Archive for December 18th, 2008

Our economy is shot to hell

We have a very real problem in Britain. And, by the looks of it in the EU and the US.. People are reacting to the little problems and nobody is addressing the underlying economic structure.

Our previous problem, over the last hundred years, has been that money has been created out of debt. This is a complex issue but the 40 minute video hot-linked above will explain it far more clearly than I can.

However, our present calamity, although brought on by this, is not being correctly addressed because of the world problems caused by the population explosion. In 1970 there were three billion people on earth. Now there are six billion and, within forty years, there will be over twelve billion people on this planet.

Then there are problems with the earth’s resources, such as copper, oil, uranium etc. Already these are not as plentiful as they used to be, and are costing more to extract them from the earth. Within 40 years most resources will cost too much to extract from the earth. So we have too many people chasing too few resources. And all this is without any problems with climate change.

As far as I am concerned, it matters not whether the problems of climate are natural or man made. It is happening and we do not seem to be able to reduce it. One of the problems caused by climate change is the problems with food production.

So we will have too many people, with less food available, having to live a reduced lifestyle because of ever diminishing resources.

Whilst you are getting your mind around this, do bear in mind that I haven’t even come to our economic problems yet.

To put it in simple terms, our economy depends on growth. In other words, because of our economic model, nothing can happen, more money cannot be created, until we have growth. The Bank of England (and the Fed in the USA) are printing money for the government to use as if there is no tomorrow. This means the value of our existing money has to depreciate. Already the value of the pound is at least 25% less than it was six months ago. As our government pours more money after bad (Jaguar, and talk of more for the banks) our money will continue to depreciate. And, as you can see from the above, the possibility of growth in the longer term looks less and less likely.

Our problem is that the politicians of all countries concerned are not addressing the longer term issues. This could possibly be because governments only look for solutions for the present and never further than the next general election.

I have mentioned Chris Martenson’s Crash-Course before and this will explain a lot behind what I have said so far.

With regard to the UK, the main problem can be laid at the door of Gordon Brown, but to be fair, although a Conservative Government might have done things a little differently they would also not be addressing the root, or underlying causes. The reason is, the public would not countenance the measures that need to be done and no politician could ever be brave enough to try and force such solutions through.



1 Comment

%d bloggers like this: