The horizon is not so far as we can see, but as far as we can imagine

Month: June 2024 Page 2 of 4

Why Do I Talk About Real Food Shortages In The Future?

Well, this is one reason:

Martin Frick told the BBC that some of the most deprived areas had now reached a tipping point of having “zero” harvests left, as extreme weather was pushing already degraded land beyond use.

He said that as a result, parts of Africa, the Middle East and Latin America were now dependent on humanitarian aid.

Mr Frick warned that without efforts to reverse land degradation globally, richer countries would also begin to suffer crop failures.

The Global Environment Facility estimates that 95% of the world’s land could become degraded by 2050. The UN says that 40% is already degraded.

This seems… bad. Of course, we could do something about it. In theory:

But he argued such an eventuality could be avoided by moving toward localised farming that seeks to reinvigorate the land.

The food agency chief said there was currently an “unhealthy dependence” on crops such as wheat, maize and rice, and the few nations that are large-scale exporters of them – creating food shortages that particularly affect the developing world when those nations’ harvests are interrupted.

He noted how the Russian invasion of Ukraine had caused grain shortages in places such as East Africa.

Mr Frick said that to tackle hunger and land degradation at the same time, the world’s poorest should be incentivised to rejuvenate degraded land through regenerative practices –

Not till catastrophe, at least in most places.

This is on top of loss of nutrients from soil, more extreme weather events which effect crops, water shortages, groundwater being poisoned, and some of the richest agricultural areas having their climates change so they are no longer as productive.

This sort of thing is why the food per capita line on the chart below (from Limits to Growth) is so… dismal.

Notice how fast that food per capita line drops, and notice also that it drops below the food per capita in 1900, not a year where people were known for over-eating.

I want to emphasize, again, that just getting a garden isn’t sufficient for personal food security. Weather and climate variability are going to make growing outside unreliable, and when you need the food most is when it fails widely.

China’s Rise Is Normal

China used trade protection and cheap wages & grabbed industry from the leading industrial power exactly the same as the US did with Britain.

 

The tech/science lead follows the manufacturing floor, with some delay, this was, again, the same with Britain & the USA.

The dynamics of industrialization are well understood at this point. The first books to read are “Bad Samaritans” and “Wealth and Democracy”.

Unlike Japan or South Korea, China has a larger population than America (same as America vs. Britain) and is has a large land mass and plenty of resources. In fact, it has slightly more land area than America.

Initial industrialization in England is an interesting story and still hotly debated. Later industrialization waves are mostly all the same. (The USSR is an exception, as are city states.)

Big leaps, as opposed to adaptations of existing models almost always come from states in hot competition, and among them the peripheral states usually win (Britain, for example, is peripheral to Europe.) The biggest tech surges in Chinese history came during warring states periods.

I’m very impressed by China’s rise and the West’s sheer incompetence in enabling it, but it’s not a huge leap the way the industrial revolution was. It’s just an extension of a previously existing model.

Japan’s rise was more impressive than China’s, as the first non-European nation to pull it off. But as an island nation with limited population, they were sharply limited. They made 2 runs at the US, one a war, one industrial, and neither let them become the foremost power.

The West was very good at keeping everyone but client states from industrializing. Even Japan needed British aid (the first time), then America’s (the second time.) But the West got stupid under neoliberal “end of history” ideology & let China run the playbook, thinking it wouldn’t challenge the West. Oops.

Americans probably should have learned from the Western experience with Japan. The British enabled Japan’s rise only to have Japan attack British possessions. Without American aid, that loss would have been permanent. But China is a continental power w/a massive population. The stupid was epic.

A radical change in economic model hasn’t happened yet, and seems unlikely to before ecological and economic collapse puts an end to the viability of the current model. Looking at Chinese cities with the 7 lane highways is instructive. It’s just a better version of the same old

A complete change of the permission system will be necessary for radical economic change. No one in power, whether in the West or China, wants that or can even imagine it.

Who knows, radical economic change might happen in China when collapse really starts biting. After all, they have the manufacturing base. But usually it happens at a periphery or in a tight area with multiple competing states.

