Toward a Conservation Economics
Posted by Dr. James Canton on February 13, 2009 under Uncategorized | 
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Clearly the global economy is in free fall and despite what actions any government takes, we need a financial liposuction to trim the fat, so to say. The fat in this case is the funny money deals, lack of any regulation, voodoo economic theory and enough stupidity to go around, from consumers to Wall Street. It is time for adult supervision.
My position on this is that the global financial crisis will last best case 2-3 years, worse case 3-5, and I think that is unlikely, as the global economy, led by the US and EU, is fundamentally sound. GDP is stable and even growth will return. I think there is a confidence issue that is fueled by the sky-is-falling-media and many people will be hurt. But a recovery is in the cards and soon.
While we are reassessing our lifestyle, consumerism, retirement and work in general, a return to basics is in order. Do we really need all the stuff in our lives? Do we really need the consumption on steroids that has got us here? Is “greed is good” the only moral standard?
I forecast that the trend toward sustainability, a new Conservation Economic model will emerge. More simplicity, sustainable consumption, reasonable choices, evaluation of lifestyles are all in order. Conserving money, resources and living a bit more aware of the future will be a part of this new awareness.
Greg Clark said,
I agree with your comments concerning the global economy. Presently, there is an unsustained, fianancial environment which could, and probably will transform to an hyper-inflationary one. Devalued currencies around the world are a result of electronic printing of money, debaseing and destroying any illusion of stability in fiat currencies. when there is a “financial global crisis”, the future will be grim for most countries with the possible exception of China, Singapore, Australia, Switzerland, and Norway. The US has a spiraling debt load which will negatively impact the global economy, ultimately crashing and leveling the playing field. The time frame for this to occur is extremely complicated. One important factor will depend to a great extent on China’s willingness to accept increasingly devalued US currency. When China no longer extends its financial crutch to the US by buying worthless treasuries, etc., there will ultimately be a resurgence of sustainable debt loads which will be the result of a financial overhaul of banks and other financial entities policies. Currency viability will be the result of a global consensus of choosing a standard that demands much stricter control of Central Banking like the Federal Reserve, which continues to magically make money appear, out of the thin air.
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