Not too far from now

Kevin Drum writes about our oil peak problem, which isn’t as potentially grave and significant as our greenhouse gas problem, but beats any other contender.

Oil production will almost certainly surpass 84 million barrels per day as new fields come online in the future, but demand is going to increase right along with it. Thus, unless there’s a global economic shock of some kind, it’s likely that demand is now permanently equal to supply. There’s no spare capacity left, and there never will be again.

This mean that we’re now living in a different world. I’m not sure what all the ramifications of this are, but one thing is pretty certain: the next oil shock ? and there will be one eventually ? is going to be worse than any previous shock. Fasten your seat belts.

By an odd coincidence, I stumbled upon this quite topical Andrew Brown post from March today:

Where in Europe would you want to live, if there were no oil and no Gulf Stream [which will make northwestern Europe much colder]? Of the three really huge catastrophes impending in the next century, it seems improbable that we can avoid more than one or two. The oil will run out, and energy will become very much more expensive, with huge consequences for trade and agriculture. The world will warm and may well warm so much that the Gulf Stream stops. The population of Europe and Northern Russia will fall, unless replaced by immigration, which will be resisted. (It’s possible of curse that this effect will arise from the other two, as well as from the demographic trends we now have).

So where would you want your children to live, in a Europe that has neither oil nor gulf stream? Choose now, while we still have the political structures in place to make movement easy. Certainly not England, cold, miserable, overcrowded.

My first instinct would be for Sweden. It’s reasonably well-governed, harmonious, and has plenty of room for farming. But if the gulf stream goes the effect on the climate might be horrible. It certainly will be in Norway. I need to think about that. Second choice, France. Lots of room in the countryside, defensible borders, nuclear power, efficient, not very corruptible government.

But what does the team think?

Switzerland?

Confronting Demographic Change

Confronting Demographic Change is the title of a two day conference currently being organised by Employment, Social Affairs and Equal Opportunities Commissioner Vladimir Spidla. The emphasis of the conference is on gender and family impact issues.

You can find a background briefing paper here.

This is also an interesting presentation.

Here’s a summary of the objectives. It’s very ‘commission speak’ of course, but at least it marks a growing recognition of the problems we are all going to face. I’m also intrigued by something: “Demographic changes, globalisation and rapid technological change are the three major challenges facing Europe today”. I’m intrigued to know when the hell they figured this out, especially since (if for globalisation you read China) it is something I have been arguing for over five years now, in this precise combination.
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Narodwagen?

BusinessWeek spills a lot of ink on the rise of the car industry in Central and Eastern Europe. The idea that a lot of manufacturing is headed east is nothing new, but to see the numbers and changes laid out so explicitly gives a much clearer idea of the challenges that Western societies are facing.

Volkswagen [in Germany has] the highest labor costs in the industry — close to $50 an hour for a 28-hour workweek, some 20% over the already high average wage for German auto workers. In contrast, Slovaks [at another VW factory] cost $6 an hour and work a 40-hour week, netting VW annual personnel cost savings of $1.8 billion, according to analysts at Germany’s Bank Sal. Oppenheim. If [Thomas] Schmall [chairman of VW Slovakia] needs to boost production suddenly to meet a surge in demand, the new shifts can be arranged overnight. In Germany, negotiations with unions to alter work-time models can take up to six months and cost more in overtime premiums.

Ouch.
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The Low-Fertility Trap

I suppose by-now every right thinking and reasonably well read adult knows what the ‘poverty-trap’ is, even if most of us aren’t too clear about what there is to do about it. Being stuck in one of these traps could be thought to be like being stuck in a (not necessarily very deep) well with a slimy surround wall. The more you struggle to get out, the harder it gets: your strength disippates, and the walls get to be even more slippery. This could also be called a negative feedback loop.

Well now there is the suggestion that something similar may exist in the world of fertility. As Wolfgang Lutz suggests in this power point presentation, the critical level may be 1.5. No society which has fallen below this level has -to date – returned above it. (Many thanks here to commenter CapTvK who sent me the link).
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Two on Turkey

With Turkish accession one of the most important issues facing the European Union, people interested in the question could do much worse than read these two recent, and reasonably short, books that focus on the country: Crescent and Star, by Stephen Kinzer, and The Turks Today, by Andrew Mango. Both illustrate and explain contemporary Turkey, and both have accession as a theme throughout their books.
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More Theories

Very hard to interpret the information we are receiving right now. Much of it may well be aimed at the terrorists themselves so it is also perhaps better not to dig too deeply.

