So no, I’m not an economic expert and I probably never will be. But I firmly believe that there is a collapse coming and it will dwarf the last one we faced in 2008. It isn’t any statistical information or anything like that. It is simple conjecture based on the policies of the experts both in the government and in the banking industry.
I believe that we are in the midst of a depression and probably one that will last for a while. Given the past few decades of debt inflation and the expansion of credit (now I’m getting a bit technical), I believe that we have overextended our limits. No society can last all that long on borrowed money.
Think about it. In the United States, you can finance anything. When most people buy a car, they never consider the possibility of paying for one with cash. They make excuses like being labeled a criminal because most drug dealers launder money that way. It’s an unfortunate state of affairs when people don’t make the sacrifices necessary in order to have more later. One sign of maturity is the ability to delay pleasure.
Our microwave society has yet to change when it comes to buying things. Now, I won’t condemn you if you can afford your stuff with cash. But I am tired of seeing these people in “poverty” with cell phones and kids wearing designer clothes. Meanwhile, I work hard and do everything in my power to ensure that my wife and I are taken care of and I’m told that I’m greedy and selfish.
Our welfare-bankster state is starting to collapse. The good times are beginning to end and many people are going to find that their job skills were worthless. I may end up in that category myself, but I am perfectly willing to work blue-collar jobs if I have too. I doubt many people can say that about themselves. Most would rather live on welfare than get down and dirty.
In any case, I am certain that our economy will continue to contract as our debts begin to either default or simply become paid off. If you are one of those people who pays off his or her debt completely, you need to start saving as much as you can. If you can, buy things that will have value down the road, although there isn’t much to really invest in right now. I would recommend gold, but I’m actually skeptical about that kind of investment myself. Just a gut feeling that it won’t be worth all that much in the near future, unlike what speculators are saying.
Until our government, our banking industry, and our consumer culture reevaluates its practices in the market, we won’t see much of a recovery anytime soon. I am almost certain, though, that many of our leaders will lie about it all. Heck, the mainstream press is already saying that double digit unemployment is no big deal when back when a Republican was in office, 4.7% was the end of the world. So don’t trust the economic news of partisan hacks, regardless of whether you are Democrat or Republican or other.
The funny thing is, I knew this was going to happen before it did. It wasn’t hard to figure out. I reasoned that when housing prices were rising 20-30% a year, there had to be an upper limit to what people were willing to go into debt over. And following the coming collapse and massive defaulting on all our loans (including the National Debt), that upper limit will probably be much lower.
Just don’t bother defending our leaders when the foreign nations who own our debt come after us. They deserve none of our defense or help.
![Reblog this post [with Zemanta]](https://lh3.googleusercontent.com/blogger_img_proxy/AEn0k_vvfN6_Fv1H6SnlsscVBf-4KRm3d5luCJubPaP7a_zAMRllCctWsm2qOYGuXaavaqZ8vFyAq7mIzeKaKhmRAZSjpJovEdbPOGoD6g-V93hfwl8-zAjghsA1GHSrITLtwuj0U7OSN9Zdvd15Ksre24Y=s0-d)