Today, Bill Gates spends his waking hours worrying about malaria and education.

It's all part of his new life as the world's most influential philanthropist, spreading billions of dollars around the globe to address a host of problems, most centered on global health issues.

In a wide-ranging talk delivered during the opening session of TED, the thought-provoking conference being held in Long Beach this week, Gates gave the crowd a glimpse of the new Bill Gates and zeroed in on those two topics keeping him awake at night: How his foundation is going about eradicating malaria around the globe, and how America can develop and retain quality teachers.

On both fronts, the Bill and Melinda Gates Foundation is making strides, despite losing nearly 30 percent of its nest egg in the recent market downturn.

Despite those newfound priorities and successes, a post-talk interview focused on Mr. Gates' core competency: business. Like a few of his colleagues on the TED stage Wednesday, Gates got around to addressing the economic train wreck hovering just outside the doors of this ambitious gathering.

"I think it's good that the mood was bleak at Davos," said Gates, referring to the recent global economic summit in Switzerland. "People were saying things like, 'How's your economy falling apart? Oh, that's slightly different then mine.' "

That got a few laughs from the crowd, but the magnitude of the situation came back to the fore in short order. "I think we have three, four, five years here that will be very tough," said Gates.

In response to questions on the origin of our troubles, Gates was blunt: "There's no doubt the American consumer was overspending. But there's no government magic bullet to fix things. ... If you actually went back to overspending, you'd just go back to the same problems."

Gates expressed optimism that we can get out of this mess, but was quick to add a caveat that reflects his newfound devotion to the business of giving.

"I just hope that the aid for the very poorest doesn't get cut," said Gates, sounding every bit the philanthropist.

A somber view

"It's not a question of who deserves a bailout anymore. We simply can't afford to spend any more money."

Those were the somber words of Juan Enriquez, the author, entrepreneur and former Harvard business school professor who opened TED's 25th anniversary conference with some blunt talk on the economy.

His analysis was straightforward and scary. As it stands, we only have about 18 percent of our annual federal budget to use on discretionary spending.

We're running a gigantic deficit. And if we keep expanding that deficit, we will devalue our currency or "lose the dollar," as Enriquez put it.

To make matters worse, the primary buyer of our debt - China - isn't sure it wants to keep buying.

This is not new analysis, by any stretch. Economists, journalists, professors and business leaders have been saying as much for years.

The only people, it seems, who believe propping up failing industries by incurring more government debt are the people holding the purse strings.

E-mail Al Saracevic at asaracevic@sfchronicle.com.

This article appeared on page C - 1 of the San Francisco Chronicle