Understanding the Big Economic Picture – Debt and Money

AWARENESS AND ATTENTION ARE OUR STARTING POINTS

We mentioned the great program, PopTech, last week. If you haven’t watched it yet, here’s another excellent presentation from the October 2008 conference. Debt-crisis expert Juan Enriquez diagnoses and prescribes a reasonable 10-point remedy to America’s pressing financial ills.

Juan calls it a “systemic problem“. Please understand what he means. Only if you do, can you be informed and educate your elected officials who you hired to act on your behalf. For all of our sakes, please listen carefully, then follow up at PopTech.

Can’t see it? Get FlashPlayer, or view at PopTech.

Do you have your head around what “our” Federal Reserve Bank, mortgage bankers, financial “experts” and insurance executives have done with derivatives? $531 trillion???

BUT DO YOU KNOW WHAT MONEY REALLY IS AND HOW IT’S CREATED?

This is important.

To continue our metaphor from earlier today, the U.S. debt is the GIANT canary in the economic coal mine.

Most of us scratch our heads when asked the questions, what is money and how is it created. Yet it’s fundamental to our lives. We invest 40 years or more of our lives earning money. We rely on it for multiple times a day, to buy a pack of gum or to charge for our services.

I don’t know Chris Martenson personally, but I like most of what he has done in creating his Crash Course, a free, condensed online version of  his “End of Money” seminar. In 20 sections, 3 to 20 minutes in length, he covers most of the critical elements we need to think about.

He is totally on target by identifying energy as critical to our economic and societal future. I respect, but don’t agree with all of his conclusions regarding energy. More on energy later. But I think he has captured much of the essence of where we are with our money system.

Here’s his two minute introduction.

I recommend viewing the full course. It won’t cost a penny, it’s constructed in digestible bite sizes, and it could help you save your home, retirement, and business.

But please remember that if we see ourselves as separate from the the world, we will experience desire and fear. We are all part of one reality. The common themes we experience can be changed overnight. It is up to us to change them.

WHERE IS THE UNIVERSE MOVING US AND WHAT ARE THE PRACTICAL IMPLICATIONS FOR YOU?

If you’ve stuck with us all day, we’re finally ready to discuss the question, Where Is the Universe Moving Us and Our Economy? Next Monday, we’ll start giving some of our big picture projections, and identifying specific opportunities being brought by the changes for you and your organization. And in advance of that, we’ll touch on other opportunities throughout this week.

Until then, be excellent.

Sincerely,

David VanAmburg

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6 Responses to “Understanding the Big Economic Picture – Debt and Money”

  1. Danny Lucas Says:

    I hope you include as much information on Fiscal Policy as you have on Monetary Policy for this audience. It is irrational to save when Fiscal Policy devalues your money's worth; and it has!
    A restructuring of tax policy is in order to change directions in behavior of the masses.
    It would be like changing a barge on Lake Erie from full speed ahead to Cleveland, to a reversal direction to Buffalo. The ship will go to Ashtabula, OH before beginning to change directions due to inertia.

    Additionally, we have globally, just learned the Fallacy of Composition, thanks to the exponential gasoline price increases all of 2008, and the Immaculate Implosion of those prices as a result.
    The Fallacy of Composition has apparently NOT been taught to the Opec and Oil Company pros
    And, it is missing in the Crash Course. Comments are tight here or I would explain the Fallacy myself. They still teach it at University these days..
    Keep up the good work. I enjoyed Fenway under water.

  2. Danny Lucas Says:

    (1)
    Priorities must be established to resolve any crisis, David. To that end, a grand cup of coffee seems the first priority. I have dealt with the brew of choice elsewhere and a glimpse into a savory session may be found here:
    http://rkaufman.wordpress.com/2007/11/02/commente...
    I shall contact you seperately on a time and place.

    I am a believer that opportunity exists for all, and at all times.
    The recent economic tsunami eviscerated short selling as an option typically employed in a downturn. But anyone who believes GE stock will remain around $16 will miss a huge future profit. I would like to expand with your offer of more space on several key ingredients, as the rules change today. Obama is deciding if he wants to emulate Lincoln or FDR in policy. One preserved the Union and rid the evil drag of slavery, a process to incrreasing MY wealth with YOUR talent and labor. It was destructive. Yet, new economic slavery is being structured as we speak.

  3. Danny Lucas Says:

    The other, FDR, sought to spend a way to prosperity and required world war to achieve the goal.
    Today, we must preserve a globalized nation, instead of just a United States. Relationships are symbiotic forever. Humans need bacteria to live; bacteria needs humans to live. The globe is discovering that some of us are humans and some bacteria, but both need each other. China, the EU, and the USA may all collapse without the survival of each. Parasites have a way of needing hosts.
    I think your audience should hear of the Fallacy of Composition in greater detail.
    And, I believe a short foray, into the effect of perception is in order. (We do not stuff money in mattresses as long as we believe banks to be safe.) Reality is less relevant than perception.
    Therefore, the quest for future wealth is wise to recognize future perceptions, as much as truth and reality.

  4. Danny Lucas Says:

    (3)
    Last, the issue of corruption in government, business, and individuals will need adequate exploration to assure the masses of the globe that a workable commerce system can be efficiently restored.

    Your comment on monetary policy, debt, bailout and macroeconomic policy is not only nerve wracking in truth, but assuredly the sign that leadership had no clue what to do pending government change. I hope the fiscal policy explanations are more encouraging to Thinking Big on resolution.

    Best regards,
    Danny Lucas

  5. David VanAmburg Says:

    Danny, I do promise to talk about fiscal policy over the coming weeks, both from the big picture, and as it relates to us as individuals, investors, businesses and communities. Devaluation or erosion of money value through the hidden tax of inflation has been with us for decades. Unfortunately, actions of the past months have practically insured major inflation within the coming 1 to 18 months. And the Federal Reserve's recent action as bank of last resort in purchasing debt from our creditor countries seems to leave us in worse position.

    I remain hopeful that the incoming administration will understand the impact of both fiscal and monetary actions, but we have not heard that discussion yet. So we will address, particularly from the perspective of how does the business owner, the householder or the community retain their small accrued wealth in the midst of such a coming storm.

    You bring much insight to readers, so I hate to see you limited to a few comments. If you have the interest, you are welcome to write a guest post for this blog. And if you have the time and desire, I would enjoy coffee at your convenience.

  6. Robert Caron Says:

    I love what you guys do.
    I can put forward my assets.
    Can we design a business model?
    Sincerely yours,

    Robert Caron
    CEO
    Rewind Clinic / Rewind Medic

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