The peak oil story has not been nullified by the scramble to unload every asset for cash — including whomping gobs of oil contracts — during this desperate season of bank liquidation. The main implication of the peak oil story is that we won’t be able to generate the kind of economic growth that defined our way of life for decades because the primary energy resources needed for it will be contracting.
Just as global oil production peaked, our economy evolved into a morbid hypertrophy, and the chief manifestation of it was the suburban sprawl-building fiesta that has now climaxed in the real estate bust. By the early 21st century, when so much American manufacturing had been swapped out to Asia, there was no business left except sprawl-building — a manifold tragedy which wrecked the banks that financed it, and left the ordinary people mortgaged to it with ruinous liabilities.
That economy is now in its death throes. The “normality” it represents to so many Americans is gone and can’t be brought back, no matter how wistfully we watch it recede. Even so, it was obviously not good for the country. The terrain of North America has been left scarred by unlovable objects and baleful futureless vistas that, from now on, will shed whatever pecuniary value they once had. It represents the physical counterpart to the financial mess that has been left to the young generations to clean up — and the job will take a very long time.
We have to, so to speak, get to place mentally where we can face the kinds of change that are now necessary and unavoidable. We’re not there yet. It’s not clear whether the elected new national leadership knows just how severe the required changes will really be. Surely the public would be shocked to grasp what’s in store. Probably the worst thing we can do now would be to mount a campaign to stay where we are, lost in raptures of happy motoring and blue-light-special shopping.
The economy we’re evolving into will be un-global, necessarily local and regional, and austere. It won’t support even our current population. This being the case, the political fallout is also liable to be severe. For one thing, we’ll have to put aside our sentimental fantasies about immigration. This is almost impossible to imagine, since that narrative is especially potent among the Democratic Party members who are coming in to run things. A tough immigration policy is exactly the kind of difficult change we have to face. This is no longer the 19th century. The narrative has to change.
The new narrative has to be about a managed contraction — and by “managed” I mean a way that does not produce civil violence, starvation, and public health disasters. One of the telltale signs to look for will be whether the Obama administration bandies around the word “growth.” If you hear them use it, it will indicate that they don’t understand the kind of change we face.
It is hugely ironic that the US automobile industry is collapsing at this very moment, and the ongoing debate about whether to “rescue” it or not is an obvious kabuki theater exercise because this industry is hopeless. It is headed into bankruptcy with one hundred percent certainty. The only thing in question is whether the news of its death will spoil the Christmas of those who draw a paycheck from it, or those whose hopes for an easy retirement are vested in it. But American political-economy being very Santa Claus oriented for recent generations, the gesture will be made. A single leaky little lifeboat will be lowered and the chiefs of the Big Three will be invited to go for a brief little row, and then they will sink, glug, glug, glug, while the rusty old Titanic of the car industry slides diagonally into the deep behind them, against a sickening greenish-orange sunset backdrop of the morbid economy.
A key concept of the economy to come is that size matters — everything organized at the giant scale will suffer dysfunction and failure. Giant companies, giant governments, giant institutions will all get into trouble. This, unfortunately, doesn’t bode so well for the Obama team and it is salient reason why they must not mount a campaign to keep things the way they are and support enterprises that have to be let go, including many of the government’s own operations. The best thing Mr. Obama can do is act as a wise counselor companion-in-chief to a people who now have to leave a lot behind in order to move forward into a plausible future. He seems well-suited to this task in sensibility and intelligence. The task will surely include a degree of pretense that he is holding some familiar things together and propping up some touchstones of the comfortable life. But the truth is we are all going to the same unfamiliar new territory.
The economy we’re moving into will have to be one of real work, producing real things of value, at a scale consistent with energy resource reality. I’m convinced that farming will come much closer to the center of economic life, as the death of petro-agribusiness makes food production a matter of life and death in America — as opposed to the disaster of metabolic entertainment it is now. Reorganizing the landscape itself for this finer-scaled new type of farming is a task fraught with political peril (land ownership questions being historically one of the main reasons that societies fall into revolution). The public is completely unprepared for this kind of change. We still think that “the path to success” is based on getting a college degree certifying people for a lifetime of sitting in an office cubicle. This is so far from the approaching reality that it will be eventually viewed as a sick joke — like those old 1912 lithographs of mega-cities with Zeppelins plying the air between Everest-size skyscrapers.
