Showing posts with label peak oil. Show all posts
Showing posts with label peak oil. Show all posts

Tuesday, 16 June 2009

Peak Oil and the Credit Crunch




Image - Western civilisation atop the oil donkey. We are too fat and the donkey getting too old. Both fall together.




Excellent story below with some interesting facts and opinions.





http://www.ipsnews.net/news.asp?idnews=47229



Q&A: "The Global Crisis Is Really About a 140-dollar Barrel of Oil"
Chris Arsenault interviews economist JEFF RUBIN

Jeff Rubin

Credit:Chris Arsenault/IPS

VANCOUVER, Jun 15 (IPS) - Sitting in the restaurant of Vancouver’s posh Fairmount Waterfront Hotel, the former chief economist for one of Canada’s largest banks doesn’t seem like the typical apocalyptic peak oil theorist.

But in his new book, "Why Your World is About to Get a Whole Lot Smaller", Jeff Rubin argues that globalisation, fuelled by cheap oil, is finished. In the book, Rubin contends the current global recession is a result of expensive oil, rather than subprime mortgages in the U.S.

Frequently ranked as Canada’s top economist, Rubin predicts that one barrel of oil will cost 225 dollars by 2012. Other analysts consider that number outlandish; the conservative National Post newspaper, where he was frequently quoted as an economic expert before leaving his job at CIBC World Markets, accuses him of "anti-materialism" and "Big oil paranoia."

But in 2000, Rubin correctly predicted that oil would top 50 dollars per barrel by 2005. And, in 2005 he got it right again, forecasting prices would top 100 dollars per barrel in 2007.

Rubin sat down with IPS at his hotel after giving a lunch address to the Vancouver Board of Trade.

IPS: If Iraq’s security situation improves, and its cheap oil comes back online for export, could that stop your prediction of 225 dollars per barrel by 2012?

Jeff Rubin: Not even close. Nor would it stop the prediction that exports from OPEC (the Organisation of Petroleum Exporting Countries), instead of growing, are likely to fall by about one to one and a half million barrels per day over the next four or five years.

It’s not just about depletion [of OPEC oil fields], though depletion is playing a key role. It is also about the explosive growth of oil consumption in OPEC countries themselves. This is the reason why exports have not grown from OPEC in the last five years; they are in effect cannibalising their own exports.

IPS: If the world economy can function with oil at 140 dollars a barrel, are there not huge reserves of unconventional petroleum - oil shale in Utah, heavy oil in Venezuela’s Orinoco belt and deep offshore deposits - that become viable to exploit?

JR: What happened to the world economy when oil hit 140 dollars? Is this deepest recession in the post-war period really about the U.S. subprime mortgage market? Or is it about 140-dollar a barrel oil? I’d argue it is about a 140-dollar barrel of oil.

What blew up Jeff Rubin’s bonus last year? That was about [subprime mortgages in] Cleveland. But blowing up Jeff Rubin’s bonus and blowing up global GDP are two very different gigs.

IPS: At what point does the price of oil make export-driven globalisation untenable?

JR: The model as we know it peaked in 2007. If we measure globalisation by the percentage of world GDP that is an export or an import, 2007 will mark the peak of a past age.

You are going to see less and less container ships. All of those containers are about one thing: a wage arc. Moving your factory from someplace where you pay folks 30 bucks an hour to somewhere where you pay folks 30 bucks a week is great, if it’s just about wages.

But what moves those container ships is oil. At 150-200 dollars per barrel, the wage arc becomes pennywise and a pound foolish because what you save on a wage bill you more than spend on bunker fuel.

IPS: Some analysts estimate that 25 percent of the world’s hydrocarbons are located in the Arctic and will soon be open to exploitation due to, ironically, global warming.

JR: The stuff in the Arctic is a drop in the bucket. You are losing sight of what the Cambridge Energy Research Associates and Exxon don’t tell you about. They hold big press conferences to talk about ‘oh we just discovered the Jack Field - 10,000 feet under the hurricane ravaged waters of the Gulf of Mexico, isn’t that fantastic’.

They don’t hold press conferences [to announce] ‘see this field here? It has been producing for 50 years. It’s about to run dry.’

Every year we lose four million barrels a day [of production due to depletion]. Over the next five years, we are going to have to find 20 million barrels a day of new production, just so that we can [continue to] consume what we consume today.

IPS: Even if you are correct that supplies of cheap oil are dwindling, couldn’t increased efficiency make up for shortfalls in production?

JR: We think that efficiency leads to conservation but history has shown that is not what happens.

The average engine today is 30 percent more efficient than the engines produced before the OPEC oil shocks [of the 1970s]. Yet, the average [North American] vehicle consumes just as much gasoline in the course of a year.

Back in the 1970s, we [North Americans] used to drive about 9,000 miles a year, now we drive 12,000. Back in the 1970s, we weren’t living in the far-flung suburbs. All those gains in efficiency have led us to, ever more efficiently, consume more and more oil.

IPS: What do you think is a bigger threat, peak oil or peak water?

JR: Peak water is a whole other ballgame. But let me tell you a place where peak oil and peak water intersect: the Canadian oil sands. To produce one barrel of synthetic oil, you have to burn 1,400 cubic feet of natural gas, schlep two tonnes of sand [and] pollute 250 gallons of water.

Just like carbon emissions, water is free. If you are an oil sands operator and you pollute 250 gallons of water, it is costless.

(END/2009)





























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Wednesday, 4 March 2009

Nationalism in the Post-Credit Crunch Era

The most basic rule of economics is simply this ’ You cannot Borrow your way out of Debt’.

It appears that this fundamental rule of economics is not one the government understands.

The attempt to sustain the mortally wounded global finance capitalism model by pouring hundreds of billions of pounds and dollars into sustaining the banks and the banking system will fail, simply because it is not just the banks that have failed - it is the system of economics that the banks are a fundamental facet of that has also failed.

Britain is going to be hit hardest of all by this Second Great Depression.

As a result of Thatcherism and Blairism, the British national economy has been globalised.

Thatcher began the process of globalist free market fundamentalism when she destroyed our national industrial and manufacturing base in order to undermine the unions. Her opening up of the British economy to foreign capital, the opening up of the border of Britain to mass immigration and the EU and the offshoring of British jobs to nations such as China and India, were all started or accelerated under Thatcherism. Blair and Brown have merely accelerated the process of globalisation in order to create and profit from The Servile State under the guise of Fabianism. Thatcher shut down the mines, factories and fishing fleets in order to export those industries abroad, whilst Blair and Brown have turned the British national economy into an adjunct of the financial services sector, making us a slave to the Dollar and a whore for the Euro.

Therefore both Left and Right are complicit in the destruction of our national economy.

The only way that Great Britain is going to survive as a nation and as an economy in the 21st century is if we undertake three great nationalist revolutions - these being an Agricultural Revolution, the creation of a Hard Goods Industrial Model and an Energy Revolution.

We must begin to produce as a nation goods that people want to trade with us for.

The financial services sector was based on usury, credit and debt but as the financial system has crashed then we cannot any longer extort the interest money from laundering the worlds dirty money through the City of London.

In ten years time the bankers, the stockbrokers and the financers will be a marginal part of our economic input.

Therefore in order to create industries that will produce goods the world wants we must end the insane funding of the banks and banksters and instead begin to invest in creating a self sufficient national agricultural system, investing in building industries that create Hard Goods and create a self sufficient national energy system.

In the future we will be exporting three primary commodities - Agricultural Produce, Hard Goods and Energy.

The government must invest billions in creating a national system of agriculture. This will include radical reform of land ownership, investment in new agricultural colleges and universities, community farms being formed which provide local food for local people and investment in marine agriculture.

At the same time the government must enact an Energy Revolution. This will be on a scale of the Industrial Revolution itself.

Transportation, industry, energy production and public transport must all be integrated.

The era of capitalism based on the economics of money supply, is about to be superseded by a new form of Energy Economics based on energy supply.

The nation that is able to produce its own energy needs, and then excess energy for export, will be the most powerful nation of the future.

Hoarding shiny bits of metal like gold and collecting pieces of paper are the economics of the idiot.

Gold has no intrinsic value other than what another idiot wants to pay for it.

Money that is printed by the banks is just a promissory note that can now never be redeemed in value.

Therefore the primitive economics of gold and cash must be replaced by a commodity that has real value - and that commodity is energy.

The UK must begin now to ;

1) Build at least six new nuclear power stations to cover the energy supply gap

2) Open up the closed own coal mines and open next door to them coal to gas power plants

3) As the North Sea oil peaks, then the old drained wells must be used to store captured carbon from the new coal mines, and also to store carbon for cash from other nations.

4) Local renewable energy systems and recycling systems must be created in all our communities and powers devolved down to local people to take care of their own energy / recycling requirements.

