James Heidema Speaks

We are in the midst of some very challenging economic times. It seems everywhere you look, the economy is failing. Nobody wants to talk about the 'R' word, but we are definitely in a Recession. For many, this is very scary times. Many are uncertain what they should or should not do to survive economically.

The government is doing what is does best. It is throwing hundreds of billions of dollars into the problem. Many are hoping this will prevent a disaster. Unfortunately I feel that throwing all this money at the problem is like putting a small bandage in a large wound. Worse yet, it is not even a wound, it is an amputation.

The current financial model that society is following is one that is based on Greed. To maintain investment in this model we must satisfy the unrealistic desire for unreasonable profit. If a company does not pay sufficient dividends to the shareholders, the shareholders fire the board members and the key business leaders. Then they hire again and place immense pressure on the new board and leaders to provide high profits. This forces the leaders to make short term decisions to satisfy this thirst for profit. It became very difficult to do any long term planning. This environment became the breeding ground for sub-prime mortgages that have triggered our current crisis.

As well, the chasm between the few rich and the many poor has become wider and wider in recent years. The wealthy have become much wealthier on the backs of the poor. We have all seen those statistics of the horrible conditions and lack of choices the majority of the people in the world face. The world has become much more unjust. How many cars, TVs, i-pods, i-phones or choice of everything do we need, when the majority of the world have no choices.

We have to accept that the old model is no longer self-sustaining, relative and indeed, it is dead. May it rest in peace. The current model is of the old world order and the new model will be in the new world order.

In the new world order we need to look for a new model where there is more interest in equality, fairness and opportunity. Where the chasm between rich and poor narrows. Where there is a lack of excess. It is a time for those of us who have to sacrifice for those who have not. The new economic model will emerge sooner than we think. With it will come new challenges for us all. Personally I look forward to it, but I am not sure I will enjoy the ride to this new reality. Remember you heard it here first.

Warm regards,
Jim