The crucial element in the transformation underway will be emotion. The American experience for a few generations has produced an adult population with very childish instincts, increasingly worse each decade. For instance, the desperate power fantasies among the younger tattooed lumpenproles — those with next-to-zero real economic power — suggest a certain unappetizing playing-out of resource competition when the supply of Cheez Doodles and Pepsi starts to dwindle. But even the heretofore gainfully employed middle classes are pretty lost in fantasies at least of comfort an convenience. For years now, I have wondered how their sense of grievance and resentment will be expressed when the supermarket shelves run bare and the cardboard signs get taped over the local gas pump and the cable TV gets cut off for non-payment. You wonder, to put it bluntly, how far gone we really are.
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My new novel of the post-oil future, World Made By Hand, is available at all booksellers.
- Duncan Campbell in Los Angeles
- guardian.co.uk, Monday 6 January 2003 10.19 GMT
- Article history
Jesus was almost certainly a cannabis user and an early proponent of the medicinal properties
of the drug, according to a study of scriptural texts published this month. The study suggests
that Jesus and his disciples used the drug to carry out miraculous healings.The anointing oil
used by Jesus and his disciples contained an ingredient called kaneh-bosem which has since
been identified as cannabis extract, according to an article by Chris Bennett in the drugs magazine,
High Times, entitled Was Jesus a Stoner? The incense used by Jesus in ceremonies also contained
a cannabis extract, suggests Mr Bennett, who quotes scholars to back his claims.
“There can be little doubt about a role for cannabis in Judaic religion,” Carl Ruck, professor
of classical mythology at Boston University said. Referring to the existence of cannabis in anointing
oils used in ceremonies, he added: “Obviously the easy availability and long-established tradition of
cannabis in early Judaism _ would inevitably have included it in the [Christian] mixtures.”
Mr Bennett suggests those anointed with the oils used by Jesus were “literally drenched
in this potent mixture _ Although most modern people choose to smoke or eat pot, when
its active ingredients are transferred into an oil-based carrier, it can also be absorbed through
the skin”. Quoting the New Testament, Mr Bennett argues that Jesus anointed his disciples
with the oil and encouraged them to do the same with other followers. This could have been
responsible for healing eye and skin diseases referred to in the Gospels.
“If cannabis was one of the main ingredients of the ancient anointing oil _ and receiving
this oil is what made Jesus the Christ and his followers Christians, then persecuting those
who use cannabis could be considered anti-Christ,” Mr Bennett concludes.
Tags: annointing oil, cannabis, christianity, disease, healing, jesus, judaism
Posted in Eclectic Bits, Health Stuff You Need to Know, HEMP and Cannabis and Ganja, Nature Wisdom you need to know, Seekers of Light, Truth As Destiny
Stephen learned how to grow medical marijuana from his father as he grew up, beginning in the early seventies.
As a musician and media developer, a search for the truth about this plant led him to work with Jack herer to produce The Emperor Wears No Clothes for several editions and produce three editions of a CD-Rom version of the book, and usher Jack into the digital age by creating the first jack herer.com website. Stephen was also leading the media development at the Hempstead Company during it’s boom years and wrote and edited several technical papers on the subject. Produced an audio CD featuring Jack Herer rapping and music from many hemp activists. Produced and hosts electricemperor.com, the first online version of The Emperor Wears No Clothes. Successfully defended medical necessity in marijuana possession case in Michigan in 1998 by taking a case to jury trial in pro per, using Religious Freedom Act as basis. Appear in Public Service announcement urging the public to grow medicine featuring Jack Herer, and science fiction author George Clayton Johnson. Grows medical marijuana for personal use from seed using traditional hand cull and cure methods for two decades outdoors each season, old school.
