The world is in search of an economic system that works for the people and the Planet. And this search has been going on for the last one hundred years without much success.Industrial revolution started with capitalism but the communist revolution overthrew it in many places. Socialism was proposed as a viable alternative but it collapsed before too long. Capitalism in its various forms and shapes is still running but every now and then it runs into serious difficulties.
One such difficulty has come in the form of U.S.credit downgrade.Endless debate is going on whether S&P, the rating agency, was justified in stripping America of its AAA rating and — adding insult to injury — even attaching a negative outlook to the new AA+ rating. But this historic action has now taken place, and the global system must adjust. There are consequences and there will be uncertainties.
Not so long ago, it was deemed unthinkable that America could lose its AAA. Indeed, “risk free” and “US Treasuries” were interchangeable terms — so much so that the global financial system was constructed,and has operated on the assumption that America’s AAA was a constant at the core, and not a variable. But this notion has been proven wrong.So what is the solution when nothing seems to be working? To search out a suitable economic system we need not go very far. We just have to look back in our not so distant past. For thousands of years, humanity has been sustained by an economic system which was in perfect harmony with our environment, internal and external.
This model was based on land, domesticated animals and other gifts of nature. This was a completely localized, decentralized, self-sufficient and nature dependent model, based on the concept of ‘plain living and high thinking’. We may like it or not, but our time and options are running out.Our present economic paradigms are leading us fast on the path of self-annihilation.