5) We must end our dependence on Middle East oil that will lead us into Islamo-Capitalism, the final phase in Capitalism, and that has also led us into the disastrous Iraq War for oil.

6) Invest billions in creating massive offshore wave power platforms, offshore wind platform, hydro-electric plants, geo-thermal plants, solar plants and all other renewable energy systems.

This drive to create the energy revolution must be the primary focus of our technical political agenda once we come into power.

The fact that we are no longer dependent on foreign imports of oil from the Middle East means we can bring our British troops home, re-deploy them to guard our borders whilst we send in the National Border Police Force we intend to create to remove all the illegal entrants from our nation.

The future for Britain under a BNP government will be a cleaner, greener independent Britain.

Millions of new jobs will be created in both new sectors.

The massive public works projects required to upgrade the British national energy infrastructure will create millions of new jobs, and apprenticeships for young people in those new industries.

At the same time the fact that we have created a ’cheap energy’ nation means the UK will become more popular as an source for industrial development as the primary cost associated with industry and production in the future, even before Peak Oil hits, will be energy.

The nation that offers industry cheap energy will create the most productive industries in the world.

Consumerism was a product of cheap oil, and after consumerism dies the model of industrial production in a Peak Oil world will be that of Industrial Hard Goods - these being goods such as cars, TV’s, cookers etc etc that are designed to be durable, energy efficient, long lasting and easy to repair. The era when it was cheaper to throw your TV out than get it repaired is now almost over.

Recycling will become not a lifestyle choice but a necessity for us all, simply as the consumer goods we want to buy in the future will become far more expensive to purchase as the raw resources eg metals that are required to make them begin to run out and as the associated energy costs involved in the creation of those goods rises.

The government must unlock loans to create and fund British companies with British workforces who pay business taxes in Britain who produce Hard Goods. Taxation must penalise consumer goods, imported consumer goods and commodities that are resource wasteful / energy wasteful.

Taxation must reward those companies that seek to produce Hard Goods so as to encourage consumers to shift towards purchasing Hard Goods produced in Britain.

This industrial model of Hard Goods will be built alongside the Energy Economy and the Agricultural Revolution.

Once we are able to feed our own people, to supply our own national energy needs and are producing the Hard Goods that the world will be crying out for in a post-Peak Oil world, we will become the dominant industrial nation on the planet - not China and India as the present economists think.

The rise of China and India is predicated on Britain remaining under the yoke of the present political, economic, industrial, energy and agricultural models.

We intend to overthrow all those sectors and replace them with radical Nationalist models that are designed to serve solely the interests of the British people and the British nation.
















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Wednesday, 6 August 2008

Liberalism = Mass Murder



















One of the great ironies of history when this period of history is looked back upon will be the realisation that Liberalism was the most degenerate, cruel and genocidal system ever invented by man.

Take abortion - since 1967 over six million abortions have taken place in the UK alone, a staggering number symbolic for its link to the Holocaust. The liberal proponents of abortion are the perpetrators of a holocaust that dares not speak its name. Whilst the Shoah is fetishised and made a religion in itself and laws are passed to criminalise those who dare debate the issue, our schoolkids who are sexualised from the age of 5 in schools are offered abortions like they used to be offered candy (before sweets became linked with obesity and now kids are effectively banned at schools from eating sweets but offered abortion assistance by their teachers).

Another facet of this Liberal Holocaust is the way that the liberals have sent food aid to Africa and developing nations and thereby increased their populations to massive numbers, way beyond the agricultural carrying capacity of the land, just as Peak Oil is about to ensure that global food production will crash.

In the article by Rex Wyler he states ;

"As the era of cheap liquid fuels draws to an end, everything about modern consumer society will change. Likewise, developing societies pursuing the benefits of globalization will struggle to grow economies in an era of scarce liquid fuels. The most localized, self-reliant communities will experience the least disruption."

This is a damning indictment of liberalism, globalisation and development aid.

In effect the author admits that nations with expanded populations dependent upon food aid are going to be devastated and suffer huge famines.

This is what Liberalism has done, it has allowed those nations dependent upon food aid to expand their populations way beyond what the land can provide for. This means the populations of those nations live on the edge of constant disaster.

In effect we feed them to ensure they keep on reproducing.

Have you noticed how the new buzz word of the media, the liberals and the left is 'sustainability' and how we should be living in the West in a 'sustainable way' and ensuring we live in a way where we do not exploit the environment.

Yet have you noticed how the peoples of Africa and China and India etc etc are never asked to live in a 'sustainable' way - oh no, instead we are supposed to live 'sustainably' but they arent of course.

You see sustainable means in reality LESS WHITES not less Africans, Indians Chinese etc etc.

In an example of liberal reverse racism only White Europeans are expected to be moral enough or clever enough to live in a 'sustainable' way. Africans and the rest of the world can forget about living in a sustainable way - they can spawn as many kids as they like and the West will keep feeding them !!!!!!!!!!!!!!!


The ITV news showed footage last night of the latest famine in Ethiopia.

It showed one woman in a mud hut WITH TEN CHILDREN saying that her children were hungry.

THIS IS INSANITY !

What sort of idiot has ten children in a nation that is dependent upon food aid and that suffers famines on a yearly basis.

Whilst the readers of the Daily Mail lambast single mothers in this country for getting pregnant, they at the same time donate to the latest emotional campaign of media manipulation which shows footgae of fly infested crying starving babies on the TV.

HEY IDIOTS - EVER WONDERED WHY THERE ARE SO MANY STARVING BABIES IN THESE COUNTRIES -BECAUSE YOUR MONEY KEEPS FEEDING THEM AND ENSURING THEY HAVE MORE AND MORE KIDS WHO ARE DESTINED TO SIMPY DIE OF HUNGER !

Instead of donating money for food we should be demanding that the money donated goes on sterilising women and men after a family has more than 1 child.

NO WOMAN IN AFRICA SHOULD HAVE MORE THAN 1 CHILD LET ALONE 10 ! - TO SUBSIDISE SUCH STUPIDITY AND IGNORANCE IS CRIMINAL !

This is what Liberalism has done - it has placed emotionalism before logic.

The TV shows a few starving babies and the obese liberal idiots in the West then seek to salve their consciences by donating money to feed the babies, who then go on to have more and more babies thereby creating a cycle of perpetual dependence and disasters.

This has to stop.

Food aid money should be used to ensure that no more will the feckless men and women of Africa be able to have ten children.

Instead of feeding them, we should be sterilising them.

Any nation in Africa that refuses to impose a 'One Child Policy' should not be sent a single penny of development aid, food aid or debt aid.

If they keep having more kids, let their own governments deal with the situation.

Dont expect the West to subsidise your stupidity anymore.

The Peak Oil nightmare means that because of the liberals hundreds of millions of people in Africa will die of famine or mass migrate to the West because the food they are dependent upon from the West will no longer be being produced in the West.

The Africans will either stay where they are and starve or they will flee Africa.

This influx of African immigrants will cause civil wars in Europe and thereby ensure our people die of famines as our social systems collapse under the pressure of feeding and housing these immigrants.

You dont expect the liberal shit that run the West to resist the immigrant hordes fleeing famine in Africa do you - of course not, they will let them all in because the media will be showing footage of starving babies !

Liberalism is the curse of the 20th century, and it will cause the collapse of the 21st century.


All those that allow the media to manipulate them and their emotions through the use of images of famine designed to provoke an emotional response rather than a rational response are slaves.






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Tuesday, 24 June 2008

The 5 Pillars of Nationhood

There are 5 pillars to a nation, in that in order to ensure social stability and a cohesive community these 5 fundamentals are required ;


1) The capacity to produce enough food to feed the people

2) The capacity to produce enough water for the people to drink

3) The capacity to build enough houses to home the people

4) The capacity to produce enough energy to ensure the needs of people and industry are satisfied

5) The capacity to ensure national borders are protected and that the people are protected from internal and external threats


These are the 5 pillars of a Nation.

If just one of these pillars is damaged then the nation is under threat.

Our nation today is under threat from a series of factors that have not appeared in our Western Civilsation since the Fall of Rome.


