A Collision Course

I have never been called a tree hugger, my years in the outdoors fishing and hunting would be compared to a conservationist. With that said, it is impossible to look at statistics and not conclude life as we know it is going to change drastically in a short period of time.

Americans have proven to be second to none in a disaster, but we bury our heads in the sand until problems become monolithic. There is a perfect storm brewing that will converge in our lifetime ending life as we know it without immediate drastic attention given to energy, clean water and debt.

global_populationLooking at the chart of the world’s population, it did not go vertical until the harnessing of petroleum and the development of the combustion engine. The international economy has been built upon an unrenewable resource. In 1970 the United States reached “peak oil,” maximum production of 10 million barrels a day. Now domestic production is down to 5 million and declining. The U.S. averted disaster by importing oil and pumping billions of dollars into economies with populations that only desire this nation’s demise. The world is predicted to reach peak oil in the next ten to twenty years.

us-peak-oil-productionThe peak oil prediction is quickly dismissed as fodder for conspiracy theorists. I sold drilling limited partnerships in the 80’s that predicted perfectly the timing of $100 a barrel for oil while the media fed us that was an impossibility. Why would they do this now? The answer is simple, the second after maximum production is achieved life begins to alter. Conservation measures will be ineffective. The big secret is no renewable source of energy exists to replace fossil fuels. Many claim trillions of barrels remain, but at what expense to get it in your tank?

The astronomic population growth is only because of petroleum, petroleum based fertilizers and pesticides. Peak oil means the immediate reduction in the food supply. A starving animal will do anything for food and all great civilizations have fallen.  Are we that arrogant to cast this off as science fiction?

water crisisIt is difficult to imagine a water crisis living on a planet with nearly 70% of its surface covered in water. Of all the water in the world only 2.5% is freshwater and only 1% is easily accessible the rest is frozen. We (6.8 billion people) have access to 0.007% of the planet’s water. National Geographic statistics.

In the last one hundred years water use has grown twice the rate of the population increase. The gross inefficient use of water is demonstrated in food production. The average hamburger requires 630 gallons of water to produce. This waste will have 1.8 billion people living in areas dealing with water shortages by 2025.

This does not take into consideration water quality. Salt water fish have been found to contain caffeine in addition to toxic levels of mercury. I don’t believe Starbucks has expanded to the depths of the ocean, yet. Our sewage treatment plants are not equipped to remove caffeine makes one wonder what else is in our drinking water?

The average monthly household income in America is $3,769.00; now imagine spending an additional $3,769.00 a month on credit cards. Our government is doing the same, but in trillions. Currently the United States is on a sugar high created by unprecedented stimulus spending. We survived the subprime crisis and bailed out Lehman Brothers, AIG, GM, etc. Now Americans are walking around with a false sense of security thinking our economy is “too big to fail” and too busy to notice the slow motion train wreck taking place in Europe.

The ponzi planet of debtThe world economic collapse will initiate across the pond with the disintegration of the European Union beginning with the secession of Greece and Spain. Studying total debt to GDP ratios of several of the union countries it is difficult to believe the Euro has lasted this long. The United States postponed the exposure of its’ Ponzi scheme by issuing more debt and printing more currency, but we will not be able to withstand a global collapse. The price has to be paid for the need of continual growth and expansion on a finite planet.

Whoa boy, that is tremendously depressing, but the numbers predict a tragic tale. Thanks for reading. Have a great day! dj

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