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Kunstler: When the Butterfly Flaps Its Wings

Public Policy

It remains to be seen what the impact will be from Mother Nature putting the nation’s fourth largest city out-of-business. And for how long? It’s possible that Houston will never entirely recover from Hurricane Harvey. The event may exceed the physical damage that Hurricane Katrina did to New Orleans. It may bankrupt large insurance companies and dramatically raise the risk of doing business anywhere along the Gulf and Atlantic coasts of the USA — or at least erase the perceived guarantee that losses are recoverable. It may even turn out to be the black swan that reveals the hyper-fragility of a US-driven financial system.

Houston also happens to be the center of the US oil industry. Offices can be moved elsewhere, of course, but not so easily the nine major oil refineries that sprawl between Buffalo Bayou over to Beaumont, Port Arthur, and then Lake Charles, Louisiana. Harvey is inching back out to the Gulf where it will inhale more energy over the warm ocean waters and then return inland in the direction of those refineries.

The economic damage could be epic. Much of the supply for the Colonial Pipeline system emanates from the region around Houston, running through Atlanta and clear up to Philadelphia and New York. There could be lines at the gas stations along the eastern seaboard in early September.

The event is converging with the US government running out of money this fall without new authority to borrow more by congress voting to raise the US debt ceiling. Perhaps the emergency of Hurricane Harvey and its costly aftermath will bludgeon congress into quickly raising the debt ceiling. If that doesn’t happen, and the debt ceiling is not raised, the federal government might have to pretend that it can pay for emergency assistance to Texas and Louisiana. That pretense can only go so far before government contractors balk and maybe even walk.

Ordinarily, failure to raise the debt ceiling would lead to a government shut-down, including hurricane recovery operations, unless the president invoked some kind of emergency powers. That would be decisive action, but it could also be the beginning of something that looks like a full-out dictatorship. Powers assumed are often not surrendered when the original emergency is over. And what would the president use for money if a substantial enough number of congresspersons and senators are prompted by their distaste for Mr. Trump to drag out the process of financially re-liquefying the government? (And nevermind even passing a budget.)

Meanwhile, two other major sources of aggravation are waiting off-stage: one is North Korea. Why wouldn’t Kim Jong-un use the opportunity of political disarray in the US to create more headaches for a distracted US government? Never let a crisis go to waste. Another potential irritant is the return of students to American college campuses. Imagine how the campus Antifa forces would react to Mr. Trump assuming emergency powers. It’s easy to foresee an acceleration of violence between the extreme Left and the Extreme right during what is shaping up to look like a major crisis in governing. If the campus Left had any tactical brains, they’d stop marching around in black uniforms and instead organize a mass renunciation of college loan debt.

Behind all this political strife will be wobbling financial markets. The message from the debt ceiling stalemate to the bond market would be that the US can no longer be relied on to pay its debts. Interest rates on US Treasury paper would have to go up as the long-lost concept of risk returned to the bond scene. People and institutions will not be induced to hold bonds unless the yield is recalibrated to the actual risk. Of course, in the mysterious world of bonds (i.e. securitized debt), the price of bonds goes down as interest rates rise. Meaning a lot of current holders of bonds would be hammered if they tried to sell. Rates rising would also spell big trouble for corporations and governments who have to make regular interest payments to bond-holders. A rate rise to as little as 3 percent on US Treasury bonds could spin the country into comprehensive bankruptcy.

How might stock markets and currency markets react to the scenario above? To me it would look like a drop of at least 1000 points on the S & P. The US dollar might actually rise initially as a whole lot of debt is renounced — which makes money actually disappear — but then you have the Federal Reserve waiting on another flank to roll out their own emergency response: Quantitative Easing No. 4, flooding the system with new “money” that has all the appearance and none of the mojo of value, tanking the dollar anew. As a wise correspondent of mine wrote a while back: “financialization is nothing more than money with its value removed.” (Graham Reinders.)

A lot can happen when a faraway butterfly flaps its wings and sets a slight current of air in motion.


33 Comments on "Kunstler: When the Butterfly Flaps Its Wings"

  1. Plantagenet on Mon, 28th Aug 2017 3:06 pm 

    Kunstler is imagining a very grim scenario. I doubt Hurricane Harvey will trigger martial law or any of the other dire circumstances he imagines. It seems much more likely to me that the budget will be passed, along with a huge bail out bill to help Houston and Texas, just as the Congress in the past allocated money to help out victims of Hurricane Katrina and Superstorm Sandy.


