SRSrocco: Blunt on Gold, Silver, Energy, Analysts & the Economic Collapse

Something very foul is in the air.  I can sense it.  While it seems as if the fragile economic system of ours can be propped up, duct-taped, manipulated and held together for an indeterminate period of time, I believe things could get ugly… very quickly.

Now, I am not 100% sure of my intuition on this one, but if you look around long enough and take some examples from the past, we are heading into some really serious trouble due to the fact that the folks on MSM have lobotomized the investing public.

I wanted to take this time today to communicate one-on-one with many of those who have been reading my work for years as well as those who have happen to come across this site more recently.  This reminds me of a past experience I had when I went to see George Carlin at concert in Las Vegas several years ago.

My wife knew I was a big fan of Carlin, so one day she surprised me by getting tickets to see him while we were visiting some family in the area.  I remember sitting in the audience when after 10-15 minutes of Carlin’s routine, people started to get up and walk out.  There weren’t many… maybe a dozen or so.

However, George took a pause from his act and said, “Do you notice the people walking out of here… they didn’t know what they were getting into did they? (audience laughs)”  He goes on to say that he had three kinds of fans, those who have been listening to him for years, those who followed him years ago but haven’t seen him perform until more recently… and then those who got free tickets from the hotel or casino, and are now walking out the door… (audience laughs again).”

George Carlin on THE AMERICAN DREAM

Here is a link to that video clip what Carlin thinks of “The American Dream.”  (Warning:  there is foul language)

You see, George Carlin’s act was filthy, crude, full of cuss words and down right nasty at times, but the man spoke the truth so bluntly, only a few could really appreciate his genius.  One of my favorite lines from his HBO Comedy Specials was, “Folks…. there’s a lot of BS out there and it ain’t good for you.”

There is so much BS in the world, and especially the U.S. that I am amazed we have kept it all together this long.  The U.S. economy should have died years ago, except those in charge of the fiat monetary regime figured out how to export our inflation while transforming our domestic manufacturing economy to a pathetic service one.

YOU BETTER UNDERSTAND ENERGY…..

Many economists and investors don’t realize that our transition to a service economy wasn’t a choice… it was done to keep the illusion that we still had a functional economy.  The Falling EROI- Energy Returned on Invested forced the United States to ship manufacturing overseas where it was cheaper so we could continue spreading our domestic economy:  THE SUBURBAN DREAM.

Our whole economic suburban system was built on a HIGH EROI oil & gas of say 15-20/1… which means 15 to 20 barrels of oil from 1 barrel of cost.  Thus we had a great deal of energy profits to spend in building the great Inter-State Highway System, water-sewer infrastructure, electric grid, commercial-residential real estate and the huge retail-strip mall-big box business model.

Then, the U.S. peaked in oil production in 1970 and had to import that HIGH EROI oil from the Middle East by exchanging FIAT PAPER MONEY for PHYSICAL OIL & GOODS… a very successful enterprise over the past 4 decades.

Unfortunately, all good things come to and end, and now that the world has been in an oil production plateau since 2005, the oil industry has been forced to extract the LOW EROI OIL to make it seem like we can continue “Business as Usual.”  Shale oil has an EROI of approximately 5/1.  So even though we are currently pumping a great deal of this oil from the Bakken & Eagle Ford Shales in the United States, its low EROI ratio does not return enough “Profitable Barrels” to support our economic LEACH & SPEND ECONOMY.  We probably need somewhere near 10-12/1+ EROI of oil & gas to support our present economy.

So, it really doesn’t matter if there are billions or trillions of barrels of shale oil or oil shale resources in the United States, if the energy profits (2-5/1 EROI)  are too low to pay for the suburban economy huge energy debts (10-12/1 EROI).  Simply, it all comes down to basic mathematics that a 1st grader can understand.

This is the very reason why the Porter Stansberry’s of the world (who promote the wonders of shale energy) have totally misguided their readers and investors.  Even though some shale energy companies may earn profits, the industry as a whole, will be short-lived.

