No mama, we can’t go back there…

I am not an economist (that much will become clear)….but seems to me that economic collapse is not a problem, rather it is a symptom. It is a symptom of a fundamentally flawed economic model rolled out again and again, seemingly oblivious to the fact it is now obsolete. It also seems to me that it is becoming beyond us to treat the symptoms without addressing the sickness…

I am sure financial puppet-masters much cleverer than I are frantically number-crunching now to figure out a way to delay the inevitable. Subsidies, borrowing from (wait, who has money left? Oh yes, China) other countries, tax changes, further externalising of environmental costs all distort the growing recognition by society that something’s gotta give. But not forever.

My question is not how we are going to escape, avert, avoid or get through economic collapse globally, but rather to wonder what the endgame is. The rhetoric in the media and political circles would seem to be that we are waiting for ‘recovery’.

Recovery is defined by dictionary.com as “restoration or return to any former and better state or condition.”. Freedictionary.com defines it as “to get back: regain”. Urbandictionary.com defines it as “Eminems 7th studio album”….well, you get the idea.

Recovery is typically a retrospective process of restoration, the removal or galvanisation against a temporary ailment or pressure. The use of the fundementally flawed neo-liberal market model cannot be ‘recovered’ from. We cannot return to pre-2008 times, the old model just doesn’t work.

So when we talk about recovery and coming out of a recession – what are we going towards? Enlighten me….

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2 thoughts on “No mama, we can’t go back there…

  1. It does of course depend who you’re talking to, what the answer to that question is; but the short-form of the two basic versions are:
    1) The rich people are waiting for all the debt to be bailed out by all the countries of the world, so that they can then cash up their investments in currently insolvent banking corporations => they win => they run off and hide somewhere they’ve created a bolt-hole for themselves in. See Queenstown, for example.

    2) ‘Coming out of this recession’ may mean a huge correction of global wealth as the rich actually lose all the money they have speculated in the various banking rorts that have been going on .. this is not very likely, the rich don’t like losing. There are also strong global & national interests in preventing this scenario, as it would have knock-on effects to most governments’ abilities to continue to function (due to national debt levels current in most countries).

    None of this gives any clue what happens to the ‘ordinary’ not-rich people. Which is the snow-job we’re all being sold; since they don’t care, they aren’t telling the consequences of the mess we’re in now. Given they won’t debate climate change from a position of researched science, why would anyone expect them to debate the continuance of the current social and economic order?
    All they want is for the rich to survive, and they’ll asset-strip every last one of us to achieve it.

    Survival techniques, for those who want to know, are getting rid of debt, living on less than you earn, learning to produce stuff for yourself; and showing compassion to those who have none of the necessary resources to do any of the above. I’ve been expecting the USA economy to implode since around 2008, and have been telling every person who discusses it, to clear particularly credit-card debt, as it costs the most to keep running.
    People laughed in my face and didn’t want to know back then, since ‘the recession was over’, which was the official line of the National party campaign in 2008.
    Well, they were lying and I was right, but I wonder if anyone I spoke to has cleared their consumer debts? I did – long before 2008 – because I could see it coming in around 2006, as prices for all sorts of things began to rise alarmingly, and debt-servicing was one of those things.
    I didn’t pluck those ideas from out of thin air, I lived through the ’87 crash and the subsequent property slump in ’92; my grandmother lived through the Depression. Both episodes in our family taught us to be wary of indebtedness for trivial things.

  2. As Anarkaytie has observed, I agree, the big problem with the U.S.A and other world economies is debt caused by greed and utter stupidity. How many times does Wall Street have to collapse before people get the message?

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