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A MEANS OF CONTROL by Jay Hanson,
01/01/00
Treason doth never prosper: What's the reason? For if
it prosper, none dare call it treason. -- John Harington, 1618
Man still bears in his bodily frame the indelible stamp
of his lowly origin. -- Charles Darwin, 1871
Males typically obtain meat in human and nonhuman primate
societies and then attempt to use it to manipulate or control females. -- Craig
B. Stanford, 1999
A feeling arose in the Renaissance -- and crystallized by
the seventeenth century -- that moralizing and preaching religious
doctrine could no longer be trusted to restrain the destructive passions
of men.[2] A new means of control had to be found:
"Peasant rebellions were not exceptional events. They
erupted so frequently in the course of these four centuries that they may be
said to have been as common in this agrarian society as factory strikes would
be in the industrial world. In southwestern France alone, some 450 rebellions
occurred between 1590 and 1715. No region of Western Europe was exempted from
this pattern of chronic violence. The fear of sedition was always present in
the minds of those who ruled. It was a corrective, a salutary fear -- since
only the threat of insurrection could act as a check against unlimited
exactions."[3]
Bernard Mandeville (1670?-1733) suggested that a society
based on the deadliest of the seven deadly sins[4] -- "avarice" -- would create
common Machiavellian interests and suppress irrational passions. Mandeville's
ideal society was one where the unwitting cooperation of individuals, each
working for his or her own interest, would result in the greatest benefit to
society at large. Mandeville anticipated laissez-faire economic theory, which
promoted self-interest, competition, and little government interference in the
workings of the economy.
The utopian agenda of economic liberalism to set up a self-
regulating market system was fully realized in the American political model --
one dollar, one vote:
"In 1884, one of the wealthiest men
of his time, Henry B. Payne, wanted to
become the next United States senator from
Ohio. Payne's son Oliver, the treasurer of Standard
Oil, did his best to help. Just before the
election for Ohio's seat, son Oliver 'sat
at a desk in a Columbus hotel with a stack
of bills in front of him, paying for the
votes of the state legislators,' who then elected
U.S. senators."[5]
The most important function of a market system is its
political function.[6] The market system serves as a stealth political system
to foster rational thought, universal values based on calculation, and world
peace based on self-interest. Great idea! But despite good intentions,
inherently defective economic methodology has led to two world wars with
millions killed:
"By the end of the seventies the
free trade episode (1846-79) was at an end; the
actual use of the gold standard by Germany marked
the beginnings of an era of protectionism and
colonial expansion... the symptoms of the
dissolution of the existing forms of world
economy -- colonial rivalry and competition for exotic
markets -- became acute. The ability of haute finance
to avert the spread of wars was diminishing
rapidly... For another seven years peace dragged
on but it was only a question of time before the
dissolution of nineteenth century economic
organization would bring the Hundred Years' Peace
to a close."[p. 19]
"The origins of the cataclysm lay in the utopian endeavor
of economic liberalism to set up a self-regulating market system."[p. 29] [7]
Today, this same flawed economic methodology is being taught
to students all over the world and is leading to a new generation of world wars
with billions killed.
SOCIAL PHYSICS The true nature of the highly artificial
economic organization on which peace rested becomes of utmost significance to
the historian. -- Karl Polanyi
Modern economics is shrouded in idiosyncratic self-serving
definitions, arcane mathematics, and circular arguments which make it very
difficult to understand. But once one gets the scorecard straight, it can be
seen that modern economics is nothing more than a social imitation of
nineteenth-century physics:
"[ With the development of modern
physics ] it became possible to see
orthodox economic theory for what it really
was: a bowdlerized imitation of nineteenth-
century physics... It was not the methods of science
that were appropriated by the early
neoclassicals as it was the appearances of
science, for the early neoclassicals
possessed a singularly inept understanding
of the physics they so admired... [
Neoclassical economists attempt ] to reduce all
social institutions such as money, property
rights, and the market itself to
epiphenomena of individual constrained
optimization calculation. All these
attempts have failed, despite their supposed
dependence upon mathematical rigor, because they
always inadvertently assume what they aim
to deduce... Conservation principles are
the key to the understanding of a
mathematical formulation of any phenomenon,
and it has been there that the
neoclassicals have been woefully negligent."[8]
Economists are trained to believe that "money" is to the
economy what "energy" is to the physical world. This leads them to believe that
whatever is "economically" possible is "physically" possible too. What
economists fail to realize is that the economy is a subsystem of the physical
system, and thus constrained by universal physical laws that they have not
studied. Economists do not know that something must be physically possible
before it can be economically possible. Since they only study money, they have
no idea where the physical limits, and thus, economic limits are.
