October 7, 2009
Our Global Ponzi Economy
Lester R. Brown
Our mismanaged world economy today has many of the characteristics of a Ponzi scheme. A Ponzi scheme takes payments from a broad base of investors and uses these to pay off returns. It creates the illusion that it is providing a highly attractive rate of return on investment as a result of savvy investment decisions when in fact these irresistibly high earnings are in part the result of consuming the asset base itself. A Ponzi scheme investment fund can last only as long as the flow of new investments is sufficient to sustain the high rates of return paid out to previous investors. When this is no longer possible, the scheme collapses-just as Bernard Madoff’s $65-billion investment fund did in December 2008.
Although the functioning of the global economy and a Ponzi investment scheme are not entirely analogous, there are some disturbing parallels. As recently as 1950 or so, the world economy was living more or less within its means, consuming only the sustainable yield, the interest of the natural systems that support it. But then as the economy doubled, and doubled again, and yet again, multiplying eightfold, it began to outrun sustainable yields and to consume the asset base itself.
By Zachary Shahan •
September 14, 2009
The United Nations stated a couple weeks ago that developed (rich) countries need to provide developing countries with about $500-600 billion a year to control global warming. This was a big increase from other predictions.
Big portions of these funds need to go to India, a large developing country that includes about one sixth of the world’s population. A new study shows what is needed to significantly cut growth in greenhouse gases in this top country.
By Brenda Keener •
December 14, 2008
As today’s blue collar workers lament the loss of jobs to illegal immigrants or offshoring, a whole new movement is afoot that very well may provide the solution to unemployment woes. As we experience the total revolution of our economy as we know it, an entirely new set of jobs are being created; green collar jobs. In fact, not since the Industrial Age has the global economy experienced the onsite of such a dramatic transformation!
By Reenita Malhotra •
October 15, 2008
The failure of Lehman Brothers is seen as the last straw that broke the credit market. The financial markets have been in a state of complete disarray ever since the U.S. Government allowed Lehman Brothers to file for bankruptcy on September 15th 2008 instead of intervening to save it as it had done with Bear Sterns and later with the insurance company, American International Group.
By Nick Chambers •
October 13, 2008
Editor’s Note: I was in Houston, TX, last week, celebrating the International Year of the Planet at the first ever joint meeting between the American societies of Soil Science, Geology, Crop Science and Agronomy. With a significant focus on biofuels, this conference was rife with interesting materials.
The Challenge: Find biofuel crops that are “pro-poor.”
One Answer: Crops that can be grown with limited resources by small-scale farmers, can be converted to biofuel with existing cheap technology, and can simultaneously provide food, fuel, and livestock feed.
In my last post I discussed how agriculture could regain its rightful place as the keystone of civilization due to the rise of biofuels over the next 30 years or so. But, in what seems a ridiculously colossal conundrum, hundreds of millions of impoverished people worldwide could face starvation due to competition of fuel land with food land.
By Nick Chambers •
October 8, 2008
Editor’s Note: I’m in Houston, TX, this week, celebrating the International Year of the Planet by posting on topics covered at the first ever joint meeting between the American societies of Soil Science, Geology, Crop Science and Agronomy. With a significant focus on biofuels, this conference should be rife with interesting materials.
In a wide-ranging session on Tuesday dealing with global biofuel, food security and poverty issues, there was plenty for the presenters to disagree about — but the one thing they could all concur on was that the biofuel genie is out of the bottle and he’s here to stay.
Several times during the session the presenters highlighted the fact that biofuels have finally brought an inherent value to agriculture that was previously missing. This, more than anything else, is why biofuels are not going to go away. Up to now, the lack of agricultural value has caused a deep deficiency in the level of funding and investment that governments worldwide have provided for their agricultural security and infrastructure.
While an overwhelming amount of media attention has been focused (rightfully so) on the past week’s financial meltdown on Wall Street and beyond, another looming crisis is getting center-stage focus this week in Sacramento, California: peak oil.
A slew of speakers and experts in everything from geology and energy to finance and business is meeting through tomorrow to address what could one day make the Lehman Brothers collapse look like a picnic in the park: declining oil production coupled with rising demand and prices on a global scale. The 2008 Sacramento Peak Oil Conference kicked off yesterday.
By John Ivanko •
August 27, 2008
Last week I wrote about how much of my hard work when I toiled away for a large advertising agency (definitely NOT sustainability-minded) ended up contributing to the problems facing humanity. It didn’t get me much further ahead financially, either.
When I think about sustainability, I’ve come to the conclusion it needs to be something that’s holistic and inclusive of both my life AND my career, livelihood, or, if you must, “job.” It doesn’t make much sustainability sense [...]
By Adam Bowman •
March 13, 2008
Presidential election campaign 2008 is well underway. And already the grade school politics are brought to the election playground.
In recent news, both Democratic front runners, in an attempt to woo voters, called for renegotiations of NAFTA. They also threatened to pull out of the trade agreement if U.S. demands aren’t met. Clearly a case of, “do what I want because our economic and military might can beat up your economic and military might.”
The North American Free Trade Agreement, has been under scrutiny since its inception.
Thankfully we have Republican Candidate John McCain to defend this groundbreaking trade agreement.
NAFTA isn’t perfect. It was the first time a free trade agreement existed among such economically disparate countries. It was definitely a great experiment, and a lot has been learned from the results. There is no denying that there have been significant advances in a globally sustainable market that was enabled by NAFTA.
By Elizabeth Redmond •
December 5, 2007
For those of you who are stumped about gifts this holiday there is probably a reason. You ask yourself- what do we actually need? Amidst all of the news of poverty and destruction, most of us find ourselves in the upper economy and hopefully and simply grateful for what we have already. Our culture has created an opportunity to jot objects on our wish list that we think we need or really want. Now don’t get me wrong, there is beauty in giving a gift to someone you care about whom you know will appreciate it. But, if you want to maintain your spirit of giving this year yet do it in an alternative fashion, why not try giving together with someone you care about to someone who will appreciate it?
For the past five + years my family has been practicing different ways of sharing gifts for the holidays. We made gifts a couple of years. Then we decided to pool our funds and purchase one big gift for someone in the family that would inspire their lifestyle, creativity, and passion… This year we decided that no one really need anything and we would prefer to do something together as a family to improve the lives and economies of others- invest in a micro-fund.
Microfinance creates social lending networks that gives us lenders the opportunity to connect directly with borrowers who normally wouldn’t get the support of a bank. This allows people in poor countries and rural areas who don’t have access to traditional banks or don’t have the credentials necessary for a bank loan, to start a business. The neat things it that in all circumstances (weather your money is controlled by the organization through which you lend or you choose who your money goes to) you can more or less track your loan. This type of investment has already made profound impacts on developing nations as it funds businesses that support their local economies. Instead of weaving baskets to be sold in the global market, people are able to start water distribution businesses to improve quality of life in their own communities.
October 7, 2009
