Klaus Schwab poses a question

World Economic Founder Klaus Schwab poses a question the world needs to answer. Join the Reuters News discussion at http://blogs.reuters.com/great-debate/2009/01/27/turning-the-tables-can-you-h...

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News & Politics

Tags:

• davos
• world economic forum
• schwab

[mehrasp]

the time that your question become first priority of each individual ,we would have a very good world...

I think the best way is just a site exactly related to your question about generally "what's the best way to live together" and let people come comment ,post videos, and let's see witch get higher vote...later this method can be used officially (open voting) ...my suggestion is not considering even this method as a MUST or rule but a kind of suggest for who want to live better with others...

[DjMoppinskyRigoletto]

DAS IST NICHT DER MANN MIT DEM WECHSELSCHICHTDIENST :(

[stef0alb]

To let people post possible solutions when asked specific questions and here is my suggestion. 500 characters are not enough to solve a global crisis therefore my answer will have 5 parts plus this introduction. These are only the most important points and I hope they will help.

The global dynamic system has been expending because of relatively inexpensive inputs like energy, productivity gains, labor, easy access to commodities.

[stef0alb]

Going forward we will encounter bottlenecks in energy and probably commodities(all the big and easy deposits have been found and exploited). So we face a choice, stop growing and declining or find alternative solutions. Things got complicated because the system has been leveraged to price in a perfect scenario of abundance. Energy was the first bottleneck and showed us the limits.

[stef66alb]

Pt2: The result was a shock that combined with a housing bubble and extreme leverage caused the cascading domino of last year. In a paper/debt based monetary system we are all standing on the shoulders of previous generations. Meaning new debt supports the debt and investments of earlier times. It makes absolutely no sense to let this system collapse by bankruptcy and forced liquidation. This would destroy the dreams and living standards of billions of human beings.

[stef66alb]

Pt3: What we have to do is to save the system by increasing the money supply, monetizing some of the debt and aggressively addressing the bottlenecks. Most importantly the current crisis should be used to increase (alternative)energy capacity to a very rapid pace. Ultimately we will have to live and adjust to a higher price level because conventional hydrocarbon supply is limited and causes global warming. Central banks need to accommodate this quest for new energy.

[stef66alb]

Pt4: Ultimately the market will solve energy and commodity imbalances but at a higher price. Policy has to be to anticipate these bottlenecks and direct capital in their direction before the worst shortages and price effects occur. We have no other choice than to accept a, at least temporary, higher price level and ultimately let the market play out. Leverage has to be regulated to no more than a factor of 10 and derivatives need to be supervised in a (global) clearing house.

[stef66alb]

Pt.5: Stable inflation rates and economic growth will be impossible because of declining oil reserves, a deflationary collapse would be a catastrophe for humanity and needs to be avoided at all cost. This means that central banks need to ignore higher prices at least temporarily. We need to increase free/low cost inputs into the global, dynamic, economic system by way of new technologies and conservation of resources so that it can continue to expend and to lead humanity into a better future.

[protonsoup]

Klaus, that's a great question, and I'm not sure you will like the answer. This medium is one of communication, and that requires a significant personal commitment. In my opinion, the most honest dialogs occur on bulletin board-type forums that cater to specific subjects (like say finance) and allow people to post anonymously. Although some people abuse the privilege, anonymity invites honesty and all ideas have to be judged on their own merits, not the name attached to them.

[somecomputergeek]

There's a few things that you SHOULDN'T do, like blocking comments so nobody can respond to you, which has been done on other videos in this same "series".