Since economists study the prices of everything, they feel
they are qualified to issue opinions about everything. But the reality is quite
the opposite. Economists first abstract all commodities to money -- which of
course, obliterates all physical differences between the commodities
themselves. This leaves economists uniquely unqualified to know the physical
relationships between the commodities they purport to study. Because of their
total dependence on the measure of "money", today's leading economists do not
even know the difference between " libraries" and "oil":
"Should we be taking steps to limit the use of these most
precious stocks of society's capital so that they will still be available for
our grandchildren? ... Economists ask, Would future generations benefit more
from larger stocks of natural capital such as oil, gas, and coal or from more
produced capital such as additional scientists, better laboratories, and
libraries linked together by information superhighways? ... in the long run,
oil and gas are not essential." [Nobel Laureate Paul Samuelson and William
Nordhaus] [9]
Obviously, the economics taught by Samuelson and Nordhaus
has nothing to do with science.[10] If it's isn't science, it's ideology. Since
economics has a political agenda, it becomes nothing more than politics in
disguise.
POLITICS IN DISGUISE The economist's political agenda
is pretty simple: establish a global self-regulating economic system. In order
to convert economic students into lifelong politicians, they are programmed via
circular argument and "post hoc, ergo propter hoc" (after- the-fact) reasoning
to believe most flagrant violations of reality. Consider four of the most
outrageous.
#1. Economists are trained to believe that "money" has
nothing to do with politics and is simply a medium of exchange. But even the
casual observer can see that money is social power because it "empowers" people
to buy and do the things they want -- including buying and doing other people:
politics. Money is, in a word, "coercion",[11] and "economic efficiency" is
correctly seen as a political concept designed to conserve social power for
those who have it -- to make the rich, richer and the poor, poorer.
#2. Economists are trained to believe that people always
"benefit" from free market transactions. Nobel Prize-winning economist Milton
Friedman explains: "Adam Smith's key insight was that both parties to an
exchange can benefit and that, so long as cooperation is strictly voluntary, no
exchange will take place unless both parties do benefit."[12]
Since economists do not explicitly define "benefit", one
wonders how Friedman could possibly know? In fact, he doesn't. Friedman is
programming his unsuspecting students to further his own personal political
agenda. Economic professors like Friedman resort to meaningless, circular
arguments to convince their students. For example, economists assume people
make "rational" [13] decisions but abstain from testing that assumption.
Instead of testing, economists invoke "revealed preferences theory" which
states that choices are rational because they are based on preferences that are
known through the choices that are made.[14] In other words, meaningless,
circular arguments.
#3. Economists are trained to believe there are no "limits
to growth". Because they abstract everything to money, even leading economists
like William Nordhaus can't imagine an economy that is physically limited by
energy. The best Nordhaus can do is to model increasing energy prices:
"The estimate is based on an energy model I constructed
several years ago. To estimate the drag on economic growth, I calculated the
difference between the economic growth rate with actual energy supplies versus
a case in which current (low cost) fuels were available in infinite quantities.
In the first case, energy prices would be rising, while in the second case of
superabundence, relative energy prices would be constant. This study indicated
that the resource-limited case would lower net output in the middle of the next
century by about 10 percent."[15]
Although Nordhaus thinks he is modeling "energy", he is
actually modeling "energy prices". There is a big difference! What would have
happened if he had modeled declining energy inputs instead of rising energy
prices? We already know the answer to that one:
"In late 1973 the first OPEC oil shock
struck, as oil prices quadrupled and the general
inflation indexes shot up to 11 percent. More
important, gasoline lines appeared. Waiting in line to
buy a basic commodity like gasoline is something that
no American had ever experienced. Shock and irritation
were high, but those lines were like the first small
heart attack -- an indication of mortality. Maybe the
American economy was growing old and becoming vulnerable.
