Economic Downturn Cause of Clear and Present Danger

Posted on January 25, 2011


Underpinning the unrest in North African countries of late is economic disparity.  People without jobs. And then most of these Governments are run by old, corrupt despots (Wikileaks revealed this about Tunisia) .  It is a dangerous game being played in a dangerous corner of the globe.

The Huffing Post is spot on today:

Arianna Huffington: Davos Diary: Heading to the World Economic Forum at a Crossroads Moment for the World

Arianna Huffington: As soon as I hit “Publish,” I’m getting on a plane for the seven-hour flight to Zurich, followed by a two-hour drive to Davos for the 2011 World Economic Forum. According to early reports, the mood in Davos this year will be “somber.” It’s telling that a survey of WEF participants found that growing economic disparity is seen as one of the two biggest risks facing the world in the coming decade. Indeed, today, a country’s internal economic health is as much a national security issue as the size and quality of a country’s army was in the 20th century. The overarching theme of this year’s forum is “Shared Norms for the New Reality.” Among the shared norms being highlighted is “collective sacrifice.” It’s a notion that has been conspicuously missing from America’s political dialogue — even in the face of the economic hardships of the last two-plus years.
This should be the focus of the state of the Union – this overview that our situation is linked to what is going on in Africa, Europe – all over.  We need to work cooperatively not only in Congress but globally.  Obama gets himself buried in the details and then gets bogged down in dithering.
The Chinese are the other problem for all of us.  Last year there was plenty of talk about green energy.  No more.  China has moved to dominate the wind turbine industry.  And if they will not allow export of certain rare earth minerals, kiss the batteries in your hybrid auto good-bye.
China will end up in our spot when we can no longer buy their goods and they have not ramped up their economy to the point that they can rely on the buying power within their borders to sustain them.  Truly we are walking in dangerous areas these days.