Local Challenge - Global Solution
by: Tim Williamson
16 Nov 2010
QE2 is a short-term near-sighted attempt to solve a local challenge. QE2 does not solve the more significant and vastly much more important long-term challenges confronting the US and the world - that of dealing fairly and systemically and quickly with the inescapable fact that all our separate economies are intertwined and interconnected. If one state manipulates its currency directly, or another does so indirectly, such as by QE2, all experience the consequences of those actions in varying degrees - some severely, and some less so than others.
Given that we are not going to turn back the clock on the global influence of the internet and computing, whether on our phones, desktops or laptops, and that businesses will move to those locations where costs are reduced, then two things will be felt at the local level.
First, if the human and natural resources are not readily available at a good price at the local level, then businesses, which will inevitably follow the principles of capitalism, will move to reduce their costs so that they may sell their wares at a competitive price locally and globally if they are to survive. In the natural course of events in a given state, a business will move from one location to another only when production and transportation costs are significantly low enough to justify that move and its customers needs can still be met. The world is at this point today. And, this movement will only accelerate over time. It will not go in reverse.
A global communications system, reduced transportation costs, lowered production costs in differing regions of the world, contribute to this natural shift in business migration around the earth. We are not going to be able to stop this move, so we must work to make the other parameters, over which we do have some say, more efficient and modern. That brings up the second point.
Since we not going to be able to stop the move of businesses from here to there, and back again over time, then what part of the local and global systems presents the biggest challenges to stabilizing all our separate economies, offering the opportunity for sustainable and significant long-term employment, and to encourage private and corporate enterprise growth and development? Is there such a thing? Emphatically, Yes! But only if we have the guts to do it realizing that a stable and secure future for each of us individually and collectively is much more important than maintaining some sense of isolation and protectionism within separate states. The solution lies in improving the global systems of finance, economics, currency, banking, trade, and governance. Yes! It is a tall order, but not one that is not insurmountable.
What does it mean to seek to improve the global systems? The present system of massive and intricate regulations between states is breaking down because of its complexity, and because it does not fix the real problem - One of growing connection and dependence between the states. The US faced this difficulty in its past too. The early US system of separate and sovereign states with their own central banks and individual monetary and fiscal policies and currencies repeatedly experienced economic turmoil, until a plan was devised that brought all the state banks under a national central bank with a single national currency. Yes! It did take many years, but the nation eventually implemented Hamilton's plan. His plan created a strong central bank for the US. It worked.
We need the same system on a global scale. We need to create a strong global central bank and a single global currency to be used by all individuals, businesses and institutions worldwide. And, realistically, we need a single governing body, to which all the states are responsible, and for which that body is responsible - while applying and enforcing the Universal Declaration of Human Rights globally. But more is required to create a sustainable future for all locally and globally.
Are we truly serious about improving our local economies and the condition and situation of all our people? Really? To what extent are we honestly willing to help ourselves and others succeed over the long-term? Then it is time to quit playing games with our people with short-term myopic snake-oil solutions and then pursue long-term real solutions.
With no vision, the people, and states, die. If we seriously want to prosper and grow, then we need a massive project to engage the businesses and states of the world. Something toward which the entire planet can work. Something that inspires the imagination and spurs private enterprise throughout the world. We need a global awe-inspiring multi-year goal toward which we can all work. Then you will see not just local economies thrive and grow, and people and businesses prosper, but you will see huge improvements in the sciences, medicine, engineering and technology made available for all as we pursue that vision. What kind of vision would inspire the whole world? Any ideas?
Tim Williamson
Brookwood, Alabama, USA
globaleconomy101@gmail.com
by: Tim Williamson
16 Nov 2010
QE2 is a short-term near-sighted attempt to solve a local challenge. QE2 does not solve the more significant and vastly much more important long-term challenges confronting the US and the world - that of dealing fairly and systemically and quickly with the inescapable fact that all our separate economies are intertwined and interconnected. If one state manipulates its currency directly, or another does so indirectly, such as by QE2, all experience the consequences of those actions in varying degrees - some severely, and some less so than others.
Given that we are not going to turn back the clock on the global influence of the internet and computing, whether on our phones, desktops or laptops, and that businesses will move to those locations where costs are reduced, then two things will be felt at the local level.
First, if the human and natural resources are not readily available at a good price at the local level, then businesses, which will inevitably follow the principles of capitalism, will move to reduce their costs so that they may sell their wares at a competitive price locally and globally if they are to survive. In the natural course of events in a given state, a business will move from one location to another only when production and transportation costs are significantly low enough to justify that move and its customers needs can still be met. The world is at this point today. And, this movement will only accelerate over time. It will not go in reverse.
A global communications system, reduced transportation costs, lowered production costs in differing regions of the world, contribute to this natural shift in business migration around the earth. We are not going to be able to stop this move, so we must work to make the other parameters, over which we do have some say, more efficient and modern. That brings up the second point.
Since we not going to be able to stop the move of businesses from here to there, and back again over time, then what part of the local and global systems presents the biggest challenges to stabilizing all our separate economies, offering the opportunity for sustainable and significant long-term employment, and to encourage private and corporate enterprise growth and development? Is there such a thing? Emphatically, Yes! But only if we have the guts to do it realizing that a stable and secure future for each of us individually and collectively is much more important than maintaining some sense of isolation and protectionism within separate states. The solution lies in improving the global systems of finance, economics, currency, banking, trade, and governance. Yes! It is a tall order, but not one that is not insurmountable.
What does it mean to seek to improve the global systems? The present system of massive and intricate regulations between states is breaking down because of its complexity, and because it does not fix the real problem - One of growing connection and dependence between the states. The US faced this difficulty in its past too. The early US system of separate and sovereign states with their own central banks and individual monetary and fiscal policies and currencies repeatedly experienced economic turmoil, until a plan was devised that brought all the state banks under a national central bank with a single national currency. Yes! It did take many years, but the nation eventually implemented Hamilton's plan. His plan created a strong central bank for the US. It worked.
We need the same system on a global scale. We need to create a strong global central bank and a single global currency to be used by all individuals, businesses and institutions worldwide. And, realistically, we need a single governing body, to which all the states are responsible, and for which that body is responsible - while applying and enforcing the Universal Declaration of Human Rights globally. But more is required to create a sustainable future for all locally and globally.
Are we truly serious about improving our local economies and the condition and situation of all our people? Really? To what extent are we honestly willing to help ourselves and others succeed over the long-term? Then it is time to quit playing games with our people with short-term myopic snake-oil solutions and then pursue long-term real solutions.
With no vision, the people, and states, die. If we seriously want to prosper and grow, then we need a massive project to engage the businesses and states of the world. Something toward which the entire planet can work. Something that inspires the imagination and spurs private enterprise throughout the world. We need a global awe-inspiring multi-year goal toward which we can all work. Then you will see not just local economies thrive and grow, and people and businesses prosper, but you will see huge improvements in the sciences, medicine, engineering and technology made available for all as we pursue that vision. What kind of vision would inspire the whole world? Any ideas?
Tim Williamson
Brookwood, Alabama, USA
globaleconomy101@gmail.com
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