A depressing ending to our economic crisis lies ahead. It is not a failure of economics but a failure of those economists who, like hired guns, sell out to political masters pandering to voters. Another Great Depression (Greater Depression) lies ahead and is, at this point, unavoidable.
The implications of that are incomprehensible to most Americans. For many their knowledge of history ranges from yesterday’s events all the way back to the last episode of American Idol or Dancing With The Stars.
It is not easy to communicate matters as serious as a Depression to people. Because they have never experienced such an event, they believe it “impossible.” Given our economic situation, it is not only possible, but it is likely.
SaveCapitalism provides a succinct summary of where Western welfare states are going and the implications for their citizens:
Will there be revolt? Yes. Will there be one or more gigantic depression-style collapses of Western economies? Yes. Will there be increasing number of poor people? Yes. Will there be raving mad inflation and possibly hyperinflation as central banks try to save a collapsing debt system? Yes. What will remain? That depends on when this all stops. Clearly, there is no way for the democratic system to solve this through regular means. The path we are on leads to Soviet, the stone-age, or Argentina. Only if people revolt against the system can things be turned around, and even then it will take a long time to re-establish sound institutions of banking, while simultaneously people who are much poorer will need to learn to save money instead of consuming.
Most citizens, both here and abroad, will be blind-sided by what is coming. Especially so will be that class of citizens that represent the dependency class — those believing they are entitled to live off others. Life skills have literally been removed from many, as a result of living off the government teat. It is they who will be hurt the most and have the least to lose by taking to the streets.
Brace yourselves for what is coming by making whatever preparations you deem appropriate.
Monty: Been enjoying your work for a few years. Thank you.
Is a depression unavoidable or just likely? Is the “likely” option you mention evidence of some new-found optimism? Say it ain’t so.
I’m amazed and frustrated by how long those pulling the strings can keep the balls in the air and the plates spinning. If the end is near, let’s get it on. I’m tired of waiting for the crash.
Greg,
I believe it is inevitable and probably have been in one since the crisis began. Stimulus, money printing, food stamps, data manipulation, etc. etc. have “papered” it over, to make it appear like a bad recession.
Sometimes I qualify matters that I feel are certain or nearly certain to honor the old observation: “Even the impossible has a 20% probability.”
Thanks for your interest.