There are, however, a number of rival (but possibly) compatible theories. One of these, and it is the one I am following most closely (possibly for obvious reasons) is that of the Spanish connection. Now following this along the road a little (and just in a kind of ‘what if’ sense) it may not be entirely without relevance that raids were carried out in Italy on Saturday. (The FT today also also has a piece on the Italian raids. What stands out is the ‘cover’ provided by mass illegal immigration for such groups. I am in favour of increasing economic migration to meet demographic needs, but this process needs to be regulated and orderly, here we can see one more reason why). It is just me speculating, but the rapidity of the raids in Italy may relate more to the fact that there are ties between the Spain-based Jihadists and the Italian-based ones than to the immediate threat of an attack in Italy. This article contains the following information sourced from the Italian newspaper Corriere della Serra:

In 2003, the Italian Police and the carabinieri from the Special Operations Unit uncovered a link between the alleged Italian cell and its extremist associates in a number of European countries, primarily Germany, Spain, and the Netherlands. The Milan probe revealed that “young North Africans were ?trawled for’ in the European mosques, given money, and supplied with a visa?” to travel to Iraq to conduct suicide operations.”

This connection is loose, but is one possible route. Those who feel there might be an Iraq connection (and the lack of any explicit information about the explosives might point to this: this origin would be politically sensitive) would do well to note that the Italian net appears to have close links with Ansar Al-Islam which is based in the Kurdish zone, and was once host to none other than Abu Musab Al-Zarqawi. As I say, I wouldn’t even call this a conjecture, just some isolated pieces of information which are worth keeping track on, irrespective of whether or not the people mentioned were implicated last Thursday.

Finally, the NYT highlights the way in which the kind of terror we are seeing is in fact bringing Europe closer together:
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The Hunt for Mladic and Karadzic

Today is the 10th anniversary of the Srebrenica massacre. AP quotes the commander of EU peacekeepers in Bosnia saying “the net is closing in” on the two men responsible for the worst massacre in Europe since World War II.

Nice, except that’s followed up by the dumbest quote I’ve seen this morning (it’s early yet): “It’s a bit like getting Osama bin Laden,” he said.

No, it’s not.
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Promising Elections

The Guardian today has a short profile on Angela Merkel, while the FT looks at some of the proposals which may well form part of the SPD campaign manifesto. Far be it from me to worry about ‘sting the rich’ tax proposals, but as far as I can see the main isssue is getting Germany back to work, and Schr?der’s time might be better spent adressing this issue.

Talking of which, this could be a good moment to mention the whacky world of Hans Werner Sinn.
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Two Views of Europe

Gerhard Schr?der said yesterday that Europe had to choose between two versions of its future: one as a politically united continent able to hold its own in a globalized economy and the other as an enfeebled trading block.

The core question is: which Europe do we want? Do we want a united Europe capable of acting, a real political union … or do we want to limit ourselves to being a large free-trade zone?

Meantime Wolfgang Gerhardt, opposition Free Democratic party’s parliamentary leader and the man widely billed as Germany’s next foreign minister, said:

he was ?not entirely unhappy about the outcome of this summit?. Had a budget been agreed, ?we could have ended with a money-sharing compromise that would have left 40 per cent of EU expenditures going to agriculture,? he said of last week’s acrimonious, and ultimately fruitless, talks“.

Gerhardt suggested this in an interview with the FT where he indicated that Germany should press France to accept cuts in European Union farm aid to ease a deal on the EU’s “controversial long-term budget”.

You’d Better Move On

The papers this morning seem to be all full of ‘gloomy’ articles whose principal theme is that Europe has finally been plunged into a grave crisis by this weeks summit.

“People will tell you next that Europe is not in a crisis,” Luxembourg Prime Minister Jean-Claude Juncker, who holds the EU presidency, said after a two-day summit ended in acrimony. “It is in a deep crisis.”

As someone who is ‘crisis prone’ I would have imagined I would share that feeling. Somehow I don’t.

Some reasons why.
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