We’re all in this together

Occasionally I find myself in the awkward position of having to file this column in the figurative hours just before a momentous event. This time, of course, it’s the race between Barack Obama and John McCain for the presidency. I could have gone ahead and predicted the ’04 elections and written from that perspective, and I think I can predict this one. But in this sense, I’m not much of a risk-taker. So if you’re reading this after November 4, understand that this was written in October and check this space in December, where I might share some thoughts on the election. Then again, I might be as weary of the whole thing as you, ready to move on and just see what comes next.

On second thought, I’m pretty sure I’ll be all done thinking about the election by December, so I won’t bore any of us with ruminating further on the implications of its outcome – you hereby have my solemn promise on that. But I can’t guarantee that I won’t still be thinking about the mess we’re in and how we’re going to get out of it. Barring the end of the world, I believe we can recover from this, even if the global power structure shifts dramatically. We may not come out on top of the super-power dog pile in the end, but either way it’s going to take a few years before we can tell how things are going to shake out. And whatever form the new world order takes, it, too, will be impermanent. Just ask the Macedonians.

For years I’ve been obsessing over the now-arrived (and amazingly predictable) financial market collapse. I’ve been writing about our dangerously over-valued economy since 2003 and moved my money (what little there is of it) to CDs and long-term growth funds in 2006. I’ve only ever borrowed $500 against my house (to help pay for new gutters) and I drive a 1996 Corolla that’s been paid off for ten years and gets 35 mpg in town. I don’t have cable and my kids don’t freak out about hand-me-downs. Sure, my business could go belly-up in 2009 (though things look stable right now), but if it does, we had a good run and I’m probably qualified for some sort of job that will keep food on the table and a roof over our heads should VITAL’s little house of cards be blown away by the winds of changing fortune.

Am I pessimistic? Absolutely not, in part because in my studies, I’ve learned at least one thing: nobody is invulnerable. A recent decline in demand for Chinese steel, coupled with stagnant or falling fossil fuel consumption in many developed countries, has driven oil prices down to less than $100 per barrel (at this writing). OPEC responded recently by signaling it would cut production to stabilize prices, but Saudi Arabia, the world’s single largest oil producer, broke ranks and declared it would continue with plans to increase production, partly to help stabilize the world economy. With major ownership stakes in numerous foreign economies – including ours – it’s in their best interest to keep the lid on the pot. (China and Japan probably feel the same way – those countries own 31% and 19% of our treasury debt, respectively.)

Are the Saudis being generous? Do they feel obligated, in their powerful position, to act as stewards of global financial health? Or do they see the writing on the wall? In an October 2008 report issued by U.S. Energy Information Administration (EIA), electricity generated by wind power increased 81.6% from June 2007 to June 2008, while solar and hydropower grew by 42.6% and 34.7% respectively. If we can just put a bullet in the hydrogen car once and for all and move on, it might be less time than originally predicted before we figure out how to make our cars run on little to no oil. So maybe the Saudis are simply clever – planning to sell as many barrels as possible now, use the proceeds to buy larger shares of developed economies and then sit back and reap the benefits in the decades to come. I hope that works out for them.

Meanwhile, back here in the neighborhood, I still see community-building as our best course of action in effecting long-term change. We can’t individually control the value of our homes, nationalized bank ownership or whether the U.S. will negotiate a treaty with the Taliban in Afghanistan. But we can feed hungry people, give kids a reason to stay off the streets and gradually rebuild communities decimated by years of criminal neglect. I don’t know if you’ve noticed, but thousands of people right here in Milwaukee have been working tirelessly towards this already. Many of them are volunteers who give their time and energy without the need for gratification or glory, or sometimes even much hope.

It just goes to show that leadership is not political, it’s personal. We at VITAL believe that without these fearless leaders things would be much worse than they are. Last month we asked you, our readers, to nominate people you know who are doing great work. In November, we ask you to visit our website (vitalsourcemag.com) and vote for the leaders you think best embody the values of our amazing community. [See the announcement on page 18 for details] We will honor them in January, dedicating the issue to their work and holding a celebratory event. We will also make charitable donations to the causes of their choice, through the generosity of local sponsors. It’s the least we can do. VS

One last thought:

“If the American people ever allow the banks to control the issuance of their currency, first by inflation, and then by deflation, the banks and corporations that will grow up around them will deprive the people of all property, until their children wake up homeless on the continent their fathers conquered. The issuing power of money should be taken from banks and restored to Congress and the people to whom it belongs. I sincerely believe the banking institutions having the issuing power of money, are more dangerous to liberty than standing armies.” — Thomas Jefferson