November 19, 2013
When many people think about an economic collapse it is a bank failure that comes to their minds. The idea of a panic, where everyone runs to the bank to try to get their cash, then the bank runs out of cash and bars the doors. Then the police are called and people start to starve because they can’t buy food, etc. In a sense, runs on banks are a thing of the past. The savings and loan debacle of thirty years ago was pretty major, with many banks failing, but we did not see nightly images of people standing in front of or rioting at banks. Big Brother has his hands closed so tightly around the neck of the banking sector that no institution of that sort can be allowed to fail in a noisy way. They will be bailed out or sold out or taken over before a run can occur.
Realistically, inability to get their hands on cash would hardly inconvenience most people, since they are so addicted to Continue Reading →
November 13, 2013
“Being all equal and independent, no one ought to harm another in his life, health, liberty, or possessions.” -Locke
August 8, 2013
Economic Collapse Scenario 1
Imagine tonight you hear on the news that China has announced that they are going onto a gold standard to stabilize the value of their currency. What would that portend? Soon you would hear rumblings of a change in the trade currency for the world. The yuan would be suggested as a replacement for the dollar, the current standard among fiat currencies. In that scenario, gold would be a great thing to have in your possession. Notice that I do not say it would be great to have in your portfolio. There is a possibility that the possession of physical gold may be Continue Reading →
August 2, 2013
What have I lost? There have been many failings and falterings of the state in my memory. The war in Viet Nam, Watergate, Mutual Assured Destruction, etc. So the current climate of multiple foreign wars, NSA spying, IRS abuses, and the rest are not new. For some reason, I was patriotic and patient in my youth. I spent six years in the U.S. Navy, joined a political party, and sang patriotic songs at church. I don’t know that the state had a better or worse reputation 20 or 30 years ago than it does today, but my feeling was that I had a stake in a better tomorrow, that I should want a more honest system in which to live and into which I would be sending my children. So perhaps that is what I have lost, that feeling of Continue Reading →
July 17, 2013
There are a lot of scenarios for a “collapse” of the US economy. It is easy to find gloom and doom predictions and worst case scenarios “out there” on the Interwebs. I can read about half way through them before I start to feel that the writer is trying to poison my mind, usually to sell a product. So lets unpack a few of these alarmist ideas and see if they hold any water.
One scenario that seems quite possible would be that the US dollar loses its place as the trading standard for the world. The European and Chinese currencies could easily Continue Reading →