ONE TOWN SQUARE: at the intersection of peak oil, climate change, and land use

We’re already in a “fast crash”

April 23rd, 2008 by Jim Just

Sharon Astyk at Casaubon’s Book observes that the debate about whether we are in for a “fast crash” or a “slow grind” is over – we’ve been in a “fast crash” since the beginning of 2008.

Here’s an abridged version of the evidence she compiles. Note she hardly mentions the implosion of the global financial system – only the housing collapse, which is only a symptom of the systemic crisis.

“In early 2008, the world’s food and energy train came off the rails. . .

“It started with biofuels and growing meat consumption rates. They drove the price of staple grains up at astounding rates. . .

“Haiti was an early canary in the hunger coal mine. Desperately poor, by early 2008, tens of thousands of impoverished Haitians were priced entirely out of the market for rice and other staples, and were reduced to eating “cookies” made of nutrient rich mud, vegetable shortening and salt . . .

“After riots over long bread lines threatened to destabilize Egypt, the Egyptian government set the army to baking bread for the hungry. Forty nations either stopped exporting grains or raised tariffs . . . The UN warned that 33 nations were in danger of destabilizing, and the list included major powers including Pakistan, Mexico, North Korea India, Egypt and South Africa. Many of these hold nuclear weapons.

Shortages were a chronic problem in the poor world, but by early spring of 2008, they began to arrive in the rich world – despite Japan’s deep pockets, a shortage of butter and wheat reminded the rich world of its dependence on food import. Many of the supply problems were due to climate change and energy issues . . .

The energy train and the food train were inextricably linked, and indeed directly (as the costs of diesel rose rapidly) and indirectly (rising energy costs created the biofuels boom) drove the food crisis. They were linked in other, complex ways as well – the housing collapse that threatened to plunge Europe and the US into a major depression was in part due to the high costs of commuting from suburban infrastructure. Exurban housing collapsed hardest, while housing closer to cities remained desirable – for a while.

While the food crisis in the poor world made headlines, the energy crisis there went almost unnoticed. More and more poorer nations simply could not afford to import oil and other fossil fuels, and began to slowly but steadily lose the benefits of fossil fuels. Nations suffered shortages of gas, electricity and coal. . .

“Industrial agriculture, described as “the process of turning oil into food” began to struggle to keep yields up to match growing demand. . . Climate change threatened to further reduce yields in already stressed poor nations . . .

“[C]limate change is expected to reduce rice yields by up to 30%, and food production in the already starving Sahel is expected to be reduced by half. GMOs, touted as a solution, have yet to produce even slightly higher yields. Arable land is disappearing under growth, while aquifers are heavily depleted – 30% of the world’s grain production comes from irrigated land that is expected to lose its water supply in the next decades.

Meanwhile the costs of fossil fueled agricultural skyrocketed, with Potash rising by 300% in less than a year . . .

“Meanwhile, the ability of nations to transport food supplies began to be called into question. Early trucker protests were intermittent and largely ineffective, but real predictions of diesel shortages and a shortage of refining capacity made it a real possibility that food might not reach store shelves.

Astyk asks, how does the story end? There is no end, just a continuing unfolding.

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