The document discusses the recent downturn in global stock markets and the major events that contributed to the economic instability, including natural disasters, political unrest, and debt crises. It notes that the ineffective responses from governments have shaken investor confidence and led to the loss of trillions of dollars in wealth. Looking ahead, it argues that current economic models are no longer working for developed nations and that a new approach is needed to address issues like high unemployment, growing debt levels, and interconnected global economies.

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Preface
It is now August 9, 2011 and we might actually experience a change in the world stock markets versus
the past several weeks. Time will tell if we can finally turn positive and maintain some stability for our
investments which have become a backbone for many wishing to save for retirement, save for
education needs or save for overall financial growth.
The world economic events of the past several weeks has impacted our stock markets causing our DJIA
to drop 16%, NASDAQ dropped over 18% and our S & P 500 dropped over 18%. All had reached previous
52 week highs in May of 2011.
2011 has presented challenges to the world due to the following major events:
• The catastrophe of an earthquake and tsunami in Japan
• The unrest in Arab nations causing the price of oil to spike worldwide
• The ineffective US Congress and ineffective Presidential leadership to address the growing
deficit and national debt, high US unemployment and policy changes to best support US
economic growth
• The concept and actions of Greece defaulting on their debts – at least twice in the past 12
months
• The growing debt crisis in the European Union with Italy, Spain, Ireland and France
• The down grade of US debt by one of the three rating agencies - Standard & Poor’s
There are more major world events to add to this list, but let’s stop at this time. These events coupled
with the ineffective US Congress and Presidential leadership vacuum has shaken investors worldwide
causing our investments to tank, causing the price of the stock of financially healthy companies to drop
like rocks and the overall financial health of the world to once again teeter. The past several weeks in
stock market reductions has wiped out trillions of dollars in wealth around the world. I have seen several
calculations where $3 trillion dollars of wealth in the US alone has vanished. I have seen another
projection that the lost wealth of the world stock markets is in the range of $6 trillion dollars. This is a
staggering amount. Fear is driving our stock markets and controlling investors. It seems that the US has
failed to lead any positive growth in our own economy which acts as a catalyst for other nations to
follow down similar paths of economic growth. At least, this is how world growth has happened in prior
periods and years.
If we assume for the time being that the two primary drivers for these recent drops in stock values has
been caused by the US debt downgrade by Standard & Poor’s and the growing debt issues in European
Union nations, then we need to best understand what will happen to move affected economies in any
positive direction. As we digest these major issues and drivers, we also need to understand and take into
account the following related concepts:
Copyright Pending © 2011 by James M. Marshall July 21, 2011 New Economic Model
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• It has been communicated that one of the Japanese automotive companies recently said that if
the Yen continues as strong as it is, they will no longer be able to afford to manufacture in their
home country. They will start the process to move their manufacturing off-shore (out of Japan).
Developed nations need to wrestle with currency strength and weaknesses when it comes to
the best interest of their citizens, such as gainful employment as affected by out sourcing work
to other nations.
• Major issues will always confront world economies. There is nothing we can do as civilized
nations to prevent catastrophes, as an example.
• Most nations have growing debt versus the few that have no or low debt when the primary
objective is quality of life and the elevation of quality of life.
• The world is struggling with the growing cost of health care.
• World economies need to turn positive from the funk that they are in at this time.
If we look at only one factor moving forward, we need to fully digest what is happening to world
economies and nations on their own debt crisis. No developed nation has been able to come to grips
with this issue other than to cut and hope that their economy turns positive so growth can fund society
needs. Assuming that mathematically, economic growth will generate the society wealth to cover the
cost of the society needs, then we must partner as civilized nations to gear up our economies. The world
needs one of the large economies to grow and provide the catalyst for the rest of us to move our
economies in a positive direction.
If economic growth will feed our individual society needs, then this is where our efforts must be. All
other matters and issues take a back seat to winding up our economies. But, I am afraid that this is not
the case. Take the one example of a nation’s currency being strong, which causes jobs to be outsourced
to an off shore nation. Unless society finds solutions to this growing issue, then there will always be a
challenge to the affected society in providing viable, replacement jobs. The major criteria of a healthy,
vibrant economy are not all in sync and available to feed economic strength.
As we look around the world, we see developed nations struggling with debt in support of their selected
quality of life standards. We see high unemployment causing issues with self-esteem, the generation of
society wealth and social unrest. We see inequities in currency management causing jobs to be moved
off shore, placing the affected nation and society into a problem with healthy employment. We see no
viable solution to get world economies moving in the same, positive direction.
Let’s assume that China has taken most of our US manufacturing jobs. The US, as a result is struggling to
find equivalent careers for most of the displaced workers. If we also assume that as world economies
turn positive and grow, more employment opportunities will open up for unemployed US workers. The
US seems to be waiting for China to gear up growth in manufacturing. As they gear up this growth, the
US economy will also turn positive and grow. But, China is fearful of inflation and is doing everything
Copyright Pending © 2011 by James M. Marshall July 21, 2011 New Economic Model
All rights reserved. No part of this article may be reproduced, distributed, or transmitted in any form or by any means, including photocopying,
recording, or other electronic or mechanical methods, without the prior written permission of the author.

