Over the last eighteen months since I have been out of office I have spent much of my waking hours trying to evaluate our economy and what that future looks like. I thought it would be symbolic to share my conclusions on the anniversary of the sinking of the Titanic because I am sure that the normalcy bias of the passengers on the Titanic was like ours is today when we think about the economy: the ship will never sink; so what is there to worry about? mmm…..I wonder what was going through their minds that tragic night 36,500 days ago.
Here is a passage from Hugh Smith, Of Two Minds, that ‘possibly” captures the mindset of the passengers on the Titanic the fateful night:
“With the interior still warm and bright with lights, it seemed far more dangerous to clamber into an open lifeboat and drift off into the cold Atlantic than it did to stay onboard. As a result, the first lifeboats left the ship only partially full. Only when it became undeniable that the ship was doomed did people attempt to “make other arrangements,” but by then it was too late.The tragedy was a cruel mix of human error (entering an ice field at nearly top speed, 23-25 knots), hubris-soaked planning (only enough lifeboats for half the passengers and crew) and design flaws: the high-sulfur iron hull plating did not bend when struck by the ice, it shattered like china.”
Does that sound familiar to you? Most of us can’t even consider the possibility that our way of life could change dramatically very quickly just like it did for those unfortunate passengers on the Titanic. After all, life is still amazing here in North America, and in Canada we feel extremely secure and safe. After all, if the economy was going to get bad anytime soon wouldn’t the political leaders we elect warn us? The answer to that question is simple: in our democracy we have a tendency to shoot the messenger and that makes telling the difficult news very hard. Telling people bad news and that is not good in politics because the other party is willing to promise what they need to get elected. Something important dawned on me as I was doing my research — I do not need to be re-elected so I can give my friends and readers some shock therapy and some facts.
I have worked very hard or eighteen months and I hope, even pray, that I am wrong about the challenges I am sharing with you.
Challenges we Face
1) There is a massive Global sovereign debt crisis that will a) make it impossible for Countries to pay existing social benefits by 2020 b) Cause the destruction of the Global Banking system and c) cause the U.S. currency to lose its status as the world reserve currency.
2) The above will result in the full collapse of the European economies followed by the United States and then Canada. Housing deflation coupled with commodity hyperinflation will substantially destroy the middle class in North America and create shortages in food, fuel and the basic needs of the population.
3) This Economic hardship will lead to substantial domestic social unrest and riots. Violence in North American cities will also be accelerated by Islamic extremists, communists, and anarchists who believe this is an opportunity to achieve their own objectives. There will be a significant possibility that we will see extreme violence in our cities.
I know this is scary stuff and I understand your cynicism and I would expect no less from my friends.
We are like the passengers on the Titanic just after the collision with its destiny except we do have choices that will affect our future. I can’t say when the above will occur. It could be two years or even six months but the challenges we face are not going away if we simply ignore them. If you get the facts, think long term, add value to your family and Country and act prudently we might even find a way to make things better than they were before. I do hope you do your own research and draw your own conclusions, but don’t wait to late to get on the life boat.
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