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Chris Martenson

Energy Concerns Are Mounting

Monday, September 13, 2010

Executive Summary

  • Many interlocking factors have caused current economic woes.
  • Most of the issues are still almost strictly economically driven; energy’s role is still to come.
  • World energy consumption, at current rates of growth, will double in 35 years.
  • Alternative fuels cannot displace oil use, but they can be helpful in electricity production and other areas.
  • We should be using our highly-concentrated energy sources to capture less-dense alternative energy sources.
  • The next energy shock is closer than most people realize.
  • The perception of scarcity will create scarcity.
  • Now is the time for prudent preparations.

In my last Insider entry, I made a number of claims that sparked a lot of good comments.  I will respond to a sampling of them here.  If I don’t address your comment, please know that I read and considered every one. I value and encourage continued input through comments, forum posts, and email.

There are multiple interlocking topics embedded in the question, “Why is the economy down right now?” I don’t see any one particular cause.  Yes, there was too much debt, but there was also falling net energy from flat petroleum production between 2004 and 2008.  Oil also happened to spike in price.  Which one ’caused’ the economic meltdown and the deep freeze that followed?  All of these factors, and a few others besides.

Energy Concerns Are Mounting
PREVIEW

Energy Concerns Are Mounting

Monday, September 13, 2010

Executive Summary

  • Many interlocking factors have caused current economic woes.
  • Most of the issues are still almost strictly economically driven; energy’s role is still to come.
  • World energy consumption, at current rates of growth, will double in 35 years.
  • Alternative fuels cannot displace oil use, but they can be helpful in electricity production and other areas.
  • We should be using our highly-concentrated energy sources to capture less-dense alternative energy sources.
  • The next energy shock is closer than most people realize.
  • The perception of scarcity will create scarcity.
  • Now is the time for prudent preparations.

In my last Insider entry, I made a number of claims that sparked a lot of good comments.  I will respond to a sampling of them here.  If I don’t address your comment, please know that I read and considered every one. I value and encourage continued input through comments, forum posts, and email.

There are multiple interlocking topics embedded in the question, “Why is the economy down right now?” I don’t see any one particular cause.  Yes, there was too much debt, but there was also falling net energy from flat petroleum production between 2004 and 2008.  Oil also happened to spike in price.  Which one ’caused’ the economic meltdown and the deep freeze that followed?  All of these factors, and a few others besides.

Note:  This article is part of a series on personal preparation to help you answer the question, "What should I do?"  Our goal is to provide a safe, rational, relatively comfortable experience for those who are just coming to the realization that it would be prudent to take precautionary steps against an uncertain future.  Those who have already taken these basic steps (and more) are invited to help us improve what is offered here by contributing comments, as this content is meant to be dynamic and improve over time.

Graduates of the Crash Course series emerge aware that, economically speaking, the next twenty years are going to be completely unlike the last twenty years.  This invariably leads to the question, "How do I prepare financially?"

We have entered some truly treacherous investing waters, where we must question everything and accept nothing, even (and especially) the base assumption that any given currency, be that the US dollar or euro or Yen, will retain its value.  Is a ‘double-dip’ recession coming?  Nobody knows for certain, but all the warning signs are there.  Our view is that it’s best to start thinking about preserving and protecting your wealth now, while you still have that opportunity.  The bottom line here is that you should not be taking your cues from what your neighbors seem to be doing, but instead being sure that your own house is in order.

 

What Should I Do? The Basics of Resilience (Part 7 – Protecting Wealth)

Note:  This article is part of a series on personal preparation to help you answer the question, "What should I do?"  Our goal is to provide a safe, rational, relatively comfortable experience for those who are just coming to the realization that it would be prudent to take precautionary steps against an uncertain future.  Those who have already taken these basic steps (and more) are invited to help us improve what is offered here by contributing comments, as this content is meant to be dynamic and improve over time.

Graduates of the Crash Course series emerge aware that, economically speaking, the next twenty years are going to be completely unlike the last twenty years.  This invariably leads to the question, "How do I prepare financially?"

We have entered some truly treacherous investing waters, where we must question everything and accept nothing, even (and especially) the base assumption that any given currency, be that the US dollar or euro or Yen, will retain its value.  Is a ‘double-dip’ recession coming?  Nobody knows for certain, but all the warning signs are there.  Our view is that it’s best to start thinking about preserving and protecting your wealth now, while you still have that opportunity.  The bottom line here is that you should not be taking your cues from what your neighbors seem to be doing, but instead being sure that your own house is in order.

 

Note:  This article is part of a series on personal preparation to help you answer the question, "What should I do?"  Our goal is to provide a safe, rational, relatively comfortable experience for those who are just coming to the realization that it would be prudent to take precautionary steps against an uncertain future.  Those who have already taken these basic steps (and more) are invited to help us improve what is offered here by contributing comments, as this content is meant to be dynamic and improve over time.