  2. onlooker on Mon, 28th Aug 2017 3:30 pm 

    I think we are getting to a point where we should assume the worse and hope for the best–
    The precautionary principle (or precautionary approach) to risk management states that if an action or policy has a suspected risk of causing harm to the public, or to the environment, in the absence of scientific consensus (that the action or policy is not harmful), the burden of proof that it is not harmful falls on those taking that action.

  3. Outcast_Searcher on Mon, 28th Aug 2017 4:31 pm 

    After his wrong calls for multiple decades, why would anyone still be listening to Kunstler?

    “Y2K will rock your world” was only 100% wrong for example. And since that was one where I have a lot of expertise, I know for a fact that it never was a meaningful threat to do any such thing — only cause some inconvenience if things were missed in the massive mitigation effort.

    I don’t understand why these clowns manage to support themselves on and on with their nonsense. How many “Y2K Bucket” equivalents can these clowns sell?

  4. MASTERMIND on Mon, 28th Aug 2017 4:49 pm 

    Conventional Oil Peaked in 2006 –IEA-NATURE

    New Oil discoveries by scientists have been declining since 1965 and last year was the lowest in history –IEA

    We have been draining our oil reserves by consuming more oil than we discover since the 1980’s – ASPO

    Saudi Arabian oil reserves are overstated by 40% – Wikileaks

    International Energy Agency Chief warns of world oil shortages by 2020 as discoveries fall to record lows

    Saudi Aramco CEO believes world oil shortage coming despite U.S. shale boom

    UAE warns of world oil shortages ahead by 2020 due to industry spending cuts

    Halliburton CEO says oil will spike due to shortages by 2020 after $2 Trillion in Industry Cuts
    Total CEO warns we are going to have oil shortages around 2020 due to lack of investment
    Chevron CEO warns US shale oil alone cannot meet the world’s growing demand for crude

    Wood Mackenzie warns of oil supply crunch and world oil shortages around 2020

    HSBC Global Bank warns 80% of the worlds conventional fields are declining and world oil shortages by 2020

    UBS Global Bank warns of industry slowdown and world Oil Shortages by 2020

    MarketWatch :Why investors’ should brace for a devastating oil shortage ahead around 2020

    German Government (leaked) Peak Oil study concludes: oil is used directly or indirectly in the production of 90% of all industrial goods, so a shortage of oil would collapse the world economy & world governments/democracies

    The Oil Age may come to an end for a shortage of oil. -Saudi Oil Minister Sheikh Yamani

  5. Survivalist on Mon, 28th Aug 2017 5:06 pm 

    I quite like JHK. I haven’t been tracking his batting average but I enjoy his writing.

    I do disagree with him on the point that Japan will be the first western economy nation to go medieval. I think it will be UK.

  6. Apneaman on Mon, 28th Aug 2017 5:07 pm 

    How ‘Antifa’ Mirrors the ‘Alt-Right’

    “Behind the rhetoric of the “alt-right” about white nativism and protecting American traditions, history and Christian values is the lust for violence. Behind the rhetoric of antifa, the Black Bloc and the so-called “alt-left” about capitalism, racism, state repression and corporate power is the same lust for violence.

    The two opposing groups, largely made up of people who have been cast aside by the cruelty of corporate capitalism, have embraced holy war. Their lives, battered by economic misery and social marginalization, have suddenly been filled with meaning. They hold themselves up as the vanguard of the oppressed. They arrogate to themselves the right to use force to silence those they define as the enemy. They sanctify anger. They are infected with the dark, adrenaline-driven urge for confrontation that arises among the disenfranchised when a democracy ceases to function. They are separated, as Sigmund Freud wrote of those who engage in fratricide, by the “narcissism of minor differences.” They mirror each other, not only ideologically but also physically—armed and dressed in black, the color of fascism and the color of death.”

  7. Anonymouse1 on Mon, 28th Aug 2017 5:26 pm 

    You know, the empire could easily find all the money needed to help recover from self-inflicted disasters like Harvey. Take it out of the budgets of another self-inflicted disaster, the uS war and regime-change complex, aka the MiC.

    How hard would it be to tell the MiC they will have to settle for a couple dozen less F-35s, or a few less hunter-killer subs, or a few less state-of-the-art destroyers (that have to towed back to port on a regular basis). Problem solved Mr K….

