I’m not much of a socialite and only go out occasionally. A dear friend invited me to Christmas dinner and I decided to go knowing that the company would not be your run of the mill crowd. True to form, guests were and eclectic group of people with unusual backgrounds. All were well read and all were recognized and prominent exponents of their professions in their chosen fields of activity and all had fascinating life experiences to share making for rewarding conversation.
Anxious to throw the cat amongst the pigeons, the point at which we were well into our dinners, in a moment when the conversation seemed to taper off, I suddenly asked whom amongst them had bought the Global Warming rhetoric.
Though the company was exceptionally friendly and willing to engage in polite arguments, the wicked use of the word “bought” in asking my question had the predictable effect to light up all their intellectual warning lights. You could almost hear the blood rushing up from the main area of activity at that moment (the stomach) en route to the brain as the little guys manning their respective cerebral control rooms suddenly stirred from their festivity induced lull to make a panicked appeal for fuel to counter a situation that may require prodigious amounts of arguing power.
And so it was that passions were aroused. Because GW is now more of an emotional issue than a rational and objective one.
All could agree that climate had changed. Firs- hand accounts of depleted fish stocks, damaged coral reefs and changed weather patterns came forth thick and fast.
Finally, someone offered the timeless and misguided argument that sets forth that regardless of whether GW is true or not, we have nothing to lose by implementing legislation aimed at reducing noxious gases.
The company being polite, guests felt the conversation may take a turn for the worst so it was allowed to tail off.
So here is the moral of the story from my point of view.
The final argument reminded me of that annoying email that used to circulate persistently some years ago that was purportedly sent by Bill Gates. The email stated that Microsoft was conducting a secret experiment and that Bill Gates himself would give US$5000 to anyone that would forward the email to all their contact list. Most recipients of the email duly forwarded it to friends and colleagues attaching a message that said: “You never know. It might be true. Anyway we have nothing to lose by forwarding it”.
Of course we all had something to lose by anyone forwarding what was clearly and blatantly a scam to collect email addresses that went to enrich the databases of spammers and hackers. All hackers wanted, was a juicy address of someone in a bank or in a ministry or a credit card company in order to try to plant trojans and viruses.
Similarly with Climate Change, we stand to lose a great deal by allowing ourselves to be roped in by a doctrine that appeals to our sense of moral rectitude but does not stand up to rationalization, just because it is perceived that, anyway, we have nothing to lose by going along with it.
Of course we want clean air, clean cities, clean seas and prosperous forests and coral reefs. It would be nice. But in order to achieve that, we must put the horse before the cart. CC legislation does not even contemplate a horse. It is purely a gravy cart meant to be pushed by you and me.
If you follow this blog, you know my pet peeve is inflation. Rather, my pet peeve is the arbitrary imposition of an unchecked fiat monetary system that leads necessarily and inevitably to an accelerating inflationary dynamic.
Most people have no idea what fiat money is. Most people therefore cannot make the necessary connections that would allow them to realize that CC is a boondoggle. And as boondoggles go, this one is a biggie.
But before we get into that, lets explore a few of the inconsistencies in the CC doctrine. First and foremost, it is established fact that climate changes. It has always been so and there is absolutely no reason why it should not be so now. The fact that man should think that his actions have any bearing on climate is reminiscent of the Geocentrism that prevailed during the dark ages; man is the center of the universe and everything revolves around us. The mere thought that man could alter climate is equivalent to saying that we are capable of altering tides (King Canute anyone?) or, more appropriately, the trajectory of earth in space.
Then there are the laws of thermodynamics one of which states that nothing is created and nothing is destroyed but everything is transformed. So, we know that, for example, oceans are great sinks of CO2 and that during warming they release the gas and that they absorb it during cooling. What we don’t know is whether the oceans are releasing CO2 because the climate is warming or whether the climate is warming because the oceans are releasing CO2. Classic chicken and egg situation.
