Monday, January 19, 2009

The NEW "New Deal"

We all know about the current "Economic Crisis" and the politicians are authorizing new "bail-outs" as I speak. Remember later though that I said this: none of it will help

Why not?
Well for starters, Economics is a natural process, just like The Rain Cycle, The Food Cycle, Ice Ages, Tides, and the annual change seasons. What happens when Mankind messes with nature? We protect endangered species, and before we know it, there's an over-population of it. We hold back the oceans and eventually a city gets flooded. The trouble is, natural processes check and balance themselves, and the global economy is no different!

What Happened?
We read and hear and watch the News through our favorite media sources all day long. They tell us, "it was the Sub-prime lending" long with any other number of reasons. However the true problem is so simple it amazes me that people can't see it. Subprime lending is just a symptom, bankruptsy and loan defaults are all secondary symptoms. The real problem is that our economy has been propped up since The Great Depression: ie. The New Deal.

That's right, you heard correctly. Our ecoomy has been flourishing artificially since then. Now it has to balance out. It was already beginning to balance back then. Peaks and troughs, and the peak can only get so tall before the wave breaks and by artificially supporting our economy we've created an economic tsunami.

Now What?
So... there's the problem, what's the solution? I'm no economic genius, I admit it. I have trouble keeping my checkbook balanced. I only see two posibilities though: Continue to try to prop up the enconomy... the WORLD economy that is... or just let it go to hell naturally and level out. We've already tried Bail-outs and where is that leading... more bail-outs!

This Doesn't Sound Fun...
True, it sure won't be a picnic. Geopolitical bounderies may be completely different when it's over. We may be on top, and we may not be. Everything has to change sometime. Without change, we face stagnation and death. The kicker is, Change happens wether we try to prevent it or not, so why not ride the wave? If it all falls to pieces we could lose all these great advancements, but if we ride the wave we keep it all and have the opportunity to wake up as something new.... Maybe even dare I say it, something better!

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