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Crash Course

This is a plug for a website I found to be informative in helping make sense of what's happening to the global economy.

Our modern industrial society is premised on perpetual economic growth. The vision of the future is one of continuous improvement and prosperity. Conceptually, there is little or no framework for imagining a society other than the one we are in right now. With the global financial meltdown, suddenly, it's no longer business as usual.

The United States and Britain are functionally bankrupt, and barring a miracle, neither will be leading the world out of any recession or depression. Both are desperately throwing money at the banks in an attempt to re-inflate the whole mess so things can get back to "normal." But the days of the credit-induced shopping orgy may be over when you consider that the public may have indeed shopped until it dropped:

Generation X & Y have pulled forward a lifetime of sales. Many hundreds of billions of dollars worth of stuff bought on credit in the last few years would have been bought in the period ahead if folks had to save for it. Instead, consumers and businesses alike have to retrench in order to pay overwhelming debt service burdens. And one man’s spending is another man’s revenue; and so it goes, the multiplier effect in reverse.

Rioting in Iceland, Latvia, and Bulgaria may be a sign of things to come.

Japan has been slugged in the gut by the crisis. Exports and consumer confidence are at lows not seen in 30 years. Workers are finding out that their labour contracts aren't worth the paper they were written on when the Canons, and Toyotas of Japan are forced to frantically cut production and costs.

The prime minister du jour, Taro Aso, vows that he will fight this once-in-100-years-crisis by giving everyone ¥12,000 while at the same time making plans to raise the consumption tax. Aso's promises ring hollow and stupid, and it's no wonder the public doesn't like him or trust him.

While our leaders think about bail-outs and companies cut costs, circumstances will compel us to change how we live. We are not going to spend our way out of this crisis. Instead, we will have to live within our means. That implies less spending and more saving.

What is on the other side of the global financial meltdown? How do we make sense of and what are the implications of debt, climate change, and resource depletion? Chris Martenson's Crash Course addresses them in a presentation divided into 20 easily-digestible chunks. I think it's well worth watching. As they say, forewarned is forearmed.

Take the Crash Course.

Here's a small taste:

Comments

OK, I just watched the whole set of videos (started out just intending to watch the one but ended up watching the whole 3 hours, it was kind of catchy).

I think he makes a lot of good points and observations about the brick walls that the US is going to be running into sooner or later.

He isn't an economist however and I'm pretty sure there are a number of things his analysis is missing (though not being an economist myself I would be hard-pressed to respond).

I also have to point out that he is only talking about the US situation and it varies a lot from country to country (well, except for the environmental/resource depletion issues which affect everyone). Consumer debt is much more of a problem for the US than other countries, for example. So what he says doesn't necessarily hold true across the board.

In terms of the bailouts I also have to point out that simply letting all the American financial institutions collapse wouldn't solve any of the problems he has identified.

I agree that the issues he raises are serious and need to be addressed, and I think that the current crisis will hopefully provide the needed "shock" to the system to get things on that road. But I would like to see that happen in an orderly way so that we are able to get through this with the system relatively intact (although re-structured). If you let everything fall apart (by not bailing out the system, which would set off a chain of dominoes that would absolutely destroy the economy) then you'd create enough social dislocation to induce revolutionary political movements in very important countries. History shows that violent, revolutionary change is always violent and bloody and followed by a whole slew of bad effects. If this sort of thing happened in the US, I really don't want to think about what sort of world we'd have left after it.

Name one period in history where there were not a lot of problems. The world will get through this like it has all the other problems.

Climate change really worries me and most of the world is just sitting on its ass about it, but I think things will start to change now, especially with that jackass out of the White House..

I am afraid the “problems” are a little more on the serious side this time, particularly for the United States. The factors that determined the Great Depression, adjusted to today’s comparative figures, are BY FAR worse today – they make the Great Depression look like a small fart emitted by a hopping mouse in the middle of the Sahara Desert. Many put forward, this is in fact the end of the United States in terms of economic might and power, and never before in history, have the challenges to the monetary system been so great.

I’m afraid if your attitude is to simply shrug your shoulder’s, and say shucks, since when have times been easy, then you are going to find yourself in a queue at a soup kitchen quick smart.

I agree that climate change is the biggest issue facing the world. It's importance is extremely simple: No environment means no economy. It behooves us to care of what gives us life.

Shawn

Global Warming is such a farce!! Gore's movie was made using stats from before 1998, and since that time we have seen global cooling, if anything. Check out a multitude of research which contradicts all this propaganda about man-made global warming. It simply doesn't exist!!
How many of these so-called "concerns" actually exist to the extent that they are something we should waste time and money over? Look at Mad Cow, SARS, Economy Class Syndrome (remember that one?), Bird Flu, lead-painted toys in China, toxic foods, etc. Give me a friggin' break. None, I repeat NONE, of these are issues which anyone should be losing any sleep over.