See detailed list below. There’s still more, can’t remember them all…
After reading Jack Herer’s book, he began to apply his media development skills to the cause of Cannabis and Hemp Advocacy. His list of development and involvement in hemp culture related ventures include:
Founder of 0=2 Productions, Executive Producer and designer for Three editions of “The Electric Emperor” (CD-Rom version of Jack Herer’s famous Emperor Wears No Clothes.)
Executive and Music Producer, The Empilation CD, (a music cd featuring actual activists who are also musicians) performer and author of Woody Speaks for the Trees, and Jack Rap
Band performances in some of the first Cannabis “buyer’s clubs” in California.
The Hempstead Company (during the company’s boom years, contributed to attracting Woody Harrelson’s investment in the company) Head of Media and IT development, marketing consultant and product and packaging development, and initial phases of online presence development.
Developer of application forms and Identification cards for DrapJah ministries, a coptic church that advocated religious use.
Gathered signatures and worked directly with Jack Herer and the Proposition 215 campaign during its passing in California.
Created identification cards, and 215 Statement Signs and other print media to support Proposition 215.
Editor of The Brawley Report put out by HempTec Industries documenting the first cultivation of hemp for industrial in the USA since the early fifties.
IT support and media development support for creating new editions of Jack Herer’s book with him.
Created and hosted and managed, media consulted and tutored to develop jackherer.com initially, got it started basically online for Jack Herer, before it was taken over by Jeannie his wife, who is now a media development wiz.
Worked as organizer and support for Todd McCormick protests in Los Angeles.
Created and hosted, Electricemperor.com, the first online version of Jack’s book.
Wrote paper linking chronic marijuana smoking with malnutrition, presenting powerful proof of symbiosis between species.
Appear in Public Service announcement urging the public to grow medicine featuring Jack Herer, and science fiction author
George Clayton Johnson.
Grows medical marijuana for personal use from seed using traditional hand cull and cure methods for two decades outdoors each season, old school.
startup web hosting and development for hempstar.com.
Tech developer for Bud Greene’s Bud Babes Network.
Currently developing agriculture growing formulas and ramping up botanicals production in California and Michigan, and running a IT media hosting and development company in California.
Media and development support for numerous collectives.
AMERICAN TEENS LIE, STEAL AND CHEAT BIG TIME
Agence France Presse – American teenagers lie, steal and cheat more at “alarming rates,” a study of nearly 30,000 high school students concluded. The attitudes and conduct of some 29,760 high school students across the United States “doesn’t bode well for the future when these youngsters become the next generation’s politicians and parents, cops and corporate executives, and journalists and generals,” the non-profit Josephson Institute said. . .
Boys were found to lie and steal more than girls. Overall, 30 percent of students admitted to stealing from a store within the past year, a two percent rise from 2006. More than one third of boys (35 percent) said they had stolen goods, compared to 26 percent of girls.
An overwhelming majority, 83 percent, of public school and private religious school students admitted to lying to their parents about something significant, compared to 78 percent for those attending independent non-religious schools.
“Cheating in school continues to be rampant and it’s getting worse,” the study found. Amongst those surveyed, 64 percent said they had cheated on a test, compared to 60 percent in 2006. And 38 percent said they had done so two or more times.
Despite no significant gender differences on exam cheating, students from non-religious independent schools had the lowest cheating rate, 47 percent, compared to 63 percent of students attending religious schools.
Some 93 percent of students indicated satisfaction with their own character and ethics, with 77 percent saying that “when it comes to doing what is right, I am better than most people I know.”
Spencer S. Hsu and Ann Scott Tyson, Washington Post – The U.S. military expects to have 20,000 uniformed troops inside the United States by 2011 trained to help state and local officials respond to a nuclear terrorist attack or other domestic catastrophe, according to Pentagon officials. . .
There are critics of the change, in the military and among civil liberties groups and libertarians who express concern that the new homeland emphasis threatens to strain the military and possibly undermine the Posse Comitatus Act, a 130-year-old federal law restricting the military’s role in domestic law enforcement. . .
