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There’s a lot more oil to keep in the ground all of a sudden

There’s a lot more oil to keep in the ground all of a sudden thumbnail

Spanish oil company Repsol just announced that it has made the largest onshore oil discovery in the United States in 30 years: a find of 1.2 billion barrels beneath Alaska’s North Slope.

“Keep it in the ground” has become a rallying cry for climate and environmental activists in recent years, and they’re particularly intent on stopping Arctic drilling. A study published in Nature in 2015 argues that all Arctic oil needs to stay underground if we’re going to have any hope of keeping global warming below 2 degrees C, the point at which scientists think the shit will really hit the fan.

If there’s anyone still waiting for peak oil to save us from climate change, get over it. People just keep getting better at finding crude. If anything can get us out of this mess, it won’t be a scarcity of fossil fuels but an abundance of creativity. The same innovative capacity that allows humans to keep expanding the amount of oil that can be pumped out of the earth can also create laws to stop the flow and cleaner technologies to use instead.

We better get moving, though, because otherwise this new batch of oil could start flowing in 2021.

Salon



48 Comments on "There’s a lot more oil to keep in the ground all of a sudden"

  1. Cloggie on Sat, 18th Mar 2017 7:49 pm 

    The blowing up of the chimneys of the IJssel conventional power station in the Netherlands today:

    http://www.geenstijl.nl/mt/archieven/2017/03/goede_biem.html#comments

    This is a spectacle we are going to witness hundreds of times during the coming few decades as the world transitions to renewable energy.

    Built in 1955, it first was fueled by coal, later by natural gas. It will be demolished because it has become obsolete.

    I cycled past it last Summer on my way to Sweden. Very impressive building:

    http://img.rtvoost.nl/T3/344382.jpg

  2. Lucifer on Sat, 18th Mar 2017 7:50 pm 

    It does not really matter how much oil is left underground because at the end of the day there are just to many people on the earth. Most humans are already doomed. The future has already been written, its just a matter of time.

  3. rockman on Sat, 18th Mar 2017 10:08 pm 

    ” A study published in Nature in 2015 argues that all Arctic oil needs to stay underground if we’re going to have any hope of keeping global warming below 2 degrees C”.

    A ridiculous position for several reasons. First, no one has any proof as to how much economically oil sits under the Arctic Ocean so one can’t predict its future. Second, very little oil is being produced in the Arctic and cumulative to date an insignificant amount has been compared to the GHG generated from the 30+ BILLION BBLS of oil we’ve been burning for years and continue to burn today. Even under the wildest optimistic expectations the daily production of oil from the Arctic will be insignificant compared to the continuing production from the existing global oil trends. Third, even the green “environmentally friendly” EU Commission just voted overwhelmingly to NOT BAN oil development in the Arctic specifically specifying that such activities would be governed by the sole authority of the nations owning those rights. Such as those plans by Norway, Denmark as well as continuing oil production by Russia.

    I just assume part of the motivation of such articles garner support for certain environmental groups.

  4. makati1 on Sat, 18th Mar 2017 10:21 pm 

    It appears that environment groups are the only ones worth listening to as their prophesies concern our life and death. Oil only concerns the money that can be made from it. Meaningless.

    Whether there is a drop or a trillion barrels, they should ALL stay right where they are, but human greed will not let that happen unless there is no way possible to recover it at a profit. I personally hope oil drops so low it puts ALL of the oi/gas/coal companies out of business and/or destroys the financial system so bad that it never comes back. But then, I’m a realist. Most are not.

  5. Sissyfuss on Sat, 18th Mar 2017 10:34 pm 

    Like Slim Pickens in DR Strangelove, we’re going to ride this weapon all the way down.

  6. twocats on Sat, 18th Mar 2017 10:43 pm 

    An artificial/human collapse would have been much more preferable than a collapse by either ecosystems (via climate and/or degradation) or lack of sufficient energy (POD).

