The Closing Of The Global Economy

Zero Hedge ^ | 23 November2015 | Joseph Calhoun via Zero Hedge

[Lorianne]

don’t often write about global geopolitics because I think, in general, investors spend too much time worrying about things they can’t control or aren’t going to happen or wouldn’t matter much if they did. The best example is the Middle East which has been a mess my entire life and long before it for that matter. Changing your investments based on the latest threat in or from the Levant is a recipe for constant chaos.

The only accurate prediction about the Middle East will always be that the various factions that have been fighting for centuries will continue to fight. And that no matter who is in charge they will have to sell oil to make ends meet. And make no mistake oil is the only economic reason we care about the region.

The recent Paris attacks, though, have me thinking more about how global geopolitics is affecting the global economy. The terrorist attacks Europe has experienced in Madrid, London, Paris and other locales are raising old barriers across the continent. Borders where goods, people and capital have crossed freely for the last few decades are now manned and monitored again. Capital largely continues to flow freely but people and goods are starting to be restricted; you can’t restrict the flow of people without also obstructing the flow of goods. For now, the people and goods continue to flow, just more slowly. One can’t help but think though that if the borders become literal barriers again it won’t be long before the metaphoric ones – protectionist policies – return as well.

[citizen]

I think 1st worlders are way too concerned about “consuming” material things, anyway. Things they don’t particularly need in the first place.

So a little slowing down and taking “time to smell the roses” wouldn’t be a bad thing. Do you really need that Amazon purchase the next day/same day??

But the way the fiat economies of the world are structured, if most 1st and 2nd worlders aren’t willing to drown themselves in expensive debt to buy things that they think they need...then these economies grind to a halt or even reverse somewhat.

Somewhere along the way, folks, this is simply not living right. jmo