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Saudi Arabia just said to the world:
"Don't look at me!"
The EIA and IEA prognostications on future world oil production will have to be ratcheted down once again... their "wishcasting" just got scrubbed.
OK. Who cares? The Peaknics were dead right/spot on. Now what?
The "what" is is that you have been put on clear notice that this is the time to spend your money doing all of the things you always wanted to do, and to take the remaining money and buy residential apartment properties, energy equities, utilities, and high dividend consumer product companies... but most importantly a homestead in low tax local and a local, productive, small business.
The world will not come to an end, but there will be winners and losers in all of this. There will be damn few "good jobs". There will always be commerce and small business. The U.S. will survive, but with a quite a bit of gnashing of teeth by a great many people. Don't let it be you.
There will absolutely, positively be a food crisis here in the U.S. sometime in the next 25 years, probably in the next 10. Will it be next year? I doubt it. Yes, food prices are rising - that's a good thing. It will encourage people to make cuts and adaptions, and to increase efforts to produce. Crop failure will likely not be the problem. The problem will be scarcity. As in a glass of water has no value on the beach at the Great Lakes; a glass of water in Death Valley on the other hand... The food supply's liability is transportation and weather. The weather problem has ALWAYS been there - we have just been lucky - but the transportation problem is going to come to a head in the very near future. Then we shall see what kind of redundancy we have in the system.
Like I said... life will go on. For those of us over 50, you are where you are and you are going to live with your life's vagaries, decisions, and luck (or lack thereof). This is all about the future, and the future belongs to young people. That said, it is hard to find a greater volume of denial than in young adults... these poor people are going into debt for college, spending tens of thousands of $$ on new cars, engagement rings, weddings, honeymoons, travel... even though they are still in debt for their college "education". They could have developed a marketable skill, got married at the Justice of the Peace for $15, and bought a homestead debt free with the money they spent on the ring, wedding party, and honeymoon... and why not? Because of their own ingrained denial helped in large part by the media.
I often hear the feminists rightfully criticizing the advertising and marketing industry for creating problems (in women's minds) that do not exist and then coming up with "solutions" and in the process destroying the mental health and emotional well being of their customers. I watch my Amish neighbors have a multitude of children, teach them skills, help them financially buy a homestead... and get going with their lives... all without the assistance of makeup, hair dye, breast implants, high heels, engagement rings (or jewelry of any type), or expensive weddings. Think about it for a minute. These Amish folks at the age of 25 own a homestead debt free, have kids, and have begun to save money to help their kids do the same (America's 25-year-old-"kids" are broke/in debt, living home with their parents, spending precious hours watching TV and playing video games). How do they do it? How much does it cost to buy 10 acres in rural Tennessee or Kentucky? $30,000? They construct the house themselves, no wiring to worry about, and minimal plumbing, all cabinetry and fixtures are made by the man of the house (remember, he actually has skills).... so what does a 1,200 square foot house cost? $60,000? With barns, livestock, equipment and a well, all in its $120,000. From what I gather, Amish men have this in the bank when they marry at 21 because they have been working since 13, and since they don't waste a great deal of money on marijuana, beer, rock concerts, hookers... all they need do is make barely over minimum wage to achieve this.
On the other hand... There is a non-Amish family farm across the street from ours... and we have been friendly with their kids ever since we moved here and they were little. The farm had been in the family for generations and had all the stuff you'd think you would need - a barn, a well with a hand pump, fruit bushes and trees, gardens and pastures. The place is falling down, the grounds are unkept, weeds choke the garden and the pastures... they have 4 kids and receive food assistance (they aren't married). My wife brought them some "Easter bunny cup cakes" yesterday. Now mind you, I have been working diligently at my garden, fruit patches, and crops every hour that the sun is up for the past 6 weeks.... know what the man of the house was doing when my wife stopped by? Watching T.V. The place is in complete disrepair, they have room to grow food and keep livestock but instead opt for government food assistance ... and he is watching T.V... and receiving food assistance (yes, I am repeating myself...). Did I mention that the property is in foreclosure? For well over 100 years that property provided for that family... and then the government showed up to "help". The oldest, a young man of 20 or so, has been in and out of jail on numerous petty crimes.
And the hits keep coming.
Our systems, not system, are broken. Our financial system, our food system, our family system, our political system - all broken. But you don't have to participate in ANY broken and enslaving system if you don't want to. All you gotta do is not want to. Some young people are getting this and are putting off adulthood as their response. Don't, you will regret that strategy. Do reject all of the norms that will lead you into "a life long hell of debt and indecision". Because there are no norms anymore.
to be continued...
I use isolated groups as control groups, not because I intend to start wearing straw hats and eschew bathing during the week... I make no assertion nor have any opinion on the philosophies, religious beliefs, political views of my control group... only that they seem to be thriving and I want to know why. I assert that our culture has been eviscerated by the education establishment, the political establishment, the entertainment and media industry... as proof, I am discussing their reproductive history, debt levels, and age of attainment (homeownership, marriage, children), etc... when I said that the future belongs to the young, that's only the immediate future - today's young will age, too. The longer term future belongs to those that breed - "those who breed, succeed". And what is standing between today's young people and their future? Debt and/or a lack of savings/resources. There are only 2 ways to fix this: increase net income or cut expenses. There's no mystery here.
I have considered our system ad nauseum. We keep our future young couple in school until they are in their mid - twenties, on average... then we have them buy separate houses (big expense here), cars etc... (keep this in mind: Society NEEDS a new crop of human babies every day - PERIOD - and we have established cultural systems to see that this gets done (although the quality of childhood of these babies needs be considered, i.e. manufacturing less criminals would be nice)... I am merely dissecting that system... just observing it and making notes...) our well-educated marry late, often times not having children until well into their late 30's or 40's and even 50's. This was all done ostensibly so that these people could become established and provide a bette life for their progeny, right? OK, SHOW ME THE MONEY!! American's are NOT better off financially than their parents despite all of these efforts, or am I missing something? If that is true, and we want to know why... we gotta go back to the video tape. My favorite "video tape" in this circumstance is the individual's personal calendar AND their personal checkbooks/financial statements.
Now guess what we find? There, imbedded in all of the minutia of the details of our lives that most people do not look at is the freaking TRUTH of your life. How much gasoline one burned. How much money one spent on drugs in college. How many days one slept in rather than "making the donuts". How many years one "wasted" (from a resources point of view) before actually settling down to the business of Life. Nobody wants to look at this stuff... it is just too painful. They'd rather blame a politician!
And what are the big expenses that prevented our future young couple from achieving some level of financial security? Tuition expenses (not just debt!), automobiles, living separately, engagement rings, weddings, and honeymoons, and divorce - the education/industrial complex and the marriage/divorce industrial complex. Remove that complex from the lives of the young middle and working class people and - Viola! Financial security.
This is not to say that society does not need educated professionals! It certainly does. My bet is that that could be accomplished FAR more efficiently if reconstructed under a vigorous cost/benefit analysis. Until that time, you will have to do that cost/benefit analysis for your own circumstances, because the end of the Oil Age is upon us! The debate is over. Peak Oil won. Now what? Whatever that "what" is for today's future young couple, it ain't the same "what" that worked for the older Boomers.