    Depending on what year you would have asked me (since 2004) I would have given a different answer over which would happen first. For at least the last year it seems ecosystem collapse is the most likely. POD will continue to haunt our economies like a vengeful apparition, but overall relatively harmless for the next several years.

  7. makati1 on Sat, 18th Mar 2017 11:01 pm 

    Sissy, I agree. I just saw a still of him riding the bomb on some tumblr site a few days ago. I remember the movie clearly. I did not remember him being so fat. lol

  8. Apneaman on Sun, 19th Mar 2017 2:34 am 

    At least 2.6 C (another 1.4 – 1.6C) is baked in. It’s like telling the old lady her ass is fat – once it leaves your lips it can never be taken back. What the humans have unleashed cannot be taken back – not possible and they are far from finished anyway.

    It’s the carbon cycle stupid!

    Greenhouse extinctions are a regular feature on this planet and only the trigger and speed (2500X) are different this time. All the same processes/physics&chemistry.

    As Lucifer pointed out, the population, combined with industrialisation, has put the likely endtime for the humans within one lifetime. These are symptoms of the root problem – the humans brain.

    The destructive behaviour is nothing new. In fact, since the human brain took it’s cognitive leap some 100,000 – 75,000 years ago it’s been one big orgy for mankind. The evidence for this is irrefutable.

    The humans will never voluntarily stop, nor will they stop minimising, rationalising, magical thinking, denying, lying or pretending that the worst case scenario is not well underway (it is).

    “The destruction of the natural world is not the result of global capitalism, industrialisation, “Western civilisation” or any flaw in human institutions. It is a consequence of the evolutionary success of an exceptionally rapacious primate. Throughout all of history and prehistory, human advance has coincided with ecological devastation.” — John Gray, STRAW DOGS

  9. Apneaman on Sun, 19th Mar 2017 2:39 am 

    Crops fall victim to Winter 2017’s drastic temperature swings

    “Gary Black is Georgia’s agriculture commissioner.

    “This could be a $200 million night, and in worst-case scenario, it would be easy to say we’re in the hundreds of millions of dollars,” Black said.”

    http://www.cbsnews.com/news/peach-crops-suffer-in-winter-2017s-drastic-temperature-swings/

    Anytime “drastic swings” start appearing in a system, any system, it’s bad news.

  10. Apneaman on Sun, 19th Mar 2017 2:51 am 

    ‘They died of thirst’: Extreme conditions wipe out forest over 1000 kilometres

    “The death of mangrove forests stretched over 1000 kilometres of Australia’s northern coast a year ago has been blamed on extreme conditions including record temperatures.”

    http://www.smh.com.au/environment/climate-change/they-died-of-thirst-extreme-conditions-wipe-out-forest-over-1000-kilometres-20170313-gux252.html

  11. Apneaman on Sun, 19th Mar 2017 3:02 am 

    James Howard Kunstler – Interview – 3/17/17 – [04:35]

    https://www.youtube.com/watch?v=_1qGm6C4eNk

  12. makati1 on Sun, 19th Mar 2017 3:05 am 

    Ap, the fruit crops in Pennsylvania are probably going to be a lot less this year due to the long February warm spell and then last week’s below freezing temperatures for days and nights, with ice and snow. The ability of America to feed itself is as precarious as any other place on earth. A ‘normal’ annual rainfall is not good if it falls as 12″ when planting is due, none for months and then 12″ again when the grain is ready to harvest. We have only begun to see Mother Nature’s arsenal, I think.

  13. Apneaman on Sun, 19th Mar 2017 3:20 am 

    LMFAO

    Air Pollution Denial Is the New Climate Denial
    The latest right-wing lie is even crazier than the supposed global warming “hoax.” But it’s gaining influence in the Trump administration.

    https://newrepublic.com/article/141260/air-pollution-denial-new-climate-denial

    Go long on asthma inhalers and home air filtration.

