Economics 101

There are a number of economists and others who are expressing their views, as does Michael Shedlock, that the United States economy can not go on for ever the way it has been going. Michael believes that one of two things is about to create a serious recession: either there will be a credit crunch initiated by banks, or consumers are going to stop spending. Either of these, or a combination of the two will cause serious economic fallout. While there is a great deal of attention on the housing bubble, and it is, no doubt important, it is the credit bubble which looms as an even greater threat. It is a bubble, he says, that is showing cracks. Click here to link to Michael Shedlock's blog.

Another great site is : theinternationalforecaster.com
where every couple of weeks Bob Chapman discusses his economic forecasts and shares his (usually disparaging) views re. the power elite.

I'm sharing this because creating a sustainable community will not occur in a vacuum. There are economic and political realities that must be taken into consideration. One thing is certain: We are greater contributors to society when we have our own house in order. Shedlock, for example, recommends that we build savings in the amount of 1 year of normal expenses (mortgage payments, utility bills, food, automobile, and gas expenses, etc) He feels that even if we think we have secure jobs, that we might want to re-examine this assumption.

Given that this economic upheaval is inevitable, and probably overdue, how do we weather this storm? I hope to look at some ideas in the coming months, while not losing site of the goal of sustainable community development for our region. Perhaps these two, seemingly separate goals (preparing for and managing an economic upheaval and developing sustainable community) can, in fact, be worked upon together quite well. It's much more likely that we will be successful if we get going sooner rather than later.