1) Food costs are rising and the poorest people in our society are now having to choose between heating their homes and eating properly. 20,000 old people die of cold in the UK every year and 50 % of old people entering hsopitals for treatment are found to be suffering from starvation. The British Labour government says we do not need to produce enough food to feed our people anymore, as we can import all we need via globalisation.

http://news.bbc.co.uk/1/hi/uk/6909469.stm

http://www.telegraph.co.uk/news/uknews/1575614/Food-cost-increase-adds-andpound750-to-annual-bill.html

http://www.wfolderpeople.com/winter_warm.shtml

http://www.timesonline.co.uk/tol/news/uk/health/article621829.ece



2) Water supply is now controlled by foreign corporations and not in the hands of the government

http://www.moneyweek.com/file/25748/should-you-worry-about-foreign-takeovers.html

http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article2412895.ece

http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article4186899.ece



3) Housing is now too expensive to buy for most people and also mortgages are now s restricted people cannot get loans to buy even though the house prices are going to fall by a third throwing millions into negative equity and homelessness. With asylum seekers and immigrants having taken much of the council housing, then the families made homeless in this new Second Great Depression will find themselves homeless.


http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/06/24/bcnhouse224.xml



4) Fuel costs are rising and this is before the impact of Peak Oil has even hit properly. Britain is now a net importer of oil and energy as it cannot satisfy its own internal energy needs. This need for oil has dragged us into the Iraq War and we face WW3 by Christmas.

http://findarticles.com/p/articles/mi_qn4158/is_20060712/ai_n16527732

http://www.cattlenetwork.com/Content.asp?contentid=72810

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/06/24/cngas124.xml




5) Our borders are porous and we have no idea how many illegals and criminals are in the country. This places us all at risk from terrorism, as the pool of illegal immigrants in our nation is the sea in which the terrorist swims.

http://www.dailymail.co.uk/news/article-397536/Britains-borders-wont-secure-2014.html

http://www.timesonline.co.uk/tol/news/uk/crime/article4200930.ece

http://news.bbc.co.uk/1/hi/uk_politics/5144708.stm

http://news.bbc.co.uk/1/hi/uk_politics/4992298.stm


In order to save our nation each of the 5 pillars must be re-nationalised, in that power over these sectors must remain in our hands and not the corporations or other international bodies.

This means we must start re-nationalisation of all essential industries and at the same time begin the immediate mass deportation of all illegals out of the country.

For this we will need a a new national border police force and its own snatch squads and riot control forces.

National conscription must be imposed for all 18 year olds with a choice of either joining the army for UK based national service, going into hospitals as technicians and hygiene specialists or a year on the land doing farm work such as helping with the harvest.

The time has come for drastic measures to be taken, for the tipping point has been reached.

It is either the rebirth of the British nation as an independent nation or our death as a nation and society when the American Empire falls in WW3.

Wednesday, 9 April 2008

Peak Oil and the Bank Of Britain
















The Bank of Britain and Peak Oil Transition.


Peak Oil as well all know , unless you are a member of the establishment political parties who have pulled the duvet over their heads put their fingers in their ears and are going ’La la la la la la’ in the hope that the problem will disappear, will not be solved by the present economic models.

During the transition to the Renewable Energy Economy then the existing economic system, based on credit and the petro-dollar recycling system, will not suffice.

A Bank Of Britain is required in order to create an alternative transitional economic system that will allow us to fund and create the projects we require in order to save our nation from the threat of Peak Oil and our present dependence on the globalist system.

The Bank of England can continue to exist as the main British bank in relation to the private banking system, but the Bank of Britain will be a National Bank dedicated to solving the issue of Peak Oil and allowing the nation to survive its coming threat.

For details on the issues of Peak Oil read here ;

http://leejohnbarnes.blogspot.com/2007/05/energy-economy-and-peak-oil-crash.html

http://leejohnbarnes.blogspot.com/2007/10/charles-merz-peak-oil-and.html

http://leejohnbarnes.blogspot.com/2007/05/corporate-fascism-and-oil.html

http://leejohnbarnes.blogspot.com/2007/12/peak-oil-and-world-war-3.html


I propose the following ;

1) We establish a Bank Of Britain based on the Gold Standard whose deposits and loans would be based on the gold stocks it holds. The BOB would be able to issue government backed special bonds and funds, and also be awarded special tax status so as to attract private investment, that would be used specifically to deal with the economic threats of Peak Oil that the present economic system cannot ever solve. Private business requires energy, for without energy to power the factories and employ workers then the economy dies. It is in the best interests of business that Britain create an 100 % Energy Independent renewable energy system so as to allow British industries and business to escape the threat of energy death that Peak Oil will bring.

2) The Bank Of Britain would be responsible for establishing a nationwide network of Credit Unions across the country and assisting in the formation of local currencies by loaning Credit Unions money based on the gold stocks the BOB holds. These credit unions would be owned by their members and the money made by the unions be used to assist local communities to re-localise and environmentalise their communities and create new renewable energy networks that provide locally generated food and energy to local people.

3) That the Credit Unions create localised currencies to be traded in local areas and that all profits from the Credit Unions go back into the Credit Unions and be used to fund and subsidise local environmental projects to assist local people such as Community Farms, Local Farmers Markets, local energy projects, local recycling projects, local energy production systems such as wind, solar, wave, water mills etc etc.

4) That the Bank of Britain also be used to fund the vast public works schemes we require in order to create the national environmental and renewable energy infrastructure we require in order us to escape oil dependency and to create the Energy Production Economic Model ( EDP - Energy Domestically Produced) that will be the basis of the global economic energy exchange economy of the future.

5) That the BOB funds the public works schemes such as the rejuvenated canal networks, funds the British manufacturing industries to equip and refit the re-opened British coal mines with the heavy equipment they will need to operate and to assist in making these new coal plants as clean as possible , to supply the local energy production plants with the technical equipment they will require and the heavy engineering projects required to create the Renewable Energy Economy.

6) That funds from the BOB be used to establish a network of scientific establishments around the country that are dedicated to creating clean, green new energy systems that can be used to save the planet. This technology would be patented and licensed to other nations and be given to them to use to assist them to solve their energy needs due to the Peak Oil crisis.

The Bank of Britain is the basis of the transitional economic model that we will require in order for us to escape the Peak Oil nightmare. It will allow our nation to become a world leader in renewable energy production and the heart of the global energy exchange system that will replace the present credit and oil based economic system that will be destroyed by Peak Oil.

Peak Oil need not be a nightmare if we prepare for its coming RIGHT NOW.

The Bank Of Britain will allow us to establish Britain as the centre of a whole new Industrial Revolution based on green energy production that will make Britain one of the most stable, prosperous and powerful nations in the 21st Century and beyond.

Tuesday, 18 March 2008

Film Review - There Will Be Blood




Everybody, soon or later, sits down to a banquet of consequences.

Robert Louis Stevenson












Film Review ;

In Odinism their exists the concept of the mystical moment when a higher form is born, a moment of qualitative change and punctuated equilibrium.

That concept is expressed by the rune Dagaz, and it is the rune of dialectical change.

The Film 'There Will Be Blood' is an epic, the like of which rarely comes along.

The film depicts such a moment of change, the transition from the old world to a new world.

Yet this momentous process of civilisational change begins with men like Daniel Plainview, alone in the bowels of mountains working deep within dark, hand hewn mines drenched in sweat and lit only by a single candle as he strikes against the rocks with his pick as seeking the hidden seams of gold and oil within the subterranean world.

One palm blistering second at a time.

One stiff minute after another stiff minute.

Painful hour after hour.

Back breaking day after day.

Agonising week after week.

Silent month after month.

Slow year after year alone at the pit face in the hot, musty darkness seeking to tap a ripe vein swollen with sweet crude oil, seeking that sudden surrendering of the earth to the drill in a shuddering, frenzied moment of penetration that sends oil and water erupting from the earth and gushing forth into the daylight as a fountain black as midnight.

Daniel Day-Lewis as Daniel Plainview deserved the oscar for best actor, and though the performance of Javier Bardem as Anton Chigurh as the psycho in No Country For Old Men deserved best supporting actor, the best supporting actor performance should also have gone to Paul Dano as Paul / Eli Sunday or Dillon Freasier as young H.W. Plainview.

The scene where Eli Sunday exorcises the devil from an arthritic old woman is brilliant. It is both shocking and moving.

Daniel Plainview is the sort of man who builds nations. From the first scenes in the film that for fifteen minutes are completely silent where we meet the character as he is slaving away on his own in the middle of a mine looking for gold to where he crawls with a broken leg through the wilderness to the mining camp to sell his mined gold - we get to know a man who has a destiny and a will to power that cannot be checked.

The film has scene after scene of such beauty.

One simple scene is Daniel and H.W driving a car in the desert along the railway tracks of the Old West, the emptiness of the landscape and snow capped mountains stretching into the distance behind them as dust clouds tumble and roll from the wheels, then they suddenly pull into a small town of wooden houses that appears out of nowhere.

This one scene manages to illustrate how the Old West of the 19th century gave way to the oil rush that was the basis of the 20th century. The railways track represented the technology of the 19th century, the car the future of the 20th century and the desert that though appeared empty hid beneath the grounds riches as then unimagined.

The desert deceptive in its its dowdy rags of rock and bush, hid amidst its penury a treasure disguised in the strangest form. Black tar ribbons that ran amidst the dust and sand clagged rocks oozed oil springs, the petrified blood of primeavil forests, the flora of aeons compressed into liquescent hydro-carbons and rivers beneath the rocks.