  14. Davy on Sun, 19th Mar 2017 5:22 am 

    “Keep it in the ground” environmentalist are a joke. If they really meant it they would say “get out of that car”, “no vacations”, “no Amazon”, “no restaurants”. They would be completely local. If this were to succeed then they would also say we need to build hospices and life boats. Why, because anyone who has a real understanding of the global economy understand how all this fits together through economies of scale and global finance that allow a global people to trade and trust each other. Instead they proselytize a techno optimism of a vast new renewable world. There is no way we could ever afford this and it will never fit modern man’s mentality of individual satisfaction. It is an absurd opera show to be mesmerized by.

    In an existential catch 22 trap you are going to pay the price one way or the other. In fact it is likely human disturbance has already tipped natural processes. Even if we only slightly tipped these natural processes we still have plenty of human influence to add even if for some miracle we could technologically transition our energy to a “so called” zero carbon alternative. There is still agriculture that can’t go zero carbon and feed 7BIL. Permaculture will never do that. Geoengineering is a techno joke. The only plan that will work is for population to drop to less than 1BIL. That process would force us postmodern and much lower carbon. The problem with that would be the process would be very painful to horrible for humans. The decay of industrial civilization would still be dirty and poisonous without affluence to pay and manage the cleanup.

    I am a tree hugger spiritualist who follows an eclectic spirituality with one of the basis Native American naturalism. I respect the culture of the Native Americans that was spoken and inclusive. Individuality was minimized for the good of the tribe. This is where man had an evolutionary chance. We have no chance in the modern form of 7BIL individuals trashing the commons. You can’t be modern and a real environmentalist. They are incompatible. The words green and environmentalist are used wrong as are so many other identifications. They are used wrong in our fake modern world of marketing, policy, and politics. We say one thing and mean and do another. This goes all the way to the top of those who talk about climate change. Our scientist and academia that are warning us of the consequences as they drive, fly, eat, and turn that A/C dial. They preach techno lies to us that we can solve this with more of what got us here if and only if people like Trump were gone. What a friggen joke.

    OK, that harsh criticism levied. We can salvage some of what they say and do for hospices and lifeboats. We need any alternative energy systems over other modern investments with no future. Tell me how a toy factory in China turning plastic into a brief experience that will be shipped around the world and soon to a landfill contributes to a future? Not to pick on China because a westerner designed it and a retail store sold it and a Waste Management driver takes it to it finally place in a land fill of entropic waste. Another aspect of fake greens and environmentalism is their false hope is useful for social cohesion. Many people are getting the greens message that we are doomed with climate change unless we make changes. The sheeple sees windmills and solar panels and has hope. This hope keeps the sheeple in his life of emptiness and exploitation. He sees a future even though his life is often miserable. Most people have daily tasks with little meaning other than a paycheck. Few love what they do. They do it because of those they love. These people have some hope with a fake green story. That is better than a Trump “Make America Great Again” of anything goes that makes us rich. Both of these prevent social confidence from decaying.

    The case may be confidence should be shattered. Those of us that are in the know, know, we may need to collapse for our species to survive. The existential question with the two doors in front of us is do we continue the lie or do we embrace the truth and die down? These doors are one way but in different ways. We can continue the status quo and maybe forfeit a future for our species. We can take the other and subject at least three quarters of the population to a shortened painful life. We are talking innocents and those who can’t defend themselves. This is a very big burden to carry for those who peeked through the crack in those doors. The reality is there is nothing we can do because of the scale and the time left to change. Our fate is sealed. A billion status quo decisions are being made in all walks of life in all regions of the globe. Our leadership is dedicated to growth and techno solutions. We are a train ride to a nasty destiny.