This stuff is fairly well understood. However it’s not economists who put the pieces together, it’s sociologist and historians and even some anthropologists. Economists have done more damage to the West than astrologers did to Chinese dynasties. MBA factories get an honorary mention. (They mostly weaponized economic theories, as when they noticed economic theory saying that high profits come from not competing.)

One of the most instructive trends right now is watching so many people screaming about population collapse, when what the world actually needs is a lower population. (We could have avoided that necessity, but the window is closed. Sometimes you have to act at the right time.)

All people who yell about lower birth rates can imagine is economic growth through population expansion. Anyone who thinks that way can’t create a new economic model, they’re stuck in the old one. (Elon Musk is a good example.)

People who can’t even understand population overshoot are incapable of the thinking required to deal with the world’s actual problems.

We’ll talk about permission systems at a later date. As noted, they’re key.

Week-end Wrap – Political Economy – June 16 2024

by Tony Wikrent

 

Strategic Political Economy

‘The whole supply chain is subsidised’: inside the EU’s blockbuster Chinese EV probe 

[South China Morning Post, via Naked Capitalism 06-13-2024]

…the tariff percentages the EU would slap on electric vehicle imports from China landed with a bang.

In the Belgian capital, officials set about briefing reporters on what had been uncovered in an investigation that saw dozens of case handlers spend 250 mission days on the ground in China, conducting 100-plus company visits, piecing together thousands of pages of evidence, which cumulatively tore a new rift in an already fraught relationship.

“The whole supply chain is subsidised,” said a senior official, who read through the charge sheet on a case that many predict could launch a trade war.
“This means that the Chinese government provides subsidies to all operators,” he continued. “Starting from the refining of lithium used in the batteries, to production of cells and batteries, to the production of BEVs [battery electric vehicles], and even transport of BEVs to EU markets.”….
Between January 2020 and September 2023, Chinese companies increased their EU market share from 4 per cent to 25 per cent, while local rivals’ share dropped from 69 per cent to almost 60 per cent, officials said.
[TW: If you really want to transition off of fossil fuels, it is basic common sense you should support in any way possible the design, manufacture, and sale of electric vehicles. This is a monstrous example of how the leadership of the West has been lobotomized by neoliberal “free market” ideology.” ]

Global power shift

MAJOR: Russia Officially Becomes World’s 4th Largest Economy, Passing Japan 

[Simplicius the Thinker, via Naked Capitalism 06-10-2024]

 

China has become a scientific superpower 

[The Economist, via Naked Capitalism 06-15-2024]

[X-Twitter, via Naked Capitalism 06-14-2024]

 

Gaza / Palestine / Israel

How ‘Israel’ Has Lost The North 

[indi.ca, via Naked Capitalism 06-14-2024]

‘Israel’ has completely lost the north of occupied Palestine. It’s under fire and on fire every day now. Hezbollah has methodically eye-poked ‘Israel’s’ intelligence outposts and is literally blasting them in the nuts every day, on camera. The map above shows the new line of control for occupied Palestine, as reported by the thinking man’s Der StürmerHaaretz. ‘Israel’ has lost it.

It’s fascinatingly boring how Hezbollah did this. For months their videos have been methodically mundane, blowing up this communication tower, that building, that listening station. It seemed like a bunch of nothing, but it adds up. Hezbollah had a list of ‘Israel’s’ eyes and ears in the north and has spent months methodically eye poking them, like Odysseus and the Cyclops. Now—however big the IOF might be—they’re effectively blinded.

As Hezbollah opens bigger and bigger gaps in ‘Israel’s’ air defenses, they can send bigger and more missiles in, with better and better penetration. For ‘Israel’, this attrition is a compounding problem. Their air defenses are a connected system and the network is increasingly returning 404. Take for example, the destruction of the $230 million dollar SKYDEW blimp/spy balloon….

Each time a hole in ‘Israeli’ air defenses opens, the hole only gets bigger, because of Hezbollah is damaging complex, interconnected systems.