ENERGY & THE PRECIOUS METALS

One of my biggest challenges in writing articles for the SRSrocco Report, is to incorporate energy into the mix.  I have been writing for quite a while and I know exactly what sells, is read or listened to.  If I posted an article with a picture of Jamie Dimon mooning a bunch of precious metal investors with a silver dollar sticking out of his tuckus, I would receive tens of thousands of hits-reads.

However, if I insert the word “ENERGY” into my precious metal articles… well then the readers just dry up and blow away.  This is indeed the problem with the precious metal community.  I know exactly what they want to read or hear…. “Their gold and silver will make them rich and they will be able to buy and do whatever want in the future.”  Anything else becomes increasingly BORING.

That being said, it is extremely important that the typical investor and even the precious metal enthusiast needs to understand energy to know where we are going from here.  Why?  Because… ENERGY is the DRIVER of the economy, and GOLD & SILVER are the BATTERIES that stores this economic energy.

Eneryg is the Driver & Gold-Silver are the Batteries

As I have mentioned before many investors, the clowns on Wall Street and  CNBC believe that finance runs the world’s economies.  It doesn’t.  Try to shove an interest rate swap contract into a haul truck’s fuel tank at a gold mine, and see how far it can move that 300 tonnes of ore.

The only reason why the Fiat Monetary System based on Compound Interest and Fractional Reserve (term from Mike Ruppert) has worked up until now is due to the fact that the world has had a growing oil supply.  Fiat means DEBT.  A growing energy supply pays the interest on FIAT DEBT.  When the energy supply peaks and declines… so will the Grand Fiat Monetary System.

Don’t worry, this event isn’t years away… it’s taking place right now… right in front of our eyes.  A good percentage of the energy that we presently consume in the United States, the public cannot afford.  Thus, the huge increase in debts and monetary printing.

There are many details to the ENERGY EQUATION that needs to be addressed.  I have not been writing much on energy at my site because I don’t want to be the “Old Guy in the Cartoon with Long Hair holding a sign saying THE END IS NEAR” standing on a street corner with no one really listening.

So, here is a warning to all my readers and those who link my work to their sites.  I will be including more posts and articles on energy as it is extremely important factor that will impact GOLD, SILVER, THE MINERS and the overall ECONOMY.

GOLD & SILVER:  SOME OF THE BEST QUALITY FUTURE INVESTMENTS

Part of the inspiration for this post was due to some of the replies and comments I have received from readers and members of the site.  Furthermore, I want to take this time to thank everyone for their comments and to let the other more active members know how much I appreciate their insights to the many different aspects of the market.  Yes… you know who you are.

I have been known to make some mistakes and lousy assumptions even though I try to focus on the facts and the data.  Some members (here or from other sites) have challenged me by presenting conflicting information to one of my articles or positions.  While it hurts to be wrong… if I want to be truthful to myself and to those who are reading my material… I have to digest this information and see if I need to correct a mistake or reconfigure my position.  Again, I appreciate that feedback as much as the positive reinforcement.

One thing that has been brought to my attention is that “I SHOULD STICK TO PROVIDING ANALYSIS AND LESS TO PUSHING THE ONE-SIDED BULLISH HYPE.”  I thoroughly agree with this assessment.  While I realize there is indeed a great deal of back stroking, back slapping, bullish regurgitating and hopium coming from many of the more popular precious metal websites, at least they are on the right side of the equation.

Yeah… I could say that they are being a bit frothy in the tooth when it comes to gold and silver, but there are so many more important things to focus on, I just tend to tune it out… and move onto the next looming disaster on the horizon…LOL.

Getting back to gold and silver.  I have been writing some articles that may seem a bit “BULLISH” on gold and silver.  Yes, I have…. and yes I am receiving a great deal of hits-reads.  However, I am not doing it just to get the traffic, I actually believe it.

Hear me out.  The reason why I believe gold and silver are going to increase in value substantially from here is due to the fact that most other assets are going to decline in value due to the present and future energy constraints.  If we look at the chart below of Citigroup, we can see how things can change very quickly.

