Two things happened over this weekend before Christmas that jarred me a little. One was when an old friend said I sounded crazy, and the second was when I read the galley proof of Dmitry Orlov's forthcoming book, Reinventing Collapse (New Society Press, Spring 2008).
I ran into my old friend "G" on our town's main street, Broadway, on Saturday afternoon and we ducked out of the drizzle into a nearby coffee shop to catch up. G had worked the past twenty-five years in the software industry and recently bought the company that employed him. He was consumed now with plans for "growing" this company. I made a point not to antagonize him with my Long Emergency notions, since his obvious mental investment in the wish for a reliable "growth" economy was a bulwark of his current world view. But the conversation did get around to the various troubles in the capital markets and the possible connection of this with the global oil predicament.
G doesn't believe we have a problem with oil. He said, if the fuel efficiency of every American vehicle on the road was increased five percent, we wouldn't have to import any oil. This assertion was, shall we say, not consistent with anything I understood about the situation, and I said so, pretty much in those words, to avoid ramping rhetorically into debate mode. G said, "Do the math." I suppose G had read this "formula" somewhere and was impressed by it. "The Market," he said, would "take care" of our motor fuel problems. Just wait and see. We talked for a while about getting the railroads working again. G said it would never happen. "This isn't Europe."
I was content to let is drop, but G then said. "You know, you've
been predicting all these catastrophes for years now, but we're still
here, the cars are all rolling down Broadway out there, and life is
going on. You're beginning to sound like a crazy person." It didn't
bother me especially that G thought my my ideas were outlandish so much
as being comprehensively written off by an old friend as a crazy
person, someone who... I dunno... rummages through dumpsters and talks
to himself on the street without any sign of a cell phone in hand. I
didn't hasten to defend myself. G obviously needed to feel that the
world would continue functioning like a well-oiled machine now that he
was responsible for an operation that employed a hundred other people.
We parted agreeing to acknowledge a difference in our view of things.
Dmitry Orlov's publisher sent me the galley proof to get a blurb
for the dust-jacket, and I'll furnish one in short order because
Reinventing Collapse is an exceptionally clear, authoritative, witty,
and original view of our prospects. The thesis is that the United
States is headed for troubles as broad and deep as the ones that
brought down the Soviet system in Russia, though we will get there via
a somewhat different route. Orlov has been in the privileged position
of living under both systems at critical times, and the parallels are
striking, but the differences even more so.
The Soviet experience was a collapse of consensual reality as much
as of economy. Nobody could continue to support the credibility of a
one-party, centrally-planned, "command" economy best represented by the
joke: "We pretend to work and they pretend to pay us." An economy in
which nobody had any real stake other than ideological finally ground
ignominiously to a halt. Once the state surrendered its authority, the
society was stripped of assets. The social safety net dissolved. A lot
of people on the margins slipped through the cracks and died.
Eventually, the Russian economy (and government) reorganized on a
different basis — largely because its remaining oil resources and
annual production exceed its domestic consumption. So, this reorganized
new oil-exporting state, with its shocking poles of extreme wealth and
poverty, will go on for a while until the oil is gone, and then it will
face more transformations.
The comparison with the American situation is chilling. For all its
gross faults, the Soviet Russia was ironically better prepared for
economic collapse and political turmoil than we will be. For one thing,
all housing there was owned by the state, and allocated under bare
nominal rents, so when the economy collapsed, people just stayed in
their apartments. Nobody got evicted. There was scant private car
ownership in pre-1990 Russia, so gasoline allocation problems did not
paralyze movement. Train service was excellent and cheap, and the
cities all had a rich matrix of underground metros, on-street electric
trams, and trolley-buses, which continued to run even when central
authority flickered out. There was no suburban sprawl to strand and
isolate people (in homes owned by banks, that can be taken away after
the third monthly failure to make a mortgage payment). Official Soviet
agriculture was such a fiasco for half a century that the Soviet people
were long-conditioned to provide for themselves. For decades, 90
percent of the food was coming from tiny household gardens, wherever it
was possible to grow stuff. When America's just-in-time supermarket
resupply system wobbles, and the Cheez Doodles disappear from the
WalMart shelves, few Americans will have a Plan B.