Heat, Power, and Communications

Being warm, having instant access to electricity, and being able to connect with anyone anytime, anywhere, are so integrated in present-day life that we often forget just how much value these luxuries offer us.  My town has experienced four weather- and usage-related power outages in the past year (for a total of eleven power-free days), which provided a useful reminder of just how dependent we are on the miracle of steady, uninterrupted energy.

Being able to see when it is dark, cook food, and heat your space should an outage occur in the winter are first-level needs to prepare for.  Remaining in touch with those you depend on (and those who depend on you) is also a primary need, especially in any prolonged outage situation.

Even more significantly than with food and water, there are major cost differences between preparing in an ideal or long-term sort of way using totally self-sufficient alternate energy systems and preparing in a good-enough stop-gap way for temporary outages.  There is certainly value in planning and investing to accomplish both, but do not let concerns that you will not have the perfect long-term system impede you from preparing for some of the more likely problematic wrinkles that may come your way.

 

What Should I Do? The Basics of Resilience (Part 6 – Heat, Power, & Communications)

Note:  This article is part of a series on personal preparation to help you answer the question, "What should I do?"  Our goal is to provide a safe, rational, relatively comfortable experience for those who are just coming to the realization that it would be prudent to take precautionary steps against an uncertain future.  Those who have already taken these basic steps (and more) are invited to help us improve what is offered here by contributing comments, as this content is meant to be dynamic and improve over time.

Heat, Power, and Communications

Being warm, having instant access to electricity, and being able to connect with anyone anytime, anywhere, are so integrated in present-day life that we often forget just how much value these luxuries offer us.  My town has experienced four weather- and usage-related power outages in the past year (for a total of eleven power-free days), which provided a useful reminder of just how dependent we are on the miracle of steady, uninterrupted energy.

Being able to see when it is dark, cook food, and heat your space should an outage occur in the winter are first-level needs to prepare for.  Remaining in touch with those you depend on (and those who depend on you) is also a primary need, especially in any prolonged outage situation.

Even more significantly than with food and water, there are major cost differences between preparing in an ideal or long-term sort of way using totally self-sufficient alternate energy systems and preparing in a good-enough stop-gap way for temporary outages.  There is certainly value in planning and investing to accomplish both, but do not let concerns that you will not have the perfect long-term system impede you from preparing for some of the more likely problematic wrinkles that may come your way.

 

Note:  This article is part of a series on personal preparation to help you answer the question, “What should I do?”  Our goal is to provide a safe, rational, relatively comfortable experience for those who are just coming to the realization that it would be prudent to take precautionary steps against an uncertain future.  Those who have already taken these basic steps (and more) are invited to help us improve what is offered here by contributing comments, as this content is meant to be dynamic and improve over time.

The Future of Your Health

Like our “just in time” food system, our modern medical infrastructure is highly complex; it functions well only under controlled circumstances and with abundantly available specific resources.  As with food, the ease with which we’ve accessed medical services over recent decades has invited us to reduce our health self-sufficiency.  We’ve become so sheltered from the health risks our forefathers faced that we’re especially vulnerable if we’re ever forced to live without easy access to professional care.

Taking on a bit more responsibility and a few more preventive steps in one’s personal health is crucial; a must-do in the process of becoming resilient.  Some of the steps recommended for beginners are universal; others depend on your personal needs.  But in all cases, a good dose of foresight and practicality is in order to build some security into the future of your health.  You should plan ahead for the things you know you’ll need: are there medications you take regularly?  Do you wear contact lenses or glasses?  What supplements, hygiene products, or nutritional supplies would you be hard-pressed to live without?

What Should I Do? The Basics of Resilience (Part 5 – Health and First Aid)

Note:  This article is part of a series on personal preparation to help you answer the question, “What should I do?”  Our goal is to provide a safe, rational, relatively comfortable experience for those who are just coming to the realization that it would be prudent to take precautionary steps against an uncertain future.  Those who have already taken these basic steps (and more) are invited to help us improve what is offered here by contributing comments, as this content is meant to be dynamic and improve over time.

The Future of Your Health

Like our “just in time” food system, our modern medical infrastructure is highly complex; it functions well only under controlled circumstances and with abundantly available specific resources.  As with food, the ease with which we’ve accessed medical services over recent decades has invited us to reduce our health self-sufficiency.  We’ve become so sheltered from the health risks our forefathers faced that we’re especially vulnerable if we’re ever forced to live without easy access to professional care.

Taking on a bit more responsibility and a few more preventive steps in one’s personal health is crucial; a must-do in the process of becoming resilient.  Some of the steps recommended for beginners are universal; others depend on your personal needs.  But in all cases, a good dose of foresight and practicality is in order to build some security into the future of your health.  You should plan ahead for the things you know you’ll need: are there medications you take regularly?  Do you wear contact lenses or glasses?  What supplements, hygiene products, or nutritional supplies would you be hard-pressed to live without?

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