Economy

These days everyone talks about the economy, not the least, the politicians. There's just too much chatter on the air, and I'm afraid I may be adding to all the noise...but what can I say, when I see that a lot of the talk on economy by fairly knowledgeable people still seems to miss the fundamentals, I find myself wanting to shout, 'wait a minute!'. It's almost as if everyone is surprised at how bad things are, and wondering, how come. Well, this is how come - just as in so many other areas, most of us have taken so many things for granted, and haven't paid much attention to what's been happening around us. By 'us', I mean the common folks - those who haven't got a whole lot of cash to burn. But there are some who know exactly what's going on, and who know exactly how the whole system works. And they benefit from it, even as they undermine the very system. It might sound like some conspiracy theory - but that's because we haven't really understood how things work, and have bought into the pseudo-scholarship that's dished out day in and day out and called, among other names, 'economics'. Do I understand completely how it all works? No, not really. But I'm seriously trying to, and I'm finding out that some of the doubts I had early on about all the economic theory I was taught, but was afraid to question, are proving to be valid doubts, after all.

I just had to make a placeholder for this subject here, with the hope that I would add more stuff in the days to come. What made me do this today? Well, for one thing, gold is at a record high price of $1000 an ounce today. And oil is at a record high of $110, also today. It's kind of scary, when I think of the future and how much control I have over it. The least I can do is to share what I learn and understand about this system. Am I hopeful that someone would come and fix this thing? I'm not sure. There is a danger in looking at this as purely an economic crisis - as if it came about on its own, and can somehow be tackled separately from everything else in our society and politics. Some folks would have us believe that way - that somehow tweaking the interest rates and 'injecting' funds into the system would somehow make it less worrisome, while doing nothing to change anything else, least of all, our lifestyle. Well, I'm afraid it will only get worse.

This is how I see the situation - we have got used to a particular way of life that is completey unsustainable, not only from an environmental point of view, but even economically. How did this come about? Well, I have to say, it's a kind of an arrogance - a belief that we can do no wrong - a belief that allows us to foist, or even force, our ideas and systems on to other people, and view those who follow a more frugal way of life as somehow 'backward', waiting to be 'liberated' by us! In my younger days, I used to hear of a term called 'neo-rich' - about individuals who 'made it' in a short timeframe, and who couldn't resist the temptation to show off their success and to pontificate to others who 'haven't made it'. In any society, some folks would strike it rich quickly - but it doesn't mean that everyone following the same steps would achieve the same results - simply because a lot of it has to do with timing, and the factor we all love to disparage - 'luck'! I won't talk about 'luck' here, except to say that it's also a factor. Well, the West has been lucky, and its timing has been pretty good, for the most part. But not many realized this, and somehow assumed that our system is somehow inherently superior and infinitely sustainable. The concept of 'equilibrium' or 'sustainability' was never part of the economic jargon - whereas 'growth' was God! Growth for the sake of growth even in mature economies is a tricky business. If growth is more important than people, then there will be a price - to be paid by the people in order to satisfy the god of growth. But nobody would talk about it - because it is somehow 'unmanly' to talk of sustainability - where we can have a good life that can be sustained, even if there isn't a spectacular 'growth'. I know I'm starting to get vague here - I need to talk about this separately later.

One other thing that made me start this section today (apart from the record prices of gold and oil today) was something I caught on TV - someone talking about the US dollar rate vis-a-vis other currencies, and he mentioned how Canada is lucky to be able to sell what the world needs right now, and why that is helping its dollar stay stable. And he mentioned, well, what can America sell today that the world needs - may be Hollywood movies? That wasn't shocking to me, because I have thought about exactly the same thing many times. What has America to sell that the rest of the world needs, at a price they will be willing to pay in a competitive market? Well, this guy on TV mentioned only movies. I'm sure there's more to sell - Microsoft Windows is still the dominant operating system on personal computers the world over, and Boeing is still going strong. And there are weapons to sell - all kinds of them - from fighter jets to electronic systems - the best in the business! Sure, America has to compete with the British, French and the Russians in some sectors - but this is an area where the Japanese and the Koreans can never beat the US in terms of market share. It is sad and pathetic in a way - the country that invented so much of the stuff that the rest of the world takes for granted today, has so little to sell that a regular guy or a regular country can buy. Even when things are labeled 'Made in the USA', it doesn't mean that 100% is made in the US.

Today Zimbabwe is a basket case - their economy is in total shambles, their currency is worth little more than the paper it's printed on - why? For the simple reason that they have so little to sell to the rest of the world with which to buy the stuff that they don't produce in their own country. It's elementary - but empires don't go for the elementary stuff. They like things on a grand scale. Nothing basic or elementary would do. Common sense is for the sissies. It's not as if just the polticians or the big guys messed things up. They are able to get away with things because we are ready to swallow their story hook, line, and sinker. No questions asked. When someone does show up to point things out - like Ron Paul, for example - he is somehow treated like an outsider, a sideshow, and we turn our attention to those who make more grandiose noises. Why? I think because we don't like to get down to the basics or to face the facts or the questions. Questions like, how the hell are we gonna pay off the national debt, and can we afford this lifestyle, this war, etc. These are for the losers, or so it seems. If I were a lender to the US, I would be seriously worried if this guy is ever gonna repay in full. Worried, but scared to ask, no doubt.

OK, that's enough rambling for a 'placeholder' page!