The scene where Daniel and his oil team are waiting for a well to come in are awesome. The banshee birth cry of a new well, whose amniotic fluid bursting forth from the earth ruptures the ear drums and deafens his son H.W, is also the birth cry of a New World.

The sudden pillar of fire erupting into being as the oil ignites then sears the night with its diabolical flame is suggestive of the evil that will be unleashed in this new age - a world of warships, tanks, jet fighters and mass invasions all made possible by oil.

This film captures the essence of evolution and hence concerns a moment of birth, and also of death. It is a film about the passing away of one era of human existence, the Pre-Oil Era and the transition into a new era that of the Oil Age. It was oil that made the possible the war of ideologies that defined the Twentieth Century, for all forms of human society, politics and economics were and still are almost totally dependent upon oil. Oil is the essence of all advanced human societies present upon the planet today. All forms of human social, economic and political organisations above the subsistence level are almost entirely dependent upon it. The pyramid model of the oil extraction, refining and supply process is the template for most economic, social and political models of the 20th century.

It is the need for oil that has driven musch of the geo-strategic imperatives of the 20th century. It was oil that filled the tanks of the Russian T-52 tanks, it was oil that enabled the B-52 strategic bomber to bomb Russia, it was oil that powered industry, lit homes and ran trains. From the oil was formed the fertilisers that fed the increased population, that formed the pesticides that killed the blight upon our crops and that filled the petrol tanks of our cars.

The modern world and all forms of supply and demand systems can only exist due to oil. When the oil runs out, then unless mankind has in place alternative forms of energy production systems to sustain the present level of social complexity, and facilitate the expectations of its growing populations of future wealth and prosperity through increased economic growth, all then modern civilisations will either suffer internal social collapse or embark upon the final stage of their existence which is perpetual Eco-Conflict and resource wars.

The end result will either be a slow and sustained drift back towards the Middle Ages, constant low level wars around the world or a single global apocalyptic conflict.

Oil sustained the growth of the 20th Century, but the growth of the 21th century cannot be sustained by the amount of oil there remains.

Earth, air, fire, water are the four elements that merge into oil. Oil comes from the Earth. It is born first from water. It gushes forth into the air as a jet of water, then oil and finally it bursts into furious fire.

But this energy is meaningless unless it is utilised in pursuit of higher evolution. Instead we built the Plastic Age and mindless Consumerism and International Global Cpitalism, and squanderd the energy that was given for us in order to evolve to a new higher level of human existence.

The Fifth Element in Alchemy and the Mystical Traditions is either Love or Wisdom for the Higher Human.

In this case the Fifth Element was replaced by a far more base one, that of greed, and that is why the 20th Century was such a debased and murderous era. With the energy we gained from oil, we wasted it on killing each other in the names of profit and ideology.

The opportunity given to mankind to use the oil in order to transition him from the stage of reliance on fossils fuels to an era of sustainable renewable energy was squandered.

Instead mankind sucked the oil up from the ground like a junkies syringe sucks up the smack from the spoon. Man got greedy.

It is fitting that this film appears as we are about to enter the era of Peak Oil and therefore seeks to act as a testament to the experience of those great men who gave birth to the modern world with their picks and shovels, their sweat and blood and their dreams and greeds.


Today we are witnessing the end of the Globalist economic nexus that has shackled the entire world in debt in order to sustain the parasitic elites that infest our nations and the millions of minions that debase and prostitute themselves before them for their petty share of the profits.

Like dominoes each nation is topling one after the other into debt and economic disaster. We are witnessing the wheels of history come off and civilisations sent careering over the cliff tops of perpetual economic collapse.

There has been nothing like this since the Great Depression, and what we are seeing is a world of tranquilised consumers somatised by credit waking up the realisation that the bill is finally here and it must be paid.

The Petro-Dollar Recycling system was based on the idiotic idea that todays debt could always be repaid by tomorrows future economic expansion.

But this dependended on the absuridity of an eternal source of cheap energy, this being oil.

But as we all know, unlike economists, oil is a finite substance.

Once it runs out then it is gone forever - and when it runs out then the economic system that has been built on cheap oil will collapse with it.

There was never going to be a perpetual economic expansion simply because the Earth is a closed finite system of limited resources and Man cannot breach the laws of thermodynamics.

Once the oil is gone - it is gone forever.

Mans Hubristic inability to control either his lusts or greeds has brought the Nemesis of his own making upon him.

There are too many humans, with too few resources.

Soon millions of working families will be unable to pay their mortgages and credit card bills, and when they are evicted from their homes they will find themselves living in vast tent cities on the outskirts of our towns as all the council houses have been taken up by immigrnats and asylum seekers.

It will be like the Grapes Of Wrath, with the homeless living in cities of tents.

Those who thought they could ignore reality will find the wolf awaiting them.

The delusions of succesive generations that they could ignore reality and live in the TV world of illusions and bullshit is now almost over - the stark reality is almost upon them.

Today we are witnessing the death of a world order, its collapse and implosion caused by greed and stupidity.

Yet at this moment a New Dawn is rising, the New Dawn of Nationalism.

From the rubble of this collapse will come a new force of change, one that will wipe away the lies and illusions of the past and set a grand new purpose for our people.

It will be a time of toil and sweat, a time of vengeance and score settling when the guilty will find themselves judged by those they have abused and exploited for so long.

Today we bear witness to this collapse, and prepare for the awakening that awaits us.

Thursday, 6 March 2008

Film Review - There Will Be Blood



Everybody, soon or later, sits down to a banquet of consequences.

Robert Louis Stevenson.









There are moments in human history where you an see the end of one age and the start of another.

In Odinism their exists the concept of the mystical moment when a higher form is born, a moment of qualitative change and punctuated equilibrium.

That concept is expressed by the rune Dagaz, and it is the rune of dialectical change.

The Film 'There Will Be Blood' is an elegaic epic, the like of which rarely comes along in these days of PC cinema and chick flicks.

The film depicts such a moment of change, the transition from the old world to a new world.

Yet this momentous process of civilisational change began as it always did with one man. True individualsts like Daniel Plainview, alone in the bowels of mountains working deep within dark, hand hewn mines drenched in sweat and lit only by a single candle as he struck against the rocks with their picks as they sought the hidden seams of gold and oil in that subterannean world.

One palm blistering second at a time.

One stiff minute after another stiff minute.

Painful hour after hour.

Back breaking day after day.

Agonising week after week.

Silent month after month.

Slow year after year spent alone at the pit face in the hot, musty darkness seeking to tap a ripe vein swollen with sweet crude oil, seeking that sudden surrendering of the earth to the drill in a shuddering, frenzied moment of penetration that sends oil and water erupting from the earth and gushing forth into the daylight in a fountain as black as midnight.

Daniel Day-Lewis as Daniel Plainview deserved the oscar for best actor, and though the performance of Javier Bardem as Anton Chigurh as the psycho in No Country For Old Men deserved best supporting actor, the best supporting actor performance should also have gone to Paul Dano as Paul / Eli Sunday or Dillon Freasier as young H.W. Plainview.

The scene where Eli Sunday exorcises the devil from an arthritic old woman is brilliant. It is both shocking and moving.

Daniel Plainview is the sort of man who builds nations. From the first scenes in the film that for fifteen minutes are completely silent where we meet the character as he is slaving away on his own in the middle of a mine looking for gold to where he crawls with a broken leg through the wilderness to the mining camp to sell his mined gold - we get to know a man who has a destiny and a will to power that cannot be checked.

The film has scene after scene of such simple beauty.

One scene is Daniel and his step son H.W driving a car in the desert along the railway tracks of the Old West, the emptiness of the landscape and snow capped mountains stretching into the distance behind them as dust clouds tumble and roll from the wheels, then they suddenly pull into a small town of wooden houses that appears out of nowhere.

This one scene manages to illustrate how the Old West of the 19th century gave way to the oil rush that was the basis of the 20th century. The railways track represented the technology of the 19th century, the car the future of the 20th century and the desert that though appeared empty hid beneath the grounds riches as then unimagined.

The desert deceptive in its its dowdy rags of rock and bush, hid amidst its penury a treasure disguised in the strangest form. Black tar ribbons that ran amidst the dust and sand clagged rocks oozed oil springs, the petrified blood of primeavil forests, the flora of aeons compressed into liquescent hydro-carbons and rivers beneath the rocks.

The scene where Daniel and his oil team are waiting for a well to come in are awesome. The banshee birth cry of a new well, whose amniotic fluid bursting forth from the earth ruptures the ear drums and deafens his son H.W, is also the birth cry of a New World.