The Pentagon’s plan calls for three rapid-reaction forces to be ready for emergency response by September 2011. The first 4,700-person unit, built around an active-duty combat brigade based at Fort Stewart, Ga., was available as of Oct. 1, said Gen. Victor E. Renuart Jr., commander of the U.S. Northern Command
Domestic emergency deployment may be “just the first example of a series of expansions in presidential and military authority,” or even an increase in domestic surveillance, said Anna Christensen of the ACLU’s National Security Project. And Cato Vice President Gene Healy warned of “a creeping militarization” of homeland security.
“There’s a notion that whenever there’s an important problem, that the thing to do is to call in the boys in green,” Healy said, “and that’s at odds with our long-standing tradition of being wary of the use of standing armies to keep the peace.”
The Review first started reporting on the militarization of American life in a 1996 story that began, “The nomination of General Barry McCaffrey as drug czar symbolizes the nation’s dramatic retreat from the principle of separation of military and civilian power. It further demonstrates the degree to which the Posse Comitatus Act of 1878 — which outlaws military involvement in civilian law enforcement — is being ignored and undermined by both the drug warriors and the Clinton administration. Disturbing as the McCaffrey appointment may be, however, it is only an unusually visible sign of something that has been going on quietly for a long time — the military’s steady intrusion upon, and interference with, civilian America.”
Bob Blain, Progressive Review, 1994 – From 1790 to 1993, taxpayers were charged $3.2 trillion in interest on federal debt. . . . The original debt at 5.53 percent interest compounded for 204 years equals $4.4 trillion. The present federal debt is arguably the original debt enlarged by 204 years of compounding interest.
According to the Federal Reserve Bulletin, the total money supply (currency, travelers checks, demand deposits, and savings accounts) in the U.S. economy in March 1993 was $4 trillion. The total debt of the federal government, state and local governments, corporations, farmers, home buyers, and consumers was in excess of $15 trillion. If the total money supply is $4 trillion, where is the other $11 trillion of borrowed money?
Here is another curious fact. We have been told for years that government borrowing to cover hundreds of billions of dollars of deficits would drive interest rates through the roof. Instead, interest rates have fallen dramatically. In March, 1993 they were between 4.9 and 2.2 percent, far below what they were in the early 1980s when federal debt was a small fraction of what it is now.
The explanation for these anomalies is that the missing money never existed. We never borrowed it, in the normal sense that it was turned over to us and spent. Most debt is not the result of people borrowing money; it is the result of people not being able to repay what they owed at some earlier time. Instead of declaring them bankrupt, creditors just add more to their debt.
The federal government has been adding interest to its debt for 204 years. James Jackson, Congressman from Georgia, predicted that this would happen in a speech he made to the First Congress on February 9, 1790. Jackson warned that passing Alexander Hamilton’s plan to base the country’s money supply on the existing federal debt of $75 million would “settle upon our posterity a burden which they can neither bear nor relieve themselves from.” He predicted: “In the course of a single century it would be multiplied to an extent we dare not think of,” He clearly saw that Hamilton’s plan would put in place an exponential process of debt growth. To support his warning he cited the experience of Florence, Genoa, Venice, Spain, France, and England.
Hamilton’s plan was for Congress to commit the country to pay interest on the debt until the debt was paid. In the meantime the debt certificates would circulate as money. He argued that this would turn a $75 million debt into a $75 million money supply. The problem was that interest payments would have come out of the money supply. This would reduce the quantity of money that remained in circulation — and cause recession — until new loans returned the interest money back into circulation. The history of federal government finance shows such periodic swings between debt reduction and recession to debt increase and recovery.
The power to deal with this problem that Congress has neglected all these years is the power “to coin money and regulate the value thereof.” It has overused its power “to borrow money on the credit of the United States.” According to the Federal Reserve, 98 percent of the U.S. money supply is borrowed. Only 2 percent is coined.
The First Congress set the wrong precedent. It should have created $75 million in money and paid off the debt. With a population of 4 million people and an economy starved for a medium of exchange, that would have increased the money supply by $18.75 per person.