CITI PRICE SHIFT

I have used this chart several times in other articles to show how a company-stock can disintegrate due to fundamentals even though the nitwits on the financial main-stream-media (MSM) didn’t see it coming for miles.

This is exactly how is see the values of gold and silver unfolding in the future… but in the opposite manner by heading up much higher.  I am not HOPING for this to occur, rather I see it the same way Peter Schiff did when he was on Fox Business & CNBC from 2004-2007, warning about the upcoming housing and banking collapse.

When the public really understands the future energy situation, they will realize that one of the best and safest investments will be the precious metals.  Because, in a declining energy environment, most other assets will fall in value.  More about this in future articles.

THE MAJORITY OF ANALYSTS ARE LIKE A DEAD FISH….

Most of the analysts out there are like a dead fish… rotting from the head down.  Yes, I have said that before, but it is still true today and sometimes its fun to repeat these terms for the newer readers.  The majority of analysts miss the whole picture because they base their analysis and forecasts on superficial and manipulated data.   Their failure comes from not getting to the ROOT OF THE PROBLEM.

I learned about looking at the root cause of problems and events from a chance encounter I had with a retired NASA engineer several decades ago.  It’s actually a very interesting story for another time.

However, you really can’t be a successful analyst anymore unless you understand energy.  To forecast future silver production or to give price guidelines due to supply and demand factors in say 3-10 years becomes increasingly impossible when energy constraints are part of the picture.

There are several organizations out there that are still putting out forecasts on how future supply and demand forces of silver will impact its price.  I say… you can’t rely upon that information anymore (to a larger degree) because the world is heading into a future that is nothing like the past…. mainly due to energy issues.

As I have mentioned before, one of the biggest problems with the precious metal analysts is their failure to understand the energy market.  I will get into this in more detail in the future, but I wanted to focus on one analyst as he happens to be the week-end guest on King World News.

James Dines is one of the first precious metal analysts who saw gold and silver as great investments in the 1970’s.  I have a lot of respect for the man as he thinks outside the box and he understands the psychological nature of the markets.  However, there is one huge disagreement I have with him.  And that is on the subject of uranium and nuclear power.

Dines has been a big promoter of uranium and uranium stocks.  He lets the audience know during his interviews that he was the “Original Uranium Bug.”  Furthermore, I believe he also has stated that he was the original gold, silver and rare earth bug as well.  I might be exaggerating a bit, but I have heard him say he was the “original so-and-so bug” on many occasions.

Regardless, Dines as well as other analysts are still big promoters of uranium.  I would like to remind the reader that the Fukushima multi-plant meltdown is still a huge nightmare for the world and its only going to get worse from here.  Dines states that the problem with Fukushima is not uranium’s fault, but rather one due to mankind using the technology incorrectly.  Well, isn’t that the case with just about anything that mankind screws up?

I am not going to get into details here, but we as a human species have proven time and time again that we rather screw each other over for a buck including cutting back on maintenance of nuclear power plants to show a profitable balance sheet than do what is prudent and right.  Does Dines actually think the morons who are in charge now are going to finally get religion and build PROPER NUKE PLANTS that are safe?

Moreover, the United States is so far in debt that we may not have the resources in the future to properly decommission all or a fraction of the damn nuclear plants we have running currently.  Then of course we have the HOPIUM that these so-called mini-nuke plants such as the Toshiba 4S can be buried 40-50 feet underground and work for 30 years, safely.

Folks the problem with Fukushima is that 3 of the reactors have more than likely melted all the way down into the ground and are contaminating the ground water.  Why on earth would you want to bury a nuclear power plant 40-50 feet underground in the same place where our ground water supply is located???  Have we gone completely insane?

I don’t care how safe and cheap these mini-nukes are touted as being, I learned my lesson from the Nuclear Industry that bragged in the 1950’s that it would provide safe and cheap energy.. that was TOO CHEAP TO METER…. oh really.

Anyhow, Dines needs to wake up and drop the whole URANIUM BUG BULL MARKET PROPAGANDA.  Furthermore, the world needs to band together and form some kind of international agency to fix the nightmare called Fukushima, or we are going to be in serious trouble.