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possible to slow down their economy. The end result is a negative effect on other world nations and the
US.
The US is the largest economy in the world, yet we seem to struggle to control our own destiny and find
the viable policies, methods, laws and encouragement to move our economy in a positive direction. We
still have not found viable job replacement opportunities for the masses of unemployed. We have
evolved our economies to be highly dependent on each other. Now we need others to grow
economically, based on the positive affect that this has on us and other nations. But, as evident by
China’s recent actions, they are trying to slow or retard their growth with no concern as to the affect it
has on other nations. Unless we get in lock-step on economic matters, we are doomed.
I do not believe the nations of the world will ever agree to get in sync and in lockstep so that all can
prosper and grow. The simple fact that our needs are different than others makes this level of
coordination literally impossible, or at least not realistic. Our concept of a free market is totally different
than the understanding and practices of free market principles in other countries. The US seems to have
invisible barriers for imports, exports and outsourcing of jobs, yet other countries do not seem to have
this same level of invisibility. This difference in ideals and practices places the US, for example, into
large trade imbalances. Wealth seems to be flowing only in one direction for the US – out. The primary
affect is a major impact on our economy and healthy levels of employment.
As evident by this current situation around the world, our economic models no longer work for
developed nations. The needs of our societies are totally dependent on the health of our individual
economies, as well as the economic health of other nations. If our economies tank, we are buried under
debt. If our economies do well, then we spend and grow. If we continue to leave the health of our
economies to unknown factors and chance, then we are stuck having to wrestle with this path of
growing debt and potential doom.
There is another approach and economic model that we can adopt as nations of the world. This new
economic approach and model takes pieces of our history and our experiences using these concepts to
grow and maintain a society.
• Just envision that we can build a society and economy that maximizes employment.
• Just envision that we can build an economy that no longer borrows to meet desires and needs
of our society.
• Just envision that we return all citizens to the highest level of self-esteem by allowing them to
be productive members of our society. US jobs become the primary incentive for any US based
company and our society.
• Just envision that we have an economy that generates maximum society wealth.
Copyright Pending © 2011 by James M. Marshall July 21, 2011 New Economic Model
All rights reserved. No part of this article may be reproduced, distributed, or transmitted in any form or by any means, including photocopying,
recording, or other electronic or mechanical methods, without the prior written permission of the author.

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The various chapters of this book will detail this new economic model, the actions required to
implement the new economic model, as well as the positive affect the new economic model has on
other nations, societies and countries. More importantly, this book will detail the affect that this new
economic model could have on our society in the United States. The resultant effect of this change
would be positive and profound.
My primary purpose for writing this book is to detail how the United States can implement a new
economic model that will allow us to regain and control a very vibrant economy. This action alone will
allow us to take control of our future for generations to come, as well as affect in a very positive way,
the economies of other nations.
Copyright Pending © 2011 by James M. Marshall July 21, 2011 New Economic Model
All rights reserved. No part of this article may be reproduced, distributed, or transmitted in any form or by any means, including photocopying,
recording, or other electronic or mechanical methods, without the prior written permission of the author.