Today is part 3 of the “Largest Natural & Human Disasters” series that I was asked to do. I will discuss my insights and opinions on the probable global economic collapse, past effects of the great depression, and the 2008 Financial Crisis.
I have noticed, and I am sure that you do as well, that most of my posts have a future and past subject a lot of times. I think it important that we look into history for answers and learn from those that made it through those times. It is pretty much inevitable that we repeat some of the worst times in our past because we don’t learn from the past like we should. But you are different! You read my blog, which makes you smarter already. Just kidding. If you are reading this, though, you are concerned and a forward thinking person. It isn’t about fear, it is about creating sustainability and versatility in the world to get rid of fear.
Like I said… Economic collapse. I think that it isn’t a matter of if, but when, this happens. With our policies and practices, our debt-backed quasi-fiat currency, and ridiculous over-spending and generating of money, we are doomed to fail. If you look at the trend of inflation, you will see that the dollar is worth about 95% less than it used to be. Something is wrong with a system that must grow and inflate currency to be sustainable. Really, your dollar isn’t so much worth less than it can buy less.
What I mean is that as it costs you more for a cup of coffee, it is because you are purchasing it from someone who has to pay more for it. But the commodity actually costs less to produce today than yesterday. The commodity costs less because of the sweat and tears of the almost unpaid laborers that produce it. There are also, many times, subsidies that help keep costs lower for the agricultural industry. This raises profits, which leads to jobs, less unemployment, and potential pay raises. All of this generates more spending, more taxes, and a “booming” economy.
But as everyone makes an extra dollar, your taxes are paying for those subsidies, you are paying more in income tax, you are paying more in sales tax, and on top of all of this, you are still paying more for the products. So for every dollar extra you are making, everything is costing even more. That is why people now days can make a six figure salary every year and be struggling to get by.
I have discussed in a few posts about what is wrong with the federal reserve, government spending, and our neo-fascist policies, so I won’t fully rehash that.
The world is starting to realize that our dollar is not the great thing we claim it to be. Once we lose local and global confidence in the dollar, we will have on our hands a collapse, which I really think will be a revaluation. But in either case, the economy will tank when this happens. When our economy tanks so will the worlds. Pretty much all of the economies of the world are tied together now.
So I don’t have a ton to say about the 2008 Financial Crisis, except that it was blown out of proportion. Now if you were one of the many that had your lives turned upside down or you lost your career, it was very real to you. What I mean is that the media blew the size of it out of proportion to try to sensationalize it. They wanted to equate it to the great depression, when it was nothing like the great depression.
You want to know why unemployment was so high? Because unemployment benefits paid more than doing odd jobs for money. It paid more than mowing lawns and was a lot easier. People CHOSE unemployment, and for good reason.
Now if you lost everything in 2008, I am sorry, and I do acknowledge that it was hard for many. Think of the fact that all of that basically stemmed from a residential housing bust. Keep this in mind when I am discussing some things later.
It was no Great Depression. The Great Depression had able-bodied young people in soup lines with signs on their backs. They weren’t unemployed because it was the better of the choices. There was no unemployment benefits. They were unemployed because there was no work. There was nothing for them. Their only livelihood was charity and soup and bread lines.
They were the type of people who were hardened by hard labor, and that made them happy. If someone drove by and said that they had extremely hard labor for very little money, they would have had to beat people off with a stick. They would have been running to get that work.
People that went through the depression has canned food hidden throughout their homes. They have become preppers without knowing it because they fully understand the possibilities.
We aren’t quite as versatile or as tough as those people back then. I am not afraid to admit that I would not make it through that depression as well as many of them did, but I think and hope that I would make it through better than most today!
Now lets ponder on the coming collapse, and one possible scenario.
What if we have a large bust in the COMMERCIAL real-estate market, which would be much larger than the residential housing bust. On top of this, pretty much every large city has run out of money and can’t keep the smoke and mirrors going forever. Eventually they will have to give in to the realization that they can’t keep running things the same way.
When the bust causes a harsh recession, they may have to bite the bullet and shed some liabilities. Most of these will be in the form of pensions and welfare. Unemployment will lose much of its funding.
Now people have lost jobs, but the market is flooded with unemployed people who were, at one time, retired. (This at first will allow the unemployment numbers to be finessed to make it seem less harsh, even though that will just compound the problem.) So all of these unemployed and ex-retirees, compounded with fewer jobs will really cause a calamity.
People will begin looting, rioting, and many other things. People from the inner-city will move outward. Home gardens will spring up in mass. Neighbors will come together to help each other. Many people will lose the ability to keep utilities running, so sanitary conditions and the weather will affect them more. With loss of power and sanitation, along with the large stresses placed on the body and mind, will cause disease and other illnesses. A few people will just give up and collapse.
But many will figure out how to garden and raise their own food. Local neighbors will help each other, like I said. People will become less lazy and community will be built again. It’s not ALL bad, but much of it is.
This isn’t all. Once all of this stress has been placed on the economy, this will likely be the point at which the revaluation of the dollar is finally realized as the only ultimate solution to correct the economic situation. This will further hurt everything, and further push self-sufficiency in people as well.
The other side of this, for all that make it through, will be a great place to be, but it will be a good 10 years or so of large depression before the rebuilding can occur.
We need to place those foundations down right now. We need to work on reliance, then on sustainability. We need to learn the basic skills necessary to keep our families alive, and possibly comfortable through this crisis. Ultimately, we want a community that has been built to be 100% self-sufficient. On top of this, those communities will want to bring in outside assets through business and entrepreneurial opportunities. People will need to be afforded the liberties to become sufficient. If we aren’t there, we need to get a place in the country, but we don’t want to be the hermit, we want to be part of a sufficient community.
It all starts with baby-steps. Read my low cost survival checklist posts for the first steps, but remember, they are only the beginning steps!