  8. Theedrich on Mon, 28th Aug 2017 5:35 pm 

    Antifa is the Demonic Party’s military wing.  The notoriously corrupt Terry McAuliffe (Democrat, of course), who governs Virginia, and the devious Michael Signer (Democrat, of course), mayor of Charlottesville, basically conspired to pre-arrange an insufficiency of police presence and the lack of a clear separation before the Saturday, 2017 August 12 brawl between White anti-genosuicide rallyers and violent anti-Whites in Charlottesville.  They also made sure that the police who were present would not intervene during the assaults on the pro-Whites.  The Demonic politicoes wanted a riot to erupt so that their friends in the media would blame it on “White supremacists,” etc.  They dog-whistled their Yid-organized rent-a-mobs to invade the city and begin a war, while making sure that the two sides would not be kept apart.  Predictably, the anti-Whites unleashed an attack on the Whites.  While the latter were defending themselves and in the passion of the moment, a White driver unfortunately ran over and killed an anti-White protester.  Everything went according to the Dems’s plan, and they loved it.

    Then on Sunday, 2017 August 27, an Antifa mob and one called “By Any Means Necessary” invaded Berkely, California, to “protest” an anti-Marxist (“No to Marxism”) rally.  Injured were six people, including a policeman, and several officers were hit with paint.  The founder of Patriot Prayer, Joey Gibson, was hit with a pole, sprayed with tear gas and struck with thrown debris.  Of course, Berkeley Mayor Jesse Arreguín (Democrat, of course), along with House Minority Leader Nancy Pelosi called the rally a “White supremacist” one.  Gibson (who is half Asian) had emphatically denied that his rally was any such thing.

    Reality and civility do not matter to the Demonics, of course.  Only an “if-it-bleeds,-it-leads” riot that can somehow be blamed on evil Whites by the Yid-Leftist media matters.

    Houston, we have a problem.

  9. MASTERMIND on Mon, 28th Aug 2017 5:40 pm 

    Theedrich if you and the other alt righters want a race war so bad. Then take your torches and go marching into downtown detroit or Chicago. Prove yourself!

  10. Cloggie on Mon, 28th Aug 2017 6:02 pm 

    Smart leftists discussing the alt-right.

    The Irish woman clearly has trouble hiding her sympathies for the alt-right:

  11. Makati1 on Mon, 28th Aug 2017 6:09 pm 

    Anon, the MIC IS the US government. I think we will soon see a trillion dollar year for disasters in the US. Of course you will never see that in the US MSM but it will happen.

    Harvey appears to not be going anywhere and maybe will even go back to hurricane strength if it sits over the warm Gulf much longer. As JHK says, this could be the first domino. We will have to wait and see.

  12. MASTERMIND on Mon, 28th Aug 2017 6:13 pm 

    The world is sleepwalking into a Great Malthusian Nightmare (Trap)

  13. Makati1 on Mon, 28th Aug 2017 6:29 pm 

    “Damage from Hurricane Harvey is expected to total tens of billions of dollars, with current estimates range from $20 billion to $40 billion, but an unusually large share of victims lacking adequate protection –

    only one in six have insurance.”

    Not a good sign of a recovery to pre-storm levels. More poverty and stress in America. And, it is not even over yet.

  14. Davy on Mon, 28th Aug 2017 6:43 pm 

    If the US is not a mess enough for you check this out:

    “Stevenson-Yang Warns “China Is About To Hit A Wall”

    “The co-founder of the influential research firm J Capital warns that the speculation in the Chinese real estate market is getting evermore excessive. “There is little comfort that the economy can go on for much longer without some catastrophic adjustment”, says the American who’s one of the most distinguished experts on China. She expects that China’s currency will devalue significantly and explains why the Chinese government is cracking down on HNA and other Chinese companies that have been on an overseas buying spree.”

    “Everyone in China – from the government at every level to the people who work in banks, construction companies and real estate companies – is one hundred percent focused on how to push growth with more investment. That’s all people think about. Everybody is maniacally focused on the questions if investments will continue and if investments can continue to drive growth.”

    “The way investments drive growth for the most part this through housing prices. So for the average middle-class or upper-class person in China the focus is all on how much will property prices increase this year. They are not thinking about questions like: How can I get my salary to go up? Or how can my children get a better education so they can get a better job? They are not thinking about these fundamental economic things. They are thinking about things like: “Oh my god, I bought this villa in Langfang. The price is up 40%. Should I sell now? Or will it go up another 60%?” That’s what the government is thinking about, too, because that’s the way to drive growth and the way they get people excited and to get them to buy into the idea of the great Chinese miracle.”

