people to 7 billion in under 200 years, 2 billion to 7 billion in 100 years) and, most of all, waste it.

Ever wonder why everybody drives a car that is ten times heavier then her/himself and has a 10% efficiency rate in its energy use? Why there’s an infrastructure everywhere that necessitates for every individual to use 1000 times more energy than it would take herself to get from A to B on foot? Sounds a lot like deliberately wasteful behavior, doesn’t it?

The essence here is that while we were building this entire wasteful world of us, we engaged in the denying and lying behavior that typifies us as a species more than anything: we disregarded externalities. And there is no reason to believe we would not continue to do just that when we make the illusionary switch to ‘clean’ energy.

To begin with, the 2nd law of thermodynamics says there’s no such thing as clean energy. So stop using the term. Second, that we call wind and solar ‘clean energy’ means we’re already ignoring externalities again. We pretend that producing windmills and solar panels does not produce pollution (or we wouldn’t call it ‘clean’). While enormous amounts of carbon are used in the production process, and it involves pollution, loss of land, loss of life, loss of resources (once you burn it it’s gone).

 

An example: If we want to ‘save’ the earth, we would do good to start by overthrowing the way we produce food. It presently easily takes more than 10 calories of energy -mostly carbon- for every calorie of food we make. Then we wrap it all in (oil-based) plastic and transport it sometimes 1000s of miles before it’s on our plates. And at the end of this process, we will have thrown away half of it. It’s hard to think of a more wasteful process.

It’s a process obviously devised and executed by idiots. But it’s profitable. There is a profit to be made in wasting precious resources. And there is a key lesson in that. There is no profit in producing food in a more efficient way. At least not for the industries that produce it. And perhaps not even for you, if you produce most of your food – it takes ‘precious’ time.

It would still be hugely beneficial, though. And there’s the key. There is no direct link between what is good for us, and the planet, on the one side, and profit, money, on the other. What follows from that is that it’s not the people whose entire lives are centered around money who are the most obvious choices to ‘save the planet’. If anything, they are the least obvious.

But in an economic and political system that is itself as focused on money as ours is, they are still the ones who are allowed to assume this role. It’s a circle jerk around, and then into, a drain.

 

Mankind’s only chance to not destroy its planet lies in diverging from all other species in that not all energy available to it, is used up as fast as possible. But that’s a big challenge. It would, speaking from a purely philosophical angle, truly separate us from nature for the first time ever, and we must wonder if that’s desirable.

We would need to gain much more knowledge of who we are and what makes us do what we do, and why. But that is not going to happen if we focus on making a profit. Using less energy means less waste means less profit.

Yes, there may be energy sources that produce a bit less waste, a bit less pollution, than those that are carbon based. But first, our whole infrastructure has been built by carbon, and second, even if another energy source would become available, we would push to grow its use ever more, and end up initially in the same mess, and then a worse one.

 

 

I stumbled upon an excellent example of the effects of all this today:

The Shattering Effect Of Roads On Nature

Rampant road building has shattered the Earth’s land into 600,000 fragments, most of which are too tiny to support significant wildlife, a new study has revealed. The researchers warn roadless areas are disappearing and that urgent action is needed to protect these last wildernesses, which help provide vital natural services to humanity such as clean water and air. The impact of roads extends far beyond the roads themselves, the scientists said, by enabling forest destruction, pollution, the splintering of animal populations and the introduction of deadly pests.

An international team of researchers analysed open-access maps of 36m km of road and found that over half of the 600,000 fragments of land in between roads are very small – less than 1km2. A mere 7% are bigger than 100km2, equivalent to a square area just 10km by 10km (6mi by 6 mi). Furthermore, only a third of the roadless areas were truly wild, with the rest affected by farming or people.

The last remaining large roadless areas are rainforests in the Amazon and Indonesia and the tundra and forests in the north of Russia and Canada. Virtually all of western Europe, the eastern US and Japan have no areas at all that are unaffected by roads.

 

 

It’s a good example because it raises the question: how much of this particular issue do you think will be solved by the promotion of electric cars, or windmills? How much of it do you think can be solved for a profit? Because if there’s no profit in it, it will not happen.

One more for the philosophy class: I know many people will be inclined to suggest options like nuclear fusion. Or zero point energy. And I would suggest that not only do these things exist in theory only, which is always a bad thing if you have an immediate problem. But more than that: imagine providing the human race with a source of endless energy, and then look at what it’s done with the free energy available to it over the past 10 generations.

Give man more energy and he’ll just destroy his world faster. It’s not about carbon, it’s about energy and about what you yourself do with it. And no, money and profit will not reverse climate change, or any other detrimental effects they have on our lives. They will only make them worse.

Dec 122015
 
 December 12, 2015  Posted by at 4:23 pm Finance Tagged with: , , , , , , ,  21 Responses »


Nickolay Lamm Jefferson Memorial under 25 feet of water

French Foreign Minister Laurent Fabius just announced, in Paris, a “legally binding agreement” that no-one has agreed the financing for. We can hear a couple thousand lawyers across the globe snicker. But it’s all the COP21 ‘oh-so-important’ climate conference managed to come up with. No surprises there. They couldn’t make the 2ºC former goal stick, so they go for 1.5ºC this time. All on red, double or nothing. Because who really cares among the leadership, just as long as the ‘targets’ are far enough away that they can’t be held accountable.