Maybe the American economic dream of an ever rising standard
of living was over. Small may be beautiful, but if that
phrase meant a lower standard of living, then the
average American considered it a nightmare.
"The Nixon-Ford Administration
responded with oil and gas price controls. As a
vehicle for holding down prices, controls were
bound to fail. For one thing, world prices would
have to be paid on that part of consumption imported
from abroad; for another, controls make it too easy
for oil companies to hold oil in the ground or
not to look for new supplies of oil until prices
rose. When controls did fail, the public's
feeling that the federal government and its
economists were incapable of managing anything efficiently
was further reinforced.
"What was worse, economists could
pose no solution to the energy problem.
Influential professionals, such as Milton
Friedman, predicted that the oil cartel would quickly fall
apart. It didn't. Other economists recommended that
prices be allowed to climb to world levels, but
that wasn't a solution to the problem faced by
the average American. Higher prices would force
him to change his life style. He might respond to
higher prices with smaller cars and colder houses
as economists predicted, but he liked doing neither
and he could vote. No one considered a forced change
in life style a solution.
"Once again, falling back on the
principle that higher unemployment would produce
lower inflation, monetary authorities tightened
the rate of growth of the money supply in an
effort to slow the economy, raise unemployment,
and push inflation out of the economy. This time the
policies produced a credit crunch. For six months in
late 1974 and early 1975 the GNP fell at the
fastest rate ever recorded. Even the rates of
decline in the Great Depression had been less
precipitous -- although of course longer and
deeper. Anxieties quickly shifted from an
unacceptable inflation rate to an unacceptable unemployment
rate, and the term 'stagflation' was born.
"Stagflation was both a term and an indictment, since
economists had taught that the phenomena -- slow growth, rising unemployment,
and rising inflation -- could not all exist at the same time. Yet they
did."[16]
#4. Economists are trained to believe that we will never
"run out" of a commodity. This is because as prices increase, we will use
less-and-less of it, but there will always be some available at some finite
price. Practically every economics textbook teaches this. But every economics
textbook is wrong because "energy" is fundamentally different from every other
commodity. There is no substitute for energy. Energy is the prerequisite for
all other commodities, so if we "run out" of energy, we will "run out" of
everything else too.
By definition, energy "sources" must produce more energy
than they consume, otherwise they are called "sinks". By definition, energy
sources have "run out" when they consume more energy than they produce. This
universal energy law holds no matter how high the money price of energy goes.
Economists completely miss this basic energy law and have misled government
regulators all over the world.
Here is part of an interview with Nobel Prize-winning
economist Milton Friedman (worth quoting at length because of his colossal
stupidity):
Ravaioli: But there are many other
environmental problems ...
Nobel Laureate Friedman: Of course. Take
oil, for example. Everyone says it's a limited resource: physically it may be,
but economically we don't know. Economically there is more oil today than there
was a hundred years ago. When it was still under the ground and no one knew it
was there, it wasn't economically available. When resources are really limited
prices go up, but the price of oil has gone down and down. Suppose oil became
scarce: the price would go up, and people would start using other energy
sources. In a proper price system the market can take care of the problem.
Ravaioli: But we know that it takes
millions of years to create an oil well, and we can't reproduce it. Relying on
oil means living on our capital and not on the interest, which would be the
sensible course. Don't you agree?
Nobel Laureate Friedman: If we were
living on the capital, the market price would go up. The price of truly limited
resources will rise over time. The price of oil has not been rising, so we're
not living on the capital. When that is no longer true, the price system will
give a signal and the price of oil will go up. As always happens with a truly
limited resource.
Ravaioli: Of course the discovery of new
oil wells has given the illusion of unlimited oil ...
Nobel Laureate Friedman: Why an
illusion?
Ravaioli: Because we know it's a limited
resource.
Nobel Laureate Friedman: Excuse me, it's
not limited from an economic point of view. You have to separate the economic
from the physical point of view. Many of the mistakes people make come from
this. Like the stupid projections of the Club of Rome: they used a purely
physical approach, without taking prices into account. There are many different
sources of energy, some of which are too expensive to be exploited now. But if
oil becomes scarce they will be exploited. But the market, which is fortunately
capable of registering and using widely scattered knowledge and information
from people all over the world, will take account of those changes.[17]
POLITICS IN ACTION In fact, none of the Club of Rome's
predictions has failed. Economists like Friedman routinely misrepresent the
study in order to further their global political agenda. Once the economist's
neurons and dendrites are fully programmed (usually for life), economists serve
as robotic broadcasting devices explicitly designed to hide the political
nature of the economy from the public. In other words, the economist serves no
function in society except to protect the ruling elites from public scrutiny
while they loot the planet.
