Thursday, September 2, 2010

Rede von Peak Oil

The German military, according to Raw Story, is now apparently hip to the peak oil dilemma

They apparently acknowledge the far-reaching consequences of this realization - increasing fuel prices making transportation of goods and people ever more expensive, creating extensive economic disruption. 

Free markets and globalization - brought to you by Milton Friedman and Petroleum.   

When the oil gets more expensive and harder to draw from the ground (or the Alberta Tar Sands), the already deadly scramble for the scraps will become ever more bloody - which might lead populations to question the validity of the entire market-based economic philosophy championed by or influenced by Friedman and his disciples in high places.   This questioning may lead to a return to trade barriers and tariffs -a Friedmanist nightmare, but if you are in a desert searching for the nearest water source, would you spend time pondering and experimenting with the theory that if you get a shovel and dig far enough, that water will magically sprout from the dead earth under you?   I'll take my chances with the search (and perhaps, the nearest cactus).

From a trade and economic standpoint, the biggest lesson here is:  "Free Trade" is an oxymoron.    Someone or something is going to pay, and in the corporatocracy's insatiable desire to externalize expenses for the sake of "fiduciary responsibility", we know who and what that is going to be.  Look no further than the recent BP gulf disaster.

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