The US Fed vs the world
Unilateral economic, fiscal and monetary decisions made by any state in isolation from the rest of the global economy and global community will give the people and businesses of that state a false sense of control, confidence and growth over the short term. Yes! It feels good to see the Dow pushing upward, and it may spur some spending for the holiday season, but it is a short term illusion impacting only Wall Street not ultimately the people on the street. The QE2 action by the US Fed is very short sighted, and may even be a political move to appease US population anxiety over stagnation in its economy and employment. The long term affect however will be deleterious and negative for the state and the global economy in very specific, obvious and immediate ways. There is a better way.
The immediate affect is that the rest of the states of the world are beginning to distrust the motives of the US, and the commitment of the US, toward sustainable global growth for the entire planet. It seems that the US is playing fast and loose with their words, and not being a true global partner and team player. The US is not alone on the planet. The US is not nor will ever be an island unto itself. We’re in this together. Your monetary and fiscal policies and actions affect me, and my decisions affect you. That is the inescapably truth. We must learn to work within that truth, or we will face economic stagnation and decline for a very long time. Do we want to settle for the illusion of immediacy, or do we want things to be better over the long term? There is a better way.
With each passing day, the ties that bind the states of the world together are growing inexorably stronger. Whether the states realize this or not, any person on the planet can purchase a quality product from anywhere else on the planet and have that product delivered to their door within a few days. What does that mean for the individual, for businesses, for the states? It means that individuals have choices based on an open global market for products at great prices manufactured anywhere on the planet. It means that businesses will, especially if they want to survive and thrive according to the free market capitalism model, move to those locations offering reduced costs of production. It means that states either adapt to this new paradigm, and take an active and honest role in developing a unified global system of currency, banking, financing, trade and economics, having put aside their myopic parochial insular tendencies, or those states will continue in economic and employment stagnation. There is a better way.
There is a better way. But this way requires the US and others around the world to be team players on the world stage for the sake of the future. It requires that nations base their actions on a global plan and global unity, not just on a local imperative for immediate self-gratification. Fiscal and monetary regulation can be equated to the control rods in a nuclear reactor - a necessary element whose proper control prevents either meltdown on the one hand or regulated energy production on the other. It is true that 'we' can not control other governments, but, again, strengthening global cooperation and sharing global responsibility for the stability and growth of the planet can be done, but not unilaterally. It requires a commitment to a vision of growth and prosperity for the whole world, not just one nation, when in fact no one nation will ever again succeed in the long run without the other nations of the earth.
Neither the US economy, nor that of any individual nation/state, can be repaired in isolation from the rest of the world - that particular genie has left the bottle and will never be put back in again. It should be obvious by now that the success of the US economy is inextricably tied to the success of the global economy. What the US does affects the world, and conversely, what the rest of the world does affects the US. That simple statement is an inescapable fact. The US must learn to be a team player on the stage of our interdependent and interconnected world, or face a longterm bleak future for its people, products and services. There is a solution, but only if the US, and other fiercely independent states, are actually willing to actively and aggressively pursue that solution in cooperation with the rest of the world.
Two things come to mind for possible solutions. First, we must work to strengthen even more our global markets and our global unity through the WTO, the IMF and especially through the UN, and create a stronger global central bank with a single global currency. Such a system was developed and implemented successfully, on and off at various times, in the US in its early history. It worked exceptionally well for the US, it will do the same for the world today.
Secondly, we need a massive inspirational and awe inspiring project where people and businesses and states can work together toward a common goal and purpose. Such a project must be so large and visionary that it creates new businesses and technologies and thus improves employment in virtually every state on the planet. It must be a massive project that captures the imagination and the hearts and minds of people everywhere. Such a goal will create jobs, inspire people everywhere, raise consumer confidence, and advance science and technology, growth and prosperity throughout the world. Any suggestions? Think on a massive huge planetary scale.
Tim Williamson
Alabama, USA
1-205-765-6090
nanoproducer@gmail.com
Unilateral economic, fiscal and monetary decisions made by any state in isolation from the rest of the global economy and global community will give the people and businesses of that state a false sense of control, confidence and growth over the short term. Yes! It feels good to see the Dow pushing upward, and it may spur some spending for the holiday season, but it is a short term illusion impacting only Wall Street not ultimately the people on the street. The QE2 action by the US Fed is very short sighted, and may even be a political move to appease US population anxiety over stagnation in its economy and employment. The long term affect however will be deleterious and negative for the state and the global economy in very specific, obvious and immediate ways. There is a better way.
The immediate affect is that the rest of the states of the world are beginning to distrust the motives of the US, and the commitment of the US, toward sustainable global growth for the entire planet. It seems that the US is playing fast and loose with their words, and not being a true global partner and team player. The US is not alone on the planet. The US is not nor will ever be an island unto itself. We’re in this together. Your monetary and fiscal policies and actions affect me, and my decisions affect you. That is the inescapably truth. We must learn to work within that truth, or we will face economic stagnation and decline for a very long time. Do we want to settle for the illusion of immediacy, or do we want things to be better over the long term? There is a better way.