Now the Meron base can barely defend itself, let alone the region. ‘Israel’ has responded by assassinating Hezbollah (and Iranian) leaders, but the Resistance just names missiles after the martyrs and send more. This is a battle of attrition and Hezbollah is paying attention while ‘Israel’ is mindlessly lashing out. ‘Israel’ is completely distracted by a genocide in the south, and has lost the battle for the north….

 

Suppressing Palestinian Drone Forces: U.S. Uses Aid Pier to Deploy Anti-Drone Combat Vehicles to Gaza 

[Military Watch Magazine, via Naked Capitalism 06-09-2024]

Open Thread

Use to discuss topics unrelated to recent posts.

If You Believe Either Biden Or Trump Will Halt Decline You’re A Fool

There are those, even some smart people whom I otherwise respect, who think that Trump is a way to halt and reverse American decline.

This is delusional.

 

As for Biden, his claims to success are based on statistics that only a toddler or an economist would believe reflect reality, leaving aside the fact that he’s overseeing the loss of the US dollar as the primary trade currency, which will hurt the US worse than an Israeli shoving a red hot metal rod up a Palestinian civilian’s ass.

I’m on team tariff. I think they’re often a good thing. But tariffs alone cannot fix the US economy. America has too many economic pathologies. Without crushing the rich, dropping housing prices, making Private Equity illegal, forbidding share buybacks, ending stock options for executives, massive anti-trust enforcement and huge number of other policies, the US cannot take advantage of being hidden behind tariffs, especially when China is now producing more scientific and engineering advances than America.

People want hope. They need it. And they will find it, or what passes for it. We saw that with Obama, the ultimate neoliberal wannabe, who immunized bankers from their crimes and helped them steal millions of houses with fraudulent documents, then expanded fracking and bragged about, not just giving up the last chance to slow or stop climate change, but actually lighting gas on fire to speed it up.

Then Obama bragged about how much he had increased oil and gas production. Bragged.

No one is coming to save you if you are American, or, indeed Western. LePen will me a garbage fire. Starmer is one of the most mendacious neoliberal politicians of the past 50 years, an impressive feat.

If you want to do politics, you have to stop pretending that you can fix the major parties, and go third party. Yes, it’s a long shot, but it’s your only shot.

More realistically, national politics isn’t going to save your ass. You’re going to have to do it yourself, ideally with the help of other citizens. Perhaps thru a church, perhaps through a neighbourhood association, perhaps through a maker group: whatever, find a way to get like minded non-idiots together and support each other and start making the necessary changes so that you, your family and your friends have a better chance of getting thru the bad times.

It’s up to you. Climate change will not be stopped. My bet is that it is now into self-reinforcing growth. If it isn’t yet, it will be. The West’s hegemony is collapsing. As I have written repeatedly, Europe is going back to what it was for most of its history: a peripheral shithole on the edge of the Asian continent. The US is losing its empire and when it no longer had dollar privilege or a military that other countries are in terror of, Americans will find out the cost of sending their industrial base to China because if you can’t make it, other countries are going to demand a pound of flesh to send it to you.

Hell is coming and both Biden and Trump lead there, just by slightly different routes.

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Remembering the Good Job Market Of the 70s

If you’re under 68 or so, and weren’t involved in regional boom or something like the internet bubble, you probably have never experienced a good job market. At age 56, I remember the 70s, and I even remember the job market after a sense: I was an only child and around my parents adult friends a lot. I had no uncles or Aunts by blood where I lived, but half a dozen Uncles and Aunts by friendship. And I do remember that just getting a job wasn’t a problem, at least not till the late 70s and the early 80s recession.

But better the words be from someone who was actually there. I think this is important, so I’ve elevated a comment from Marku52:

My wife points this out to me often “Back then (mid 70’s) I had tons of jobs. I’d lose one one day and have another one in a couple of days. It wasn’t a problem. And what a breadth of experience. She was a waitress (terrible at it, got fired), a photographers assistant, a computer data input person for an auto parts chain that was digitizing (She told the other workers “you know, they are only doing this so they can get rid of you”), and finally a paginator at a news paper using a brand new digital pagination system. All kinds of opportunities out there.