I’ve been writing the following through the past days, and wondering if I should post it, because I know so many readers of the Automatic Earth have so much emotion invested in these things, and they’re good and fine emotions. But some things must still be said regardless of consequences. Precisely because of that kind of reaction. No contract is legally binding if there’s no agreement on payment. Nobody has a legal claim on your home without it being specified that, if, when and how they’re going to pay for it.

I understand some people may get offended by some of the things I have to say about this – though not all for the same reasons either-, but please try and understand that and why the entire CON21 conference has offended me. After watching the horse and pony show just now, I thought I’d let ‘er rip:

I don’t know what makes me lose faith in mankind faster, the way we destroy our habitat through wanton random killing of everything alive, plants, animals and people, through pollution and climate change and blood-thirsty sheer stupidity, or if it is the way these things are being ‘protested’.

I’m certainly not a climate denier or anything like that, though I do think there are questions people gloss over very easily. And one of those questions has to be that of priorities. Is there anyone who has thought over whether the COP21 stage in Paris is the right one to target in protest, whatever shape it takes? Is there anyone who doesn’t think the ‘leaders’ are laughing out loud in -plush, fine wine and gourmet filled- private about the protests?

Protesters and other well-intended folk, from what I can see, are falling into the trap set for them: they are the frame to the picture in a political photo-op. They allow the ‘leaders’ to emanate the image that yes, there are protests and disagreements as everyone would expect, but that’s just a sign that people’s interests are properly presented, so all’s well.

COP21 is not a major event, that’s only what politicians and media make of it. In reality, it’s a mere showcase in which the protesters have been co-opted. They’re not in the director’s chair, they’re not even actors, they’re just extras.

I fully agree, and more than fully sympathize, with the notion of saving this planet before it’s too late. But I wouldn’t want to rely on a bunch of sociopaths to make it happen. There are children drowning every single day in the sea between Turkey and Greece, and the very same world leaders who are gathered in Paris are letting that happen. They have for a long time, without lifting a finger. And they’ve done worse -if that is possible-.

The only thing standing between the refugees and even greater and more lethal carnage are a wide, even confusingly so, array of volunteers, and the people of the Greek coastguard, who by now must be so traumatized from picking up little wide-eyed lifeless bodies from the water and the beaches, they’ll live the rest of their lives through sleepless nightmares.

Neither Obama nor Merkel nor Hollande will have those same nightmares. And let’s be honest, will you? You weren’t even there. And still, you guys are targeting a conference in Paris on climate change that features the exact same leaders that let babies drown with impunity. Drowned babies, climate change and warfare, these things all come from the same source. And you’re appealing to that very same source to stop climate change.

What on earth makes you think the leaders you appeal to would care about the climate when they can’t be bothered for a minute with people, and the conditions they live in, if they’re lucky enough to live at all? Why are you not instead protesting the preventable drownings of innocent children? Or is it that you think the climate is more important than human life? That perhaps one is a bigger issue than the other?

Moreover, the very same leaders that you for some reason expect to save the planet -which they won’t- don’t just let babies drown, they also, in the lands the refugees are fleeing, kill children and their parents on a daily basis with bombs and drones. Dozens, hundreds, if not thousands, every single day. That’s how much they care for a ‘healthy’ planet (how about we discuss what that actually is?).

And in the hallways of the CON21 conference they’ve been actively discussing plans to do more of the same, more killing, more war. Save the world, bombs away! That’s their view of the planet. And they’re supposed to save ‘the climate’?

There are a number of reasons why the CON21 conference will not move us one inch towards saving this planet. One of the biggest is outlined in just a few quoted words from a senior member of India’s delegation -nothing new, but a useful reminder.

India Opposes Deal To Phase Out Fossil Fuels By 2100

India would reject a deal to combat climate change that includes a pledge for the world to wean itself off fossil fuels this century, a senior official said, underlying the difficulties countries face in agreeing how to slow global warming.

India, the world’s third largest carbon emitter, is dependent on coal for most of its energy needs, and despite a pledge to expand solar and wind power has said its economy is too small and its people too poor to end use of the fossil fuel anytime soon. “It’s problematic for us to make that commitment at this point in time. It’s certainly a stumbling block (to a deal),” Ajay Mathur, a senior member of India’s negotiating team for Paris, told Reuters in an interview this week.

“The entire prosperity of the world has been built on cheap energy. And suddenly we are being forced into higher cost energy. That’s grossly unfair,” he said.

This means the ‘poorer’ countries, -by no means just India; China has 155 more coal plants in the pipeline despite their pollution levels moving ‘beyond index’-, the poorer counties won’t volunteer to lower their emissions unless richer nations lower theirs even a lot more. US per capita emissions are over 10 times higher than India’s, those of the EU six times. Ergo: Step 1: lower US emissions by 90%. It also means that richer nations won’t do this, because it would kill their economies.

