The Madness Of A Lost Society

Before I catch any shit about this video, let me say that I see a bit of this coming down the pike. Sure, this video uses the latest footage to scare folks. You know what? Folks should be scared.

Our global economy is not what it seems (or maybe it is… depending upon your perspective).

I’m quick to denounce conspiracy theories around here, because they just don’t seem to be very likely. They are too hard to keep secret. Too many variables.

There is a nasty storm coming from our global economy. I’d suggest that you and your family be prepared. What’s the worst that can happen? You buy some stuff you don’t need. That beats needing some stuff you didn’t buy.

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7 Responses to The Madness Of A Lost Society

  1. Bman says:

    “This my friends, is what a dumbed down, morally bankrupt, completeley broken society looks like.”

  2. R.D. Walker says:

    I am not going to spend a ton of time on this but here are my thoughts.

    Gold and silver are essentially currency, okay? They have value that floats against commodities. There is nothing intrinsic in the value of these currencies. It seems like all the Ron Paul and Glenn Beck types believe that they have objective value that can’t be debauched. They don’t. If you were on a raft for 30 days in the ocean, you would probably give a gold bar for a drink of water.

    Inflation is disastrous if you are holding cash or have a fixed income. If you have long term debt at a fixed interest rate, it is a fine thing. It is also fine if you have hard assets that are at the forefront of inflation. It isn’t like the Bubonic plague. Some people benefit from it. You just have to plan for it.

    Germany, Ukraine and Argentina still exist. Inflation sucks, but nobody in those places starved. Even hyperinflation isn’t a Walking Dead scenario. It isn’t even a Preppers Vindicated scenario. It is a shitty situation that people survive.

    That doesn’t mean you don’t prepare. Make sure you have a 30 year mortgage or, better yet, a paid off house. Make sure you purchase durable goods that you know you are going to need sooner rather than later.

    Finally, as much inflationary pressure as is out there, there is still tremendous deflationary pressure too. As much as the Black Friday scenes make it look impossible, we aren’t out of the woods when it comes to a drop in consumer demand. That kind of a drop can result in a deflationary spiral; a situation where decreases in price lead to lower production, which in turn leads to lower wages and demand, which leads to further decreases in price. That means nightmarish unemployment and no lending.

    In fact, Ben Bernanke isn’t stupid. He is willing to pump cash into the system because he is terrified of deflation. Japan has been suffering deflation since the 1990s and boatloads of quantitative easing hasn’t stopped it. An aging population – like the US – a falling birth rate – like the US – zombie companies dependent on the government – like the US – fear of insolvent banks – like the US – private sector spending crowded out by stimulus spending – like the US – have caused lost decades there.

    In fact, we should be seeing skyrocketing inflation in the US right now. We aren’t because the economy is flush with cash. Frankly, we are teetering on the edge. It could just as easily go into a deflationary spiral as toward hyperinflation. Sadly, preparing for each takes contradictory actions.

    Not very comforting, I know, but there are no easy answers. The video seems to imply that its writers have a crystal ball. They don’t.

  3. R.D. Walker says:

    About 70% of GDP is consumer spending. Why would consumer demand drop? Because of this:

    Again, the Black Friday imagery is interesting but inflation, while inevitable at some point, isn’t inevitable in the near term. Pray it isn’t deflation.

  4. R.D. Walker says:

    This isn’t a sign of inflation…

    U.S. manufacturing unexpectedly contracted in November, falling to its lowest in over three years in a sign the sector may be struggling to gain traction, according to an industry report released on Monday.

    The Institute for Supply Management (ISM) said its index of national factory activity fell to 49.5 in November from 51.7 the month before. The reading was shy of expectations of 51.3, according to a Reuters poll of economists.

    Yeah, “unexpectedly”.

  5. Jim22 says:

    So, which is the more likely scenario, Inflation or deflation? Or is it still to early to tell?

  6. R.D. Walker says:

    I wish I knew.

    Inflation is a certitude, I just don’t know when. It is possible that it will only come after a period of deflation. If that is the case, inflation is some distance in the future.

    I think the salient aspect of the situation is that we aren’t in an easy, comfortable balance. There are tremendous deflationary forces that are only being offset by equally tremendous inflationary forces. The result is a very unstable, dangerous and temporary equilibrium. It isn’t likely to stay in a state of equilibrium for long.

  7. rj says:

    RD I wish you knew too then you could tell me… :-)

    uncertainty sucks, it won’t last too long… to the tune of disco sucks… 70′s

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