    You can make life giving changes individually. Life giving here being define as meaning. You can spiritually advance as you embrace less with the understanding a die off is inevitable on a failing planetary system at limits. A species in overshoot in this situation will die down. There is no question. You individually may be lucky enough to avoid this. Maybe it happens over decades and starts in the 3rd world far away from you so you can watch it on TV with popcorn. Don’t think because you have done that in the past you will do it in the future. You can change individually but it is a tough change because you will have to live the surreal of one foot in and one foot out. There is no way to ditch the status quo. You can learn to appreciate the right things and reject the wrong things. We can seek the truth and real value. You can embrace real wisdom and be sapient. Maybe that should be our highest calling and salvation in a world of little meaning and doom.

  15. dkb on Sun, 19th Mar 2017 5:47 am 

    Who cares about climate change, population overshoot, depletion of resources, CO2 concentrations in the atmosphere, environmental degradation, other than the wonkish adherents to the peak oil fantasy?

    For all anybody knows, not any of it is going to amount to a hill of beans, a glitch on the timeline.

    The Bubonic Plague wreaked havoc in China, India, Saudi Arabia, Egypt, Europe, everywhere.

    A province in China had a 90 percent death rate, 5,000,000 died in no time. Half to two-thirds of the people in regions of Europe bit the dust. People began to drink alcohol in hopes it would be a cure and to possibly avoid being a victim. They have never stopped drinking since then.

    When everybody in town is dead except for you, you will seek new horizons. Life will change and so will you. It will not matter.

    All a mere glitch on the graph. So it is with oil, burning it, keeping it in the ground, finding alternative energies, etcetera, all a glitch on the graph. When it all ends, it is not going to matter.

    None of it is going to matter, Mother Nature can and will solve the problem, which is no big deal to her.

    Humans have managed to make it this far with a lot of misery and suffering, they can suffer and be miserable for another 100,000 years.

  16. Cloggie on Sun, 19th Mar 2017 6:14 am 

    So the renewables advocates are sheeple and pursue a fata morgana.

    Your (very Final) Solution:

    The only plan that will work is for population to drop to less than 1BIL.

    And this is not a fata morgana?

    How do you “plan” to get rid of 6B?

    Here is a more realistic “plan” or perspective rather:

    – All the signs are that the world is NOT going to run out of fossil fuel in the coming few decades providing enough energy to carry out the transition.

    – Europe and China are the two economic giants with a credible renewable energy and climate (“Paris”) policy:

    https://en.wikipedia.org/wiki/Energy_policy_of_the_European_Union
    (transition away from fossil for 95% realized by 2050)

    http://climatenexus.org/learn/international-actions/chinas-climate-and-energy-policy
    (peak CO2 & 20% renewable by 2030)

    – Prices for solar and wind will continue to decrease as technology and production processes will be further optimized, increasing EROEI. Renewables are already the largest share of new installed capacity, which means that in 30-50 years time (the time to write off conventional power stations) conventional power will have been largely replaced.

    – 1-2 degrees Celsius temperature increase will have to be accepted.

    – Once America will have stepped down from hegemony and Paris-Berlin-Moscow will have replaced the West, it is time for Greater Europe and China…

    http://tinyurl.com/mxzntjw

    …to become heavily involved in notably Africa with a form of neo-colonialism that aims at imposing a birth-control program in return for large scale investment. Perhaps Eurasia can recruit American blacks as a proxy to run Africa.

    http://tinyurl.com/ksevv7c

  17. Davy on Sun, 19th Mar 2017 6:47 am 

    “So the renewables advocates are sheeple and pursue a fata morgana.”
    Come one Clog, embellishing a comment is intellectually lazy.

    “How do you “plan” to get rid of 6B?”
    Clog, obviously you skimmed the comment and embellished it to make your point which is again disingenuous.

    “All the signs are that the world is NOT going to run out of fossil fuel in the coming few decades providing enough energy to carry out the transition.”
    But all signs are we will run out of a “healthy economy” and “economic hydrocarbons” and “healthy planetary system”. See I can play your game too. The Dutch are so playful.