The United Nations, the World Trade Organization, and the
International Monetary Fund have all followed the American lead and attempted
set up a global self-regulating market system based on these same elaborate
economic lies:
"There are no... limits to the carrying capacity of the
earth that are likely to bind any time in the foreseeable future. There isn't a
risk of an apocalypse due to global warming or anything else. The idea that we
should put limits on growth because of some natural limit, is a profound error
and one that, were it ever to prove influential, would have staggering social
costs." -- World Bank chief economist, Lawrence H. Summers, Nov., 10,
1991
Endless economic growth is the sine qua non of the
economist's agenda. If there are, in fact, limits to growth, then the fraud
will be exposed and public attention will shift from "economic growth" to
"economic redistribution". This is why the ruling elites work so hard to
discredit (via their economist robots like Summers) anyone who claims that
limits to growth do, in fact, exist. Also see THE ECONOMIST, December 1997:
"So, according to the Club of Rome,
[petroleum] reserves should have been overdrawn by 50 billion barrels by 1990.
In fact, by 1990 unexploited reserves amounted to 900 billion barrels -- not
counting the tar shales, of which a single deposit in Alberta contains more
than 550 billion barrels.
"The Club of Rome made similarly
wrong predictions about natural gas, silver, tin, uranium, aluminum, copper,
lead and zinc. In every case, it said finite reserves of these minerals were
approaching exhaustion and prices would rise steeply. In every case except tin,
known reserves have actually grown since the Club's report; in some cases they
have quadrupled."[18]
But THE ECONOMIST is just plain wrong! The Club of
Rome expected reserves to quintuple! Here are the actual scans from the
book: http://dieoff.com/LimitsToGrowth.htm.
Economists routinely misrepresent the Club of Rome's pioneering work.[19]
OIL IS THE PREREQUISITE "Oil has literally made foreign
and security policy for decades. Just since the turn of this century, it has
provoked the division of the Middle East after World War I; aroused Germany and
Japan to extend their tentacles beyond their borders; the Arab Oil Embargo;
Iran versus Iraq; the Gulf War. This is all clear." -- Secrectary of
Energy, Bill Richardson December 9, 1999
Although economists treat energy just like any other
resource, it's not like any other resource. Available energy is the
precondition for all resources -- including more available energy.
For many years, geologists and petroleum engineers have
published estimates of how much oil can be recovered from any given basin. This
is known as "Estimated Ultimately Recoverable" (or EUR) oil. Remarkably,
estimates of total worldwide EUR oil have varied little over the past half
century![20]
Forty years ago, geologist M. King Hubbert developed a
method for projecting future oil production and predicted that oil production
in the lower 48 states would peak about 1970. This prediction has proved to be
remarkably accurate. Both total and peak yields have risen slightly compared to
Hubbert's original estimate, but the timing of the peak and the general
downward trend of production were correct. Hubbert showed that oil production
begins to peak and starts to decline when approximately half of the EUR oil has
been recovered.
The petroleum industry itself has announced that global
oil production will "peak" in less than ten years!