THE COMING ECONOMIC COLLAPSE

There are two different collapses taking place at the same time.  One is a the Fiat Monetary-Derivative-Paper collapse and the other is the Physical Collapse.  Even though these are two different methods of collapse, they are both interrelated.  Jim Willie does an excellent job focusing on the paper-manipulated collapse, while I like to concentrate on the physical aspect… which stems from the energy issue.

I will be writing a great deal more about this in detail, but I need to wrap up this post so I can get outside and spend some time tending to our 5 acre property.

FUTURE PLANS FOR THE SRSROCCO REPORT

Originally I had the intention to have a public blog and a membership service that provided monthly reports for a fee.  Currently with precious metal sentiment in the toilet (up a bit in the past week), subscription services in the industry are down significantly.  Furthermore, it takes a great deal of time for me to put out original work and I don’t want to be forced to put out mediocre material each month just to publish a report and collect a lousy buck.

I have been contacted by several people requesting information on my membership service so I have come up with a good compromise.  I will be offering “Single Paid Reports” with a great deal of detailed information on the different aspects of the precious metals, mining, energy and overall economy.

The intent of the SRSrocco Report was to provide as much original information and data as possible on the precious metals, mining, energy and economy that you really can’t find in one place anywhere else on the internet.  As you all probably are aware, it takes a great deal of time and effort to provide this sort of analysis as well as run an internet blog.

I know Turd at TFmetalsReport went to a subscription service for his personal analysis on the site.  So, if anyone wants to read or be apart of the discussion, they have to pay a small monthly fee.  While I realize this may not seem fair to some individuals, I can totally understand his reason to do so.

That being said, I still will be providing what I believe as important analysis, information and data on the SRSrocco Report to the public as I have been in the past.  However, I will be focusing more time researching and writing these single paid reports to generate some income to justify what my wife calls as an INSANELY AMOUNT OF TIME ON THE DAMN COMPUTER….LOL.

Lastly, it looks like I will be speaking at the 2013 SILVER SUMMIT this fall in Washington State.  David Morgan was kind enough to put in a good word which earned me a 30 minute spot at the conference.  It’s going to be fun.  I will be able to really speak BLUNTLY as I see things unfold in the silver market.

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25 Comments on "SRSrocco: Blunt on Gold, Silver, Energy, Analysts & the Economic Collapse"

  1. Thank you for another great article SRS!

    I for one visit your website regularly precisely because you’re one of the only few thinkers who incorporate EROI into their analysis.

    Thanks again and keep up the great work!

  2. I’m a fan of your work, as well as that Jim Willie and TF among others. You guys all provide an out of the box perspective on the world, and it makes me wonder if you and other independently-minded folks ought not band together, if only to reduce the overheads and provide a single focal point for your works? Food for thought.

    • jon…. thanks for the reply. Your idea is a good one and maybe one day, it would be nice to do a 2-way interview with Jim.

      steve

  3. I don’t think talking about energy will hurt you. When I woke up, I spent too many hours reading theoildrum before reading about the financial situation. It was quite disappointing to find that most economists did not (don’t) include our oil situation in their analysis. I can even handle a difference of opinion but most of them simply do not think about energy in their research/commentary. Unfortunately even many Austrian economists are guilty of this.

    I would pose that there are really 3 collapses going on (economy, the environment and the energy situation) and the core problem might even be ecological overshoot, which means big die-off coming soon. The fundamental obstacle to reform of course is the central banking system.

    • webster… I agree with you about the Austrians. They too believe that the earth has a creamy nugget center full of oil that we don’t have to worry about running out. They fail to understand the EROI concept.

      And yes, there are three collapses taking place if we factor in the environmental collapse. This is also another one that many would like to keep out of the argument.

      steve

      • I’m surprised we don’t see some manufacturing coming back to US shores. The whole globalization thing, based on exploiting cheap labor elsewhere, assumes that the cost of transport (e.g, bunker oil) is negligible. Now that the cost of transport is NOT negligible, I would think that saving some money on transportation by making stuff ourselves would be a cool new trend.

