The concept of monetary gain as the driving force of all human interaction and the resulting economic that puts the siphoning of these surpluses by a capitalist elite in the center of our culture is based on the presumption that these surpluses not only exist indefinitely but grow exponentially forever.
As the production of Crude Oil has peaked in 2006 and will probably start declining very soon I argue that the basis of neoclassical economy, the capitalist economic system and the culture that is based on it, will collapse. As this is obviously happening all around us these presumptions should not come as a surprise.
Also, if connecting the dots between energy output and accumulation of wealth, it is not surprising that peak oil production and peak liquidity are happening at the same time, in fact it is a strong evidence for the assumptions made above.
Peak liquidity also means that the concentration of wealth and power reached its climax today. The power is mostly concentrated in financial industry and especially in investment banking. These financial institutions that are struggling with the amounts of liquidity they have to handle, have been driven to ever more radical measures to guarantee the yields they have promised to their customers.
They have as yet done so but could only achieve further capital gains for the rich by stealing from public wealth (state budgets, tax money, common goods etc.). This power also corrupted these financial institutions themselves to also (or primarily) act in their own interest, often even in fraudulent disregard to the customers they serve.
Even though capital has long ago disconnected itself from national boundaries and has become what we call globalization today, the governments of the countries where these institutions and most of their customers are at home have been corrupted by them beyond realistic hopes of salvation.
They have as yet done so but could only achieve further capital gains for the rich by stealing from public wealth (state budgets, tax money, common goods etc.). This power also corrupted these financial institutions themselves to also (or primarily) act in their own interest, often even in fraudulent disregard to the customers they serve.
Even though capital has long ago disconnected itself from national boundaries and has become what we call globalization today, the governments of the countries where these institutions and most of their customers are at home have been corrupted by them beyond realistic hopes of salvation.
The struggle for the remaining resources is, and has been, the cause for more and more conflicts around the globe but especially in the middle-east. Many of the countries that still hold oil reserves have dismissed all pretense of democracy and the ruling elites of these countries greedily rake in profits while they still can. (Saudi Arabia, Iran, Libya (past, future?), Russia, Sudan …)
It is obvious that the powers that be, those that thrived on the surpluses gained of the exploitation of virtually free energy, will not step down, distribute their wealth and live in modesty ever after. It is obvious that they feel they have a right to their capital gains and pursue this ostensible right by force. It is also obvious that they concentrate economic power, means of production, political power and armed forces in a way never seen before. The described results of peak oil will only escalate in the future.
Today the capitalists feel sure enough in their hubris to forgo any act of kindness towards the lower classes, because they can, as they are in control of the executive, and they must, because growth is no longer possible.
It is also a fact that we will not be able to sustain the leeches any longer. While it might be obvious for many it is not obvious for the leeches themselves. For their capital gains to grow further, the pressure they put on anybody working in a dependent employment will be increased.
As long as there was enough surplus to sustain capital gains by the increase of fossil fuel production to fuel the production of more (and more excessive, wasteful and worthless, i.e. SUVs) goods of consumption, it was possible to appease the public majority in capitalistic societies with some adjustment to the distribution of the riches.
As growth comes to a halt and surpluses sink, they enforce the reduction of wages to compensate. This can be seen in all countries around the western world today as wages stagnated for twenty years while capital gains skyrocketed.
Of course the result is the increasing gap between rich and poor and the end of any vertical social mobility that might have existed, as it is intended to be by those who are responsible for this development. If there is no growth, the rich can only get richer by the poor getting poorer (and by denying the not so poor any chance for also getting rich).
Especially the young generation is virtually shut out of partaking in this collapsing culture. For an ever increasing percentage of young people, finding a paying job that provides for their livelihood, an affordable home or any other positive outlook into the future seems impossible. Many break down under the increasing demands of the society, while education, health care or any other kind of benefit, that society has doled out freely to past generations is now only granted to the rich and their offspring.
The things that are done today in the name of greed show that any restraining boundaries that might have existed have fallen. Evident examples are trading with the debts of “third world” countries by vulture funds, land grabbing and the speculation with food or the circulation of fake malaria drugs in africa (the list could go on forever with examples of destruction and death in the name of money).
Even if it is hard to believe, it will get even worse in the future. As the corruption of governments grows, the fraudulent nature of trading worsens and the boundaries between “legitimate business” and organized crime get thinner, we will see more and more atrocities, things we couldn’t even imagine humans being capable of to come to the surface.
The embarrassing puppet shows staged by the “world leaders” to bring about a change for the better in banking regulation, wildlife protection, fishing regulations, global warming etc. were nothing more than a further waste of time and money. All they did was bringing to our notice the ineptitude of governments to put any kind of a moral restraint on the greed and wastefulness of capitalism.
continued here