IHS Energy Group (formerly Petroconsultants) is the world's
leading provider of data and analysis for oil exploration and production. The
company maintains its headquarters at a custom-built communications center in
Geneva. It also has offices in London, Houston, Calgary, Sydney, Perth,
Singapore and Hong Kong and a global information network. The backbone of the
company is a staff of 300, embracing numerous nationalities, cultures and
professions, specializing in petroleum geology, geophysics, petroleum
engineering, economics, political science, petroleum legislation, cartography,
computer science and information technology.[21]
In 1995, Petroconsultants published a report for oil
industry insiders ($32,000 per copy) titled WORLD OIL SUPPLY 1930-2050 which
concluded that world oil production could peak as soon as the year 2000 and
decline to half that level by 2025. Large and permanent increases in oil prices
were predicted after the year 2000.[22]
ECONOMIST VS GEOLOGIST According to Philip K. Verleger,
Jr.: "No person has had a greater influence on the thinking of experts who have
become government regulators of the world's oil and gas industries than Morry
Adelman."[23] If Verleger is right, then government regulators all over the
world are going to be in big trouble soon because according to economist
Adelman:
"Minerals are inexhaustible and
will never be depleted. A stream of investment
creates additions to proved reserves, a very
large in-ground inventory, constantly renewed as
it is extracted... How much was in the ground at
the start and how much will be left at the end are
unknown and irrelevant."[24]
Could Adelman be right? Hardly! Obviously, oil and gas are
not "renewed" as they are extracted, otherwise energy companies wouldn't have
to keep drilling new holes. But more importantly, Adelman doesn't realize that
oil and gas are in such great demand because they are sources of "energy" --
not because they are "minerals". Economists like Adelman are blind to the
unique properties of energy because they abstract everything to money and,
thus, know nothing about energy.
Adelman: "There are plenty of fossil fuels and no limit to
potential electrical capacity. It is all a matter of money."[25] But Adelman is
just plain wrong. It's not a matter of "money" -- it's a matter of "energy".
It's a bit late, but regulators are starting to get the message because leading
petroleum engineers and geologists are actively opposing the economists.
In November 1997, the International Energy Agency (IEA)
convened an Oil Conference in Paris. Jean Laherrère and Colin
Campbell[26] presented three papers on oil depletion (against Adelman and Lynch
from MIT).[27] As a result of this conference, IEA prepared a paper for the G8
Energy Ministers' Meeting in Moscow March 31, 1998. IEA followed Laherrere and
Campbell's view and forecast a peak in conventional oil for 2010 at 78.9 Mb/d
and a decrease in 2020 at 72.2 Mb/d.[28] According to Richard Duncan, this
represents a significant reversal of the IEA position: "This is a real
stand-down for them because until recently they were in the Julian Simon
no-limits camp."[29]
THE UTOPIAN AGENDA HAS FAILED -- AGAIN! The
prerequisite for a global self-regulating market system is peace, which in turn
requires ever increasing standards-of-living:
War analyst Stanislav Andreski concluded that the trigger
for most wars is hunger, or even 'a mere drop from the customary standard of
living.' Anthropologists Carol and Melvin Ember spent six years studying war in
the late 1980s among 186 preindustrial societies. They focused on precontact
times in hopes of collecting the 'cleanest, least distorted' data. Andreski, it
seems, was right. War's most common cause, the Embers found, was fear of
deprivation. The victors in the wars they studied almost always took territory,
food, and/or other critical resources from their enemies. Moreover,
unpredictable disasters -- droughts, blights, floods, and freezes -- which led
to severe hardships, spurred more wars than did chronic shortages.
"This also holds true among modern nations. In 1993,
political scientists Thomas E Homer-Dixon, Jeffrey H. Boutwell, and George W.
Rathjens examined the roots of recent global conflicts and concluded, 'There
are significant causal links between scarcities of renewable resources and
violence.' "In short, many wars seem to be a mass, communal robbery of another
social group's life-support resources."[30] Ever increasing standards-of-living
require ever increasing per-capita energy use: "If one considers the last one
hundred years of the U.S. experience, fuel use and economic output are highly
correlated."[31]
But Richard Duncan discovered that the utopian agenda failed
in 1978!
Global energy-use per capita increased during the
sub-interval from 1850 to 1909 by a strong 3.88%. Then -- despite World War I,
the Great Depression, and World War II -- energy-use per capita from 1909 to
1945 still managed to increase by 0.92%. Next came the exuberant post-war years
from 1945 to 1973 when energy-use per capita grew by a remarkable 3.51%. Then
strong growth ended abruptly in 1973. Thereafter, world energy-use per capita
peaked in 1978 and then went into an irregular decline, averaging 0.36 % per
year from the peak in 1978 through 1997. Although global energy use per capita
has been declining at an average of 0.36% per year since 1978, energy use in
the US has increased an average of 0.7 % per year since 1983:
The near-term "peak" in global oil production means will
make it physically impossible -- thus economically impossible -- for the
so-called "developing" countries to ever "develop":
AN ENERGY-LIMITED ECONOMY An "energy-limited economy" is
one where more energy cannot be had at any price. The global economy will
become "energy- limited" once global oil production peaks in less than ten
years (perhaps much less). J. Gever et al. has calculated that if society waits
for the "market signal" before embarking on a crash program of alternative
energy development, then the net energy available for non-energy sectors of the
economy could drop to about 25% of present values before starting to climb
again. In other words, about a 75% drop on non-energy GDP.