    “There is probably no company that is more representative of the investment bubble than Evergrande. It’s the biggest pyramid scheme the world has yet seen. Evergrande is highly leveraged and has like 270 projects all over the country. I have been easily to 40 of them yet I have only seen one that was fully occupied. Many of these projects are megalomaniac visions and totally empty. Yet you go to these places and you see their sales room filled with young buyers. When I open my eyes I see crumbling stone and empty jungles or deserts. What they see is a future with wealthy Europeanized people strolling on modern paths. It’s just amazing. It’s a mass illusion and Evergrande more than any of these developers plays to this illusion by building developments that are specifically positioned for the investor, not to live there but to buy for some future appreciation in price.”

    “The other thing that eventually has to happen is that the Chinese currency has to devalue. The reason why the developers can just keep on selling is because they keep getting refinanced. All the refinancing means that China has to keep on expanding the money supply and when you keep on expanding the money supply you have too much money and the value of the money declines. Obviously it’s not quite that simple but that’s basically what’s going on. For now, the only reason foreign corporations like BMW (BMW 79.21 -0.1%) or Swatch Group (UHR 376.3 -0.34%) are willing to take exchange rate of around 6.7 Renminbi to the dollar is because the Chinese government is standing behind the exchange rate paying those dollars. But at some point that has to stop because the Chinese government won’t have those dollars anymore.”

  15. Makati1 on Mon, 28th Aug 2017 7:03 pm 

    Davy, that is from a seller of financial paper, not an unbiased source.

    “China’s Belt & Road members tally increases to 69”
    “China approves projects worth over $24 billion in July”
    “China;s net inflows rise in Q1, Q2 of 2017”

    China is a CREDITOR country, not a DEBTOR country like the FSA. It has a long way to fall before it gets close to the US level. A long way. Not to mention tools that a ‘democracy’ does not have.

  16. MASTERMIND on Mon, 28th Aug 2017 7:06 pm 

    Trump Reverses Restrictions on Military Hardware for Police

  17. Davy on Mon, 28th Aug 2017 7:14 pm 

    Who says, makat? You, the most biased of them all. LOL. makat, so you say there are no issues now in China? Is everything great and peachy over there? Let me know because you are the self-proclaimed board Asian expert. Double LOL. Makat, things are as bad or worse in China as in the US and your P’s is very dependent on China. That has to make you nervous. No wonder you try to dismiss reality.

  18. Makati1 on Mon, 28th Aug 2017 8:02 pm 

    Davy, I never said all those things you claim. I know that China is not perfect, but they are operating on a different plain than the US. They have huge reserves and probably about 30,000 tons of gold. The US has the world’s largest debt, no gold and a currency backed by nothing. They have resources to use that are not possible in the US like TOTAL control of major banks and industry. They are GROWING, not contracting like the US. They have a long term plan in place whereas the US thinks only about tomorrow. And on and on. Many many more plus’ than America in this time and place.

    You project yourself as a brainwashed Sinophobe. Sucker for the Fascist Propaganda. Did you ever notice the change in US “news” about Russia or China when they stood up against the US and said … no? I did. And it is obvious in their “news” treatment of the Ps. Pure bullshit propaganda. That beard is draining your brain cells, I think. LOL

  19. Davy on Mon, 28th Aug 2017 8:16 pm 

    BS, makat, China is hollow. It is a Ponzi ready to pop. I have posted numerous articles explaining this. You don’t read them becuase your reads are a one way emotional effort at anti-Americanism. You look the other way with Asian problems becuase you are biased promoting an Asiaphile agenda. I have blown you out of the water for years now on this subject. Where is the Bric bank these days? Where is the yuan as the reserve currency? You crowed these things routinely and now you are quiet. You don’t understand finance. You are a college drop out. You took one semester and folded. Stick to what you understand and leave the rest to those with an education.

  20. Makati1 on Mon, 28th Aug 2017 10:21 pm 

    Davy you have posted article refs originating in financial sales rooms or the US MSM. You have ZERO idea what is happening in China. You have never been there and never will be, just like the Ps. Hearsay and rumors mean nothing.

    You have only “blown me out of the water” in your mind. Not the real world Davy.

    The yuan is now a reserve currency in the IMF basket. It will be part of the new world currency soon. That says more about its valuer than any article from financial circles or the USMSM.

    “A new world monetary system is being set up right now which will completely kill the US dollar, which is the world’s reserve currency.