With each passing day, the ties that bind the states of the world together are growing inexorably stronger. Whether the states realize this or not, any person on the planet can purchase a quality product from anywhere else on the planet and have that product delivered to their door within a few days. What does that mean for the individual, for businesses, for the states? It means that individuals have choices based on an open global market for products at great prices manufactured anywhere on the planet. It means that businesses will, especially if they want to survive and thrive according to the free market capitalism model, move to those locations offering reduced costs of production. It means that states either adapt to this new paradigm, and take an active and honest role in developing a unified global system of currency, banking, financing, trade and economics, having put aside their myopic parochial insular tendencies, or those states will continue in economic and employment stagnation. There is a better way.
There is a better way. But this way requires the US and others around the world to be team players on the world stage for the sake of the future. It requires that nations base their actions on a global plan and global unity, not just on a local imperative for immediate self-gratification. Fiscal and monetary regulation can be equated to the control rods in a nuclear reactor - a necessary element whose proper control prevents either meltdown on the one hand or regulated energy production on the other. It is true that 'we' can not control other governments, but, again, strengthening global cooperation and sharing global responsibility for the stability and growth of the planet can be done, but not unilaterally. It requires a commitment to a vision of growth and prosperity for the whole world, not just one nation, when in fact no one nation will ever again succeed in the long run without the other nations of the earth.
Neither the US economy, nor that of any individual nation/state, can be repaired in isolation from the rest of the world - that particular genie has left the bottle and will never be put back in again. It should be obvious by now that the success of the US economy is inextricably tied to the success of the global economy. What the US does affects the world, and conversely, what the rest of the world does affects the US. That simple statement is an inescapable fact. The US must learn to be a team player on the stage of our interdependent and interconnected world, or face a longterm bleak future for its people, products and services. There is a solution, but only if the US, and other fiercely independent states, are actually willing to actively and aggressively pursue that solution in cooperation with the rest of the world.
Two things come to mind for possible solutions. First, we must work to strengthen even more our global markets and our global unity through the WTO, the IMF and especially through the UN, and create a stronger global central bank with a single global currency. Such a system was developed and implemented successfully, on and off at various times, in the US in its early history. It worked exceptionally well for the US, it will do the same for the world today.
Secondly, we need a massive inspirational and awe inspiring project where people and businesses and states can work together toward a common goal and purpose. Such a project must be so large and visionary that it creates new businesses and technologies and thus improves employment in virtually every state on the planet. It must be a massive project that captures the imagination and the hearts and minds of people everywhere. Such a goal will create jobs, inspire people everywhere, raise consumer confidence, and advance science and technology, growth and prosperity throughout the world. Any suggestions? Think on a massive huge planetary scale.
Tim Williamson
Alabama, USA
1-205-765-6090
nanoproducer@gmail.com
Such a project would be a great thing. The way we are so connected with other states around the world requires however a massive global project, not just projects particular to one state. Such a global project would engage nations and peoples from every location on the planet. It must be huge. It must be something that can grab the hearts and minds of people everywhere. It will then employ people, inspire confidence, restore the imagination and creativity of businesses, people and states, and boost the global economy in a way that wars in the past have pulled nations from the brink of economic collapse.
ReplyDeleteAn awe-inspiring project of this magnitude can only be done on a global scale. No one nation, or business, or individual has the resources necessary to capture the hearts and minds, or to encourage job creation and economic growth that will positively affect local economies. Here's one example. Let's say that the entire world, jointly, decides to build a fully functional city of at least 100000 people within 15 years, for tourism, research and development, commercialization, etc. Make it a modern, high tech, city that belongs to the people of the world, not any one state, with labs, hotels, businesses, - on the moon. That is the type of global massive awe-inspiring goal I'm suggesting. Can you suggest a better way to engage the hearts and minds of people throughout the world, and have the benefit of improving the local economies by sustained global effort? What would that require? Can the states and people of the world work together for these common goals?
I believe this is what the world needs. A massive concerted global effort that will pull the world together and give us purpose and direction - other than just being motivated by the pursuit of money alone.
The nations of the world should consider a strong global central bank and a single currency for use by all individuals and states around the world. The current system of rules and regulations for currencies, balances, trade, and reserves neglects the fact that, regardless of whether the states recognize this or not, all these actions by the G20, or unilaterally by some states, etc., are short-term and parochial and not in the long-term best interests of the world, or in that of our local economies.
ReplyDeleteConsolidating our currencies into one, and creating a single global central bank, would offer the best chance at economic growth and sustainability. What do you think? How should we fix a global economy that is irreversibly and inextricably interconnected and intertwined?