Tuesday, March 31, 2015

Is Global Warming Analogous to The Economic Environment?

"True or False? Global Warming is to the Planet what Debt is to the Economy."

As I understand it, the Scientific point of view about global warming, is that the long term effect of our short term actions will result in the earth becoming inhospitable to life as we know it. This is an obviously oversimplified synopsis, but accurate as I understand what Science is saying.

So I ponder whether or not the following equation is accurate:

Global Warming : The Earth : : Debt : The Global Economy

We are continuing to produce greenhouse gases faster than the ecosystem can process them. We are using fresh water faster than the climate system can replenish ground water. We are depleting forests faster than nature can produce them. We are destroying the ozone layer faster than the atmosphere can replenish it. The life cycle of the planet will be altered by these factors in ways we can only guess at, but seem to be negative - at least for civilized human beings.

Are we doing the same thing to the global economy?

National debt worldwide is beyond the tipping point. Every major country owes more than it can repay. Greece is the first of many. It can't even pay interest payments on its debt. And interest rates are at historic lows. Italy, Spain, Argentina and a whole bunch of countries are on the brink of being where Greece is. (Or did Argentina already default?)

Japan has more national debt than any other country on the planet. Their economy has been in a recession or stagnant for two decades.

The U.S. and Europe are fighting neck and neck to see which currency collapses first and the winner pushes the other over the finish line.

The U.S. is not bankrupt only because the Federal Reserve is doing a whole bunch of 'creative accounting'. And the U.S. alone owes enough money to China to send that economy into the toilet.

Interest rates have to go up sometime. Zero per cent is not sustainable forever. When it does, the debt service equation worldwide changes exponentially, doesn't it?

What's the difference between 1) the debt service equation and rising interest rates, and 2) warmer temperatures and rising sea levels?

What's the difference between using too much ground water and borrowing too much money?

Is there an analogy here? It seems so to me.

So where the hell is Science? We have a 30 year plan to discuss that might mitigate the impact of global warming. Why don't we have one that might mitigate the impact of global financial collapse? It seems like the economic problems are a bigger threat to Science than global warming. Where are the scientists? The research? The dire warnings? The passion? The outrage? The plausible solutions? The arrogant criticism?

C'mon Science. Get to work!