    23 countries (60% of the world’s GDP) are setting up swap lines which bypass the dollar and SWIFT, which is the dollar-based worldwide financial transaction system.

    These countries include Russia, China, India, and even Germany, France, and the United Kingdom.”

    “If Americans think they are immune to hyperinflation due to the dollar being the reserve currency of the world, then they have not been paying attention. The facts are the dollar is being dropped all around the world as the trading currency and countries are trading in local currencies or the Chinese Yuan/renminbi.”

    Te end is coming.

  21. Makati1 on Mon, 28th Aug 2017 10:26 pm 

    BTW: Davy, College in an over rated, for profit, pile of US bullshit. Did you know that Bill Gates is a ‘college dropout’? That most of the real inventors were never in any college?

    A piece of paper on the wall only says that you were able to do enough to pass your basket weaving courses and were sober enough to show up for class. Nothing more.

    I have several self-made millionaire friends that never went to college. I bet the millions of indebted college ‘students’ wish they had gone to trade school instead. LOL

  22. Makati1 on Mon, 28th Aug 2017 11:20 pm 

    “In a fascist system (US), the wealth gravitates to the top, eventually choking out the middle class and expanding the poorer class, and that’s just what we’re witnessing today. The solution is not to go further in this direction, but rather to try something new… or at least new to anyone living under the fascist system. Although it still retains some capitalist overtones, it is unquestionably not capitalism.

    A last word—capitalism does exist today, but it lives in select countries that have not yet given in to over-regulation. In those countries, the average person thrives and has opportunities far beyond what’s allowed in the former “free” world. Should the reader conclude that his present country is unlikely to go in the direction of capitalism, he may choose to vote with his feet in order to prosper the way his ancestors did 100 years ago.”

    I voted with my feet and don’t regret the choice.

  23. MASTERMIND on Mon, 28th Aug 2017 11:33 pm 

    Makati1: We can run from Malthus but we can’t hide, and in the end he’s bound to get us.

  24. MASTERMIND on Mon, 28th Aug 2017 11:35 pm 

    Makati1- Your feet are going to end up with your head soon, inside a cannibal’s pot.

  25. Makati1 on Tue, 29th Aug 2017 1:42 am 

    Muddymind, I see Asia as a much better place than America for dozens of reasons that have proved to be correct. You live in a fascist police state. I live in a country without the NSA and its hundreds of “security” cousins. I feel safer here than I ever did in the US the last 5 years I lived there.

    YOU are the one who should be concerned about your drugged up neighbors deciding your possessions are theirs. After I am dead, I don’t care if I make a good soup or not. I will be tough meat and not very tasty. I hope they have a lot of spices. LOL

    You see Muddymind, I don’t worry about death. There have been several times in my 70+ years that my life could have ended, all were accidents caused by others. They still haunt my memories if I allow them entry. The difference is, when the time comes, it is just … over. I will never know it happened. The Grim Reaper has all of our addresses and knows when to show up at our door. With luck, it will be fast or in my sleep. We shall see.

    Until then, I plan to enjoy life, be it minutes or decades. I don’t worry about what I cannot control. I just plan to make life as easy as I can until…

  26. Cloggie on Tue, 29th Aug 2017 2:00 am

    You can’t stop the internet! After replacement, there is now the ADL…. I mean replacement

    So for videos about car crashes or your pet of apple pie recipes or reviews of that Walmart lawn-blower you always wanted to have, you still go to youtube, but for edgy political videos you now go to bitchute, a site dedicated to free speech.

    Guaranteed out of reach of the ADL.

    Next we need a replacement for and Facebook.

  27. Davy on Tue, 29th Aug 2017 3:56 am 

    “Muddymind, I see Asia as a much better place than America for dozens of reasons that have proved to be correct.”
    Makat, life is fine around here. You left the US because you are a quitter. You quit the Mormons, the US, your family, college, your marriage, and who knows what else. Do you see a pattern? That pattern drives you to make daily multiple comments on how bad my life is and you don’t know a friggen thing about my life. Go blow your boyfriend.

    “You live in a fascist police state.”
    What do you call your hero Duarte a saint? When are you going to be looking over your shoulder when westerners are his latest target?
    “Philippines’ Duterte To Police After Teen Killed: “You Are Free To Kill Idiots”

    “There have been several times in my 70+ years that my life could have ended, all were accidents caused by others.”
    Another pattern always blaming others. It is all their fault. You need to be looking in the mirror at yourself because your life is you and what you make of it. WTF

  28. Makati1 on Tue, 29th Aug 2017 4:59 am 

    Davy, there is more real freedom here than the US has had in decades. You only know what the US propaganda machine feeds you.

