Monday, 15 September 2008

Catastrophic Economic Crash

This site is not just about natural disasters. Human human created disasters are something that mankind has had to deal with for as long we've been around. The obvious things are war, nuclear war and climate change. But also, I considered carefully the idea that a massive economic collapse was also possible and should be included on the list. This kind of disaster can come in two forms. A short term depression style disaster, where a ten year downturn with mass unemployment can kick in, sending inflation sky high and leading to cues to get basics like bread from a government agency. The second kind is much deeper than that. It drags in other factors as well. For instance. London, or at least some of London, lies within a flood plain. If London found itself without access to its buildings, and all that infrastructure was condemned overnight, then resulting economic costs would be a more permanent disaster. But is it possible for the economic model of the free market to have a total collapse, to the point where we cannot return easily? Mass starvation. Chaotic criminal activity. Collapse of Police and emergency services. Collapse of government. The kind of economic crisis, precipitated by a disaster, perhaps even a global one, which leads to collapse of the structures of government and civil society. We've seen them before in times of war. We've seen it up to point both in Germany between WWI and WWII and in Zimbabwe recently. How do we rescue ourselves from a chaotic collapse of society? This isn't an easy question to answer. Immediate decisive action towards setting up as many of the essential aspects of government would be the first thing to do. A place where key players know they need to go to. A need to have an alternative emergency economic model already agreed upon and ready to be used in times of crisis. In others words an emergency plan. One such plan I have invented will be available from www.newneutral.org in the coming months. It involves a clone economic model, which replicates a real one, but is not affected by the fickle cycles of booms and busts. Something more stable. It also involves a system which issues funding for large public projects and does this in a unique way (too complex to explain in a blog).

In the depression, the billionaire John Rockefeller, decided to build the Rockefeller Centre, which was a huge building project, bang smack in the middle of New York. He took a risk with his fortune and his reputation, believing that a large building project would stimulate the economy and kick start a recovery. It did. His gamble paid off, leading to the boom in the following decades. For this reason he's still hero to this day to many who are aware of the history and to those who are still around to remember it. Large public works can lead to an economic boost. But with the latest crisis the sources of private funding are the very sector in the economy which are causing the downturn. So this isn't always an option.

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