More growth will not solve growth's problems.
Essence : Using up resources as fast as possible with no thought for tomorrow is logical and inevitable in a human economy, given our evolutionary history and our credit based economy. A passing desire to preserve things for our children – or their children - does not stand a chance against our needs, wants and desires today. A world based on perpetual growth is doomed by its success. As long as our civilization is based on credit, its demise is foreordained.Truth Out: Republican health care plan is "Don't get sick and if you do, die early." New Math: Senate Democrats are busy considering GOP amendments to the health care bill, even though not a single Republican will vote for it. In fact, the GOP now says the minimum number of votes needed to pass health care reform is 70. You know, a simpleton's majority.
Big Brother: The US can talk about levying serious economic sanctions on Iran, but as long as China is happy with Iranian oil, talk is all that's going to happen.Shade Tree Mechanics: There have been 95 bank failures so far this year. More are on the way. The FDIC projects that bank failures through 2013 will cost about $100 billion, so they are going to raise $45 billion by collecting three years insurance premiums from the banks in advance. Feel better? Would you feel better if that didn't leave a $55 billion shortfall?Conundrum: The US economy runs on petroleum. So with a recovery underway, why was oil demand down 133,000 barrels a day in July, to the lowest level since 1996?
Inertia: Experts now say that a 2 meter rise in the world's sea levels is “almost unstoppable,” even if the world were to stop all CO2 emissions today. Global warming is a very large phenomenon, slow to start but nearly impossible to stop on any human time scale.Pendulum: According to ADP, the US economy lost 254k jobs in September – instead of adding the 150k jobs needed to meet our growing population. The pit gets deeper.On the Streets: A Comptroller of the Currency report on US mortgages shows that 13.4% of mortgages are delinquent and 5.3% are 60 or more days past due (with a 95% probabilty of foreclosure), while 7.5% of FHA and VA-insured mortgages are likely to go to foreclosure. Over 15% percent of Payment Option ARMs were seriously delinquent, and 10 percent were in the process of foreclosure.Long Time Coming: S&P cut MBIA Monoline's rating to 'junk' level. Does anyone pay any attention to S&P ratings any more? Why?How Temporary is Temporary? Remember that the FDIC is broke and borrowing from the banks. Then explain, please, how and why Citi can make a $5 billion bond issue backed by the FDIC's Temporary Liquidity Guarantee Program. Anybody here know how to play this game?Whether Report: The IMF warns that banks have only recognized about half of the write-downs they need take – another $1.5 trillion by the end of 2010.Straw Houses: The government reports that half of all modified mortgages have re-defaulted. The Bank of England , meanwhile, is afraid the banks there are re-inflating the housing bubble. Back in the USA, a 'massive' inventory of houses being held off the market threatens to depress prices even further. The Whole Truth: Mankind's thirst for petroleum is not going to go away. Oil will continue to create problems for the world's economies, enrich a number of repugnant regimes, and keep CO2 building up in the atmosphere.