top of page
Writer's pictureRichard Lipscombe

An economic cyclone is coming.....


Newminimalists are unique.


It is coming and you can not stop it

This 2020 cyclone has three elements - coronavirus, economic shutdown, and financial panic.


First and foremost we must acknowledge that we are not living with a "black swan event" but rather an implosion of three "fragile" support systems for life on this planet.


The coronavirus was known about in China for weeks before news of it "leaked out" to the rest of the world. In a very short period this virus has imploded the healthcare systems of nations all around the world. These systems were fragile before this virus hit them. And so the challenge ahead is for nations to rebuilt their healthcare systems in ways that make them far more robust. National Health Systems like the one in the UK presents us with a possible baseline model but it must become much more innovative and flexible in the future.


The national economy has proven to be far more robust than the global economy. The global supply chains have proven to be fragile, and uncertain, when we need them most. Meanwhile the national economy has proven to be robust and is the only thing that has kept staple foods and services flowing to citizens. By the end of 2020 we all will come to rely more and more on our national, regional, and local economies than we did before this shutdown.


The global financial system is facing an unprecedented meltdown. This process begins with decisions taken by central banks around the globe that have moved interest rates to zero and below. As a consequence currency exchange rates are uncertain and most are trending down. This is because most currencies are backed by debt. This debt has become inflated by the central banks monetary policy of easing and easing and easing. And in response the private banks are proving to be a harbinger of incorrect or inadequate price signalling for money in a system that is rapidly imploding under the weight of accumulated debt.


One thing is clear. At the end of this global event we are not going to see a "snap back" to what we had at the end of 2019 in terms of our national health systems, global supply systems, and the financial system. Each system has fallen pell-mell into a long-term malaise.


But all this is good news if you, like me, believe that our global systems need to be reformed [restructured, networked, devolved, etc] if this planet is to sustain life for 7.8 Billion people. The types of reforms we need will take around 30 years to complete and in the mean time we will face many years of uncertainty and fragility.


Richard


If you would like to discuss this, or other matters, with me further please go to the homepage of minimal-you.com and contact me via Email or Chat...



6 views0 comments

Comments


bottom of page