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While the perps express shock at how much collateral damage their greed is doing (rather like termites in a collapsing house), let’s all take a calming minute to honor the heroes of this crisis – the people who did what they could to actively counter the devastation. Who are they, you might ask?
The people who ride bicycles. The people who take transit. The people who bought more fuel-efficient vehicles. The people who drive the speed limit or less. The hypermilers. The people who plant gardens. The people who localize their food and energy. The people who invest time in their communities. The people that took staycations. The people, in short, who did their own math, gauged the weather for themselves, and took positive action ahead of the crisis. The very things prescribed by the World Without Oil game (and taken to heart by many of our players).
How did they help? Quite simple. By reducing our demand for oil, these people have helped to drop the price of oil and thus ameliorate this year’s fuel price hike. The fuel price hike, of course, is part and parcel of the foreclosure crisis: it wasn’t just that people couldn’t afford their ballooning mortgages, it was the three-punch combo of mortgage + fuel prices + food prices that really knocked ‘em down and out.
Plus of course, by adapting in a socially conscious way, these people have made their lives bailout-resistant. Individually, each contribution is small, but collectively they are quite significant. Large enough, anyway, to fill up our transit systems, calm our highways and empty our greenhouses.
The self-reliant individual used to be a proud model of American citizenship, good stewardship the epitome, and self-sufficient independence the backbone of the American character. When was it exactly that that model was replaced by the lowest-cost-at-any-price consumer, and the drill-anywhere bail-me-out spirit became our national standard? Photo by Pandiyan via Flickr.
The credit crisis is grabbing the headlines in America, as Fannie and Freddie starve on the empty calories of their bad loans, IndyMac Bank goes into federal conservatorship, and so on. The latest Harper’s Index gives the underlying numbers:
Chance that a U.S. home is currently vacant: 1 in 35
Rank of this among the highest recorded vacancy rates in U.S. history: 1
An article in The Economist (July 12) backs up the numbers: 18,600,000 U.S. housing units stand empty. It goes on to say that “formerly vibrant neighborhoods have taken on the dilapidated air of ghost towns” and “municipal taxes go unpaid” and “boarded-up homes invite looting, drugs and other criminal activity” – all outcomes foreseen in the WWO game. What we didn’t foresee: that cities would respond by demolishing the homes. But that’s actually being contemplated, according to the article.
The media hasn’t yet connected the 2008 credit crisis to the 2008 oil crisis, but again WWO teaches us the connection is there. As explained in an earlier post, the Petro Razor is at work here. Communities with forced commutes are on the wrong side of the Razor are likely never to recover; I’ve already heard anecdotal evidence that this process is underway.
Meanwhile, in a short article on Page 10A, we learn that Russia has reduced oil flow to the Czech Republic without warning or explanation. The move comes three days after the CR inked an agreement enabling the U.S. to build a missile-tracking radar station on Czech soil, So now begins the petropower plays among nations, also foreseen in WWO? The event that set off the global oil crisis was this: oil suppliers “unilaterally renegotiated their contracts,” delivering less oil than promised, which is exactly what’s happening to the Czech Republic. So is this a one-off, or a canary going thud in the coal mine? Stay tuned. Photo by judepics via Flickr.
Another article in the paper that’s straight out of World Without Oil: “Between surging oil prices, food inflation and a credit crunch that’s depressed global growth, leaders from the Group of Eight face the gravest combination of economic woes in at least a decade when they meet next week. The outlook has darkened dramatically since last year’s summit in Germany, when leaders declared the global economy was in ‘good condition’ and oil cost $70 a barrel – which seemed high at the time… ‘Now you have a financial disorder where the epicenter is the U.S.,’ said Robert Hormats, vice chairman at Goldman Sachs in New York. And fuel and food inflation ‘are serious matters that affect large numbers of people.’”
“On oil, analysts are skeptical that the G-8 leaders – representing the United States, Japan, Britain, France, Germany, Russia, Italy and Canada – will come up with much beyond urging major petroleum producers to boost output” – um, does it strike anyone else as naive to ask sane businesspeople to work harder and invest more money so as to undercut their own price for a commodity they only have a finite supply of? The reaction to these pleas, BTW, has pretty much been what any pusher says to his john. Photo by rednuht via Flickr.