Which, in case you haven’t noticed, are already doing very poorly, much worse than the media -let alone politicians- will tell you. In fact, the chances that the richer countries will ‘recover’ from the effects of their debt binge are about on par with those of renewable energy sources becoming cheaper than fossil fuels -barring subsidies. If only because producing them depends entirely on those same fossil fuels. All the rest of what you hear is just con.

The people of India obviously know it, and you might as well. It’s going to cost many trillions of dollars to replace even a halfway substantial part of our fossil energy use with renewables, and we already don’t have that kind of money today. We will have much less tomorrow.

Besides, despite all the talk of Big Oil turning into Big Energy, Shell et al are not energy companies, they’re oil -and gas- companies, and they’ll defend their (near) monopolies tooth and claw. Especially now that their market caps are sinking like so many stones. They have no money left to invest in anything, let alone an industry that’s not theirs. They lost some $250 billion in ‘value’ this week alone. They’re getting killed.

In the same vein, China can’t close more than a token few of its most polluting plants. China’s getting killed economically. And for all nations and corporations there’s one principle that trumps all: competitive advantage. If going ‘green’ means losing that, or even some of it, forget it. We won’t volunteer to go green if it makes us less rich.

And who do you think represents big oil -and the bankers that finance them- more than anyone else? Right, your same leaders again, who make you pay for the by now very extensive and expensive security details that keep them from having to face you. Just like they’re planning to make you pay dearly for the illusion of a world running on renewables.

Because that’s where the profit is: in the illusion.

Whatever makes most money is what will drive people’s, corporations’, and nations’ actions going forward. Saving energy and/or substituting energy sources is not what makes most money, and it will therefore not happen. Not on any meaningful scale, that is.

There will be attempts to force people to pay through the nose to soothe their consciences -which will be very profitable for those on the receiving end-, but people’s ability to pay for this is shrinking fast, so that won’t go anywhere.

The only thing that could help save this planet is for all westerners to reduce their energy use by 90%+, but, though it is theoretically and technically feasible, it won’t happen because the majority of us won’t give up even a part of our wealth, and the powers that be in today’s economies refuse to see their profits (re: power) and those of their backers go up in -ever hotter- air.

The current economic model depends on our profligate use of energy. A new economic model, then, you say? Good luck with that. The current one has left all political power with those who profit most from it. And besides, that’s a whole other problem, and a whole other issue to protest.

If you’re serious about wanting to save the planet, and I have no doubt you are, then I think you need to refocus. COP21 is not your thing, it’s not your stage. It’s your leaders’ stage, and your leaders are not your friends. They don’t even represent you either. The decisions that you want made will not be made there.

There will be lofty declarations loaded with targets for 2030, 2050 and 2100, and none of it will have any real value. Because none of the ‘leaders’ will be around to be held accountable when any of those dates will come to pass.

An imploding global economy may be your best shot at lowering emissions. But then again, it will lead to people burning anything they can get their hands on just to keep warm. Not a pretty prospect either. To be successful, we would need to abandon our current political and economic organizational structures, national governments and ‘up’, which select for the sociopaths that gather behind their heavy security details to decide on your future while gloating with glee in their power positions.

Better still, we should make it impossible for any single one of them to ever be elected to any important position ever again. For now, though, our political systems don’t select for those who care most for the world, or its children. We select for those who promise us the most wealth. And we’re willing to turn a blind eye to very many things to acquire that wealth and hold on to it.

The entire conference is just an exercise in “feel good”, on all sides. Is there anyone out there who really thinks the likes of Bill Gates and Richard Branson will do anything at all to stop this world from burning to the ground? You have any idea what their ecological footprints are?

Sometimes I think it’s the very ignorance of the protesting side that dooms this planet. There’s a huge profit-seeking sociopathic part of the equation, which has caused the problems in the first place, and there’s no serious counterweight in sight.

Having these oversized walking talking ego’s sign petitions and declarations they know they will never have to live up to is completely useless. Branson will still fly his planes, Gates will keep running his ultra-cooled server parks, and Obama and Merkel will make sure their economies churn out growth ahead of anything else. Every single country still demands growth. Whatever gains you make in terms of lower emissions will be nullified by that growth.

And in the hallways, ‘smart’ entrepreneurs stand ready to pocket a ‘smart’ profit from the alleged switch to clean energy. At the cost of you, the taxpayer. And you believe them, because you want to, and because it makes you feel good. And you don’t have the knowledge available to dispute their claims (hint: try thermodynamics).

You’re seeking the cooperation of people who let babies drown and who incessantly bomb the countries these babies and their families were seeking to escape.

I’m sorry, I know a lot of you have a lot of emotion invested in this, and it’s a good emotion, and you’re thinking this conference is really important and all, and our ‘last chance’ to save the planet. But you’ve been had, it’s as simple as that. And co-opted. And conned.

And it’s not the first time, either. All these conferences go the same way. To halt the demise of the planet, you can’t rely on the same people who cause it. Never works.