If gold hits $1,000…

By Bill Bonner Feb 21, 2013

Bill Bonner.

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Planet Earth dodged a bullet last week. A comet exploded over Siberia, knocking out roofs and windows and injuring hundreds.

“Doomsday!” said an old woman who saw the explosion.

Another meteor or asteroid passed within 17,000 miles of Indonesia. Scientists said they had been keeping an eye on it.

We interrupt this brush with the 'end of the world' for a quick market update. Yesterday, stocks fell 103 on the Dow. Gold plummeted $26... well below the $1,600 mark. Is this the end of the line for the gold bull-market that began in 1998?

We don’t know, of course, but we’re hoping to see the price of gold fall to $1,000 – or lower. Then, we’ll buy as much as we can afford!

Meanwhile, scientists are keeping an eye on the planet’s weather. It’s getting much warmer, or much colder, depending on whom you talk to.

The ‘much warmer’ crowd has the microphone in its hand. Led by Al Gore and others, it is convinced that greenhouse gases are turning Earth into a raging inferno.

Carbon dioxide is the main culprit. There’s always carbon dioxide in the air. It is what you get when carbon-based elements – living things – decompose. You also get heat energy. You can test this yourself. Just put your hand into a pile of decomposing leaves or hay or manure. You’ll find it warm. Which is why burning formerly living things is so popular. That’s how we warm our hands, power our drones and run our automobiles.

Here we give you a simple explanation of the argument for global warming, as we understand it:

The sun hits Earth. Some of the light is reflected back to into space, especially the light that falls on shiny white surfaces – such as the South Pole. Much of the light is absorbed as heat by the oceans, dirt and so forth. And much of it is absorbed by plants and turned from solar energy into carbon-based life. That’s how we live.

Some things live on the sun’s light – along with water and nutrients from the air or soil. Other things eat them. And still other things eat the things that eat the plants.

Trees grow. You can cut them down and burn them for firewood, releasing heat and carbon dioxide. But if you burn a tree, you add little to the world’s carbon dioxide, because the tree would have died and released its carbon dioxide into the air anyway, though over a longer period of time.

Over the eons, much of the sun’s energy was captured in plants which didn’t fully decompose. Instead, they then sank into swamps and were compressed into coal, oil and gas. Burning this ‘fossil fuel’ is different from burning a tree. Because it releases millions of years’ worth of the sun’s energy and also billions of tons of carbon-dioxide that was ‘locked up’ in the ground.

In all the years that Earth has been in existence, there have been many collisions with meteors and asteroids. There have been dramatic changes in Earth’s climate too. But never before has an animal figured out how to use this stored-up solar energy. Never before, too, has an animal significantly altered the amount of carbon dioxide in the atmosphere and potentially altered Earth’s climate.


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Is this true? Does it make any difference? Is climate change another huge bullet heading for planet Earth?

We don’t know. Many smart people believe it. No one knows for sure.

A friend sent a serious book on the issue: High Tide on Main Street by John Englander. It is not so much concerned with trying to change or protect the world’s climate as it is with what is likely to happen and how it will affect our lives. Mr Englander writes:

The last truly abrupt changes in the Earth’s climate occurred more than 50 million years ago. During that period, carbon dioxide increased about 100 ppm over a million years. The global temperature spiked by about 9 degrees F... over 10,000 years. While that may sound slow, in geologic time it is considered quick and drastic.

At our current rate of carbon emissions, we will increase carbon dioxide levels by that same 100ppm in just 30 to 40 years. In other words, we are increasing carbon dioxide levels roughly 20,000 times faster than at any time in the last 540 million years. Temperatures, which can lag behind the rise of carbon dioxide, are now rising about 55 times faster than they did even during the most recent cycle of glacial melting.

Are human beings to blame? Perhaps. Perhaps not. But if Mr Englander is right, this is a bullet we may not be able to side-step.

And it could surprise us all by how fast it comes at us. Methane, he says, is the wild card. It’s the most effective of the greenhouse gases, meaning it traps more heat than any other. There is beaucoup methane locked up in the permafrost, billions of tons now melting. It, and the unprecedented levels of carbon dioxide, could cause a runaway heat effect. Something that has never happened before either. This, in turn, could cause Earth’s water level to rise – fast.

A few years ago, the local Baltimore papers carried an article about an island in the nearby Chesapeake Bay. Holland Island had been the home of several families. They farmed. They fished. They built large, handsome houses and enjoyed life – for generations – in 'the land of pleasant living'.

But then, the islands sank. Or, rather, the water rose. Sharps Island – 900 acres, with several farms, houses and a hotel – disappeared in 1962. Holland Island was underwater by 2010. Its last resident waited until the water was at his door. Then, he waded to a boat and said goodbye.

Mr Englander believes that present trends will raise water levels some 212 feet. When? He doesn’t know. This has never happened before, he says.

Say goodbye to much of India, China, Bangladesh, the Philippines, the Netherlands, Florida and Nigeria. And if you are buying waterfront property... you may want to look at property about 200 feet above sea level. Anything lower than that may soon be underwater.

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Comments (16)

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  • 1. Boris MacDonut

    (21 February 2013, 05:01PM)  Complain about this comment

    You mean when Gold hits $1,000. At the current rate of decline (18% in 6 months) it will be there in about 18 months time.

  • 2. LERENARD

    (21 February 2013, 06:49PM)  Complain about this comment

    The problem is that there are eminent scientists on both sides of the global warming debate. The logical position should be ' We do not really know, therefore it would be sensible to take precautions against the worst case scenario.' Humility in the absence of certainty.