    Yes, I support what Duterte is doing and so do most Filipinos. It is the ONLY way to fight the drug trade. He is also moving away from the US and towards China and Russia. Logical as THEY are the powers that control the S.E.Asia area we live in. NOT the US.

    Only an American hypocrite would point to one killing and make a big deal about it. The kid may have been a drug pusher. There are certainly many kids in the US that sell drugs.

    But while YOU were typing your bullshit, YOUR country was likely bombing innocent men, women and CHILDREN in some 3rd world country. How about the many hundreds of thousands of those innocents YOUR country has murdered since 2000? They don’t count? Typical hypocrite American. That same killing should blow-back to the States so Americans would wake up to the bullshit they are being fed. It may just happen. We shall see.

    Sorry, but all of those incidents WERE the fault of others. I don’t lie. I have no need to. Maybe you do?

  29. Davy on Tue, 29th Aug 2017 5:29 am 

    “You only know what the US propaganda machine feeds you.”
    Sure makat, tell me more stupid redundant horseshit. Every single comment is the same.

    “But while YOU were typing your bullshit, YOUR country was likely bombing innocent men, women and CHILDREN in some 3rd world country.”
    Yea, makat, and I want it to stop. That is why I am preaching downsizing across the board to Americans. I admit what is wrong with us. Please google my comments and tell me differently stupid, because you can’t. You on the other hand are one nonstop propaganda machine for how good Asia is and how wonderful your stupid little overpopulated ecologically destroyed Island is. You want us to believe Asia is the future and without issues. You discount overpopulation, overconsumption, and ecological destruction. It is OK in Asia so you say. You even go further and routinely dismiss any issues as propaganda. Where is the propaganda? I think it is with you. You are ruining the reputation of the Philippines by being an outspoken and obsessively exaggerating how wonderful the place is. Nothing is more irritating than someone saying how wonderful they are when it is clear their shit stinks too. You do this and then you try to tell me daily how bad my life is. Go blow the boyfriend.

  30. Cloggie on Tue, 29th Aug 2017 10:17 am 

    There goes Peter Stuyvesant:

    The statue of the first governor of Nieuw Amsterdam (“New York”) is targeted by Jewish activists. Reason: the governor with the wooden leg…

    … had written to his masters in the Staten in Holland that he had objections against receiving a contingent of Jews from The Netherlands. Reason: he found them in general “deceitful,” “very repugnant” and “blasphemous”. Some would consider that a fair assessment in the light of the history of 20st century (stealing of the Fed, bringing the US in WW1, organizing the bolshevik revolution, instigating WW2, killing JFK, opening the borders of America for third world immigration, organizing 9/11, to name a few).

    And then there is major de Blasio, who is contemplating removing the statue of Columbus, without whom America would never have been discovered in the first place (which in hindsight would have probably been the best).

    It is yet another indicator of what is coming to America, another Bolshevik revolution, curtailed to US circumstances, where all traces of European culture will be wiped out. Are you ready for that future, America? Or would “Old Europe” not be such a bad alternative?

  31. Dredd on Tue, 29th Aug 2017 12:40 pm 

    “It may bankrupt large insurance companies and dramatically raise the risk of doing business anywhere along the Gulf and Atlantic coasts of the USA” – Kunstler

    Yep (The Evolution and Extinction of Affordable Insurance).

  32. Makati1 on Tue, 29th Aug 2017 7:29 pm 

    Dredd, you touched on a topic that few here have even considered. How much will insurance cost as the storms get more frequent and bigger? More than most will be able to afford, I suspect.

    I doubt many in this storm area have real flood insurance as most companies do not cover “acts of god”. And few, if any, bought the government flood insurance because of a “it can never happen here” mentality or it cost too much. I was doing flood overlay maps for the USGS about 30 years ago, when the government insurance program started. You would be surprised at just how much of America is in flood zones. And most of those areas are built up now. Just another spike in the American coffin. The party is over.

  33. Dredd on Wed, 30th Aug 2017 9:23 am 


    Yes, and imagine the risk/cost of insuring endangered sea ports around the world (You Are Here – 5 ).

    That link has a video featuring Prof. Dr. Peter Hoeppe of Munich RE, an insurer of insurance companies.

    He paints a “Houston we have a problem” picture.

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