The sci-fi movies of the future often include images of
humanoid robots, vibrant megacities or post apocalyptic worlds. But while the
real path to the future may have been completely over looked by the movie industry, one thing is for sure, with the monumental changes taking place in everything
from the economy, energy, technology to globalization, the next 10-20 years
probably won’t look anything like the last 100.
To get a sense of
what effect these rapid changes will have on our near future, you first need to step back in time to the
Industrial Revolution. At the very start of this revolution in the 1600s there was a dwindling
supply of wood in England, which resulted in the increasing use of coal as
fuel, up until that time there was little incentive to use coal because it was
hard to extract, heavy to transport and required a special fireplace to burn.
But then, once coal was in place as a common source of fuel, higher burning
temperatures maid it relatively easy to smelt iron and produce new items like
Cast iron kettles, along with another unforeseen by-product of the high
temperatures - steam! In 1698 Thomas Savery was trying to pump water out of the
coal mines, when he tried using steam to power a piston pump, this resulted in
the development of the steam engine which powdered the Industrial Revolution,
though it probably would not have happened if we had not chopped all the trees down! Which makes this is a great analogy for how quickly things can change once the
world runs out of an important resource like oil!
At the time these steam engines were being developed, most of the people from this time either learnt a craft or farmed the land, but then the steam engines enabled a few wealthy individuals to build steam powered
factories which automated the textiles industry, other developments like the steam traction engines evolved into today’s tractors. The
result of all this steam powered automations was the mass production of cheep
goods and food, which the regular farmers and cottage industry folk could
no longer compete with on price, which ment they were forced off the land and into
working for the very few individuals who could afford to build these large factories
and their machines. By the late 1800s this had resulted in the highest level of
inequality, probably since Roman times and caused a number of wars like the
Civil War in America. By the early 1900s, the efficiency with which the rich
could use this industrial machinery to siphon their profits out of the economy caused
a significant decline in the circulation of money, which at that time was based
on gold. To solve this problem the British ordered all Gold coins to be
exchanged for paper based money in the early 1900s, this enabled England to
print a lot more money than they had in Gold. A similar event happened in
America with the great depression, when Roosevelt in 1933 ordered all gold
coins and gold certificates turned in for paper money, this move also help the US to
spend their way out of the recession, building for example the Hoover dam and
giving people the first unemployment benefits.
Nearly 38 years later and in the background of increasing
automation, something else with the potential to siphon money out of the economy
appeared on the horizon – peak oil. As
predicted by M. King Hubbert in the mid 1950's US oil production peaked in 1971.
This now meant Americas had to start importing oil. As America was still on the
Gold Standard the effects of a US trade deficit with the oil rich nations could
have cause a continual decline in the money supply and plunged the US into a
prolonged depression. So it’s no strange coincidence that in the same year 1971
on August 15, President Richard Nixon took to the airwaves and announced the
government was banning the conversion of dollars into gold and effectively
abandoning of the gold standard. This now enabled the US Banks to “Print” as
much money as was required to prevent any depletion of the domestic money
supply by the import of oil from the oil rich nations. Unfortunately, increasing
the money supply isn’t as simple as just printing more money, since someone
else has to lend it, into existence. Which explains the continual decline in
Interest rates since the 1980s, which coninsided with changes in policies to encurage more
home ownership and Student loans.
Following on from the lower rates of money lending In the
late 1980s, a 3rd factor started to accelerate the rate at which money
began to drain from western economies, called globalization. This was encouraged
by the removal of restrictions on the movement of money out of the uk by Margaret
thatcher. The effects of globalization originally started with the hollowing
out of manufacturing jobs, but as the technology improved the internet also helped with
the second hollowing out of software and information technology jobs. The faster that money
is lost from a local economy the faster it needs to be replaced; unfortunately,
instead of increasing Taxes on the supper rich, fixing Tax loop holes or
implementing a global financial transaction tax, the corrupt politicians have instead
helped the Banking system lend out more and more money to plug the growing hole at the bottom of the economy. For example, in May 1997, Gordon Brown, as part of his “New world Order”
gave control of interest rates to the Bank of England, which lowered the rates from
a reasonable 7.5% to just 3% before the 2008 recession, rates are now down to just 0.5%.
So instead of taxing the rich or the poor, new labour instead opted for the
third way!
The
lower interest rates adopted by the central banks of the developed nations
during the past few decades, has been we are told to help the economy out of the bad
times by helping the public and corporations to refinance old debts. But far from helping people to get out of debt, this has done just the
opposite and help people get into more debt, causing for example the
housing bubble in America which helped to trigger the 2008 Stock market crash.
Now that interest rates are near 0% in most developed countries, the
Central Banks will hardly be able to lower rates a second time, so the central
banks will be, more or less powerless to stimulate the economy as we now head
into the second dip of this great depression like a repeat of the 1930s. A
number of people believe the US Government, will be able to avoid a repeat of the deflation seen in the 1930s by borrowing more and stimulating growth, this is partly why the Fed lowered interest rates so low, but the Goverments can only borrow so much money before they cannot borrow any more. Just look at all the credit ratings downgrades being given out to debt ridden
countries like Greece and Spain, the Central Banks are private institutions and will not
lend money to someone if the recipient doesn’t a have a good credit rating,
even if they are the US Government!