  • 3. Francisco23

    (21 February 2013, 07:20PM)  Complain about this comment

    Oh dear, Bonner goes outside his area expertise and quotes dodgy sources. #sciencefail

    Stick to what you know pal.

  • 4. Breezy

    (21 February 2013, 07:43PM)  Complain about this comment

    Francisco23, if I am not mistaken, these are actual events being quoted. These people actually did have to leave their homes. The big conflict appears to be between those who believe that economics are the most important reality on Earth and those that believe the human wealth and planetary health are intrinsically linked.

  • 5. Iceberg

    (21 February 2013, 08:57PM)  Complain about this comment

    I believe the range in sea-level increase is in the range of 1 - 2 m by 2100 and there is virtually no dissagreement in the scientific community that the CO2 emissions by humans are starting to trigger other feedback loops that wil give the planet a new climate.

    Gore is a good businessman and a politician ... He is not the face of climate scientists, even though he piggybacks on them to make a good buck.

    Live Long

  • 6. Jack

    (21 February 2013, 09:56PM)  Complain about this comment

    Did the inhabitants of the islands not buy themselves a dragline and build dykes to protect themselves from the rising water. It's not rocket science, the Dutch have been doing this sort of thing for centuries.

    Whatever happened to good old American know how?

  • 7. Jon

    (22 February 2013, 09:40AM)  Complain about this comment

    Whilst i'm in general agreement with the enviro cause & effect raised here, a 212 ft rise in water levels globally is hard to accept.

    Just where is all that water going to come from to raise sea levels across all oceans by that amount ? Is Mr Englander suggesting all the ice on the planet is to melt and is sufficient to achieve this rise ?

  • 8. Dexter Wallfish

    (22 February 2013, 04:22PM)  Complain about this comment

    There is about 200 feet of sea level rise from Antarctic ice plus another 20 feet from Greenland ice. North pole ice is already all at sea so not much help there. Earth has spent most of it's 4.5 billion years without ice caps so what's the issue?

  • 9. quokka

    (23 February 2013, 01:38AM)  Complain about this comment

    really?

    The land of the island has been subsiding as a result of post-glacial rebound, the return to normal of bulges created by the weight of glaciers elsewhere during the last ice age. This process has caused a major loss of land on the island. Like other Chesapeake Bay islands, Holland Island is primarily made up of clay and silt, not rock.[4] The western ridge of the island is very exposed to waves in the bay, making it prone to erosion as well. The island's size has been reduced by half, from 160 acres (0.65 km2) in 1915 to 80 acres (0.32 km2) in 2005.

    http://en.wikipedia.org/wiki/Holland_Island

  • 10. quokka

    (23 February 2013, 01:59AM)  Complain about this comment

    Mr Englander believes that present trends will raise water levels some 212 feet. When? He doesn’t know.

    The mean sea level trend is 4.78 millimeters/year with a 95% confidence
    http://tidesandcurrents.noaa.gov/sltrends/sltrends_station.shtml?stnid=8635150

    so thats 13500 years ?

  • 11. Ed

    (23 February 2013, 08:03PM)  Complain about this comment

    This is such a huge irreversible problem, but on a more philosophical level maybe it is our fate, maybe it was always going to happen, maybe it is like Eve and the apple it was always going to be eaten. Maybe we are just bacteria on a petri dish of another intelligence and this world is just an experiment. Maybe we will destroy ourselves with nuclear weapons and the global warming problem will be solved

  • 12. Boros MacDonut

    (24 February 2013, 03:10PM)  Complain about this comment

    #11 Ed. Or maybe none of this tripe will ever come to fruition. At least not for 10 generations. It is all part of the religious nutter's enemble to seek to terrify or turn folk negative. Ireversible problem my ***.

  • 13. Lupulco

    (24 February 2013, 07:18PM)  Complain about this comment

    Whats the big deal, 1 in 50 of us will die within 10 years.
    The earth has been around for billions of years, we humans maybe a million or so, if we rubbish our environment, we die off early.
    A million years pass by, the earth cleans itself up and some other animal reaches the top of the food chain.
    It just goes on and on, the planet will still be around long after us. the so-called masters have long gone.
    We are born, we consume and we die just accept it, enjoy the life you have.
    Ecclesiastes 9, A Common Destiny for All.

  • 14. Boris MacDonut

    (24 February 2013, 07:35PM)  Complain about this comment

    #13 Lupulco.Please don't drag the debate down with religious references or pseudo environmental pap. World life expectancy is now about 68 and the mortality rate is 8.5 per 1,000 meaning one in 116 of us will die every year.

  • 15. Colin Selig-Smith

    (24 February 2013, 09:46PM)  Complain about this comment

    Wow the myopia is ... unexpected ...

    Gold isn't going to $1000 unless the USD goes to 0.75 GBP and 0.66 EUR.

  • 16. RockyRacoon

    (02 March 2013, 04:09AM)  Complain about this comment

    Developed (and some developing) countries must cut back their carbon dioxide emissions by a very large percentage (50% to 90%) by 2020 to immediately precipitate a cooling of the Earth and its crust. If this is not done the earthquake frequency and methane emissions in the Arctic will continue to grow exponentially leading to our inexorable demise in 2038 to 2050 http://geo-engineering.blogspot.ca/2012/02/how-much-time-is-there-left-to-act.html

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