Heinberg, a senior fellow at the Post Carbon Institute, argues that we cannot grasp the real state of the global economy by the usual metrics—GDP, unemployment, housing, durable goods, national deficits, personal income and consumer spending—although even these measures point to severe and chronic problems. Rather, he says, we have to examine the structural flaws that sit like time bombs embedded within the economic edifice. U.S. household debt enabled the expansion of consumer spending during the boom years, he says, but consumer debt cannot continue to grow as house prices decline to realistic levels. Toxic assets litter the portfolios of the major banks, presaging another global financial meltdown. The Earth’s natural resources are being exhausted. And climate change, with its extreme weather conditions, is beginning to exact a heavy economic toll on countries, including the United States, through the destruction brought about by droughts, floods, wildfires and loss of crop yields.
Heinberg also highlights what he calls “the highly dysfunctional U.S. political system,” which is paralyzed and hostage to corporate power. It is unable to respond rationally to the crisis or solve “even the most trivial of problems.”
“The government at this point exacerbates nearly every crisis the nation faces,” he said. “Policy decisions do not emerge from deliberations between the public and elected leaders. They arise from unaccountable government agencies and private interest groups. The Republican Party has taken leave of reality. It exists in a hermetically sealed ideasphere where climate change is a hoax and economic problems can be solved by cutting spending and taxes. The Democrats, meanwhile, offer no realistic strategy for coping with the economic unraveling or climate change.”
http://www.truthdig.com/report/page2...blem_20120910/
Heinberg also highlights what he calls “the highly dysfunctional U.S. political system,” which is paralyzed and hostage to corporate power. It is unable to respond rationally to the crisis or solve “even the most trivial of problems.”
“The government at this point exacerbates nearly every crisis the nation faces,” he said. “Policy decisions do not emerge from deliberations between the public and elected leaders. They arise from unaccountable government agencies and private interest groups. The Republican Party has taken leave of reality. It exists in a hermetically sealed ideasphere where climate change is a hoax and economic problems can be solved by cutting spending and taxes. The Democrats, meanwhile, offer no realistic strategy for coping with the economic unraveling or climate change.”
http://www.truthdig.com/report/page2...blem_20120910/
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