Global Economic meltdown imminent?

by Limbic on January 29, 2006

The Long Emergency meme is spreading fast.

Deconsumption recent posted a story about “New Zealand TV News Takes the Global Economic Meltdown Mainstream

Comments in that post lead to James Lovelock’s apocalyptic warnings in the Independent: “The Earth is about to catch a morbid fever that may last as long as 100,000 years…Each nation must find the best use of its resources to sustain civilisation for as long as they can…”

Even US Military magazines are predicting a financial crisis soon.

From the January 2006 National Defence Magazine editorial:

For years, dire warnings have sounded about an impending defense budget “train wreck” that would inevitably result from mounting Pentagon financial commitments against a backdrop of spending cuts.

The looming train wreck has not yet happened, but pundits, legislative leaders and analysts are beginning to talk about it.

Substantial growth in defense spending after 9/11 gave the Pentagon’s budget a reprieve. The day of financial reckoning, however, may fast be approaching if the current state of the nation’s balance sheet offers any clues

Today, the United States is saddled by a large national debt and a rising deficit. Even if increases to military spending were to end immediately, an explosion in the growth of entitlement programs — especially Social Security and Medicare — will be very difficult to manage with 78 million baby boomers slated to retire in the coming decades.

Without fundamental reforms, the nation is headed for economic collapse, cautioned David Walker, the U.S. comptroller general. “We could be doing nothing more than paying interest on federal debt in 2040,” he told lawmakers.

Just this month, outgoing Federal Reserve Chairman Alan Greenspan expressed concern that failure to deal with the exploding budget deficit would not only affect the United States but also the global economy.

There you have it folks. Even the military are worried.

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