Wednesday, March 26, 2014

1 of 2 today


Catastrophic Events II (slow)

These events, while not as fast acting as a meteor strike, will be just as deadly.

Peak Oil/Resources

No matter how the Pollyanna's spin it, there is a finite amount of oil or anything else on this planet. Every year the human population on this planet increases by 80 million people. That's adding TEN New York cities every year. How long can that go on? Where will all the food come from to feed everyone? Water? How will all these people be able to continue to flush the toilet 127 times every day?

Here's a nice little quote from the National Park Service website, "If not for diseases, overpopulation of wildlife and depletion of resources would be major problems in our parks."

Let's see... take away diseases (from us, small pox, bubonic plague, Spanish flu, malaria, typhoid, etc.) and we end up with... resource depletion???

Ever play musical chairs? Let's modify it a little. We'll represent the entire worlds population with 100 people, each one armed with a machine gun and grenades. Then we'll have seven baskets of food, instead of chairs, to represent the worlds remaining resources. Let's play the music and see how this one turns out.

Money Doomsday

"Now there were reports from Saxony -unoccupied Germany — that bands of several hundred townspeople at a time had taken to riding out into the countryside on bicycles to confiscate what they needed." This is from "When Money Dies", an account of the German Hyper-inflation. When it happens here, they won't be coming on bikes. You'll see a fleet of mini vans, SUVs and trucks disgorging a herd of people bristling with weapons.

Everyone knows the government has a critical debt problem. ALL governments at all levels, national, state, county, city, you name it.

For now, they all play "kick the can" (401k confiscation, savings tax, etc.) the best they can for as long as they can. The debt will never be repaid. But someday, yes someday....all that debt has to be defaulted on.

Default by Hyper-inflation or Depression.

Hyper-inflation. They put the money printing presses on warp speed. This let's them play kick the can just a little bit longer. With trillions and trillions flooding the market it won't be long until you are paying $200 for a loaf of bread, when you can find it. They just keep on cranking out more dollars. Finally the suckers, the average guy, catches on to the game. They stop using dollars and fall back to using barter. Everyone's savings have been wiped out. At this point the government abandons the dollar and creates a new currency. The game starts over.

Depression. This one is going to make that last one (1929-) look like an absolute picnic. Here the government slams the breaks on the printing presses. Interest rates rise. The economy goes into a coma. Everyone that is holding any kind of bonds, T-bill, etc. is informed "Sorry sucker! You ain't getting paid! Take a hike!" If you have money in the bank? "Oh we are so sorry, that bank has closed." If you owe them money (mortgage) "We are so sorry. The economy is bad. We have to repossess. Nothing personal."

Either one of these can happen from miscalculation or lack of accurate information. (Or from some greedy S.O.B. seeing how they can make a quick half billion and screw everyone else if the economy crashes.) They lie to us all the time, I'm sure they lie to each other as well.

In part three, special events will be looked at.

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