What is important to realize about all this is that the whole world, all the major economic powers and blocs are primed to blow up: China, Japan, the US, and Europe. It is not like some of these are acting as stabilizers for the others. They are all pursuing unsustainable courses and becoming increasingly unstable. The result is likely to be a cascading failure and mega-meltdown. There should be nothing surprising about this. None of the underlying problems have been fixed. They are all still there. They are getting worse and more problems are being added to them with each new crisis. Something will have to give. It is not a question of if but when, like a weak and poorly built dam holding back a 500 year flood, or like being in a munitions factory, gunpowder spilled all over the floor, and matches being flicked about. It will explode. The financial sector controls the economy and government. But it does not control the math, and in the end the math will win out.
Well said.
I know this is simplistic but please follow my logic.
1. The raw materials are there.
2. The Workers are available.
3. The Factories are there.
4. Products can be made.
5. The transportation infrastructure is there.
6. The Stores are there.
7. The Customers are there.
So what completes it?
The medium that allows value to be transferred readily among all those factor and more. We call that money and it’s really useful because who want to carry around a Cow to trade for a tree to trade for a carpenter to make a house for example.
What is about to mess up not only our economy but the world economy is that a some people have decided to trade around money itself in ways that don’t actually have a real thing backing up it’s value.
What does that mean to me and most other people? These people aka Bankers are threatening that if they can’t have their illusionary profits then no one can have their real profits, (Backed by real things, Product or labor), then they’ll just take their ball and go home and oh yes, tear up the field, the bleachers and anything that catches their eyes. By the way, what group of people does that sound like by the way? Hint: We have been calling them various names, Takers, Feral Youts, etc.
And so it comes to the bottom line for the Economy. All economies rely upon one thing above all others. TRUST. And when the trust goes so does that economy. And frankly my FRiends the Trust has almost dried up for everyone in this economy. To many people have taken advantage of that trust, Bankers, Politicians and the Takers lead the list.
As my dad once told me when I was young and a friend refused to pay me back the money he had borrowed for ‘just until payday’, that I was to take it as a lesson. I could still be friends with that individual but I learned that I could not TRUST him with any money from then on.
And so it applies now to the Bankers and the others. So what does a person like me do? We withdraw as much as we can and try to minimize our exposure to effects of these people. And we watch, knowing that the whole house of cards is going to fall.
Trust... So hard to create, it’s a daily thing to create trust. Trust... So easy to destroy, all it takes is one thing to do so, and it can be just about anything too.