  4. Well first I would like to say we have no choice but to rebuild nuclear power plants! or shiver in the dark. Japan has been told through the years that they need to rebuild the old plants and they did not want to spend the money. The problem is this writer is not telling the truth of what happened in japan. It was the generators that failed because they were built below sea level and the tidel wave that came dragged them out to sea! If they were built on higher ground we would not be talking about this issue! the reactors did there jobs extremely well with standing the earth quake and tidal wave that came. It makes me sick to hear people trash nuclear power without knowing the facts! John

    • John….. I totally understand the situation at Fukushima. I was blogging about it when if first happened and was stating that it was going to have several meltdowns before most realized what was going on. I knew this from the sources that I was reading and listening to.

      So what if it was a tidal wave that took out the pumps… we have 3 nuclear meltdowns in progress and it can get much worse. Yoichi Shimatsu from Japan has been reporting on this ever since the incident took place which you can hear his interviews on RENSE.COM.

      Furthermore, it doesn’t change the fact that we WON’T HAVE THE MONEY OR RESOURCES TO DECOMMISSION NUKE PLANTS IN THE FUTURE.

      There is no place to store SPENT FUEL in the UNITED STATES so it all sits at different Nuclear Power plants. My biggest fear isn’t the NSA spying, elite bankers, terrorists or total economic collapse, but rather our nuclear plants melting down in the future because we won’t have the means to deal with them.

      Lastly, there are still many more negative factors that I have not mentioned about nuclear power. HERE’S JUST ONE… when you factor in all the costs associated with building, maintaining and decommissioning a NUKE PLANT…. the EROI is losing proposition.

      MARK MY FRICKEN WORDS ON THIS ONE.

      steve

      • Steve, Not true the spent fuel rods which hold almost 90% of the energy can be recycled if they would just allow the technology to happen! Its there they just want to tell you all the negative parts about nuclear power. Start up cost are expensive but once all done the nuclear power plant is much more economical than any other source of energy, there is also no pollution going into the atmosphere and the nuclear waste is contained and can be recycled at a later date. That being said we could have clean energy for thousands of years!!!! My Father was on a air craft carrier for 26 years and they used nuclear power for fuel and at that time nuclear power was 1000 times cheaper to use. One quarter ounce uranium pellet is equivalent to 2000 pounds of coal. Most people don’t know this 26,000 people die each year from coal related accidents. You will never hear that on the news! John

    • where we at with peak uranium?

  5. John….. I totally understand the situation at Fukushima. I was blogging about it when if first happened and was stating that it was going to have several meltdowns before most realized what was going on. I knew this from the sources that I was reading and listening to.

    So what if it was a tidal wave that took out the pumps… we have 3 nuclear meltdowns in progress and it can get much worse. Yoichi Shimatsu from Japan has been reporting on this ever since the incident took place which you can hear his interviews on RENSE.COM.

    Furthermore, it doesn’t change the fact that we WON’T HAVE THE MONEY OR RESOURCES TO DECOMMISSION NUKE PLANTS IN THE FUTURE.

    There is no place to store SPENT FUEL in the UNITED STATES so it all sits at different Nuclear Power plants. My biggest fear isn’t the NSA spying, elite bankers, terrorists or total economic collapse, but rather our nuclear plants melting down in the future because we won’t have the means to deal with them.

    Lastly, there are still many more negative factors that I have not mentioned about nuclear power. HERE’S JUST ONE… when you factor in all the costs associtated with buiding, maintaining and decomissioning a NUKE PLANT…. the EROI is lossing proposition.

    MARK MY FRICKEN WORDS ON THIS ONE.

    steve

  6. Regarding energy and PM. I always equate an ounce of silver with 4 gallons of gas. Basically, 25 cents a gallon in old school pricing. I’ve read that a gallon of gasoline is equivalent to some crazy number of man hours of work. Like 2000 man hours of energy per gallon – think how many man hours of energy it would take to PUSH a 5000 pound car 30 miles. SO, an ounce of silver is “worth” about 8000 man hours of energy. As long as the ratio of PM to energy remains the same, you can essentially store man hours of work in silver and gold. People need to understand the man hours of energy imbedded in the precious metal. It isn’t necessarily energy, it is all a derivative of man hours of labor. That is how I view my PM investment. I’m saving man hours of energy to be redeemed when I need some labor done. Like harvest food, or provide shelter, or fly me to some tropical island.