Sorry to burst your bubble, but Al Gore is not the arbiter of climate change. He simply created a very popular presentation that resonated with the public. The consensus of scientists around the world is that climate change is real and is happening now.

Shawn

Sure the concensus of scientists including dentists and podaitrists. They also form this majority of yours.

Wow..freezing temps in Osaka 2 winters running..coldest winters in North America..tons of snow..god DAMN that Global Warming huh?

oh thats right..its ACTUALLY Climate Change..the convenient phrase they trot out when they are wrong..and want to cover their asses.

I will never believe in GW...and the more I know about the whole topic, the more I know its just fear-mongering by socialist states (which means all of the G7, and Oz) who want to tax carbon...(ie rob you more) and good-intentioned people (like you) and yuppies eat it up.

Dave

Scientists do agree that climate change is real and is happening now. That is a fact, which has always been true. Climate has changed throughout history. However, there is NO consensus that Global Warming caused by human activity is happening now.
I never said that Al Gore was the arbiter of climate change. I did suggest that his movie is what brought the fear mongering to the masses. You, my friend, are simply one of the many who have fallen for the propoganda. I urge you to look at the opposing information. For example, check out the BBC production (which was never broadcast/censored(?) in the USA.) called The Great Global Warming Swindle.

It's nice to hear someone agree. Someone who hasn't been swayed by being politically correct rather than basing their opinion on facts.
I have nothing against the environment, but I am sick of these interest groups misrepresenting the truth in order to further their agendas. Honestly people, don't listen to just one side of an argument!!

The climate isn't responsible for the economy. Spending the bizillions of dollars proposed by Kyoto to cut CO2 will not result in any significant climate changes, and it most certainly will not bring us out of a global recession.

The Great Global Warming Swindle? That "documentary" is a polemic, not science. The premise of the film is absurd: there's a green conspiracy afoot and evil scientists are behind it. I don't see how it stands up to or is comparable to the work of the IPCC.

Shawn

The movies are the same! A polemic is just a counter-argument, isn't it? Both movies have been found to contain controversial data. The fact of the matter is that there are two sides of the coin. The fact that the movie exists at all proves that there is no consensus on the matter.
The IPCC!? Don't make me laugh. The Intergovernmental Panel on Climate Change. Here we have a group of people with a predetermined goal: to show evidence of human-induced global warming! Otherwise they will work themselves out of a job, so to speak. The IPCC does NOT do research. They merely report on other peoples' findings. They can, therefore, pick and choose which research they wish to report/ignore. Even some members of the IPCC have resigned with comments such as, "the process is motivated by pre-conceived ideas and is scientifically unsound." (I stole this info from Wikipedia)
There IS a Green Conspiracy afoot. But it isn't the fault of the scientists. It is the fault of the self-interest groups who pounce on the research, misinterpret it, misrepresent it, lie about it, exaggerate it, or simply don't understand it, and proceed to use it to further their own agendas. Environmentalists, Anti-Capitalists etc. Even Margaret Thatcher used it as her excuse to close down the coal mines!! Actually, she wanted to further her own agenda, which was to develop more nuclear power. But this last comment comes from The Great Global Warming Swindle, so take it with a grain of salt.

If you read my posts carefully, I am not preaching one way or the other (I do admit to a leaning, though). I am simply expressing doubt.
I doubt many things: God, SARS, Mad Cow, Economy Class Syndrome, Bird Flu, Killer bees, Human-induced Global Warming, Terrorism, WMDs in Iraq, Lead-painted toys or Imported food from China.
A vast majority of people call me a heretic for doubting conventional wisdom, but how many of the things on this list can we really take as seriously as conventional wisdom would have us believe? In all of the above cases, the masses believed the so-called experts/media and overreacted.

Is it a question of over-reaction to hysteria or is it more that thanks to public warnings about these potential problems action was taken which averted catastrophe?

For every thing on that list I could name a few where "over-reaction" could have averted disaster, but didn't because nobody in charge took them seriously.

To name a couple of (anecdotal) examples, I remember 7 or 8 years back reading an article warning that the levies in New Orleans were completely inadequate and that a disaster could occur if nothing was done to improve them. No panic or "over-reaction" ensued and nothing was done.

A couple of years ago an acquiantance of mine (among others) wrote a paper on the threat that mortgage-backed securities posed to the international financial system. No panic or "over-reaction" ensued and nothing was done.

etc etc etc. If swift action hadn't been taken by the authorities with SARS, Mad Cow, etc I'm sure they would have had much more serious consequences.

Whatever doubts there might be about climate change, I am completely convinced that at the very least it has the potential to wreak devastating consequences on society and prudence dictates that we should be doing what we can to alleviate that risk.

Found this CNN report re GW and Al Gore on you tube.
Though it might add to the debate.
http://www.youtube.com/watch?v=Io-Tb7vTamY

Compliments on the intelligent response (what's up with this Thorn guy?).