Then there is CO2. As far as I know, CO2 is plant food. Plants feed on CO2 so technically, more CO2 should be a bonanza for our forests and jungles… and our gardens.
Then there is the fact that from a millenarian point of view, there is nothing particularly unusual going on with current temperatures or with the depletion of glaciers in certain places and their extension in other places. For more information on these subjects you can look up “Debunking AGW” on this blog. Here is also another piece of interesting research:
Then there is the fact that the single greatest contributor of noxious gases to the atmosphere is the agricultural sector and, in particular, the live stock sector with its ancillary activities. This is actually very important to keep in mind for the purposes of this essay.
Now, in order to understand where I am coming from, you must understand the logic of fiat money and you should read the introduction under “Aims and rationale” on this blog. It is lengthy and probably lacking but should be a good primer for further reading. In the meantime, here is a crash course.
By deliberately and arbitrarily imposing a fiat monetary system, government makes the implicit choice to push inflation faster than underlying economic activity. Inflation is a dynamic that is exponential in nature thus it is limited mathematically. As an exponential dynamic, inflation gradually leads to commercial and industrial overcapacity thus it compresses in time the production and consumption cycles thus it boosts GDP nominally (but not necessarily intrinsically). But accelerating inflation fosters accelerating consumption thus the depletion of natural resources (i.e. agriculture and fish stocks) thus leading to aberrations in the economy and politics (subsidies and protection of industries). As an exponential dynamic, it follows that inflation is limited mathematically thus as the “beneficial” effects of inflation tail off (GDP boosting), government has a vested interest in maintaining a positive inflationary trajectory by any means possible. Thus the arbitrary use of fiat money must inevitably and necessarily lead to government becoming the largest actor in the economy.
As the largest actor in the economy, it follows that government has a vested interest in maintaining a positive inflationary trajectory regardless of any moral or fiduciary obligations as may be held as self evident. That is, once past the peak of the perceived “beneficial” effects of inflation, inflation becomes vital to the existence of government therefore it becomes a goal unto itself.
The logic of a fiat monetary system dictates that in order to survive, the system must systematically assimilate new markets and new currencies: i.e. abrogation of Bretton Woods in 1971 and adoption of the US$ as reserve currency, creation of the Euro, globalization. The other necessary precondition of fiat money is the total disregard for intrinsic value. Thus today globally we finally have a USDollar based, floating exchange rate, monetary system.
The rationale of Climate Change legislation therefore, inscribes itself in the fiat monetary logic. That is; at a time when the traditional tools used by government to induce inflation are failing, it becomes necessary to push through to even greater lengths the amalgamation of executive power by simultaneously dismantling layers of democratic mechanisms deemed to hinder the pursuit of what is perceived as legitimate raison d’etat (i.e. Lisbon Treaty and Patriot Acts). At the same time, due to a perception that historic strategies have served well to induce inflation, Climate Change is proposed as a way to impose still more layers of payments and disbursements aimed at boosting the velocity of circulation of the currency. That is because, as is evident in the graph below, despite the gargantuan sums that Western governments have shoveled into the economy in the past 18 months, the new currency has lost its traditional multiplier effect as contemplated by Keynesian theory:
I am all for a clean environment and I would be a ferocious enforcer of legislation that is already existing in order to throw the book at anyone that, willingly or by negligence, pollutes the environment. But from there to supporting what is blatantly Fascist legislation that steam-rolls a bunch of democratic mechanisms in a wasteful and self serving attempt at the perpetuation and enlargement of government… then, no, I am not game.
Now that you have an initial grasp of our monetary system, I leave you with a last thought:
Knowing what the characteristics of inflation are, does it not seem contradictory that government should at once plead for the environment whilst simultaneously trying to kick start the inflationary dynamic to levels approximating the average of the last ten years?
If anyone should really want to do anything about the environment and the devastation of our resources, we should be looking at taking our governments to task on the monetary system. Excess consumption is not good for the environment. The monetary system is the one single construct we should revise.