If you have been paying attention you know time is getting short. The president takes to the airwaves tonight to reassure us and explain his plan to deliver us from this economic morass.
Things are getting worse. The collapse is accelerating. I still don’t think that we are anywhere near bottom. I hope when Obama gives his speech tonight that he explains to the catatonic American public that our economy is going through fundamental changes. That what we are experiencing is not a regular business cycle, but a total evolution of our economic system. Most people don’t realize it yet. Many of you may not even agree with me.
I have a friend (actually lots of friends) but I was discussing things with my non-believer friend and I said that I only think we are about 20% of the way into the collapse/crisis/evolution and he wanted asked me how bad I thought it would get so I asked him if he’s been affected yet. He said no. My answer is if you haven’t been personally affected by the collapse so far then you will be. You will be.
I do expect that at some point something is going to have to give with our currency. It’s a weird dynamic that is created through:
- the unbridled creation of currency;
- fractional reserve allowances and
- the confidence game where other countries keep buying our bonds.
So at some point do they devalue our currency? Will this get banks to loan again? Do the Asians stop buying our debt or begin the wholesale selling it?
I don’t know. What I do know though is that I look at Iceland and recognize that it can happen here too. So even though most citizens are against another bailout we get another huge bailout jammed down our throats and the throats of the yet to be born.
I basically see three options – 1. the bailouts work, 2. the bailouts don’t work or 3. there is another terrorist attack/war to divert/entertain us.
1. If the bailout works great. We have nothing but the bill to pay. I don’t think we will ever be able to meet the debt load but so what our economy will be saved, the stores will stay open and we can continue to buy our SUVs, Hummers and vacation homes. I assign maybe a 5% probability of this outcome.
2. If the bailout doesn’t work then each of us is going to have to learn how to live in our yet to be born ‘new economy.’ This will mean more local food production and more local manufacturing, reuse, recycle or repair. More folks living together. More part-time work. Travel and driving may become luxuries. I assign a 55% probability to this outcome.
3. Terror attack or war. I see this as a likely outcome. Either would prove a useful distraction from the economic collapse, allow our government to impose additional restrictions on our freedom, right to own firearms, right to travel and communicate and also at the same time jsutify more additional spending on the Military and Police State.
Outcomes 2 and 3 can occur concomitantly. So what to do – prepare for scarcity of goods and the further implementation of a fascist state. More to follow.
Get outside everyday!
Just a sweet white burch. These trees were magic to the Native Americans. They supplied everything. The seeds can be dried and pounded into a flour. The bark is oily and makes the best firestarter and poultices were made for skin cancers.