Peak [living] human population will… lag… peak [extraction of] oil and peak [extraction of other] mineral resources until these conditions express th… - James Howard Kunstler

Because the oil peak phenomenon… cancels out further industrial growth of the kind we are used to, its implications lie radically outside… [the] economic paradigm. So, the oil peak phenomenon has been discounted to about zero among conventional economists, who assume that “market signals” about oil supplies will inevitably trigger innovation, which, in turn, will cause [something] new… to materialize and enable further growth. If the market signals are not triggering innovation, then the problem must be overstated and growth under the oil regime will resume—after, say, a normal periodic downcycle. This is obvious casuistry, but casuistry can be a great comfort when a problem has no real solution. […] Our investment in an oil-addicted way of life… is now so inordinately large that it is too late to salvage all the national wealth wasted on building it, or to continue that way of life more than a decade or so into the future. What’s more, as we have outsourced manufacturing to other countries, the entire U.S. economy has become more… dependent on continued misinvestment in… suburbia and its accessories. No politician wants to tell voters that the American Dream has been canceled for a lack of… resources. The U.S. economy would disintegrate. So, whichever party is in power has tended to ignore the issue, change the subject, or spin it into the realm of delusion.

The 1973 was the precipitating incident of the OPEC embargo. On October 6, Egyptian and Syrian forces caught the Israeli military off-guard on the most solemn Jewish holiday, when many soldiers were home with their families. Because the Arab-Israeli dispute was commonly viewed as yet another cold war proxy battle, the United States and its allies naturally lined up behind Israel against the Soviet-sponsored aggressors. Egypt’s President Anwar Sadat implored the Saudis and other Muslim states to use the “oil weapon” against Israel’s allies. On October 12, the Saudi-led OPEC demanded of the various Western companies doing business in the Middle East, including Aramco, a 100 percent increase in the posted price of their cartel's oil. The companies stalled for time. On October 16, the Persian Gulf region OPEC members broke off negotiations with the Western oil companies and announced that thereafter they would set prices themselves. On October 17, the Israelis gained the upper hand on the battlefield, thanks in large part to aggressive American resupply efforts, and began to push the Egyptians back across the and the Syrians out of the Golan Heights. [On] the same day, the Arab oil ministers announced an oil embargo on the United States, while increasing prices by 70 percent to western Europe. Overnight, the price of a barrel of oil to these nations rose from $3 to $5.11. On October 19, President Richard M. Nixon announced a military aid package for Israel. The following day, Saudi Arabia retaliated by announcing a total cutoff of oil exports to America.

Somehow I doubt that this Christmas will win the Bing Crosby star of approval. Rather, we see the financial markets breaking under the strain of sustained institutionalized fraud, and the social fabric tearing from persistent systemic political dishonesty. It adds up to a nation that can’t navigate through reality, a nation too dependent on sure things, safe spaces, and happy outcomes. Every few decades a message comes from the Universe that faking it is not good enough.