Jun 14, 2011 | Economic Meltdown
So what’s the alternative to slashing government programs, budget cutting, and more concentrated wealth at the top? The centerpiece of a new approach is to re-structure the labor market by reducing hours of work. That may seem counter-intuitive in a period when the mainstream message is that we are poorer than ever and have to work harder. But the historical record suggests it’s a smart move that will create what economists call a triple dividend: three positive outcomes from one policy innovation.
Jun 9, 2011 | Economic Meltdown
The global economy has become so incredibly unstable at this point that it is not going to take much to plunge the world into a horrific economic nightmare. The foundations of the world economic system are so decayed and so corrupted that even a stiff breeze could potentially topple the entire structure over. Over the past couple of months a constant parade of bad economic news has come streaming in from Europe, Asia and the United States. Signs of an impending economic slowdown are everywhere. So what “tipping point” will trigger the next global economic downturn?
Jun 8, 2011 | Economic Meltdown
One of the conclusions that I try to coax, lead, and/or nudge people towards is acceptance of the fact that the economy can’t be fixed. By this I mean that the old regime of general economic stability and rising standards of living fueled by excessive credit are a thing of the past. At least they are for the debt-encrusted developed nations over the short haul — and, over the long haul, across the entire soon-to-be energy-starved globe.
May 22, 2011 | Economic Meltdown
In fact, for several months the world has experienced an almost unbroken succession of geopolitical, economic and financial shocks which, according to LEAP/E2020, constitute the warning signs of a major traumatic event that we analyze in this issue. At the same time the international system has now passed the stage of structural weakening to enter a phase of complete decay where old alliances are breaking down, whilst new communities of interest are emerging very quickly. Finally, any hope for significant and lasting global economic recovery has now evaporated (1) whilst the Western pillar’s indebtedness, especially the US, has reached a critical level unparalleled in modern history (2).
May 18, 2011 | Economic Meltdown
Fortunately, many governors are addressing their state’s structural deficits head on. Unfortunately, there is a lack of collective appreciation for how painful this process will be.
May 13, 2011 | Economic Meltdown
“How can I prepare for an economic collapse?” Is one of the most common questions I get. It usually takes me a second to start to explain how complex such a question is. It’s like asking an auto mechanic “Say, how do you build a car?” or asking a computer engineer “What’s all that stuff inside my laptop?” I do have some first-hand experience in this matter though. The economy in my country, Argentina, has gone through various crises, but none as large as when the economy collapsed in 2001 after a decade of apparent prosperity. The currency devaluated, Argentina defaulted on its USD$132 billion debt, the largest default ever. The middle class took to the streets after bank accounts were frozen and the president was forced to resign, escaping the presidential building in a helicopter. What I’ll do is, based on what I know, provide five quick foundational steps for you to follow so as to be better prepared if something like what happened in my country ever happens in yours.
Apr 13, 2011 | Economic Meltdown
“Our economy is in a severe state,” BOJ Governor Masaaki Shirakawa told lawmakers on Tuesday.
Apr 9, 2011 | Economic Meltdown
As powerful as Wall Street appears to be, its abuse of power has so eroded the economic, social, and environmental foundations of its own existence that its fate is sealed.
Apr 4, 2011 | Economic Meltdown
A particularly annoying question I am often asked and have come to hate is: “How do I invest my money for it to survive financial, political and commercial collapse?” The short answer is: “Nohow. Money will not survive collapse; not yours, not anyone else’s.” But that answer is not acceptable, because accepting it would require a profound loss of faith—faith in money, a profound Götterdämmerung for a civilization based on the worship of money.
Mar 30, 2011 | Economic Meltdown
In a previous article I have suggested that revolts in so-called developing countries can be predicted not only by the fraction of educated youth who are unemployed and other factors, but also by the fraction of household budget spent for food. Now we might ask of developed countries: to what extent will voters tolerate extreme inequality if the standard of living of a large majority of them no longer gradually rises or at least seems to remain stable, but actually declines noticeably?
