HopesForTheFuture

Following on from my recent article I have enjoyed further meetings with American friends over the last two days that reinforce my views about what’s happening in this amazing country, and around the world, and what’s likely to happen next.

It strikes most people that it is grossly unfair that banking and finance arrangements freely entered into in good times, have been unilaterally changed by the lenders to the detriment of the borrowers during the current bad financial times.

Yes, there is probably the legal right for the lenders to make these changes; but just because you can do this doesn’t mean you should.

These alterations in terms are without exception, to the benefit of the lender, and damage the borrower. The implicit danger to the lenders is that they will, in the longer term, kill the goose that has laid their many golden eggs.

The result of these short sighted, unfair changes in financial terms by the financial institutions has been the collapse of many small to medium size businesses and an explosion of personal bankruptcies and property repossessions. It is logical to anticipate that this situation will become far worse if allowed to continue on the same trajectory.

Business debt collection agencies are already finding it next to impossible to obtain very large percentages of the money due to the lenders.

Another outcome of the present financial crisis has been the explosive growth in the supply of bail out money to the banks and now other industries from our governments. Such printing of money on a massive but quiet scale is fueling the future fall in value of that money. This will lead to a money bubble to follow the property and financial and stock market bubbles, and this could well lead to another major crash in the value of money itself. There is nothing more damaging to a country during peacetime than this outcome, witness the Great Depression, the Weimar Republic or the current crisis in the wrecked country, Zimbabwe.

Are our leaders able, with the inspiration of President Elect Obama, to do anything whatsoever to keep us safe when we have arrived at this precipice?

With all my heart I want to believe that they can save some prosperity for us, but my head says otherwise. Reality dictates that we might not enjoy the prosperity of the past decades again, and certainly should not plan for such an outcome for the foreseeable future.

Such financial instability will lead to problems in supply and demand for raw materials, and possible battles for that supply at prices our countries can afford to pay. Will we, in such circumstances, be willing to forego our individual transportation on demand, or heating or refrigeration when necessary?

These are fundamental issues we are going to have to wrestle with at the same time as our capacity to fight such battles economically, politically and militarily become progressively more seriously impaired. Do we wait until we are even more seriously weakened or pick our fights cynically at a time and place that suits us?

Even more fundamental, if such a thing is possible, will be the control of food and water production and its distribution around the world. Do we behave in a fair and equitable manner or simply pursue a behavior model to suit our more narrow national interests?

My hope is that we see further than the end of our own nose. Our vital need is to work together for eventual global salvation or fail singly. There are no victories to be gained by individuals or even countries acting alone, now, more than ever, we must find new ways to work together.