In an energy-limited economy it is physically impossible --
thus, economically impossible -- to provide a constant level of energy for
non-energy sectors of the economy during a shift to alternative energy. Keeping
the production of goods and services at current levels will require more energy
than we can presently generate. To have more energy in the future means that
energy must be diverted now from non-energy sectors of the economy into future
energy generation.
Economic development projects must "compete" with each other
for available energy. The rich and powerful will buy up -- or simply take --
all the energy they need and the poor will die off.[32]
HOW COULD IT BE OTHERWISE? In less than 20 years, the
self-regulating market system will have "run out of gas" and vanished. With the
market system gone, the ruling elites will fall back on the good old-fashioned
means of control: a police state. In the US alone, 200 million guns in private
ownership guarantee that this police state will quickly devolve into rebellion
and anarchy.
If the anarchy scenario were to reach its natural
conclusion, the global elites would be eliminated by the angry masses. Those
who managed to escape would die more miserably than the poor since they are
unsuited for day-to-day survival because they lived their lives like queen
bees.
But when the above scenario seems inevitable, the elites
will simply depopulate most of the planet with a bioweapon. 33 When the time
comes, it will be the only logical solution to their problem. It's a
first-strike tactic that leaves the built- infrastructure and other species in
place and allows the elites to perpetuate their own genes into the foreseeable
future: "War is a male reproductive strategy. All that is needed for the
strategy to evolve, is that aggressors fight and win more often than they
lose".[34]
The global genocide will be rationalized as a second chance
for humanity -- a new Garden of Eden -- a new Genesis. The temptation will
prove irresistible:
"Strangelove said, 'Offhand, I should say that in
addition to the factors of youth, health, sexual fertility, intelligence, and a
cross section of necessary skills, it would be absolutely vital that our top
government and military men be included, to foster and impart the required
principles of leadership and tradition.'
"The arrow had not missed its mark, and around the table
there was an outbreak of sober, nodding heads. Attention was concentrated more
than ever on Doctor Strangelove.
"Strangelove went on. 'Naturally they would breed
prodigiously, eh? There would be much time and little to do. With the proper
breeding techniques, and starting with a ratio of, say, ten women to each man,
I should estimate the progeny of the original group of two hundred thousand
would emerge a hundred years later as well over a hundred million...'"
How could it be otherwise?
WHAT YOU CAN DO! #1. Move out of the city! Sometime in
the next couple of decades, civil authority in large US cities will simply
disintegrate. And when authority goes, we know exactly what's going to happen.
Remember the Rodney King rebellion? All that old class hatred and jealousy
comes boiling to the surface. It's really going to be ugly -- you don't want to
be there! Go somewhere where the climate is warm, with plenty of rain (just
don't come here to the Kona Coast.) I don't think "ethnic cleansing" will be a
big problem except in the cities (at least, not to start with).
#2. Prepare yourself to survive without municipal power,
water, or sewer services. You won't have to live without hookups initially, but
you will be forced to do without them sometime in the next few decades. Most of
the country's groundwater is already contaminated, and once sewage systems and
dumps are abandoned, it will ALL become contaminated. Without power to pump or
chlorine to disinfect groundwater, you really have no option except to rely on
rain catchment for drinking water.
#3. In order to survive, you are going to need a large
garden. An oversized garden would allow you to exchange your extra produce to
your neighbors for hard goods -- like ammunition.
#4. Remember that you will not be able to rely on complex
technology, because once supply lines break down, you won't be able to get
spares. So limit yourself to technology that you can fix with a hammer and
forge. (If you don't know what a "forge" is, go see an old cowboy movie.)
Beyond these four points, just try to fit in with your
community as best you can. Perhaps join a church, lodge, or club -- find
someone who is willing to help you in case you are attacked.
Obviously, I don't follow all of my own suggestions, but
it's something to think about. Good luck, Jay
A Means of Control,
References |