The US Economy and Peterborough’s Prosperity

It’s stressful times for many of us. A war between the US and the rest of the world… a fight of global versus local…climate change believers vs deniers. With Trump in the White House, it comes down to the fate of the US economy versus whatever economic security we can muster by trading with each other for everything on a local basis – and using our local currency, the Kawartha Loon, to maximize the creation of local prosperity and jobs.
With an America First economic policy, the world order that has been in place since World War II is crumbling quickly. It’s difficult to make short-term projections, let alone predict what will happen when the energy crisis and climate change begin to challenge every aspect of human existence for everyone on the planet. Most climatologists say we have about 10 more years for major course correction – let’s say to 2030 at the outside.
So let’s talk Energy, Economy and the Environment, the three predicaments that shape everything.
On Energy: Trump’s energy policy seems to favour a cartel among the top three oil producing nations
in the world: Russia, Saudi Arabia and the US. They are essentially co-operating to continue to flood the market with cheap oil, leaving the smaller producers facing economic collapse even before the forces of climate change demand that the remaining oil stay in the ground. This strategy is likely to strengthen the US economy and dollar in the short term at the expense of reduced emissions and a more even distribution of oil wealth. Assuming that leadership in oil production will require ever increasing investment per barrel of oil, then in the long term this strategy sets the US up for a much larger economic contraction when the Fossil Fuel Bubble begins to burst big time, stranding trillions of dollars worth of assets in its path.
On the Economy: the Trump White House will likely succeed on at least two pieces of major legislation, namely Infrastructure Spending and Tax Reductions. If history repeats itself, both likely will be great for the stock market and the US dollar, but will provide modest benefit to the American working and middle classes and the poor. Whether either will buy Trump a second term with his working class constituents who put him in the White House built by slaves is anyone’s guess. So the beat goes on while the folks running the US government look for short- term gain instead of long term stability and sustainability.
On the Environment: Trump has already issued executive orders to re-boot coal, the dirtiest of fossil fuels. He has put a climate change denier in charge of the EPA – the emissions regulator. And he has just announced his intention to cancel US support for the Paris 21 Global Climate Change Agreement. . Yeah, let’s build those pipelines!
In summary, we have to expect the US economy to continue strong in the short term but the long term, post-Trump era is looking very bleak. We can build our local economy now with the economic infrastructure support of the Kawartha Loon local currency. I carry Kawartha Loons in my wallet! Find out where you can purchase and spend them on page 31 of the Greenzine.

Fred Irwin

Republished courtesy of The Community Greenzine available Quarterly throughout Peterborough and region. .