Current Crisis Ancient Philosophy

economic growth averaged 4 percent per year and continued for a record 116 months The economy created the most ever jobs ever within a eight-year time frame, 22.5 million jobs. Unemployment dropped to the lowest level in 30 years to 4.0 percent. Median family income increased by $6,338, and inflation fell to the lowest level since the Kennedy administration, averaging 2.5 percent for the first time.

Two-thirds of high school graduates enrolled in college or trade school. The number of people living in poverty declined by seven million. The homeownership rate reached the highest on record, reaching 67.7 percent from 63.7 percent in 1993.

In 1992, the national debt was at record levels. By 2000, the federal government had the largest surplus ever and had cut its share of the economy from 22.2 to 18 percent. Interest rates were low, fueling investment and private-sector economic growth. Due to a plethora of trade agreements, American export of goods and services topped $1 trillion dollars for the first time.

Tech Wreck 2000

Real Estate Crisis

Real Estate

Credit Crisis

Money Borrowed to Maintain Reserves

Where are Reserves Going?

QE 2 Speculation lifted the S&P percent above the April 2010 high Speculation in commodities led to rising prices in oil and food. According to a World Bank report, global food prices rose 36% in the last year.

Current Crisis The U.S. dollar has already declined in value by nearly 50 percent against other major currencies, and the price of gold recently rose to an all-time high at over $1,800 an ounce. The U.S. dollar is at risk of losing its reserve currency status.

Current Crisis The housing market is at new low, having declined more than in the Great Depression of the 1930s. New home starts decreased nearly 11% in April. Banks have foreclosed on over 2.2 million homes, and millions more are on the verge of undergoing foreclosure proceedings. Home prices have declined for 59 consecutive months. There is currently an inventory of 1.9 million properties.

Current Crisis Manufacturing activity had its the worst decline since According to the The Institute for Supply Management's key manufacturing index, manufacturing activity declined from 60.4 to 53.3.

Current Crisis Major retailers, such as Gap, Staples, Lowe's, Polo Ralph Lauren, Jos. A. Bank, and Target, have issued sales and earnings warnings. Consumer confidence fell to a six-month low of 60.8 in May. Auto sales dropped by nearly four percent. This is the lowest annualized rate since September Walmart recently warned that its shoppers are have more month than money.

Current Crisis The overhang of debt continues. In 1934, banks wrote off 3.4 percent of their outstanding loans, which is exactly the same rate at which loans are being written off. U.S. government debt was recently downgraded by Standard & Poor’s.

Current Crisis Municipal and state governments are at risk of defaulting on hundreds of billions of dollars of debt. Major European cities, such as Florence, Barcelona, Madrid, and Venice are in similar straits. Possible cuts to police and fire services may lead to less physical security, The U.S. is currently waging three wars

What is Next? Four Fractures—collapsing time frames Advance from 1982—financialization process Advance from 1932—New Deal Advance from 1782—Rise of the United States Advance from 1492—Expansion of the West

What is Needed to Survive? SCAR Self-reliance—readjusting dependence and independence Critical Awareness—avoiding Groupthink Adaptability—preparing for discontinuities Resilience—overcoming adversity