But why would the Central Banks lower interest rates so low leading upto the crises, get everyone
into levels of debts they could not afford to pay back and then not have any
way to resolve the situation, surly this would be like committing suicide? To
answer this question, you need to realize, there are three types of Bank:
- Central Banks with
the power to create money.
- Commercial
and Investments banks, such as Hedge funds.
- The savings
banks such as the building societies.
The Central banks who are able to lend them selves the money to buy up their own Bad debts in a processes called quantitative easing should be ok. It is the high risk commercial
banks which will be in trouble, unable to collect debts they
will end up bancrupt be brought out by the larger Banks which form the
main core of the Central Banks, this will only help to strengthen the global organisations these central banks have created, like the international monetary fund (IMF). This is
just what happened 83 years ago in the great depression when 9,146
banks failed and where taken over by the central bank, this would represent
over 100% of the 7932 banks in existence today.
How will things be different from the Great Depression this
time? In the UK and America, Interest rates during the whole of the 1930s never
dropped below 2%, they are now at 0% in America. Also, before the great
depression, the levels of private debt never went above 250% in America or the
UK, they are now above 500% in the UK! So not only are we more debt this time,
but the ability of our central banks to stimulate economic growth are at an all
time low. Another main difference between now and the great depression is the
lack of a manufacturing and export industry, with most jobs being either in the
financial sector or the service industry. This means once bank lending dries up,
through the build up of too much debt in the system, then we will be full
dependent on an extremely weak export industry as a source of revenue for the
economy and since this is much weaker than during the great depression things
could get very bad indeed, especially now that most of our oil and gas is now
imported. Another big difference for the majority of the population is the much
high percentage of people who no longer work on farms, which in the 1930s was around
20% of the population, while now the percentage is more like 1%. This is important,
because it’s said that a lot of those who survived the great depression escape
to the country to find food, with the majority of the 5 Million people (10% of
the US Population) who died during that time having lived in the cities. I think a lot of people do not believe this
couldn’t happen now, but look at Greece which already has 30% of the shops
boarded up and like Spain 50% of people under 30 without work, if people are
not buying food from the shops in Greece, then what are they eating? With
reports of children fainting in class from hunger, it’s not a lot. This isn’t
something which has to happen in one instant; like the 1930s, it could take up
to ten years of Austerity before it’s affecting almost everyone at every level
of society.
One interesting aspect to the Austerity will be its effects
on technology, the focus for example on shops and supermarkets; will be on
reducing costs now more than ever, resulting in for example more self service
checkouts and a much greater reliance on the internet. As a lot of this cost
cutting will include the replacement of jobs which automated systems, this will
only help to reinforce the effects of the depression. With access to funding,
credit and consumer demand at an all
time low, the advantage for larger corporations in building large factories,
which can churn out million of the same item at low cost, will be significantly
reduced, especially as higher fule prices will make more centralized production
less affordable. This suggest small start-ups or the self-employed will finally
have an advantage, using everything from 3D Printers and the Internet to kick
start a new industrial revolution, but will this result in a return to the
cottage industry?
The problem with the idea of a cottage industry renaissance as it might be called,
is this trend towards more local and small scale production, would also support
more home-made goods. So the transformation could be more akin to a transfer of
the factories into people’s own homes. But then what would this future look
like? To get an idea you only need to look at what people actually need on a
day to day basis? Electricity, Gas, Water, Food, Medicine, Soap, Washing up
Liquid and other items required at a lower rate of production, such as cutlery,
clothes, furniture, electronics and other home appliances. Then you have the
services, such as the postal system, the internet and the banking system.
Although it may not be technically possible or economical for all these things
to become products of the industrialized home, it's worth going through them
all to see how far technology could progress in this direction. It may also be
worth pointing out that if the future does take this path, then it would no
longer be just a great depression, because the fewer consumers were dependent on
the global economy the fewer products the global corporations would be able to
sell and the less people it would be able to employ. This would result in a self
reinforcing cycle towards ever more self-sufficient lifestyles.
1. Electricity, this can be replaced by solar, today efficiency
is 12-18% providing 4kW but 99% efficient solar printed on cheap paper is in the
lab which could provide 20Kw - about 5 times more energy than most households
ever use. The only problem here is energy storage for night time use, but
solutions using unique materials involving carbon nanotubes
or graphene are on the horizon such as Ultracapacitors with energy
densities similar to Li-Ion car batteries. As these don’t have any electrolytes
or chemical reaction taking place, they have virtually unlimited charging
cycles and can charge up in an instant! The technology for doing this is also getting
cheaper; a few companies have already started mass producing nanotubes and sheets of graphene. I
also expect the price to drop significantly, because unlike Lithium used in most electric car batteries
today, Carbon is not in limited supply.
2. Gas for cooking can be replaced by hydrogen from splitting
water molecules, catalysers as efficient as plants now exists in the lab, no
need for companies like British gas!
