Economics from a Global Perspective!
Economics is now global, interconnected, interdependent, real-time, and evolving into a planet-wide system! Let’s talk about this!
The realities of economics is that we now live on a planet with some 7 billion consumers and only some 700,000 corporate producers. The basics of economics are now: food, clothing, shelter, transportation, health care, and leisure activities. Historically, the economic man has been fighting for survival within a hostile economic environment where natural resources are limited and scarce. This reality has created an environment of competition for these limited natural resources (oil, metals, chemicals, agricultural products, building materials, etc.). Economic man has lived within this ‘hostile’ and ‘competitive’ environment for some 6000 years or longer. These facts of survival created our economic/political Systems and also created a mindset where only the survival of the fittest could survive and prosper.
The need for economic survival (given scarce resources) has created tensions, divisions, and war!
The various Systems of economics which have been tried during our 6000 year history include: Barter, Feudalism, Mercantilism, Capitalism, Communism, and today’s ‘mixture’ which we can call Casino Capitalism. All these prior Systems worked to a degree for those who controlled the core natural resources and for those with the strongest military or fighting forces. Survival of the economic man depended upon controlling the key natural resources (energy, metals, and agricultural productivity). To secure these items meant that war, fighting, and political control were necessary. All the great Empires of History recognized these factors of economics (Sumerian, Egyptian, Babylonian, Persian, Grecian, Roman, Ottoman, British, and now American). History has demonstrated that man must compete and conquer if he is to survive and prosper. This means war with competitors!
The need to fight and conquer was necessary to survive in a hostile planetary environment!
These realities of the marketplace created the mindset which political and economic leaders followed. This mindset was mostly that ‘Might’ makes Right’. Might (in the form of the strongest military and the best political system) allowed the strong to control the key natural resources and also provide growth and prosperity for their social group (the Nation). Today, the strongest military and political System (on planet Earth) is the United States of America and her Allies. The System has evolved since the end of WWII into an American Empire…now with some 800 military bases around the planet and with Allies which basically support her Empire and military/political ambitions. The general ambitions of this Empire have been to create Liberty, Freedom, and Human Rights for the ‘individual’ (a well-intentioned goal). All the basic intentions of this Empire have been beneficial for Americans and her Allies. America currently consumes some 24% of the planet’s resources and her Allies consume some 26%. This gives America and her Allies (13-15% of the population of the planet) control over some 50% of the necessary natural resources. It appears from the facts that America and her Allies have been rather successful (up to now).
American consumption has been promulgated with credit and debt amongst declining production!
Being the ‘banker’ of the World has allowed America to consume more goods than were produced internally!
The great advantage which Americans have enjoyed (mostly at the expense of the developing countries) has been their ability to borrow and spend without having to create equivalent ‘value’ to exchange for this consumption binge (1950 – 2012). The American Empire has had the tremendous advantage of being the ‘banker’ for the World. Our status (after WWII) resulted in our ‘dollar’ becoming the key currency for pricing goods throughout the planet (especially oil). This advantage and the advantage of being the strongest military force on the planet has allowed America and her Allies to enjoy consumption from all parts of the planet (our dollar has been the key currency for pricing and acquiring goods and services from all areas of the planet). This situation allowed us to borrow, spend, and grow without any serious consequences from our competitors (the weaker nations on this planet). Today, we can witness this advantage as our ‘dollar’ is the reserve currency of the World and we control the oceans, shipping lanes, and key natural resources on this planet. We have evolved into the Single most powerful Empire since the British Empire (1700 – 1930). What an advantage for Americans and her Allies!
The big questions today, however, are what is the future of the American Empire given the economic/political situations which have evolved since WWII? Can we continue to dominate and control the economics on this planet? Can we continue to be the ‘banker’ for the planet? Can we continue to borrow and spend and consume other peoples resources for our sole benefit? Can we continue to roll over all our existing DEBT (national, state, and private) by borrowing from ‘Peter’ to pay ‘Paul’? Do the other Nations (Developing and Emerging) now have the will and strength to challenge our hegemony over this planet? How will Americans react when they eventually discover the real underlying financial condition of our Nation and Empire? Like those displayed at this website: www.usdebtclock.org? What should be our response to the World when we acknowledge our inability to repay all these debts and unfunded obligations? Can we use our military power to conquer the entire world (all 7 billion people) before we ‘declare’ official bankruptcy? The next few years should be interesting!
Is the American Empire Over or will America attempt to create a One World Government?
Now may be a good time to reflect on our past behavior as a Nation and as an Empire. Do we desire to RULE the planet? Must we use our Military Might to conquer everyone who opposes our hegemony? Can we continue to BORROW from China, Japan, Germany, and Britain (now that each of these countries have their own debt and internal political problems)? All these questions should become topics for discussion in 2013 as Americans become AWARE of these issues! So far, the vast majority of Americans have NO idea of any of these issues. Will the coming Fiscal Cliff issues and the coming Debt Ceiling debates create this new AWARENESS? Only time will tell.
U.S. Debt Ceiling is soon $16.39 trillion. Notice the history of debt and spending with no discipline!
The Political Establishment does not desire to take any Responsibility for past behavior!
Watch the markets and the coming Stock Market Crash (2013) for harbingers of a new AWARENESS! That is my missive for today! I AM: http://kingdomecon.wordpress.com.
Don Swenson - Kingdom Economics posted Monday, December 17th, 2012.