  7. Steve,

    I completely understand the concept of EROEI, the decline of the super giant oil fields and the Export – Land Model by Jeffrey Brown which when all taken into account portend much higher energy prices. My question is, Suppose when the inflationary collapse starts in earnest, the elites convert to a new currency, let’s say the Bancor, which is now a global currency partially backed by Gold as well as a basket of currencies. Would that have a deflationary effect on the price of extracting and producing energy? Meaning, wouldn’t it cost less in EROEI due to a new “stronger” world currency? Thanks.

    • Anthony…. the problem with calculating the EROI, is that it has been done using the Dollar as a guideline. The authors of these EROI abstracts such as Hall, Cleveland, Murphy, Guilford, O’ Conner and et al, would like to do what is called as a pure EROI calculation based on energy itself.

      However, they can only get their data from companies who provide their costs and etc via the Dollar. That being said, it doesn’t matter if we figure an EROI in 1930, 1950, 1970 or today, because its basically showing how much energy it takes in each time period.

      When the U.S. was producing oil & gas at an EROI of 100/1 during the 1930’s, it had nothing to do with the STRONGER DOLLAR. It was just easier to produce oil at a much higher EROI due to the fact that the oil was highly pressurized and flowed out quite easily with very little cost.

      This differs entirely compared to the amount of energy that it takes to drill, frack and extract SHALE OIL…. which has an approximate EROI of 5/1. So, it really doesn’t matter if gold backs the worlds currencies because it is still a function of much higher energy costs alone.

      Lastly, the only reason why the SHALE ENERGY BONANZA has continued, especially in shale gas, is due to the bamboozling of the industry by Wall Street. Most of these Shale energy companies FREE CASH FLOW is negative so they needed additional funds to keep drilling and producing.

      You see, decline rates in Shale is something like 40-50% per year, so if you stop drilling then production falls off a cliff. This is indeed the problem with shale energy… once you start drilling…. you can’t stop or production dries up and blows away.

      So…. if we go onto a more GOLD BACKED TRADE SYSTEM, then the financialization of energy projects may actually decline due to fiscal restraint. No one considers that one. That is why I believe if we go to a more sound monetary policy, then we actually are going to see LESS ENERGY PRODUCTION rather than more.

      steve

      • Not sure I’m going to agree with your assumption that less energy would be produced. I’m sure that if we did not have a Federal Reserve sans rule of law and fractional reserve banking that yes, we would not be producing more energy. However, would it not be a plausible theory that we would not be in this predicament of Peak Cheap Oil, if we had inherenet financial constraints? Moreover, wouldn’t the money invested in financing flow more towards areas in the economy where it is needed rather than 70 % consumption and perpetual wars? Broken window theory. Possibly towards alternative energies instead and infrastructure? Thereby making this a smoother transition rather than the chaotic one that is currently set up. I know that’s the past but, couldn’t the same reasoning apply albeit with a really tough transition or maybe we are stuck with the inflate or die scenario. Just some thoughts.

        Thanks. All the best.

        Anthony

        PS – I really enjoy all your work.

  8. We are truly living in historic times.There are 5,YES 5, bubbles right now about to pop: stocks and real estate(AGAIN),USTreasuries,USD,and all paper currencies.

    You know,LEAP is right- the exorbitant privilege of debt issuance by the U.S. supported by the US Military Industrial Complex HAS CRIPPLED free market forces.2008 was the beginning NOT the end of this move toward a new monetary system.The economic fortunes of 7 billion people can only improve once the USD is removed as the world’s reserve currency.And until this occurs, the world will lurch form one catastrophe to another.We’re doomed.The Keynesian experiment began on Aug 15,1971 has run its course.

