Energy

The availability of inexpensive fossil fuels currently determines the quality of life for the whole planet. There are those who recognize that the standard of their lives will require depriving many from access to these fuel pools. That deprivation will come in the form of pricing and tariffs. One of the convoluted aspects of this situation is the concurrent stifling of any alternatives. Regular readers have come to find the many sources of energy that have been bought and shelved by the powers that be. One can't help but wondering whether or not depopulation plays a part on the Darkside's agenda.

From my 2004 Essay, Better to Light a Candle than to Curse the Darkness:

The probability that oil production on our planet has already peaked carries with it a death sentence for millions, maybe even billions of people within a single generation from now.

When we explore the economic effects of ever rising oil costs on transportation, electricity, economic growth and contraction, political power, civilization and – perhaps most importantly – food production. The picture is horrific, the ramifications being the end of the industrial age.

The "Dark Side" already controls the remaining hydrocarbon deposits of the earth.

In 1859, upon the introduction of petrol extraction technology, the world started running out of oil. There is only so much of it, and we have now reached a point where more than half of it has been used up.

What most people do not realize is that around 60% of all hydrocarbon resources have been applied to food production. Through the use of petrochemical fertilizers, pesticides, herbicides, diesel fuel for tractors and harvesters, gasoline for farm-to-market transport, gas generated electricity for refrigeration, plastics for packaging and storage, the lion's share of this resource has been used for food production.

Here's the rub. Through the application of the world's petro-resources in this manner, "the Dark Side" has enriched itself by artificially creating a market to sell to.

Oil based agriculture is primarily responsible for the world's population exploding from 1 billion at the middle of the 19th century to 6.3 billion at the turn of the 21st. As oil production went up, so did food production. As food production went up, so did the population.  As the population went up, the demand for food went up, which increased the demand for oil. The price of food will now skyrocket because of the cost of fertilizer will soar. The cost of storing (electricity) and transporting (gasoline) the food that is produced will also soar.

In order for the planet to continue to support humanity, it's numbers will have to be reduced dramatically. Because of the misinformation campaign that was launched in the first quarter of the game, "the Force" is way out of position. As I stated earlier, most don't even know there's a game going on, much less that they're playing.

I foresee many lives being snuffed out within the next two decades as a result of the inability to afford food, (starvation), or through the involvement in the dozens of disputes that will arise over allocation of the world's remaining hydrocarbon resources, (war). Remember, "the Dark Side" is on both sides of all wars. Population contraction is absolutely essential to the planet's ability to support human life.

The Fed

The Federal Reserve is (almost) out of bullets. When they finally hit the wall, next week or next month, interest rates will be forced up by a collapsing bond market, inflation will start to be realized with abandon, and deflation will finally raise its ugly head as all the bubbles pop at once. Inflation and deflation at the same time? Actually the inflation has already occurred and has been masked by the unwillingness of the banksters to lend out the trillions of counterfeit dollars the they were gifted by the Fed. It's a train wreck that happened three years ago that just wasn't covered by the Government controlled media.

From Michael Snyder:

You can thank the reckless money printing that the Federal Reserve has been doing for the incredible bull market that we have seen in recent months.  When the Federal Reserve does more "quantitative easing", it is the financial markets that benefit the most.  The Dow and the S&P 500 have both hit levels not seen since 2007 this month, and many analysts are projecting that 2013 will be a banner year for stocks.  But is a rising stock market really a sign that the overall economy is rapidly improving as many are suggesting?  Of course not.

Just because the Federal Reserve has inflated another false stock market bubble with a bunch of funny money does not mean that the U.S. economy is in great shape.  In fact, the truth is that things just keep getting worse for average Americans.  The percentage of working age Americans with a job has fallen from 60.6% to 58.6% while Barack Obama has been president, 40 percent of all American workers are making $20,000 a year or less, median household income has declined for four years in a row, and poverty in the United States is absolutely exploding.  So quantitative easing has definitely not made things better for the middle class.

But all of the money printing that the Fed has been doing has worked out wonderfully for Wall Street.  Profits are soaring at Goldman Sachs and luxury estates in the Hamptons are selling briskly.  Unfortunately, this is how things work in America these days.  Our "leaders" seem far more concerned with the welfare of Wall Street than they do about the welfare of the American people.  When things get rocky, their first priority always seems to be to do whatever it takes to pump up the financial markets.

