Crunchonomics is the title of an editorial in the July 19 issue of The NewScientist and refers to the difficulties created by the US economists of the US banking sector that produced the present credit crunch and resulting economic misery around the world.
The US economists are at it again. They are producing a new economic crisis on top of the existing one. We are about to experience a second round of crunchonomics, and one that will be even more painful for everyone than the current crisis and world economic depression.
I call it a depression because it is like a hurricane and not a tropical storm. The next depression to move around the world could be a category 4 or higher. Why do I say this? What is the basis of this surprising statement?
Well, I make this statement because as I watched the National Republican Party Convention in Minnesota go through the rounds of launching the Republican campaign based on bad economic principles and notions of how to get the US economy moving forward. Their prescriptions for the energy sector should get every one's alarm bells ringing.
Mr. Lieberman's back stabbing of the Democrats and McCain's lack of understanding of basic economics suggests that we have a huge population in the US who will buy into very outdated and really bad ideas. Do you want an example?
Well, let me say that a solution to the earth's energy crisis will not come by lowering the price of oil, gas and coal. My how those promoting the exploitation of the economics of these resources were in your face all convention long.
The people who control these resources stand to make billions in economies of scale resulting from doing stuff which is hardly novel. They stand to gain a windfall profit out of know technology, basically doing bugger all other than reusing rehashed techniques for getting oil offshore and out of 'nature reserves'. Do we really want these resources and the fumes from the toxic wastes of these materials to pollute the world's environment?
I say that if they succeed hang on for a really bad depression. We have seen nothing yet, and the next disaster these 'boys' can create will topple anything we have seen to date. Roll on the next killing field of choosing a bad economic and technical solution.
What is my solution?
In my view, the way to avoid a monster depression in 2013-18, is to have a spend our way out of the current depression by creating new energy technologies based on the use of solar, wave, hydro, and wind resources, planting hardwood forests, and growing algae for fuel from CO2 spewing out of energy plants around the world.
We need to spend, spend, spend while we tax, tax, tax. By intelligent spending and taxation, we can steer the world economy away from oil, nuclear, gas and coal methods towards solar, wind, and wave. The taxes are need to balance the budget of spending to develop the new solar and wind technologies rapidly. Lets get our depression right now and avoid the monster republican depression of the next decade. Have these outdated American Republican ideas not already done enough damage to the world economy?
The items we need to tax are uses of gas, oil, coal, and nuclear energy. Put these sources of energy out of business and build our economies on a safer energy foundation that puts solar energy first.
We also must tax the loss of heat from homes by assessing heat pollution for every home that is in a cold climate.
We need to cool our world down even more than it is likely to be cooled. Our goal needs to be a friendly climate rather than an unfriendly climate.
Summary
We need to spend to create need synergies in energy technologies, plant hard wood trees, encourage farmers to create more shade by subsidizing natural shade creating environmental efforts. We need to tax ourselves away from gas, oil, coal, and nuclear energy methods and toxic waste products that these technologies create.