http://www.postcarbon.org/slo_mo_splatRemember the wall that environmentalists (like the 1972 "Limits to Growth" authors) have long been saying that industrial society would eventually hit? Permit me to make the formal introduction: Industrial society, meet wall; wall, meet industrial society.
It's understandably taking a while for the recognition to seep in. We are not accustomed to seeing every indicator of economic well-being, in virtually every country in the world, slam into reverse over the course of a few short months. I still have random conversations with businesspeople and bankers who say we've hit bottom and recovery is at hand; in their view, this is just another business cycle. I see things a bit differently: to my eyes the world situation looks like a slow-motion film of a train wreck, and the sheet metal at the front of the locomotive has only just begun to crumple.
Everything we thought we knew about the economy is suddenly wrong. Regarding China, we are accustomed to hearing of a new power plant being constructed each week, of energy consumption growing at a rate of 10 percent per year or more, of hordes of farmers from the western provinces rushing to the coastal cities to get manufacturing jobs so they can buy refrigerators and cars. The current reality: Chinese factories are now closing by the thousands, workers are rioting and leaving the coastal cities to return to their farms, energy consumption is actually declining.
In the US, vehicle miles traveled (VMT) are falling dramatically for the first time since records have been kept. During past recessions or gas price spikes, people bought smaller cars or drove slower; now they're just not driving. Explanation? The use of public transit is up, but so is unemployment: people without jobs don't commute to work. And deliveries of raw materials and finished goods are way down, so trucks are driving less, too. Gasoline and diesel consumption is down. Nobody's buying cars—large OR small—and as a result GM, Ford, and Chrysler are on deathwatch (even the Japanese automakers are reeling). Retail businesses are closing so fast that it's tough to keep track of who's still open and who isn't.