    “– Europe and China are the two economic giants with a credible renewable energy and climate (“Paris”) policy:”
    LMFAO especially with China, techno naiveté at its finest

    “– Prices for solar and wind will continue to decrease as technology and production processes will be further optimized, increasing EROEI. Renewables are already the largest share of new installed capacity, which means that in 30-50 years time (the time to write off conventional power stations) conventional power will have been largely replaced.”
    Clog, you are projecting and using a forecasts with the external factors being development and techno advances both of which are not proven to be the case only a weak trend. In a world of limits and diminishing returns we are obviously near thresholds of destructive change. Your argument is no better than mine in this regards.

    “1-2 degrees Celsius temperature increase will have to be accepted.”
    Agreed, but how convenient to dismiss any more increase. More intellectual “slight of hands”

    “– Once America will have stepped down from hegemony and Paris-Berlin-Moscow will have replaced the West, it is time for Greater Europe and China…”
    LMFAO, once again. Good luck with that dream!

  18. Davy on Sun, 19th Mar 2017 6:59 am 

    Clog, on a side note. I have refrained from telling you this but one of my best friends is Dutch. I don’t comment online about friends or family unless they are OK with it. He left Emmen 20 years ago. He has lived here in Missouri for most of those years because of marriage. I never understood why Europeans come to Missouri except for maybe the low cost of living or marriage, LOL. He is an excellent artist. He does real life art usually of people or animals. I met him when I lived in Hermann, MO. He now lives in south east Colorado where his artistic abilities are more appreciated. He is a wonderful carpenter. He makes furniture as well. He was born in Indonesia and also lived in Tunisia. His dad lost an arm in WWII in Indonesia. Anyway, just so you know I know you Dutch better than your think, LOL.

  19. Cloggie on Sun, 19th Mar 2017 7:12 am 

    Haha, Davy is befriended with a Drent.

    The Dutch province Drenthe is to the Netherlands what Missouri is to America:

    https://www.youtube.com/watch?v=gqOvGE6qAlw

    https://en.wikipedia.org/wiki/Drenthe

    Drenthe was always the poorest, most backward province. They were mostly known for producing peat in so-called veenkolonien (“peat colonies”):

    https://deepresource.files.wordpress.com/2015/03/veenkolonie-1886.jpg

    Drenthe and neighbouring Friesland and their peat production:

    https://deepresource.files.wordpress.com/2015/03/frisia-peat.jpg

    This is how your friend’s father lost hist arm:

    https://deepresource.files.wordpress.com/2015/03/de-verovering-van-lombok.jpg

  20. shortonoil on Sun, 19th Mar 2017 8:31 am 

    “Spanish oil company Repsol just announced that it has made the largest onshore oil discovery in the United States in 30 years: a find of 1.2 billion barrels beneath Alaska’s North Slope.”

    They just discovered more of the same useless oil that they have known about for the last 50 years. The West Sak has stayed underground, and will stay there for a few more million years. This is what you get when they start running out of stupid things to write about; more stupid stuff!

    http://repository.icse.utah.edu/dspace/bitstream/123456789/11235/1/ms_thesis_jonathan_wilkey-evaluation_of_the_economic_feasibility_of_heavy_oil_production_processes_for_west_sak_field.pdf

  21. bug on Sun, 19th Mar 2017 8:48 am 

    Thanks short, I tried to read all 114 pages but started to speed read. What I got is that this was discovered in 1983. So why wasn’t this 1983 find broadcast extravagantly then, during my fun high school days? You are probably right, somebody said,”let’s throw this crap against the wall and see if people believe it”. Yeah, we saved,a billion barrels of goo.

  22. Northwest Resident on Sun, 19th Mar 2017 10:58 am 

    They’ll say anything, do anything, make any claim, spread any and all bullshit deemed necessary to keep the illusion of “all is well” viable for just a little while longer. It is difficult to see the constant 24/7/365 onslaught of lies and propaganda as anything other than a highly coordinated and purposeful effort to keep the clueless masses unaware of rapidly approaching DOOM.

