Forest Economics 101

This is not an entry level economics discussion.  Soon other pages will be added to provide more basic information and links to other sources of credible background information.


The following three links are suggested reading before proceeding with what is written below:

Fiscal sustainability 101 – Part 1

Fiscal sustainability 101 – Part 2

Fiscal sustainability 101 – Part 3


Managing forests for the long term is all about continuous investment.  If you have much forest land and no significant discretionary income, you will always be a speculator, an opportunist, and poor.  If you try to manage significant forest land holdings in a way that optimizes the land productivity without access to low cost (essentially free) invest-able funds you will lose the land.  These statements are derived from the design of the debt based currency creation systems found in the USA (and most of the rest of the world).   This debt based system is there for a reason and it has nothing to do with deciding what society needs or wants and everything to do with how to get the most value to flow to those who would control the world economy. The guidance given by public agencies regarding the duties of forest owners for stewardship are at odds with the true nature of current economic system design and are a threat to the stability and well being of any significant forest land owner who is not connected to the largest banking families.

"Give me the control of a country's money supply and I care not who makes the laws", A.M. Rothschild.

"The best way to rob a bank is to own one"

These quotes set the stage for what can be said about practical forest management for normal rural families.  Over the past 130 years a series of major legal and legislative decisions have systematically bought, stolen, or forced most of the control of human potential into the corporate arena and the financial centers of the world.  These efforts including the latest US Supreme Court decision to allow unlimited corporate expenditures for political advocacy as a "right of free speech" have been ruthless, well planned, and relentless (as well as unconstitutional). 

The condition of a forest, starting with the quality and distribution of regeneration and going on through the amount and timing of early weeding and thinning, the amount of pruning, the species composition and rate of growth of the overstory, the access quality, the equipment available for use on the property, the quality of maintenance of that equipment, the longevity of that equipment even when given good maintenance, the kinds of trees left after late term thinning when the next stand is being started, and the planing and analysis of what has, is and may continue to happen in the forest, depends on the availability of funds for each of those and many other areas of importance as the forest progresses from early stand age through maturity and as the cycle starts again. 

The economic condition of the owner does not guarantee that the forest will not be severely damaged by strong storms or damaging drought but the availability of resources or lack thereof will determine whether clean up can happen rapidly and whether stand reestablishment to occur in an orderly manner.  The presence of significant liquidity may help guarantee the quality of the decision set finally chosen for implementation.  NOTE: the discussion of stand reestablishment did not dwell on planting of GMO stock or any other particular technique.  There are many things to consider at such a juncture.

The current credit creation system is not a desirable situation.  "It is what it is."   We need to figure out how to make lemonade out of the rotting lemon of an economic system we have inherited.  This and other pages here are built to try to help understand this impossible situation, but in the end there will be no substitute for thorough knowledge of how the system works and why.  Forceful advocacy for changes will be required which will enable the recognition and consistent action to promote the potential of forests everywhere.
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