The sudden pillar of fire erupting into being as the oil ignites then sears the night with its diabolical flame is suggestive of the evil that will be unleashed in this new age - a world of warships, tanks, jet fighters and mass invasions all made possible by oil.

This film captures the essence of evolution and hence concerns a moment of birth, and also of death. It is a film about the passing away of one era of human existence, the Pre-Oil Era and the transition into a new era that of the Oil Age. It was oil that made the possible the war of ideologies that defined the Twentieth Century, for all forms of human society, politics and economics were and still are almost totally dependent upon oil. Oil is the essence of all advanced human societies present upon the planet today. All forms of human social, economic and political organisations above the subsistence level are almost entirely dependent upon it. The pyramid model of the oil extraction, refining and supply process is the template for most economic, social and political models of the 20th century.

It is the need for oil that has driven musch of the geo-strategic imperatives of the 20th century. It was oil that filled the tanks of the Russian T-52 tanks, it was oil that enabled the B-52 strategic bomber to bomb Russia, it was oil that powered industry, lit homes and ran trains. From the oil was formed the fertilisers that fed the increased population, that formed the pesticides that killed the blight upon our crops and that filled the petrol tanks of our cars.

The modern world and all forms of supply and demand systems can only exist due to oil. When the oil runs out, then unless mankind has in place alternative forms of energy production systems to sustain the present level of social complexity, and facilitate the expectations of its growing populations of future wealth and prosperity through increased economic growth, all then modern civilisations will either suffer internal social collapse or embark upon the final stage of their existence which is perpetual Eco-Conflict and resource wars.

The end result will either be a slow and sustained drift back towards the Middle Ages, constant low level wars around the world or a single global apocalyptic conflict.

Oil sustained the growth of the 20th Century, but the growth of the 21th century cannot be sustained by the amount of oil there remains.

Earth, air, fire, water are the four elements that merge into oil. Oil comes from the Earth. It is born first from water. It gushes forth into the air as a jet of water, then oil and finally it bursts into furious fire.

But this energy is meaningless unless it is utilised in pursuit of higher evolution. Instead we built the Plastic Age and mindless Consumerism and International Global Cpitalism, and squanderd the energy that was given for us in order to evolve to a new higher level of human existence.

The Fifth Element in Alchemy and the Mystical Traditions is either Love or Wisdom for the Higher Human.

In this case the Fifth Element was replaced by a far more base one, that of greed, and that is why the 20th Century was such a debased and murderous era. With the energy we gained from oil, we wasted it on killing each other in the names of profit and ideology.

The opportunity given to mankind to use the oil in order to transition him from the stage of reliance on fossils fuels to an era of sustainable renewable energy was squandered.

Instead mankind sucked the oil up from the ground like a junkies syringe sucks up the smack from the spoon. Man got greedy.

It is fitting that this film appears as we are about to enter the era of Peak Oil and therefore seeks to act as a testament to the experience of those great men who gave birth to the modern world with their picks and shovels, their sweat and blood and their dreams and greeds.

Today we watch the globalist economic world order toppling like dominoes from one nation to the next, the tendrils of greed that encompass the planet ensuring that each nation falls with the next.

The global petro-dollar recycling system and the credit based false economy it created is now seen to be nothing but an illusion dreamt up by overpaid assholes in banks and boardrooms in order to ensure their bonus payments were sickeningly large.

Millions upon millions of working families now face homelessness, poverty and social exclsuion unseen since the Great Depression.

Expect to see tent cities on the outskirts of our towns and millions of homeless British people being thrown out of their houses when they cannot afford their mortgage repyaments and cast onto the streets. Only then will they awaken from their state of somatised consumerism and realise that there are no more council houses to give them as the immigrants and asylum seekers have them all.

There Will Be Blood is a film that marks the end of an age and the start of a new age.

Today we are witnessing this process in action.

It is an awesome moment, when the wheels of history come off and a civilisation careers off the tracks and crashes.

Today Babylon is burning and the idol of Mammom is seen to be false god, but in this fall comes the promise of rebirth.

Nationalism awakens and with it justice.

Saturday, 19 January 2008

Peak Oil and the Media


An interesting article in the Times concerning the issue of Peak Oil and its looming threat.

http://business.timesonline.co.uk/tol/business/industry_sectors/natural_resources/article3207311.ece

The article states ;

Doom-laden forecasts that world oil supplies are poised to fall off the edge of a cliff are wide of the mark, according to leading oil industry experts who gave warning that human factors, not geology, will drive the oil market.

A landmark study of more than 800 oilfields by Cambridge Energy Research Associates (Cera) has concluded that rates of decline are only 4.5 per cent a year, almost half the rate previously believed, leading the consultancy to conclude that oil output will continue to rise over the next decade.

Peter Jackson, the report's author, said: “We will be able to grow supply to well over 100million barrels per day by 2017.” Current world oil output is in the region of 85million barrels a day.

The optimistic view of the world's oil resource was also given support by BP's chief economist, Peter Davies, who dismissed theories of “Peak Oil” as fallacious. Instead, he gave warning that world oil production would peak as demand weakened, because of political constraints, including taxation and government efforts to reduce greenhouse gas emissions. "

Yet again this article reveals how issues as important as Peak Oil should not be left to journalists to discuss. Most journalists are just gullible muppets, they are sent by their editors to a conference, scribble a few notes and then return to write the story. Their editor then tweaks it so that it fits the newspapers political stance (in that it agrees with their sponsored political party that they propagandise) and then the story is printed.

The facts are rarely printed.

Fact 1 ) The Cambridge Energy Research Associates group is funded by the oil companies and also ancillary companies linked to the oil companies such as their accounting firms. Oil reserves for oil comapnies are like cash reserves for banks. The more oil an oil company says it has, then the higher its shares are worth. Therefore any research published by any organisation funded by the oil companies has to be further investigated and its findings confirmed before its reports can be accepted.

Fact 2 ) There are in fact 5 peaks in the Peak Oil scenario, not just one.

These are ;

A) The Peak Oil physical peak when the amount of oil consumed finally passes the half way point.

B) The Environmental Peak when the effect of decades of oil production and usage causes irreversible climate change that causes long term problems for the global eco-sphere.

C) The Economic Peak when the era of cheap oil ends and the debt based global petro-dollar recycling system collapses. Modern consumerism is based on cheap credit and cheap oil and the moment that the production costs of getting the oil, refining it and supplying it rises then that cost has to be passed on to the users of that oil. This price rise impacts at all points in the commodity production process at the same time as the consumer is themselves having to spend more money on energy costs both directly and indirectly. Consumerism is itself a product of the oil and energy exchange process and will be the first victim of Peak Oil.

D) The Political Peak is when nation states will no longer accept their servile status as dependents on imported oil and energy. The political peak is about ensuring national energy security, it is linked to the corporate takeover of nation states via middle eastern banks and Russian oligarchs who are buying up strategic sectors of our national infrastructure (docks, ports, banks, industries, water companies etc), and it concerns the awareness of the issue of future eco-conflicts and the oil wars such as Iraq and Afghanistan.

E) Peak Food which is the point when oil prices impact on food production costs and when the amount of food production dependent on oil can no longer supply all those that demand food.

http://www.moneyweek.com/file/35491/are-we-heading-for-peak-food.html

Each of these five peaks are all related to the Peak Oil issue.

Though the point when more than half the amount of oil used may be imminent, the other peaks are all imminent as well.

Climate change is increasing, energy bills are rising in the UK, the issue of energy security has become pressing due to the conflicts with Russia just as we are becoming dependent upon imported energy and Russian gas and oil supplies to fill the increasing energy gap and the number of people who are angry at the 'War For Oil' in Iraq is rising.

Oil demand is rising. An article in the Financial Times in June 2007 stated that ;

"The IEA now expects demand for oil to rise by 1.7m barrels a day this year compared to last year – an increase of about 2 per cent – and non-Opec oil supply to rise by just 900,000 b/d. That rise in demand is 167,000 b/d more than the IEA had previously estimated, while the rise in non-Opec supply is 97,000 b/d less.

The report estimated that world oil stocks could drop by 1m-1.5m barrels a day in the third quarter, which it said “would push forward stock cover down towards the low levels seen when prices accelerated higher in 2004. That is, by itself, a concern.”

The world population is rising and their expectations are rising. They all wants cars, air conditioning and DVD players and plasma televisions. They also demand more food. More people means more demands for food, fuel, energy, plastics and food – all highly dependent on oil. In the ten years from 2002 to 2012, the world population is expected to rise from 6.23 billion to 6.96 billion, an extra 12% to be fed, supplied and energised. Along with population, the other factor is the increasing use of oil in developing countries – countries which, up to now, had been contributing little to consumption.

The oil price has just reached an all time peak of $100 dollars a barrel.

The media are political in that they will only publicise problems the political parties they support think they can solve.