  23. Go Speed Racer on Sun, 19th Mar 2017 12:37 pm 

    Wow so much typing, Mr Davy.
    If only you could sell all that script by word count.
    Then you’d be in an 8,000 square foot house.
    Some Escalades and a Benz in the garage.

  24. Go Speed Racer on Sun, 19th Mar 2017 12:44 pm 

    As to the oil and the Earth, they will pump
    out the oil and burn it all up.
    Earth doesn’t even look the same anymore.

    In the 1960’s space trips, Earth is very white with clouds.
    Now the clouds are gone,
    Planet pictures have us looking dark blue, almost
    black, like an 8-ball.
    Planet is toast. Fortunately Trump has outlawed
    measurements, so we can pretend everything is OK
    and buy a Lincoln SUV.

  25. Davy on Sun, 19th Mar 2017 12:58 pm 

    Speeder I am gifting all those words to you to use as you see fit. If you like sell it to the Russian and use the proceeds to buy your Greyhound bus and if any is left over get yourself two escorts to keep you and it clean and tidy.

  26. GregT on Sun, 19th Mar 2017 12:58 pm 

    “Wow so much typing, Mr Davy.”

    And on a cell phone, no less. At least he finally figured out how to use paragraphs. It was even more impossible to read before.

  27. Davy on Sun, 19th Mar 2017 1:01 pm 

    Still hurting from the bitch slapping.

  28. GregT on Sun, 19th Mar 2017 1:10 pm 

    You’ll get over it.

  29. Antius on Sun, 19th Mar 2017 3:58 pm 

    1.2 billion barrels. That’s 12 days of global oil supply. About 200million tonnes of CO2. Not a lot compared to what we have pumped out already.

  30. newfie on Sun, 19th Mar 2017 8:06 pm 

    Nature magazine reports that the Great Barrier Reef is dying. A massive bleaching of the corals is caused by warming oceans. The fish that depend on the reef will die. The people that depend on the fish will die. Keep burning those fossil fuels.

  31. DerHundistlos on Sun, 19th Mar 2017 9:01 pm 

    @ Davy

    Please update your global human population figure to 7.500.000.000. So if you prefer rounding, the current number is 8 billion.

  32. Boat on Sun, 19th Mar 2017 11:45 pm 

    Anti us,

    A billion is 1,000 millions. Google your math.

  33. GregT on Mon, 20th Mar 2017 12:25 am 

    Boat,

    The world consumes ~97 million barrels of oil per day. 97 million times 12 days, equals 1 billion, one hundred sixty four million.

    Google your arithmetic.

  34. Cloggie on Mon, 20th Mar 2017 12:31 am 

    In Europe a billion is a US trillion? Why this confusing exceptionalism? Why not simply follow the lead of the Mother Civilisation? Always a good idea.

    https://nl.wikipedia.org/wiki/Biljoen
    https://de.wikipedia.org/wiki/Billion
    https://es.wikipedia.org/wiki/Billón

  35. GregT on Mon, 20th Mar 2017 12:37 am 

    “Why this confusing exceptionalism?”

    Runaway inflation? I knew the EU was in serious trouble, but?

  36. GregT on Mon, 20th Mar 2017 12:40 am 

    So what do you guys call 1,000,000,000?

  37. DerHundistlos on Mon, 20th Mar 2017 1:02 am 

    @ Boat

    Funny = Anti us

  38. Cloggie on Mon, 20th Mar 2017 2:49 am 

    US
    million 6
    billion 9
    trilion 12

    NL
    miljoen 6
    miljard 9
    biljoen 12

  39. Cloggie on Mon, 20th Mar 2017 3:01 am 

    Runaway inflation? I knew the EU was in serious trouble, but?

    Perhaps you need to adjust your “knowledge”.

    http://www.spiegel.de/wirtschaft/unternehmen/konjunktur-der-unheimliche-aufschwung-a-1139457.html

    All the signs are that the world economy and Europe in particular are at the eve of a huge economic boom. There are four reasons for such a development:

    die Laune, die Preise, das Öl und das Geld.