The over-reaction I refer to is what takes place after an event occurs:
The fear of American beef in Japan after finding a tainted cow in North America. Most Japanese are unaware that their own country has had 10 times more cases of Mad Cow than the entire American herd, which is much, much larger than Japan's. I am still waiting to hear of anyone contracting Mad Cow from eating North American beef. This is just a case of a trade war. In Korea it is politics. But the masses are made to believe something else.

The fear of buying an economy class ticket for fear of getting a blood clot (Economy Class Syndrome). The media jumped on this after a single case and then for about a month it seemed that it was a daily occurence. I guess it has been cured now.

Killer Bees!!! Need I say more?

The fear of Bird Flu. Sure a handful of people in Asia have died from the disease. But we have been told that it is next to impossible to contract unless you are in close and long-term contact with the sick animals. The virus does not easily spread to humans. But still we see people refusing to travel to these countries. I had a student rush herself to a hospital after learning she had eaten imported chicken! A recent govt. report in Japan predicts that up to 650,000 people could die from bird flu in Japan! These authorities have to explain that that is a BIG if.

The fear of an imminent terrorist attack. 9/11 was a long time ago and I'm still waiting for it. Sure, sure, terrorist attacks are a reality, but these are not exactly what Mr. Bush was trying to sell.

Lead-painted toys from China. The dangers of lead were well known, but only after the toys actually ended up in Japan did the hysteria begin. Again an over-reaction to a threat that doesn't really exist. In my generation we lived in a lead-painted/lead-fueled world!! Everything was full of lead. Yeah, it was unhealthy, but it wasn't the end of the world. That kid who got the Dinky toy from China for Christmas would have to suck on it 24/7 in order to even get the lead to register in his body. I got this from a news article. I didn't make it up.

The fear of food from China. How many people were sickened by those gyoza? The answer is 3. No, the answer is not hundreds. Hundreds is the number of people who went to the hospital because they thought they had been poisoned after hearing the media reports. Ask your students if they heard the story about the 7 Japanese who were poisoned by eating fugu at a hotel in Chiba just last month. Of course, now that the Olympics are over, we don't hear much about the evils of China anymore (yellow sand, anyone?)

SARS is a good one, too. Yes, swift action by authorities nipped it in the bud. But the hysteria lingered. Again it originated in China, so that is bad to begin with and the media jumped on it. We learned that it can quickly spread from country to country. Soon it would be an international epidemic!! People refused to travel to Canada because of the outbreak in Toronto. Actually, it never spread outside of a single hospital. I had a student whose high school cancelled a school trip to Vancouver due to the SARS scare. The school, in their infinite wisdom, chose New York as an alternative. If you are not familiar with the geography of North America, look at a map to see the idiocracy of that decision.

Can't remember my original point, but I think I am talking about human psychology. Some risks we accept: We live in a country in which there is a very real risk of being killed in an earthquake. Some risks we fear. Why?? I don't know.

but can you actually tell me a single instance of a flooded city, other than one that was already built under water (New Orleans)

you represent the polar opposite of troll thorn in that you seem pretty intellectual and not prone to fits of raving lunacy.

but im scared of both of you.

HIM cuz hes a frothing-at-the-mouth fascist and the kind of guy would gleefully have people and employers carbon-taxed into oblivion, then executed for his dogmatic motherhood environmentalism..(its really no different than strapping a bomb to your chest for Allah..just a different god..) or for DARING to disagree with HIS 90,000 dentists, metallurgists, and pediatricians with MY 300 meterologists who DONT have a tentured stake, or vested interest in keeping the Climate Change lies alive.

YOU cuz youd find a reasonable, intellectual set of rationales when HE gets his jackboots on to crush whats left of the economy with carbon tax..youd "tut-tut" and shake your head at the morning breakfast table as you read the news that Thorntroll and other Enviro-Nazis like him have lined-up another 1000 protesters and closed another 300 businesses this week in the name of Big Brother.

Im NOT firmly convinced, nor I doubt, will I ever be. So what are you going to do? What are you going to do about me, and the growing numbers of people LIKE me who dont just swallow the lies and bullshit the government feeds us? (Republican, Democrat, its all the same shit..assholes like Troll press that button to illegitimize any discussion...they are all cocks...)

Im not calling you stupid...far from it..but I dont trust the government, or the wack-job environmentalists. I dont want to drink poison water, or irradiated food, or mutant Chinese gyoza... or have another forest taken down...but Im not willing to surrender our economy, culture or human advancement for the sake of something that alot of professional people (whos job it is to know these things) do not agree with.

So..are we gonna fight? Does it come to revolution? Cuz we cant continue to tax people indefinitely. Why, even Canadians will EVENTUALLY stand up and say Enough.

i guess i coulda saved some time ranting earlier today...

on a note of unilateralism after reading that....Thorn, youre a tool..but youre entitled to your opinion...i dont agree...but ill fight anyone who tries to take away your right to say your nonsense.

and if you try to take away mine..ill put a bullet in your moms brain case and rape your sister.


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