At the moment the media are seeking to undermine and trivialise the issue of Peak Oil as they know that the political parties they each support and propagandise ( The Times the Tories, The Guardian the Labour Party, the Independent the Lib Dems etc ) will not, and cannot , offer any long term solution to the problem.

The solution is simply Environmental Nationalism, the creation of a nation state predicated on the basis of sustainable national self sufficiency in energy, food, industry and economics.

The only party that offers that solution is the BNP.

Monday, 22 October 2007

Charles Merz, Peak Oil and Civilisational Collapse.

The basis of all life, and human civilisations, is energy. Whether that energy source be calories or oil the same energy exchange process is the basis of the existence of all living organisms and all human civilisations, nations and societies.

Political Power, simply defined is the total amount of energy available to the political class in its management and development of the nation and society.

As the amount of energy available to a nation diminishes then social entropy and anarchy increases. As the street lights flicker and fade, then the power of the State is weakened and diminished. The LAW can only function when it can be policed and imposed. When the energy in a society diminishes then the power of the state to impose order is also diminished. As the darkness grows, so too does chaos grow.

Economic activity is also itself merely an aspect of energy production. Capital is merely symbolic of imbedded energy. The entire economic process is merely an aspect of the energy production process. Without energy the the industries that produce the mining equipment cannot produce the industrial equipment to open mines, the mines cannot produce raw materials and transport it to the industries that process the raw materials, the industries that handle raw materials cannot refine those raw materials into useful materials and transport them to the factories, the factories cannot turn those useful materials into consumer goods and products to sell, the shops cannot open and employ staff to sell those goods, the consumers cannot get to the shops to buy the goods and the people do not have jobs to give them an income to buy those goods on sale in the shops.

The true power of a nation is simply its own ability to produce and satisfy its own internal energy requirements. The GDP of a nation is not related to how many bits of paper it prints or how many lumps of useless shiny metal it possesses or what its people produce, spend and consume per year - it is simply how much energy the nation is capable of producing for itself in order to maintain and develop its own internal social complexity. A` nation that produces enough of its own energy to support its own internal development and that can export that energy is a nation which has growing GDP.

GDP should be replaced by EDP = Energy Domestically Produced.

Just 100 years ago the candle was the only light we had at night. The Oil Age has enlightened the earth and banished the dark. But the victory of light over darkness is about to see a dangerous reversal.

In 1916 in Great Britain their were over 500 power companies producing electricity for consumers each with their own different power supply voltage specifications and 23 different plug designs.

In 1916 Merz pointed out to Parliament that the UK could use its small size to its advantage, by creating a dense distribution grid to feed its industries electricity efficiently. His findings led to the Williamson Report of 1918, which in turn created the Electricity Supply Bill of 1919. The bill was the first step towards an integrated system.

These principles in the William Report from the 1904 paper "Power Station Design" became the template for power planning worldwide. They were embodied in the same year when the world's biggest power station opened near Newcastle upon Tyne. Using newly invented steam turbines, it generated power for the world's first electric commuter railway between the city and its seaside suburbs, also engineered by Merz and McLellan. At the same time Local shipbuilding, mining and heavy engineering industries began using electrically driven tools too.

Under Merz's direction, power stations across north-east England were connected using higher voltages over longer distances. By the start of the First World War it was the largest integrated power system in Europe supplying the cheapest and most reliable power in Britain.


Charles Merz sat on the Weir Committee, which produced the more significant Electricity (Supply) Act of 1926, leading to the setting up of the National Grid.
The Electricity Supply Act 1926 which recommended that a 'National Gridiron' was enacted in order to create an integrated national energy supply network for Britain. The act also established the Central Electricity Board that began operating in 1933. By 1938 the National Grid was operating as a national system.

Once the National Grid was established in 1938 with a standardised power supply network in operation and a standardised plug design created to use on electrical appliances connected to the electrical system, the birth of the mass production era had occurred. Mass production of consumer goods was made possible as a process only through the standardisation of the electrical power supply network and the standardisation of the plugs that allowed those electrical goods to be plugged into the main supply.

The National Grid was nationalised in 1947 by the Electricity Act 1947. The seven year plan for the creation of the National Grid with its 30,000 electricity mast network was a pivotal moment in human history.

It was not Henry Ford who is the architect of mass production, it was Charles Merz. It was the vision of Merz who created the integrated electricity generation and supply networks that allowed the creation of the basis of the consumer society.


An irregular and unreliable energy supply network, and a non-standardised specification for consumer products, meant that the process of manufacturing consumer goods could not be undertaken easily. An electric radio bought in one area with one plug design would not work in another area on another voltage with a different plug design. It was Charles Merz who saw that both had to be integrated nationally in order for demand for consumer goods to be created. The National Grid ensured that the consumer society could be created. Electrification created the advanced society we live in today.

Pioneers like Nikolai Tesla, Thomas Edison and Charles Merz were the visionaries who created the modern world. It was their technological advances, and visionary national engineering plans, that allowed the Oil Age to become the epoch of human culture.

The anthropologist Leslie White depicts human history as a progression of 'Power Shifts' whereby a country or civilisation undergoes a technological and social transformation based on its unlocking of a new energy source to power social complexity. White stated that " Culture evolves as the amount of energy harnessed per capita per year is increased, or the efficiency of the instrumental means of putting energy to work is increased ". Culture, when measured in relation to its ability to unlock energy, evolves every time it unlocks a new source of power. All Human Cultures are dependent upon energy.

All national cultures are manifestations of the prevalent Energy Culture which power that nations internal social complexity.

Political power increases when energy supply is increased. A nation is diminished socially, politically, internationally and culturally when it suffers a cut in national energy production. As the light begins to fade away, then the power of the nation begins to fade.

Peak Oil threatens to make our nation dependent upon the Islamic theocracies of the Middle East for our oil supplies, the Russian Empire for our gas supplies and any other foreign source of energy we can beg for.

Unless the Green Revolution is enacted then we will have surrendered our national independence just in order to keep our lights on.

Charles Hesterman Merz (5 October 1874 - 14 or 15 October 1940), is one of the greatest forgotten Britons.

It was his vision and drive that brought Britain out of the 19th century and dependence on coal, and into the 21st century and electrification.

He was the architect of a human Power Shift like no other in human history.

Today we stand at the brink of the crisis of Peak Oil and unless we begin the process of creating the Green Revolution and create the 100 % Renewable Energy Economy based on total national energy independence from renewable energy sources then we face a civilisational collapse like no other seen before in human history.

Today we need a new Charles Merz to step forward, a man with a new vision and the financial means to put it in place, before the nightmare of Peak Oil begins and Britain enters a new perpetual Dark Ages.




http://www.makingthemodernworld.org.uk/stories/the_second_industrial_revolution/05.ST.01/?scene=7

Thursday, 31 May 2007

The Energy Economy and the Peak Oil Crash

The main factor in economics is not capital.

This may come as a shock to Marxists and Capitalists who both follow the same essential economic critique.

Both Marx and Smith, and their economic theories, were products of their time and neither contain any reference to the one essential factor in human society and economics. Marx wrote Das Kapital in 1867 after witnessing the tumult of early 19th Century Europe. It was in this period following the endless round of civil, national and religious wars in Europe that the traditional power structures in society, those of Royalty, Church and the Aristocracy had become morally and financially exhausted. The new rising class in society was that of the capitalist and the financer who was funding the industrial expansions of that time. Therefore Marx placed his primary focus on the primacy of capital, and the capitalist class, as the predominant factor in economics. Marx wrote that he viewed " the economic formation of society as a process of natural history " and that it was the study of economics that could be used to understand the evolution of society. Marx saw society, economics, workers, capitalists and capital as all parts of the same nexus and capital, and capitalists, as the dynamic that drove society onwards.

Adam Smith wrote The Wealth of Nations in 1776 and the book covers his ideas on the role of self interest in economics, the division of labour the function of markets and the implications of an international laissez faire economic system based on free enterprise. The idea that an ' invisible hand ' of self interest guides the most efficient use of resources in a nations economy is his most well known theory. Adam Smiths ideas are the basis of most modern economic systems, even the Chinese Communist Party have now embraced the principle that self interest is an important factor in national economics.

Yet both Marx and Smith missed the most fundamental factor in all human societies, in all economic and social actions - that of energy.

Commodities and goods are the product of a vast expenditure of energy. In order to access raw materials then mines must be built, workers trained and fed and the raw material extracted. These raw materials then must be refined and processed into a form that can be used in the production of goods. The refined materials must then be transported to factories where workers, who have to be fed, can then use various industrial techniques requiring vast amounts of energy to produce the finished goods. Capital in this process only relates to the ability of capitalists to purchase or transfer energy and raw materials from one location and one form to another using labour they employ. As long as the raw materials, labour and energy is available to produce the goods then the worth of capital represents the ability of capitalists to use that energy and labour to produce goods.