    Mood – global corporate mood better than ever
    Prices – slow increase of prices, even in Japan
    Oil – remains cheap
    Money – most important, remains cheap as well

    Additionally the populists are not going to take over the coming years. Germany, Holland and others have huge government budget surpluses. Real estate prices are increasing as a consequence.

    The real danger is overheating, not enough personnel.

    Main motor: construction and consumption.

    As a comfort to the posters and professional collapseniks here, I am sure the world will collapse some day, between now and when the sun will be burned up in 2 miljard years.

  40. Davy on Mon, 20th Mar 2017 5:40 am 

    “All the signs are that the world economy and Europe in particular are at the eve of a huge economic boom. There are four reasons for such a development:”

    Clog, you have some exceptional techno posts and some good cultural posts but on economics go back to school and learn the basics. Hopium is what the msm is selling the sheeple and you are buying it. We are not into sheeple talk here. We deal with reality.

  41. Cloggie on Mon, 20th Mar 2017 5:50 am 

    We are not into sheeple talk here. We deal with reality.

    We collectively made a fool of ourselves in 2012 by embracing “peak oil 2015”.

    A little more modesty would suit us well.

  42. Davy on Mon, 20th Mar 2017 6:01 am 

    “Hardly optimism or a sign of a boom”

    “EU Taxpayers Brace As Deepening Banking Crisis Means Euro-TARP Looms”
    http://wolfstreet.com/2017/03/17/eu-banking-crisis-meets-euro-tarp-on-angel-dust/

    “Events are moving so fast in Europe these days, it’s almost impossible to keep up. While much of the attention is being hogged by political developments, including the election in the Netherlands, Reuters published a report warning that the European banking sector may face even higher bad loan risks if the ECB begins to scale back its monetary stimulus programs, something it has already begun, albeit extremely tentatively.”

    “The total stock of non-performing loans (NPL) in the EU is estimated at over €1 trillion, or 5.4% of total loans, a ratio three times higher than in other major regions of the world. On a country-by-country basis, things look even scarier. Currently 10 (out of 28) EU countries have an NPL ratio above 10% (orders of magnitude higher than what is generally considered safe)…. That bears repeating: in Greece and Cyprus, two of the Eurozone’s most bailed out economies, virtually half of all the bank loans are toxic. Then there’s Italy, whose €350 billion of NPLs account for roughly a third of Europe’s entire bad debt stock. Italy’s government and financial sector have spent the last year and a half failing spectacularly to come up with a solution to the problem.”

    “In other words, EU taxpayers would have to spend potentially hundreds of billions of euros saving yet more banks from the consequences of their own acts and bail out their bondholders and potentially their stockholders too, with funds desperately needed in other areas. Those banks, once saved and their balance sheets cleansed, would then be handed on a platter to much bigger banks. In return, taxpayers would end up with an even more concentrated, consolidated, interconnected financial system that is even more prone to abuse, corruption, and excess. The ECB’s policy isn’t about creating inflation but about keeping a financial system and a currency union from collapsing upon each other.”

  43. onlooker on Mon, 20th Mar 2017 6:03 am 

    “All the signs are that the world economy and Europe in particular are at the eve of a huge economic boom. Clog, your statement would be correct by simply changing boom to bust.

  44. Cloggie on Mon, 20th Mar 2017 6:10 am 

    The EU has already anticipated what to do in case of a Lehman-style crash in Europe: bail-ins.

    That bears repeating: in Greece and Cyprus, two of the Eurozone’s most bailed out economies, virtually half of all the bank loans are toxic.

    Greece that’s less than 2% EU GDP. Peanuts.

    Then there’s Italy, whose €350 billion of NPLs account for roughly a third of Europe’s entire bad debt stock.

    Italy is continuously misjudged by everybody. The banking sector may be shaky, the point is that the Italian population is virtually mortgage free. All sorts of creative solutions for the Italian banking problem are possible because of this, like the imposition of a mortgage of 10k per household and the problem of the Italian banking sector is solved.