Financial Survival

How can the Fed keep buying treasury paper, which allows the Government to keep on borrowing? While I realize that keeping the bond market inflated is the primary aim of the Central Bankers, (the Fed), to what lengths will they go to do so? What new legislation will they dream up for their puppet politicians to pass? If it never occurred to you that the Federal Reserve, (a private corporation), owns the U.S. Government, please read the following statement made by Fed Governor Ben Bernanke.

"By increasing the number of U.S. dollars in circulation, or even by credibly threatening to do so, the U.S. government can also reduce the value of a dollar in terms of goods and services, which is equivalent to raising the prices in dollars of those goods and services. We conclude that, under a paper-money system, a determined government can always generate higher spending and hence positive inflation."

What in blazes is positive inflation? And why would anyone, representing the people, want the price of goods and services to rise? Who, but a banker could benefit from inflation? Inflation equals rising prices. Rising prices equal more loans. More loans equal more interest. The natural evolution of man would have provided for a continuing improvement in the standard of life for all persons, if it wasn't for the heinous contrivance called inflation. Technology has provided new and improved ways to produce and deliver almost everything. Without inflation almost everything would be cheaper, or at least remain the same price. Let me restate that last part. If it wasn't for the Federal Reserve, everything would become cheaper, instead of more expensive. Most people believe that inflation is a natural economic occurrence. This is simply untrue.

From Robert M. Williams:

Back in 1980 the US experienced high inflation, close to 20% and with interest rates in excess of 18%, before the Fed finally got things under control. Companies had to raise prices and sales suffered as a result. In today’s world we are experiencing inflation, but it’s a lot harder to see. The government has changed the weighting of its inflationary indexes so the true effects aren’t reported. We also have more subtle ways of hiding inflation. Companies have learned not to raise prices since everyone can see that. Instead they’ve learned to quietly cut back on content while maintaining prices at previous levels.

I do my own shopping and I’ve noticed that the cereal boxes carry less content, in terms of weight, although the box size often remain the same. Then there are companies like Starbucks! In Latin America they carried a certain brand of mineral water that costs them +/- US $1.10/bottle, and then they sold to the public for US $2.50/bottle. I should add that it is a quality product. Four months ago they switched to a much cheaper brand, costing US $0.60/bottle, and yet they sell it at the same price. Then we have beer, a popular drink in Latin America selling for around US $2.70/bottle. Over the last two years the bottle size has been reduced from 640 ml to 600 ml, and now there’s a plan to reduce it to 580 ml. I suppose I don’t have to tell you that the price has remained constant.

I could go on but I think you get the idea. Companies find it difficult to raise prices, especially with Asian countries producing at excess capacity. So they quietly go about reducing content. The next time you go to the supermarket take a good look at the content you get for the price you pay. Pay attention to it over time and you’ll be surprised to see it shrink. They’ll be no notices or fan fair, just less content for the same price. That’s inflation, and it will never show up in the statistics.

We currently live in a world where the US, Japan, China and Europe are all printing currency at excessive rates and that is inflationary. On the other hand the Asians are flooded with excess capacity and are willing to export at cheaper and cheaper prices, even if it means a loss, in order to keep people employed. The standard of living has gone up considerably in Asia over the last decade and their leaders are afraid that rising unemployment will lead to civil unrest. Better to export at a cheaper price than lay people off! This of course is deflationary and that’s where we find ourselves today, trapped between two huge conflicting forces.

You must first realize that there are, present in our lives, enemies. You must then know who those enemies are and act accordingly.

Eliminate as much debt as possible, especially “variable rate” debt, such as credit cards and lines of credit. Interest rates will be rising, so the elimination of debt offers a “real return” of escaping rising rates by creditors.

Get some control over some fresh water.

If you are depending on Social Security, stop.

Follow the course opposite to custom and you will almost always do well...

Its not what you don't know that will screw you up, it's what you know that is wrong. The spin you hear from the mainstream media is intended to mislead you. Open your eyes and face the future. If you leave your head in the sand and ignore it, you are only leaving your butt exposed for the world to kick. This all may sound like gloom and doom, but when you get a handle on what is going to happen, you will have a future filled with opportunity. Fortune favors the Informed.

More next week...

May the Great Spirit be with you always,

Johnny Silver Bear
Chief cook and bottle washer, The Silver Bear Cafe

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