Epoch’s End

I should start by stating that I am a novice in the fields of economics and finance. My career was as a law enforcement officer. I do, however, believe that I have a firm grasp of world history, human nature, and a sense of how much the human spirit can endure until endless mass frustration leads to a chain of events that explodes into actions which can result in regime change and major shifts in worldwide belief systems.

After the First World War, communism and socialism emerged to duke it out with Hitler’s fascism and other conservative regimes for the balance of power in Europe. After the Second World War, unfettered missionary capitalism emerged in the US, bolstered by evangelic Christianity. Liberalism and socialism tended to dominate in old Europe where the relative place of religion diminished, and today is virtually non-existent in many such secular states. Into this mix, multinational corporations emerged, with no allegiance to anyone except their shareholders. Their power enabled them to shape government policies, and their financial weight enabled them to implicitly blackmail governments into giving them sweetheart deals, which were often to no ones benefit except theirs and the richly rewarded politicians who supported them. From this standpoint, I do suspect that the shock waves radiating around the world from the stock market meltdown were not entirely created by a few bad apples running amok in Wall Street, but were rather a symptom of the basic dishonesty that seems ensconced in most stock markets around the world.

Events of the past decade and the past year in particular have convinced me that we are at Epoch’s End and that the current worldwide geopolitical and economic system is so broken that it can never be completely fixed. What will emerge I cannot venture to guess, but it will likely take many years to reach this yet unknown new global equilibrium. In this new equilibrium, the standard of living that many in the western world have taken for granted in recent generations may not be seen again.

Certainly many have been expecting Epoch’s End, through global warming, plagues or famines, but its tipping point appears to have occurred not through those venues, but through economic breakdown. As life has proceeded happily upward for us in the developed world since the Second World War, we have long forgotten that this uninterrupted growth was unprecedented in recent world history. World history suggests that the past fifty or sixty years are more likely to be seen as an outlier rather than as a permanent new paradigm. In the past, plagues have wiped out the working forces, old industries closed down and new ones developed, and populations followed the jobs. Crop failures caused those who wanted to survive to move on to new areas or even to new continents. Growth has been followed by stagnation. Fifty or sixty years may seem like a long time in the scope of a human lifetime. However, it is all but a footnote in world history.

Over the last 50 or 60 years we have come to expect that things will always improve–we will have better cars, holidays, and medical care, and our incomes will continue to provide more of these things. Many companies have based their development on a policy of increasing their revenues as much as 10% a year. Most of these companies have psychologists study shoppers brain waves to use exactly the right words in their sales promotions and to find the best place to put certain items in the store to trigger the buying impulse. We have all happily shopped and shopped for more and more things we don’t need. Products we really need require no advertising. How many television commercials do you see for bread and milk? If the whole world were to enjoy the standard of living that we currently enjoy in North America, we would need three worlds just to keep up. Perhaps most selfish of all, most people now expect to live longer without giving any thought to the potential consequences of this like increasing the world’s population, all the problems of pollution, global warming, polluted water ways, etc. With the world’s population approaching 8 billion plus people, it is close to cardiac arrest. We can’t expect to live forever and have growth forever; death and cyclical stagnation of populations and civilizations are a part of the natural balance of our planet.

As you probably expected, I am nothing of an expert in the ways of the multinational corporation. However, what I do know is that there are many Chinese workers, working at monotonous, dangerous jobs for $5 a day or less, with unpaid overtime expected. They produce cheap quality goods for us that we really don’t need. Who then is the net gainer? At least in the short run, it is a few wealthy shareholders. In order for this situation to flourish, our wage levels must remain 20 times higher, for the same or less effort, than a Chinese worker. The whole approach is broke.

As I write, more and more western governments are announcing huge spending plans to stimulate the economy, using vast amounts of borrowed money. That money is all coming from the sale of our bonds to China. If it works, perhaps we can put off Epoch’s End for a few years, as we attempt to pay the huge debts. Certainly our wages will take a huge hit, and lifestyles will need to readjust. But what if it doesn’t work, what if our spending doesn’t pick up enough to reopen the factories in China? What if China were to ever demand repayment of those bonds to assist their own citizens? We will be bankrupt, there will be no wages for any civil servants, no military wages, no police wages, and no pensions or benefits of any kind will be paid.

Further, as a people, many of us have become lethargic and ignorant. How is it possible to consider people for the highest offices in the land without demanding that they have the knowledge, stability, and honesty to do the job? When you visit your doctor you know that his or her certificate represents years of study, tested time and again by exams and practicum. Yet we are prepared to accept persons for the highest offices because they look good, string a fine line of BS and are just like you and me. Well I have news for you, I don’t want a person like me running a country.

In Canada from where I write, we had a recent Federal Election. The Liberal leader Stephan Dion was put down continually because he didn’t speak perfectly in his second language of English. He didn’t look good in front of the cameras, and he was often filmed from the wrong angles. The saddest thing was that nobody seemed to have the slightest interest in hearing the substance of what he actually was saying. We could save enormous amounts of money and time if we simply gave the job to the best actor and provided a good speech writer. Perhaps getting precisely that for many years has resulted in all our difficulties today. Franklin D. Roosevelt would probably never have been elected today, wheelchair bound as he was. Winston Churchill, similarly, was drunk too often to be electable today. At that time we paid attention to what was said, not the carefully buffed images we see presented today.

In the last U.S. election, most were too polite to state publicly that the election of Sarah Palin as vice president could potentially place every citizen of the US one 72-year old heart beat away from danger. Yes, thankfully Ms. Palin did not become vice president. However, for one of the two major parties of the world’s leading nuclear superpower to even nominate her for vice president should be scary enough. In the case of Mr. Obama and Mr. Dion, being an intellectual was seen as a negative by many. We call this civilization? Thankfully, after eight years of George W. Bush, the America people took a chance on an intellectual. New Canadian Liberal leader and respected Harvard intellectual, Michael Ignatieff, may get a chance in the next few years as well.

If we are indeed at Epoch’s End, we will have all caused this through greed, but most of all because we have failed to keep our eyes on what has really been going on, failed to keep people honest, and preferred to switch on the football game rather than take a glimpse at the foreign-affairs columns or use our computers to access the mass of information which is availably so readily today, yet ignored by most. If we are at an Epoch’s End, it is indeed our own damn fault.