    There is not a snowball chance in hell that Europe is going to bail-out Italy like they did to Greece, which was a major mistake and in essence an EU power grab, by making Greek problems, EU-problems, violating all the agreed rules in the book. The EU should have let Greece fallen flat on its ugly face and kicked the notorious frauds out of the euro. But instead the EU ventured to subsidize Greece to a standard of living they don’t deserve. Yet another crucial Merkel mistake.

  45. Davy on Mon, 20th Mar 2017 6:29 am 

    How do you go from “in case of Lehman-style crash” too your boom in waiting mentality? You already did bail-ins. You are already doing easing and now scaling it back. These things don’t add up clog to a healthy European economy. I am not saying Europe is worse than other regions but I am saying it is no better.

  46. Apneaman on Mon, 20th Mar 2017 11:20 am 

    Take a good look at these pictures of what’s in the ground or rather what’s coming out of it.

    7,000 underground gas bubbles poised to ‘explode’ in Arctic

    “‘With time the bubble explodes, releasing gas. This is how gigantic funnels form.'”

    “The region has seen several recent examples of sudden ‘craters’ or funnels forming from pingos after what scientists believe are caused by eruptions from methane gas released by the thawing of permafrost which is triggered by climate change.”

    http://siberiantimes.com/science/casestudy/news/n0905-7000-underground-gas-bubbles-poised-to-explode-in-arctic/

    How Bad of a Greenhouse Gas Is Methane?
    The global warming potential of the gaseous fossil fuel may be consistently underestimated

    “While CO2 persists in the atmosphere for centuries, or even millennia, methane warms the planet on steroids for a decade or two before decaying to CO2.
    In those short decades, methane warms the planet by 86 times as much as CO2…”

    https://www.scientificamerican.com/article/how-bad-of-a-greenhouse-gas-is-methane/

    Any comparisons to what some humans from yesteryear survived are complete bunk. A scared child’s self reassurance.

  47. GregT on Mon, 20th Mar 2017 12:07 pm 

    “I am not saying Europe is worse than other regions but I am saying it is no better.”

    Partially true.

    While the EU is doing better than Latin America & The Caribbean, it still remains worse than all other regions, including Sub-Saharan Africa. Which, BTW, is doing better than we are in North America. The BRICs continue to grow at an unprecedented rate, this is expected to continue through until the 2050s, while the west is expected to continue to stagnate.

    “Since the late 1990s, the BRIC nations’ growth has far outpaced that of the United States and the European Union. As such, the BRIC countries have been increasingly referred to as a symbol of a shift in the global economic away from the developed G7 economies towards the developing world. As evidenced in the chart above, each country has grown rapidly over the past decade, far outpacing the United States, the European Union and other developed nations. Over the next decade, this trend is expected to continue, as growth is forecast to remain above 10%, far outpacing that of the developed world.”

    ” It is expected that China and India will become the dominant global suppliers of manufactured goods and services, with Brazil and Russia gaining dominance as suppliers of raw materials. Brazil is dominant in soy and iron ore and also contains vast oil reserves while Russia has enormous supplies of energy resources, particularly oil and natural gas.”

    © 2017 LOS ANGELES RESEARCH GROUP

    http://www.laresearchgroup.com/brazil-russia-india-china-bric-nations-gdp.html

  48. Apneaman on Mon, 20th Mar 2017 12:28 pm 

    Last day of winter brings summer-like weather, shattering 1907 Topeka record

    Temps hit 89 degrees Sunday, previous record 82

    http://cjonline.com/news/local/2017-03-19/last-day-winter-brings-summer-weather-shattering-1907-topeka-record

    Las Vegas Valley hits 90, breaks another record in March heat wave

    http://www.reviewjournal.com/weather/las-vegas-valley-hits-90-breaks-another-record-march-heat-wave

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