The Declining State of the World Economy
The economy of
the world is not declining. The
definition of what we consider a valuable commodity is changing. If one were to take a look at his or her own
stock portfolio or 401k and compare it against the times that one possesses
around one’s own house, what would be that comparison? Walking into the pantry, how much stock is
placed in the future seasons of wheat coming to harvest? How much weight is given to the
microprocessor which runs the refrigerator or cellular phone? Quite simply, it is not likely that one would
throw the crux of one’s own nest egg onto commodities due to their steady
increase over time. People whom want to
retire in ten or twenty years, which constitutes the bulk of investors on the
market, want instantaneous results. So
the service of handing one’s hard earned savings over to a stranger, for the
purposes of making calculated risks (called “gambling”) on the open market, has
become common place because not many folk want to wait thirty or forty years to
see a return. Conversely, traders and
hedge fund managers under pressure to provide the needed capital for those
reaching retirement, have to ensure that the money exists to supply those
accounts while continuing to make money for its current accounts. This creates a wild deviation from what is
considered an economic resource and what is a convoluted gambling game.
According to the
World Health Organization, over 7.96 billion people exist on planet earth, with
an expected breach of 8 billion to occur in the next decade. The planet derives its crops, its fresh
drinking water, and every mineral and resource we rely upon for survival from
about 4% of the earth’s crust, utilizing USGS survey data. Over 96% of the world’s transportation relies
upon hydrocarbons and petroleum products.
Not to just throw numbers out there, but taking a look at the price of
commodities over time, such as wheat, gold, crude oil, and lithium, it becomes
readily apparent quickly that fiat currencies and the international banking
system, while attempting to regulate and standardize monetary exchanges across
the world, have actually opened up a Pandora’s box. Once world governments are able to freely
ignore the basic principle of macroeconomics, Denham-Stuart’s “Supply and
Demand” (1796), they open the door to unscrupulous gamblers and bamboozlers,
dressed as bankers, to begin gambling their monopoly money away. This has resulted in a rapid inflation of the
prices of basic and valued commodities, higher than would normally be expected
due to simple inflation of the fiat currencies.
Coupled with the advancement in technology and microprocessors, and an
increasing reliance on precious metals such as Lithium, Thorium, and others to
make those technologies possible, the global market finds itself on the cusp of
what could be considered a triple threat.
While the
purpose of this article isn’t to instill an unholy fear of economic Armageddon,
it is important to state that the commodities required to keep the human race
alive and well are still available for possibly several more decades. There is enough petroleum and natural gas to
keep running cars down the busy and bustled freeways and enough wheat to ensure
every household in the world gets a loaf of bread. And while saying that, it is also important
to realize that the conditions on this planet are changing. It is heating up. It is changing the way the world works. We are dependent upon the planet for the
resources it provides us. There is no
amount of fudging the numbers that will correct for ignoring that commodities
are directly linked to the planet. And
when the only system available is through trade, it is even more important that
those systems remain trustworthy.
What is being
experienced, on a global scale, is a distrust of the holders of the purse
strings. Those whom make the rules for
how the system is played have become inherently ignorant of what goes on
beneath their feet. Thus, the economy is
due for a massive correction as more and more people realize their best
interests do not rely on the global markets, but in their own local
economies. The tomato farmer down the
street may not produce tomatoes all year round, but he is known by his
reputation for producing tomatoes and is directly accountable for how they are
produced.
The future of
the global economy is not deteriorating, it is correcting for an error in
placing too much trust on bigger entities to solve basic, local problems. While the stock numbers remain high, and the
markets boast that things are getting better, the numbers don’t lie: more and
more people are spending conservatively and saving more. Especially, in the United States, a new look
is emerging for how consumers view their products locally versus
internationally. This is not a sign of a
declining economy. This is a sign of an
enlightened one.