3. Water, dehumidification systems can produce around 50
litres per day, while another system I just read about uses a wind turbine to
extract as much as 1000 Litres a day in the dessert using a condenser and
refrigerant processes. When combined with Rain collection, water recycling, UV
water sterilization, efficient filtration systems and 3D Printing technology to
reduce costs - there might be no need to pay a water company for water!
4. Food. Most of the energy in the sun’s rays are within the
visible wavelengths, which plants can't even use since they need UV Light, this
means converting the energy from Visible light to UV rays with highly efficient
LED Bulbs can enable a lot more plant growth than would be possible with direct
sunlight, at the moment prices for these LED Bulbs are too expensive but prices
are dropping and a few small companies have already gone into the production of
vegetables in inner city arias, using LED Bulbs to grow vegetables for the
local aria. Hydroponics also enables highly efficient use of water, reducing
wastage to almost nothing, with 1kg of plant mass being produced for every kg
of water. One good example is the Omega Garden system which involves rotating
plants on a perforated wheel around a central bulb and underneath a nutrient
solution of water. This carousel system yields five times the weight of plant
mass per watt of conventional flat Hydroponics and can produce enough to feed
one person or as much as a 450 square foot green house, in an aria just 2
meters by 2 meters. This is only possible because the plants grow both larger and
10 times faster than in their natural environment. The only real problem here
is with the confined space of a home where the only efficient plants to grow
would be those which are completely edible like cabbage. Crops such as wheat
take up a lot of space with only the grains being edible, but even here the
science of plant cell cultures might help, since the grains are a seed, which
contain plant stem cells which have the potential to replicate indefinitely,
given the right environment. Though it might not be necessary to use to cell
cultures, some types of single celled plants like algae contain a lot of
nutrients not found in vegetables like Iodine and Vitamin B12. Algae can also
grow 20 to 30 times faster than food crops, some forms of algae are even composed
of as much as 80% fat, useful for making anything from cooking oil, biodiesel, homemade
soap or even biodegradable plastics at home.
4. Soap, with Electricity from Solar it becomes possible to
make your own Soap using the readily available ingredients Salt and Oil. The
processes for doing this involves passing an electric current through Salt
water where the sodium chloride breaks down to form sodium hydroxide and
chloride gas, this gas then bubbles out of the water to leave a solution of
sodium hydroxide in water. If this liquid solution of sodium hydroxide is then
mixed with oil such as could be obtained from Algae, then it will form Soap! In
theory a small device could perform this process at home.
5. Biodiesel, as oil becomes increasingly expensive; it may
become cheaper for people to "Grow" their own. Creating Biodiesel
involves a process called transesterification which involves using caustic soda
to accelerate a chemical reaction between alcohol and oil. To do this you heat
uncooked vegetable oil which might be obtained from algae to around 130c, then
with some eye protection and gloves, measure out ethanol at around 20% of the
weight of the oil and caustic soda (Sodium Hydroxide) at just 1% of the weight
of the oil being used. Then dissolve the Sodium Hydroxide into the ethanol,
before adding this to the warm vegetable oil, after leaving this to cool for
few hours a mixture of Biodiesel and glycerol is formed, the glycerol then separates
out and sinks to the bottom of the container, forming a dark layer underneath
the Biodiesel. Compressing Algae like olives, doesn’t just squeeze out all the
oil, but also leaves behind fermentable carbohydrates which can be combined
with yeast to form Ethanol, though it is best to use an Ethanol still, since
ethanol can poison yeast and prevent all the carbohydrates from being converted
to ethanol.
6. Plastic, according to the web, various starch based biodegradable
plastics can be 3D printed. But how would you obtain lots of this at home? The
first ingredient you need is obviously starch, since potatoes are around 95%
starch, hydroponically grown potatoes could provide the first ingredient. Next
you need glycerine which is formed when you make Biodiesel or Soap. By mixing
and heating a solution of glycerol with starch and an acid like vinegar it creates
a liquid plastic which can be formed into anything from plastic bags to bowls
or cutlery.
7. 3D Printers continue
to get cheaper, faster and more accurate with time; some can even combine as
many as 60 different types of materials from metal, ceramics, plastics and
rubber to create anything from cups, cutlery to items which require a combination of materials like a tooth
brush or electronic circuits. Other possibilities include whole houses printed layer by layer.
8. Clothes, many 3D Printers are already using Nylon and a few
people have also demonstrated the ability of 3D Printers to print a chainmail
like cloth. Since the only difference between this and the actual fabric, is the
resolution the gradual increase in resolution of 3D Printers over time should
enable them to print clothes.
9. Postal system, quad copter are currently being tested as
a possible solution to deliver everything from pizza to post using GPS
navigation.
10. Internet - Wireless Hubs could form an alternative to the
internet, rooting data through a global web of home based wireless rooters. In this system, P2P Software
could replace the centralized search engines and other internet services like ebay and Facebook, by distributing the storing accross many different nodes.
11. Money - A P2P Network implamenting a solution for the distribution of money without the need for banks has already been developed in the form of Bitcoin.