Why did the First Congress borrow instead of coin money? Newspapers at the time accused members of Congress of acting to serve their own interests. They sent agents into the countryside to buy up debt certificates that the general public thought were worthless. They then passed the Funding Act knowing that it would give themselves and their heirs a source of income that would grow exponentially with the debt. For every debtor there is a creditor. What is a $4 trillion debt for debtors is $4 trillion in claims for creditors.
To get out of this trap Congress has a range of options:
First, it could stop paying interest on the debt. Interest is the fuel that is exploding the debt. Cut off the fuel; stop the explosion. Since 1790 over $3 trillion in interest has been added to the original $75 million. Cutting interest would immediately cut the annual deficit by about $300 billion. Experience shows that all other conventional actions, no matter how painful, do no more than slow slightly the rate of debt growth. Then Congress could begin the process of paying off the debt.
A political problem with stopping the payment of interest is that people with money control politics. And many of them would have their interest income stopped. Insurance companies and pension funds are invested in federal debt and foreign holders would also be upset. Economically, however, we cannot continue to add compounding interest to existing debt. The biggest debtor is not the federal government. It is business corporations. It is impossible for them to increase the physical production of goods and services in order to keep up with exponential debt growth that is limited by nothing but arithmetic. Unlike the debt, the physical economy has limits.
The question holders of federal debt must ask themselves is this: Do we want to insist on more interest that will add debt to existing debt until the only option is debt repudiation and we lose everything? Or are we willing to stop where we are while we may still be able to recover our original investment plus a reasonable profit?
A second option is for Congress to create the money necessary to fund public works. As a sovereign government, Congress’ power is unique. It can create money debt-free and interest-free. Congress needs to stop thinking of itself as the same as other organizations that must take money in before they can spend it. Money does not grow on trees. It must be created. The only choice is whether to have it created as loans at interest from private banks or to have it created by Congress debt-free and interest-free.
How can Congress create money without causing inflation? Congress must regulate its value. The power to create money includes this regulatory power.
A good way for Congress to regulate the value of money is by funding projects at the current national price level. The current national price level can be calculated by dividing the most recent gross domestic product by the number of hours of work that produced it. For example, in 1991 the total gross domestic product was $5.6 trillion. The employed labor force produced it with 237 billion hours of work. So the GDP was produced at the rate of $23.95 per hour of work. By now the price level per hour is probably $25.00. So let Congress fund projects at $25 per hour. How this amount is allocated among labor, land, and capital can be negotiated.
How much money should Congress create? How about enough to reach full employment? We have about 9.5 million people actively looking for work. That includes a million managers and professionals; two and a quarter million technical, sales, and clerical people; a million and a quarter precision production, craft and repair people; over two million operators, fabricators and laborers; and 305,000 framers, foresters and fishermen. That’s a skilled labor force as big as many nations — all now idle. Employed at an average $25 per hour, ($50,000 per year), they would add $475 billion to the nation’s gross domestic product and reduce spending for unemployment compensation. The pie would grow as unemployment went down. Congress could start by creating, say, $50 billion, or $200 per person, in debt-free interest-free money, then fund $50 billion worth of works projects, monitor the results, and make adjustments as needed. Meanwhile the Fed could raise bank reserve rates, not interest rates, to make checking accounts more secure.
A third more conservative option is being proposed by an organization called Sovereignty, which believes that a country that borrows money loses its sovereignty to its creditors. Their proposal is intended to restore U.S. sovereignty by reducing our dependence on borrowed money.
The Guernsey experience. . .
Guernsey is an island state located among the British Channel Islands about 75 miles south of Great Britain. In 1816 its sea walls were crumbling, its roads were muddy and only 4 1/2 feet wide. Guernsey’s debt was 19,000 pounds. The island’s annual income was 3,000 pounds of which 2,400 had to be used to pay interest on its debt. Not surprisingly, people were leaving Guernsey and there was little employment.
