All too often we hear of doomsday merchants that profess the end of the world…..but what if it is a little closer than what we believe?
The British Empire suffered a fate……..
Though Britain and the empire emerged victorious from the Second World War, the effects of the conflict were profound, both at home and abroad. Much of Europe, a continent that had dominated the world for several centuries, was in ruins, and host to the armies of the United States and the Soviet Union, who now held the balance of global power.Britain was left essentially bankrupt, with insolvency only averted in 1946 after the negotiation of a $US 4.33 billion loan (US$56 billion in 2012) from the United States,the last installment of which was repaid in 2006.
So could the end of the world, at least the end as we know it come more quickly than we think in the form of economic overload, rather than a meteorite from space?????
In 1971 with a run on gold and the inability of the US to live up to any monetary obligations gave way to the Nixon Shock
This effectively ended the rules on limitations imposed on the US to back up its dollar with gold……. a method previously used to legitimize the value of the dollar………
Since 1971, we no longer talk of debt in Billions, with today the common term would be Trillions…….. and now the printing of money like it is going out of fashion, and no possible way to pay it back…. a sleeping giant that is at the moment getting more restless, and only the really astute see the signs……
Take your home for instance…. if you weigh the combined salaries and take away your outgoings, if one does not meet the other you will go bankrupt. On the other hand you may well say to your spouse…. no worries baby, I will just print more that the kids (and grandkids) will just have to pay off…… It is exactly the same in government…… you have to balance the books…
Some already think the system is bankrupt…..Here
Instead we have politicians actively finding ways to circumvent legislation that was put in place to stop the printing of money on a willy nilly basis for short term gain.
Others that think we are bankrupt…Here
But this article is not on the merits of the economy. It is on the effects of an economy if we have a meltdown, and in particular the mighty dollar collapses under the weight of stupidity of the politicians.
Hurricane Katrina was the deadliest and most destructive Atlantic tropical cyclone of the 2005 Atlantic hurricane season. It was the costliest natural disaster, as well as one of the five deadliest hurricanes, in the history of the United States. Among recorded Atlantic hurricanes, it was the sixth strongest overall.
It took best part of 11 days to get any help to thousands of people who foolishly decided to stay, and the aftermath we saw with our own eyes.
No water being the first issue, no food, even after almost every person including police and emergency services looted premises. 1800 plus people dead and so many victims of shootings after the storm…….. people begging for salvation!
No power, no help, no food, no water…… nothing.
A collapse of the mighty dollar would trigger this in less than a week….. nationwide…
Fuel would be exhausted in 6 days, food in about two weeks……. and until the dollar is either chronically devalued to the point of being something like one tenth of its value today, you would be unlikely to get foreign suppliers to accept a dollar bill.
Locally your dollar would of course be worth a dollar, but to those all important imports from oil to your cars, Grain, essentials…would cost a whole lot more. Ships that were in transit when the bubble burst would be instructed to hold off or return to their home ports whilst a renegotiation of the dollars worth took place and, in the meantime, precious metal such as gold would likely become the only trading currency until the shock waves have long departed.
When the gold runs out, the darkness that you have now had, would likely be more permanent….
Imagine your savings a tenth of their value if your lucky…… your home, your pension fund, your life a tenth of what it was worth yesterday……
And this is only a tip of the iceberg. with social security being claimed by more and more people, the hundred dollars the welfare state gave out yesterday would only have a tenth of it buying power today.
If social security claimants were on the breadline yesterday, they have dropped ten times lower today, and have no way to boost their situation, so anarchy would break out, with theft violence shootings being a normal occurrence as you go to your corner store (if its there)
Jewelry stores being looted because they have the rare metals status…….. and no one there to protect the system, no police, no ambulance, no EMS……. because the system will have imploded. True there may be some that put the community before themselves, but how long could those few last…….. and…. their own families would need help and protection too.
In 2003 the northeast blackout shut everything down for 55M people simply because of a couple of shorts, which triggered (automatically) a chain reaction with a supply line from Canada…….. and in a few seconds whole cities are dead, no power…. no anything.
The National Guard could help initially when the marshal law is enforced, but they too would have their limitation as the riots become more regular and progressive with the looters becoming more and more organized, and as weapons are taken…. better armed.
No border control so arms and drugs could flow in at leisure, destined for the new system of order…….. that of the criminal element.
Edward Gibbon wrote of the Roman Empire….
“The decline of Rome was the natural and inevitable effect of immoderate greatness. Prosperity ripened the principle of decay; the causes of destruction multiplied with the extent of conquest; and as soon as time or accident had removed the artificial supports, the stupendous fabric yielded to the pressure of its own weight,”
On April 2, 2013, debt held by the public was approximately $11.959 trillion or about 75% of GDP. Intra-governmental holdings stood at $4.846 trillion, giving a combined total public debt of $16.805 trillion. As of January 2013, $5.6 trillion or approximately 47% of the debt held by the public was owned by foreign investors, the largest of which were the People’s Republic of China and Japan at just over $1.1 trillion each.
And the best answer politicians can come up with is print more money.
Except for about a year during 1835–1836, the United States has continuously held a public debt since the US Constitution legally went into effect on March 4, 1789.
At some point the system has too say enough is enough…… a day of reckoning that makes the Wall Street Crash look as a minor incident, and that is soon approaching.
Until an economist tells me how the monies can actually be paid by all governments when they write IOU’s and still maintain their standard of living I shall not move from the doomsday position. The logic is simply not there!
End of the world…..sooner than you think?