Is the global economy a Ponzi scheme? Part 1: Are we all Bernie Madoffs, and what comes next?

from Grist Magazine's Gristmill blog:





Is the global economy a Ponzi scheme? Part 1
Are we all Bernie Madoffs, and what comes next?

Posted by Joseph Romm (Guest Contributor) at 4:10 PM on 10 Mar 2009


Yes, homo "sapiens" sapiens have constructed the grandest of Ponzi schemes, whereby current generations have figured out how to live off the wealth of future generations. Yes, we are all in essence Madoffs (many wittingly, most not) or at least his most credulous clients. What comes next will be the subject of a multipart series.

I had been planning to write something on this for a while when NYT columnist Tom Friedman interviewed me for "The Inflection Is Near?" which appears in Saturday's New York Times:



A few years ago I thought that aggressive action by governments around the world to push clean energy could spare the public dramatic lifestyle changes in the coming decades, but I have been convinced otherwise by

* the failure of U.S. leadership the remarkable shift in our understanding of climate science in the past two years
* China's decision to join the Ponzi scheme full throttle and emulate our rapaciousness (see here and here), and
* a recent, brilliant talk I heard (a teaser for a future post).

The adults, in short, are not standing up. Sadly, most haven't even taken the time to understand that they should.

And so every generation that comes after the Baby Boomers are poised to experience the dramatic changes in lifestyle that inevitably follow the collapse of any Ponzi scheme. ........(more)

The complete piece is at: http://gristmill.grist.org/story/2009/3/10/131727/990

I've seen models where the world population eases back down to comfortably sustainable levels (a billion people or so) before everything's gone and without truly draconian measures. Of course, we won't be there to see it unless they come up with immortality. And I guess even if that happens, there wouldn't be an it to see.

I'm sure he'll jump right on it. And Pat Robertson will help. :sarcasm:

For thee, anyway, if not for me.

I'll stay away from insemination clinics if you stay away from sex? Deal??!

Finally, I'm part of the solution.

Since I'm not Catholic, I think I'll do my part with birth control rather than celibacy.

And I won't provide any material for insemination clinics, which should please the Pope (as explained here): http://www.youtube.com/watch?v=fUspLVStPbk

Look at the history of the Catholic Church -- how many popes had mistresses and/or children out of wedlock? Celibacy obviously doesn't work, as shown by the hypocrites in the Catholic Church.

Religion is a driving force in over-population. And anyone who says it isn't is delusional.

So your wish is denied. But hey, you can wear the big boy pants and be as celibate as you like.

And considering that we do the lion's share of ravishing and consumption, are we the first to be eradicated?

Getting population growth rates in the developing world way down would be a good start. To step back from an unsustainably over populated world. eventually everyone needs birthrates of less than 2. As for the poor, we would rather they not be poor, but if we had 8 billion people consuming as if they were Americans that would not last long. We need to be more sustainable (which doesn't mean living in tin roofed sheds on top of garbage dumps, just intelligent and reserved but living a comfortable and modern life), and have a shrinking not growing population. It's what they used to call in economics a "soft landing" scenario.

called "a Ponzi scheme" by people with no training whatsoever in economics the moment its finances begin to look worrisome.

..... the current economic mess. :eyes:

Still, that's a little bit like complaining that all the people with Ph.Ds in physics haven't yet pinned down all the intricacies of string theory, and so we should pay attention to people who claim that the moon is going to eat us.

You'll be accused of causing the crisis for not using locally sourced lemons. No matter that your lemonade stand is in Maine...

perhaps Maria Conchita Alonso can counsel you on why it's a commie plot?