  9. austrian economists are NOT guilty of ignoring declining EROI or any other temporary “resource constraint”. because austrian economists promotes a free world, a pure capitalist system, based on sound money and free banking, where government powers is very much limited and does not intervene in economic activities. in such a world, because resources will be properly priced, ppl will always find alternatives to oil or reduce energy consumption thru technology based on true supply/demand mechanism.

    austrian economics is a very profound theory. i believe it is the only true and correct economic science, starting from basic axioms and deriving the entire framework using reason and logic.

    if you haven’t read Human Action by mises or books by murray rothbard, please don’t start to criticize the austrians.

    anyone who believes in sound money must study austrian economics, which is the only school that explains why sound money is a must in a free world/market.

    • Human Action is the greatest work of the 20th Century,and a treatise I refer to again and again.Pay no attention to the morons who think usury free pieces of paper printed at will and manipulated markets are somehow capitalism.

    • judejin

      Austrian Economics is an excellent and profound body of science, to be sure. But you just demonstrated Steve’s point. You state that once resources are properly priced, either alternatives to oil will always be found, or, energy consumption will be reduced via technology. This is not a new assertion. And it is one made specifically by those that do understand proper market function, yet fail to incorporate EROI. I’ll say it again, Austrian Economics is an excellent and useful body of science, but it is not the only science. Understanding it is hardly a reason not to study others.

      There are alternatives to oil; just none currently in sufficient quantity to replace it and keep things running the way we have grown to expect. And when the term “technology” is used as an answer, in-and-of-itself, it becomes no more than a chant/mantra. When technology is no more than a “faith” that IT will provide the answer, then you’ve circled right back to religion.

      Taking an honest look at what technology can actually provide/augment is to examine the consequences. Regarding peak-oil, technological solutions, and Austrian Economics, have you considered the Red Queen Syndrome? …Liebig’s Barrel? …Jevons Paradox?

  10. i truly believe in a free pure capitalist system, the earth would be a much different and better place.

    energy would have been used much more efficiently, nuclear power would have been built much more reliable and safe. alternative energy would have taken up much bigger share in total energy consumption a long time ago.

    a lot of energy right now is totally wasted, not productive.

    • roguefaction | August 19, 2013 at 10:01 am |

      Dude:
      I “truly believe” that you just jumped the shark in your above comment; however, your previous input being of high quality, and the salient fact that you are a poster from outside of the usual ‘western-centric’ zone of mind-controlled mendacity…

      allows us to give to you a chance to recover…

      Austrianism is not a synonym for “truth” ,,,please forward some sign of your continued access to independent thinking!

      give the cult thing a rest… all the best!

  11. in some sense, declining EROI is partly due to the wasteful social system.

    we can’t blame the earth for not having enough crude/gas or other natural resources.

    humans have only themselves to blame.

  12. The discovery of light sweet crude oil was a 1-time lottery ticket win for humanity. It was a good ride but the party is pretty much over.

    After WW3 and some serious de-population, maybe there will be a new energy cheap/clean energy paradigm, but it looks like there’s a lot of pain to go through 1st..

    • Nothing can replace fossil fuels. Even renewables require fossil fuels to build them. As such renewables can only be thought of as fossil fuel extenders. For example if a wind turbine has an ERoEI of 20 this means the fossil fuel energy input has been extendedy by 20 times. Once fossil fuels are gone no new wind turbines can be built because wind energy (or any other renewable energy) is sufficient to mine and smelt the steel required. The reality is that the carrying capacity of the earth will be less than 1billion within 50 years. Remember conventional oil which makes up 80% of our production is already declining by 5% per year. Unconventional oil production is struggling to make up the shortfall. How long will shale oil be able to increase production when individual wells have 40% annual decline rates? You’ve having a laugh as we would say in Britain.

  13. You do great work. Jim Willie does great work. James Dines does great work. Eric King does great work.

    Turd Ferguson couldn’t sell pensions/annuities, so now he browses the web for all available info on PMs and even steals knowledge from his reader base without giving credit, and sells it all for $$$.

    Annuities? Great idea! I found a guy on Youtube that can explain to you why it’s NOT: http://www.youtube.com/watch?v=XFCyGCCUiqM

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