Then the government created and loaned new, interest-free state notes worth 6,000 pounds. Some 4,000 pounds were used to start the repairs of the sea walls. In 1820, another 4,500 pounds was issued, again interest-free. In 1821, another 10,000; 1824, 5,000; 1826, 20,000. By 1837, 50,000 pounds had been issued interest free for the primary use of projects like sea walls, roads, the marketplace, churches, and colleges. This sum more than doubled the island’s money supply during this thirteen year period, but there was no inflation. In the year 1914, as the British restricted the expansion of their money supply due to World War I, the people of Guernsey commenced to issue another 142,000 pounds over the next four years and never looked back. By 1958, over 542,000 pounds had been issued, all without inflation.
In 1990 there was $13 million in interest-free state issued notes. A visitor to the island that year later wrote:
“I returned from Guernsey last weekend. It is a fascinating little island. There are about 60,000 permanent residents on the island. The average family owns 3.3 cars, their unemployment rate is zero and their standard of living is very high. There is no public debt. There is a surplus of public funds which earn interest. The Guernsey Treasury increased the Ml of the island by 40 percent in the last three-year period, and this increase did not do anything to inflation. The price for a gallon of gasoline in England translates to about $5US whereas, the price in Guernsey is about $2US. Contrary to the teachings of current economics in all higher institutions, inflation is not related to the volume of money but rather to the size of the commercial debt.”
Sovereignty proposes that Congress create money and lend it interest-free on a per capita formula to tax-supported bodies for capital projects and to convert existing debt to non-interest-bearing debt. Since first proposed in January 1989, the Sovereignty loan plan has been endorsed by over 1,814 city, town, and county governments and school boards, as well as by the U.S. conference of Mayors, the Michigan state legislature and the Community Bankers Association of Illinois, which represents 515 banks.
As loans, the money would be repaid, so money injected into communities would fund projects, then be removed. Of the three methods for putting money into circulation available to Congress, giving, paying, and lending, lending is the most cautious.
Benjamin Franklin attributed the economic success of the colonies to their creation of all the money they needed. He said that the root cause of the Revolution was the act of Parliament that prohibited the colonies from continuing to issue their own money. The moneylenders of England thought it more profitable that the colonies borrow their money.
We hear from Washington that we need to sacrifice to bring the deficits under control — cut consumption, save, and invest. When that slows the economy, we will be told to spend more to stimulate the economy. We have heard it all before. Neither method works. We need debt-free interest-free money to fund the work that needs to be done. It’s not sacrifice we need; it’s productive employment. Let Congress use its unique power to coin money and regulate its value to fund that employment.
Money is no more than an accounting device, a system of notes certifying that the bearer has done a share of the work and deserves a share of the wealth. Money’s backing is the goods and services produced by the labor force. By creating money Congress can activate the idle productive power of our people. And what they produce will add real wealth to the U.S. Treasury and add nothing to the federal debt.
Sam Smith’s Great American Political Repair Manual (WW Norton), 1997 – A report of Guernsey’s States Office in June 1946 notes that island leaders frequently commented that these public works could not have been carried out without the issues, that they had been accomplished without interest costs, and that as a result “the influx of visitors was increased, commerce was stimulated, and the prosperity of the Island vastly improved.” By 1943, nearly a half million pounds worth of notes belonged to the public and was so valued that much of it was being hoarded in people’s homes, awaiting the island’s liberation from the Germans. About the same time that Guernsey started to fix its sea walls the town of Glasgow, Scotland, borrowed 60,000 pounds to build a fruit market. The Guernsey sea walls were repaid in ten years, the fruit market loan took 139. In the first part of the the 20th century, Glasgow paid over a quarter million pounds in interest alone on this ancient project.
How did Guernsey avoid the fiscal disaster that conventional economics prescribed for it? First and foremost by understanding that when you build roads or sea walls or colleges or houses, you are not reducing your society’s wealth. In fact, if you do it right, you are creating something that will add to its wealth. The money that was created was simply backed by public works rather than gold or “full faith and credit.” It was, in fact, based on something more solid than the dollar bills in our wallets today. In contrast, tacking on an interest charge to public works — as we do in the US — creates no new wealth, but merely transfers claims on existing wealth from debtors to creditors.
Tags: bailout, banks, banksters, currency, debt, federal, government, lending, loans, money, state
Posted in Truth As Destiny