Economics is primarily an alchemical process, it transmutates capital into energy then uses that energy to produce goods that are then sold for more capital than that used to initiate the process in the beginning.

The value of a finished 'commodity' is represented by the amount of energy, labour costs and raw materials required to produce it. Profit is simply the price over and above manufacturing costs that people are prepared to pay for those goods, relating to the amount of expenditure of their energy in the form of labour that is then paid to them in the form of wages. The central dynamic in all these synchronous systems is energy. It is energy in the form of calories that is required to keep the workers alive that create the goods. It is energy that is required to mine, refine and create the goods. Its is energy in the form of labour rewarded with wages that allows consumers to buy those goods. The value of Capital is therefore represented by the amount of energy it may purchase.


If at any time the energy costs at any stage of the process equate to more than the price the goods could be sold for, or what the public would be willing to pay, then the Energy In / Profit Out Ratio that is the central dynamic of Consumerism would dictate that those goods would not be made. In other words the entire economic system is based on an energy transfer process and as soon as the energy costs involved in the creation of commodities outstrips profit then those commodities are not produced. The era where Humanity saw value in gold or silver etc is almost over. The global and national currency of the future will be energy. Without energy there can be no increase in social complexity.

Dependence on energy for other nations is the antithesis of an independent nation. No nation can be called independent when it depends on other nations to keep its lights on or to fill the diesel tanks of its tanks and jets that defend the nation itself. A free nation is only ever a nation with an energy surplus. Man will trade energy in the future as he trades in gold and silver today. The primitive economic systems of the past must give way to the creation of a new energy based economic system. The value of a currency is not based on its gold reserves or its GDP it is simply its energy status. The GDP of an advanced nation is not related to its wealth as defined by its cash or credit or gold reserves, the sole indicator of a developed nation is the Energy Production Index.

The EPI is related to the amount of energy a nation produces by itself and for its own needs. Any nation that creates for itself a surplus of energy is then a nation with a positive MEPI figure if it has a mixed energy economy whilst a nation which produces all its own energy needs via a renewable energy system would be classified with an REPI figure. For instance a nation that is not dependent on any imports of energy and that creates and uses all the energy it produces for its own industrial and social needs from a variety of sources would be represented as being at ( 0 ) MEPI with a mixed energy base.

A nation that imports energy to sustain its own internal industrial and social needs would be represented as a nation with a ( - ) MEPI.

If the nation imported in a third of its total energy then that figure would ( - 33 ) EPI.

A nation that produces the equivalent of a third more energy than it requires solely from internal renewable energy systems would be represented on the chart as ( + 33 ) REPI.

A nation with a large REPI would be a nation that has the maximum positive rating for national security and energy security issues and as such would become a major source of inward international investment due to the social and economic stability that such a nation offers.

The exploitation of the right of banks to issue credit and cash means money has no real value anymore. The petro-dollar recycling system is the only thing preventing the total collapse of the global economy. When the oil runs out them the petro-dollar recycling system will collapse. The importance of the petro-dollar recycling system is demonstrated by the invasion of Iraq which was commenced after Saddam Hussein moved his sale of oil out of dollars and into Euro's. (1) (3) The announcement that Iran is intending to do the same and create its own is as much a motivation for the Americans to remove the regime from power as their intent to build nuclear weapons. (2)

At the moment the availability of cheap oil is the basis of the global economy. But a rise in the price of oil would devastate the global economy.

Take for instance China. China at the moment produces the majority of goods the world wants. This is because cheap oil and cheap labour means those goods can be produced cheaply in China. As a result national manufacturing and industry have been decimated in the UK. But this manufacturing boom in China is based on cheap oil making the production of such goods profitable. If oil suddenly rose to $150 a barrel then Chinas manufacturing boom would end and nations would once again have to build from scratch their own industrial and manufacturing bases to satisfy national needs and demands. If those nations were totally dependent on imported oil or gas to supply their social needs then their would be total chaos. Within just a single 24 hour period after the fall of Saddam Hussein in Iraq the result of the collapse of the electricity system created social chaos that is still affecting the nation now.

Regardless of the amount of gold in the national reserve or the amount of printed banknotes in circulation then this would make no difference. Gold is not energy. There is not much use for gold other than it looking nice. When the value of gold, its link to energy, is severed then gold is worth nothing. You cant eat it and you cant keep the lights on with it.

In fact the only value of gold relates to the amount of man power required and effort in the form of energy and money spent to find it and extract it. Gold is not a rare element in nature, in fact it is present in sea water and only the amount of energy (in the form of capital invested in machinery and manpower and the amount of actual energy required to run the machines and pay wages) required to extract it prevents it from being a metal with almost no scarcity value.

http://www.goldfever.com/gold_sea.htm

Those nations with the last of the oil will keep it for themselves in order to keep their own people under control. They will use their oil to build their own national manufacturing bases and supply national demands. Autarchic systems will replace globalism and those oil dependent nations will be hostages of whatever those oil producing nations want. If they demand two hundred dollars a barrel for oil we will have to pay it. If we don't we will be forced to go back into the middle ages and chop down trees to cook our food and warm our houses.

The nations of the world that had then put in place the renewable energy infrastructure to achieve a positive EPI figure then would become the manufacturing powerhouses of the planet.

The BNP should begin to consider creating a national renewable energy network and become a net REPI energy exporting nation with an atomic energy back up system (which I have previously written about called the Alpha Net). This means we would be both a REPI nation with the addition of an MEPI back up energy system encompassing nuclear power, coal mining, deep sea mining and geo-thermal energy production systems. This would place us at the forefront of the developed nations of the world.

Within a ten year period we should aim to build a brand new technological and industrial base capable of creating an integrated energy and transport system based on renewable energies. The new renewable technologies we would then create during this period would then be licensed and sold to the rest of the world. This would be our equivalent of the space race.

Marxist and Capitalist economists do not see the world as closed system with a finite amount of oil and energy and resources available to be used for social complexity. They both think that the free market is not bound by the laws of physics. Both believe that just because demand exists then the market will always be able to guarantee supply. This is fantasy at its most dangerous.

Peak Oil is about to demolish this false consciousness.


(1) http://www.ratical.org/ratville/CAH/RRiraqWar.html

(2) http://www.energybulletin.net/7707.html

(3) http://www.lewrockwell.com/paul/paul303.html

Tuesday, 29 May 2007

Corporate Fascism and Oil

After the 2nd World War the corporations that had set up and run the massive war industries, and who made vast profits from the war via those industries and the armaments they had produced, switched to producing consumer goods using the same mass production methods. Following the mass production techniques of Henry Ford it was easy to switch the machines, and the human workforce slaves of the machines, from producing tanks to cars. At the same time discoveries of vast reserves of easily accessible oil across the planet coincided with the discovery of new forms of plastics that could be used to produce cheap new commodities.

The Plastic Age that has dominated the late Twentieth Century was a product of this cheap oil. Our present Consumer Society is built entirely upon that cheap oil supply and as a result of this easily accessible oil is predicated the Throwaway Principle of Consumerism, that the plastic products created by the industries catering to social demand could be made so cheaply with plastic that they could be used once and then thrown away.

Alexander Parkes in 1862 Great Exhibition in London demonstrated the first plastics. The early 20th Century laid the scientific foundations of the Plastic Age that began in the late 1940's in America. The principles of mass production as demonstrated by Henry Ford in relation to automobiles could now be combined with a cheap new resource, plastic, that could always sustain perpetual consumer demand. As the post-war society switched from austerity and rationing under a wartime Command Economy model to a Corporate Fascist quasi-free market model, the Consumer Society was then created. As new forms of plastic were discovered, then new commodities could be made from those plastics that would then drive consumer demand for ever more new goods. As the oil was able to be extracted easily and cheaply, and the energy unlocked from cheap oil able to manufacture goods cheaply, the new Consumer Society began to boom. At the same time the present Corporate Fascist economic and political structures of our Consumer Society began to take form. The oil companies and the corporations they owned and controlled sat atop a pyramid of power in every nation of the world. Without the oil to power society, that came from the corporations who located, extracted, refined and sold the oil, then modern society could not exist.


It is not often appreciated by people that the primary measure of the complexity of a human society is based on its ability to unlock energy sources in the environment. The change from the roaming hunter gatherer hominid bands of the Neolithic to early agricultural societies was itself an example of an energy transition. The energy transition was in the form of calories.

Agriculture produced more calories in relationship to the Energy In / Energy Out ratio of the hunting gathering lifestyle than that contained in meat. Major human societal changes at this time from a nomadic lifestyle to a settled community lifestyle occurred as a result of this energy use transition. Also religious changes and social changes happened with the transition from an Earth mother worship and matriarchal social system of the early nomadic societies to a paternalistic warrior caste elite in a socially stratified society based on settled communities where a hierarchical social command structure was required in order to defend the agricultural land and the established community itself.

