[…] With China becoming a presence by necessity in the region, we would be back in a cold war again, or something worse, contesting with a rival worl… - James Howard Kunstler

In the face of the things like the , the scare, the , and other disasters that eroded the notional value of financial paper, homeownership itself was now turned into a magical generator of unearned riches for both borrowers and lenders. It was consistent with the Las Vegas-ization of the national moral sense, chiefly the increasingly popular belief at every level of American life that it really was possible to get something for nothing. Anyone could see this in the easy public acceptance of gambling as okay and the proliferation of casinos everywhere in the land. Not even the evangelical Christians seemed to mind. There is no such thing as intrinsic value in a house. A huge percentage of the public has now put its net worth into something that… isn't an investment. Apart from false econometrics of rising house valuations and the leverage that affords for raising cash within the context of the current lending rackets, a house is much more of a consumer product than an investment, especially the kind of houses built in recent decades in America, namely stapled-together boxes made of particle board and plastic cladding that require continual reinvestment in petty cash and labor for upkeep, and will probably not hold their value, even if well cared for, because of poor locational choices. A house on a one-acre lot in a subdivision in , thirty-two miles from downtown Washington, […] a magnificent thing to behold today, with a soaring lawyer foyer entrance, a restaurant-grade kitchen, and an inground pool out back. But if there is less gasoline to power up the fleet of cars necessary to service it, and no natural gas to heat the thousand-square-foot cathedral-ceilinged lawyer foyer, then chances are that the house is going to be a liability rather than an asset.

Both the mining and the washing [of hydrocarbons] require huge amounts of energy, and it has been proposed that any commercial exploitation of the Alberta tar sands would take 20 percent of Canada’s total natural gas production. In the long run, it might not be worth expending the energy from gas to get the energy from the tar sands. If oil from the tar sands themselves were used to process more tar sands, the return would be three barrels of oil for every two consumed. […] In the early days of conventional oil in Texas, the formula was very favorable, around twenty to one. The oil was found close to the surface on dry land in temperate places easy to work in, and it gushed out of the ground under its own pressure. […] Going a bit further, the fundamental equations that support all gigantic… organisms, …may no longer obtain, and human life would have to reorganize its activities on a different basis. Also, once these complex systems and their subsystems halt their operations, restarting them may range from difficult to impossible […].

…we were becoming very delusional about the set of predicaments that we’re facing. I’m a little shocked at the quality and character of the delusional thinking and where it’s coming from. When you see articles in the New York Times, the supposed newspaper of record, that the USA may soon become a net energy exporter, you know there’s some kind of problem with perhaps the entire intellectual class in America.