And for me, I got hired at a cabinet shop with nothing but some very basic woodworking skills, eventually became shop foreman, left to do electronic tech work at a sound company, boss even paid for another tech to come in once a week and train me. I went back to school and got my EE degree. (for $85 per quarter!)

Sure was a different time, and a way way better one.

This is what was lost because of neoliberalism and the decision to handle the oil shocks by crushing employment to crush wages. It’s a world hardly anyone even remembers any more.

But it did happen, and a world like it, but good for the environment and fair to women and minorities, is possible.

 

If Bosses Want At-Will Firing This Is What Is Required (The Good Society)

One of the great complaints of bosses and corporations is that they can’t fire people whenever they want to. Employee protections were one of the great victories of the 20th century and the union movement, though far more in Europe than in America, except in the Federal civil services.

But bosses do have a point: being able to get rid of employees without fuss isn’t unreasonable: they’re hired to do a job, and if you don’t like how they’re doing it, firing them makes sense.

At first glance the problem is that often such power is abused, in too many ways to recount.

But the real problem is that without a job, people suffer: they have less, they may wind up homeless, in the US they’re essentially cut off from medical care and so on.

In a society where you would have a decent life whether employed or not, it wouldn’t matter if at employment was “at-will.”

We still live in a surplus society. If we were to get rid of planned obsolesence, massively reduce pollution, and work hard at public services like frequent and reliable public transit, free post-secondary education and plenty of third place gathering spots, we could have even more of a surplus: or rather, use much less and stop destroying the environment, so that we would stay a surplus society. Making people work when what they do isn’t actually necessary, is a “bullshit job” or actually does great harm, like almost all of the financial industry, is stupid, and doesn’t increase human welfare.

So the compromise is guaranteeing everyone in society a good life: housing, transit, health care and recreation. Again, we can do this, we have the surplus, and if we got rid of 40% of work, well, we’d have a society which would actually produce more welfare, because that work is useless of harmful.

And in a guaranteed good life society, very few people are going to want to spend their lives figuring out how to serve ads better, or other nonsense. They will want meaningful work: work which is enjoyable or which makes the world a better place. They will tend to self-select for jobs which really do benefit others, especially if, at the same time, we cap wealth at something like 10x median, and income at 3x what’s guaranteed. (Which also means those who want wealth will have to improve the baseline guaranteed wealth.)

At that point, if bosses want to fire people at will, who cares? It doesn’t matter. In fact, it’s more likely that bosses who offer work that isn’t meaningful or enjoyable, or both, won’t be able to get workers.

And that, my friends, is what a good surplus society looks like.

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A Few Words On Prediction

Prediction usually boils down to figuring out essentials.

I’m committed to finding out the 20% which explains 80%. Despite what one might think, that involves quite a lot of work, I’ve read thousands of books over the years, and don’t just get my info on twitter and from news media but I often cover current events and that requires current info, not carefully thought out books. (As an example, I’ve read books on Hezbollah.)

I find a few determined priorities/ideology/power + resource constraints tend to create most apparent complexity (most, not all.) Complexity is mostly in execution, not in ideation or decision.

Much of Fed rate policy from 79 to the 00s, for example, can be explained by a simple commitment to crush wage based inflation. Add in a commitment to increase asset prices and you have two theses which worked very very well predictively at the time and which still have a great deal of utility.

A reading of Bernanke’s academic work showed that much of it boiled down to “how do we avoid an FDR after a major financial crisis?” When the financial crisis hit, he put his beliefs to work.

That the innovation base moves to the place with the manufacturing base is another important dynamic, and that comes from books. (In particular, “Wealth and Democracy” by Kevin Phillips.)

Find the key drivers/commitments. Understand the world view and ideology. Understand historical and group dynamics. Those are my commitments and that’s how I approach understanding the world, groups, nations, and making predictions.

I’ve been working at this since about 1990. I’m not a great writer, I’m someone who’s interested in how societies work.

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