Then came the technological transition from wood to coal and the unlocking of this energy once again changed the form of society. The transition from wood to coal use was first recorded in The Abbey of Peterborough in 852 and in 1239 a charter was granted to the Freemen of Newcastle to dig coal from the castle fields. In 1379 the first tax was imposed upon coal and in 1421 the first environmental tax was imposed upon all those who bought coal without a franchise in Newcastle. This was an example of the nexus between business, the Crown and taxes forming that was to lead to the taxation issues at the heart of the later English Civil War.

The invention of the steam driven water pump unlocked the deep coal seams and allowed coal to be replaced with the coke that was to be the basis of the iron foundries that powered the Industrial revolution. This change from coal to coke was followed by the rise in the capitalist and merchant class in society who funded and founded the great Iron works and big businesses that ushered in the Industrial Revolution and the birth of the British Empire.


The next great change in human societies was the discovery of and use of oil. The change to oil engines for ships in the Royal Navy that was authorised by Winston Churchill during his time at the Admiralty, and the transition from coal, was the first act in the modern era in that it unlocked the power of the Royal Navy to go global and police effectively dominions of the Empire. It was this transition to oil powered ships, and later aircraft that allowed Globalism to be born.

Under the old British Empire run with coal fired ships it was mainly expensive and highly taxed goods that were shipped into the country such as silk, rum and tobacco as the cost of shipping and the time it took to bring the goods back to Britain meant only expensive goods were worth shipping into the country. In this Mercantilist model Britain still needed its home grown industries to produce goods for the home market that could not be made and exported cheaply abroad and then shipped into the UK. In the Globalism model the cheap oil allows us to fly in Kenyan peas in the holds of 747's that still bring the grower, importer and seller a profit. At the same time all those manufactured goods that could only be made in Britain in the past can now also be made and shipped into the country from countries like China more cheaply than if they were made here. All of this was made possible by cheap oil. When the cheap oil goes then we will have to start manufacturing the goods again we need back in the UK and importing in luxuries that cannot be made here as we did in the past. Its back to the future again.


Contrary to the assertions of historians like Kershaw the central dynamic both for Hitlers invasion of Russia and Japans attack on British lands in the far east was the necessity of capturing oil. Hitler required the oil of the Caucas's for his future industrial and economic development plans for a European Union and the armies of the Third Reich would have driven through Russia and then into Iraq to seize the oil in the Middle East. Japan required British oil reserves in the Far East to power their industrial and military development. Oil and its capture and use is the defining dynamic in human and political affairs in the 20 th Century. Whether we wean ourselves it off oil slowly, or suffer a catastrophic collapse when it runs out, will be the defining dynamic of the early 21th Century. As part of that dynamic we will also face the threat of energy security issues relating to the last of the oil being held by unstable Islamic fundamentalist regimes in the Middle East, increasingly desperate attempts by nations like China and America to seize the last of the oil from nations such as Iran or to secure remaining resources and oil in Africa and also security issues around Russia domination of the gas that we see as a essential in the future for us to keep the lights on in our homes and the businesses going.
As there is an exact correlation between the rise in human numbers around the late 18th Century and the discovery and use of oil. Oil has allowed human numbers to rise to massively as it has allowed us to create agricultural and industrial systems able to feed those vast numbers of people. Without cheap oil then we would be unable to produce cheap food to feed the numbers of humans on the planet and this is why Peak Food is as much of an issue as Peak Oil. The next major change in human society was the discovery and use of nuclear energy. This resulted in the creation of the Military-Industrial Blocs in society and the creation of strong national security structures in societies with nuclear energy to prevent other nations using nuclear energy research for weapons production.


In this model of modern society we have the Corporate Fascist system, and the Corporate Oil Power Pyramid, that control the political, industrial, corporate and media systems and also the National Security Structures within the State to control the Nuclear Power structures. Some say that Human Society reached the energy peak in the middle sixties, and hence its peak of social complexity. At this point the amount of energy available to every individual on the planet from all combined energy sources reached its peak. If this is true then this evidence that human societies have reached their peak as regards social complexity.


Unless humanity is capable of unlocking new energy sources from the environment, either via Cold Fusion or through a transition to a total renewable energy economy and national based renewable energy power system, then humanity will suffer a catastrophic environmental, social, economic, agricultural and demographic crash within the next fifty years that may return human population levels to the level of the Middle Ages. Seeing as most scientists now agree the environmental and agricultural carrying capacity of the British nation is a population of about thirty million, then when the cheap energy goes for good then modern societies will collapse and so will human population numbers.

The only welcome casualty of the coming energy collapse will the Throwaway Model of the Consumer Society itself and the Globalist model. The challenge will be to phase the change into an Ecological Nationalism social model based on renewable energy systems (with a back up system of nuclear power) without the country descending into a new Feudalist society where the rich dominate the ownership of land and resources, or the descent into a new form of Communism powered by the middle class as they see their wealth stripped away in an endless economic recession. Society can either begin to evolve now, or be thrown into chaos later. The logic of mass immigration as regards economics is predicated on perpetual economic expansion being capable of keeping people in work. This is a facile analysis as the earth is closed system with a finite amount of energy and resources available. Once those resources in the environment are gone then they cannot be replaced. Therefore the idea that perpetual economic and social development is possible is being in breach of the laws of physics. Both Capitalism and Marxism suffer from the same insane delusion that both economic, human, industrial and social development are not limited by our se of the environment or limited by finite resources of energy and resources. What we steal from the environment today, we take from the hands of future generations. The cheap commodities of today are stolen from tomorrows world.

The most pernicious example of this theft from future generation was the creation of the Throwaway Model of the Consumer society. Consumer goods in this model were designed to be discarded. Made with cheap plastics made from cheap oils they were designed not to be kept but to be thrown away. The factories could then be constantly busy producing the transient throwaway consumer goods that needed to be constantly replaced as they were created to be used once then thrown away.

The factories went from mass producing bullets and bombs to mass producing plastic Christmas trees and shampoo bottles.

The use of propaganda techniques refined during the war to indoctrinate the masses with political ideas or to generate hate was then utilised in order to create consumer demands within society. The Psychological Warfare Units that had directed propaganda to change and manipulate social opinion during the war, were moved from their government barracks to the boardrooms of the corporations. They were the first of the advertising agencies that today create and sustain consumer demands in society. Without advertising agencies to generate social demand then commodities would not be bought by consumers. The consumer must be persuaded that they need to buy and own the particular commodity. The advertising agency creates propaganda that is then pumped out by the media owned by the corporations to the masses in order to create social demand for new commodities that profit the corporations. The corporations that control the media (either by direct ownership or via the media dependence on the money the corporations pay to advertise their products in the media) then use the media to tell people what to think and who to vote for. The political parties that are funded and supported by the media then get voted into power and then pass laws that give more power to the corporations and media. The media then have more power to promote the products produced by the corporations that control the Consumer Society. It is a sordid and reactionary system. Political change is impossible unless it is sanctified and permitted by the corporations that control and own the media. If the needs of the nation conflict with either the interests of the politicians or the corporations that control the media then change is made impossible. If the politicians put the nation first then the media do not support them, the corporations do not fund them and they get voted out of office. It is the media and the corporations that control the country, not the lickspittle dogs of the political parties that are dependent on their money and media promotion.

Humanity is entering a period of fundamental change. We either live with Nature or we will be destroyed by Nature. The pernicious belief that Man has dominion over the earth, and its capitalist and marxist manifestations, have to be replaced by a new Environmental Contract that is a fundamental part of the Social Contract. Man must live within the limits of nature and not within the confines of his own ideological delusions.

The Consumer Society has severed the link between indigenous national cultures that cared for and revered their national environments and replaced those national cultures with a consumerist model that sees the environment as merely something to be exploited for profit. The globalist model of open borders and its linked ideal the free movement of capital and labour has to be stopped. Fair Trade is merely Free Trade painted with a pseudo-moral gloss. Fair Trade is merely globalisation opening up new markets, environmental resource bases and previously closed nations to new development and exploitation. there is nothing moral about Fair Trade or Globalism, it is merely a product of the same advertising agencies that once sold us wars and hate.

The only solution is resistance. We must each, as nations and cultures, resist the encroachment of the corporations and consumer culture. The free man on his own land becomes merely a slave in a factory owned by foreign corporations when the logic of Globalism infects his nation. Environmentalism through the UN is just another mechanism for the removal and nullification of national defence systems.

Resistance must be local and national, not global and through the UN and other supra-national institutions. The struggle for the survival of our global environment, our nations and indigenous cultures is the defining struggle of the 21 st century.

The resistance must begin now.