Perhaps most striking is that the Soviet collapse provoked almost
no bloodshed (at least in Russia itself). The political failure was so
comprehensive that the party leadership didn't even have the will to
defend its prerogatives anymore, and for a while politics simply
slipped into a vacuum — until Mr. Putin came along and revived the oil
industry and managed to get the police back on a payroll that inspired
them to do their jobs. Meanwhile, the tremendous drain of the Soviet
armed forces and all their equipment — apart from the nuclear arsenal
(as far as we know) — was allowed to wither away, along with its
monumental demands on the nation's resources.
Whatever other differences there may be between Soviet Russia and
Clusterfuck Nation, a big one here is that our domestic oil consumption
long ago exceeded our production capacity, and when we run into just a
little supply trouble with our oil imports (apart from mere rising
prices) it will shake the foundations of our economic life. We are
stuck with a physical infrastructure for daily living that has no
future in an oil-scarce world. Our cities, for the most part, have
imploded internally. Our public transportation is grossly unbalanced on
the side of private cars and airplanes utterly dependent on imported
oil. At the moment, our capital finance sector is cratering in the
aftermath of an unprecedented surrender of responsibility in the
management of securitized debt — an event that may end up as a curious
parallel to the looting of assets that occurred in the Soviet twilight.
The biggest difference, though, between Soviet Russia and America
today is the psychology of the people. Soviet citizens were prepared
for trouble by lifetimes of comparative hardship. I won't even go into
the Stalin terror and the agony of World War Two. In more recent Soviet
times, money meant little in a system without real shopping — but
maintaining personal networks based on mutual trust or
strength-of-character was the greatest asset in acquiring life's
necessities. Americans didn't need political dictators to whip us into
line — we volunteered to become a nation of TV zombies. Our fantasies
are arguably more disabling than the mere cognitive dissonance that
reigned in Soviet times. Liberty itself has allowed the American public
to freely choose passivity, illusion, and incompetence. Anyway, when it
comes out in 2008, Dmitry Orlov's book will deserve the attention of
whatever thoughtful people remain in the land of the free and the home
of the brave.
It was disheartening, of course, to be written off as sounding
"like a crazy person," by an old friend. I don't doubt that his
perception is genuine. I'm prepared to live with the disconnect between
what my friends believe and what I think. I even reserve a portion of
my mind for the possibility that their view may be more realistic than
mine — but I won't torture myself about it. Someday, surely, I'll meet
this old friend again and perhaps he'll say something like "...things
didn't work out quite the way I expected...."
In the meantime, Christmas Eve is upon us, truly my favorite night
of the year (Hebrew though I am), and I am very fortunate to be going
to a warm house full of people tonight where the wassail will flow.
I'll be back next week with a review of 2007 and my predictions (ha!)
for 2008. In the meantime, God bless us every one.
Some of us are thinking. Very good. How many are prepared
1
December 26, 2007
Jimmy Montague: Prepared for what?
Prepared for what, exactly? Because nobody knows exactly what's going to happen, it's mighty hard to prepare for what's coming down the pike. I have tools and seeds -- not because there's a crisis looming but because I always keep tools and seeds around. I have a couple of weapons -- because I always keep a couple of weapons. I have books -- because I'm a bibliomane. I have some groceries laid in -- because I live in the country and I always keep some groceries in case I can't get to town for a couple of weeks.
What else in the world can I do? What can I buy? What do I need if I'm going to prepare for nobody-knows-what? Nothing, I think -- or more of what I've already got.
Somebody sent me a URL the other day. The place sells survival supplies. I chased the URL and looked at what they've got. How many of you have any idea what dehydrated food (such as military combat rations) actually costs? Hint: If a famine is in the offing, only the rich will survive. I couldn't afford enough MRE (meals ready-to-eat) to keep me and mine for a single month. Other poor people will have the same problem. A home-sized water-purification plant alone (with all the necessary attachments and spares) costs thousands of dollars.
I've talked to some of my neighbors -- good, hard-headed Iowa farm types -- and they seem to feel the same. In sum: Who can prepare for what the fuck? Fact is, nobody can. People who think their neighbors are holding out on them and set out to take by force what they didn't lay in beforehand are going to cause a lot of trouble before they're killed -- and when they die they'll be just as hungry as the rest of us.
2
December 26, 2007
Hon Mgombe: Administrator
If my record of prognostication were as bad as that of James Howard Kuntsler, my business would collapse and my family would go hungry. How is it possible for such a failed prognosticator to continue to sell his groundless predictions year after year? Perhaps he has become a form of entertainment in decadent circles?
3
January 08, 2008
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