Riots — Coming Soon to a Theater Near You!
The worldwide depression is beginning to take hold. People can live only so long on hopes and promises, and then they get angry. Quickly. It seems Bulgaria and Lithuania are at that point, and so is Iceland.
None of this is surprising, and this is just a foreshadowing. Many media outlets are admitting what just last year was dismissed as paranoia: that widespread unrest and rebellions are coming. People blame the bankers and the governments for the economic collapse, and they’re correct to do so. The wealthy have spent the last decade siphoning everything of value, inflating bubble after bubble and then cashing out. Wealth, like energy, is never lost nor gained; it only changes form. Massive wealth is sitting on the sidelines, in discreet accounts, part of derivative agreements, waiting to buy everything in the world at pennies on the dollar. The demise of the troublesome, demanding, mouthy, worldwide middle class is imminent. Only peasants will remain afterward.
As the swindlers scurry back into the shadows, leaving the commoners to deal with the aftermath, the commoners’ supposed representatives debate about how much more money we should give to the perpetrators to fix the problem. Now we hear talk about sacrifice, yes — someone has to pay for the mess, and it won’t be the ones who caused it or benefitted from it.
Now, lest anyone think this will be limited to small European states, the US military reports a sudden collapse of Mexico is possible. In fact, Mexico rates on par with Pakistan as far as stability! Wow, did you see that one coming? How would the US absorb the inevitable wave of refugees? The explosive power of the cartels and gangs? The instability of a major source of our oil? I shudder to think. What will happen in the UK when the country defaults on the pound?
And here at home of course, 44 states have a projected shortfall this year (the other 6 are in denial). California can’t afford to send out welfare payments, disability for the blind, or tax rebates. California has no money and no one wants to loan it any, either. And for good reason.
Today’s article of doom: let’s face it, the banks aren’t suffering from toxic assets; they are simply bankrupt.
Predictions for 2009
Hi everyone. First, I’d like to say I’m sorry I haven’t responded to those who have contacted me or left comments recently; I have been on an extended and much-needed vacation and haven’t been checking or updating recently. Thanks for your emails.
Usually my posts are filled with hyperlinked references, to give substance and credence to my opinions, so I don’t come off as someone who thinks he knows it all, and also to encourage independent research. Today, however, I am going to post my predictions for 2009 without any references whatsoever. This is 100% opinion, based upon what I’ve been reading and observing. 2009 will be the year of action and culmination.
1) Major inflation. Sticker shock on everything from food to gas will repeat last year’s spring and summer pattern. The new fad scare of deflation will drift away as the US can’t get anyone to continue financing its debt and the Fed finally resorts to massive inflation to close the massive budgetary gaps. China will slowly stop buying debt so the inflation will be steady rather than in spikes. The government statistics on inflation, like unemployment, will under-report it by two or three times. The price of oil, silver, and gold will shoot up as they did last year, and in approximately the same time frames.
2) Russia and Germany up. UK, US down. Though Russia is currently hurting from the low prices of oil, they still have a net surplus and savings; something the US hasn’t had for a long time (not to mention 1/8 of the world’s land mass and all the resources that go with it). Ukraine’s tiff with Russia over gas right now is likely to fracture Ukraine into two pieces, not harm Russia in the slightest. Russia might even gain territory. Germany is much more pragmatic and better-positioned to weather the storm, being one of the few rich nations that actually produces more than it consumes. Soon, Germany will de-facto control the EU and the euro like the US currently controls the UN. UK won’t shed the pound for the euro — not because the pound won’t fall, but because the rest of the EU won’t allow it. Riots and unrest in Germany and Russia won’t be nearly on the same scale as the US and the UK, as both are more homogenous societies and race relations will become a white-hot divisive issue during the new depression in multicultural societies. China will be a little bit of both. Riots by the have-nots, but no economic deterioration like the US and UK. China will mostly remain flat.
3) Israel regrets its Palestine invasion. Israel’s attack dog, the US, is very ill and won’t be able to cover for Israel quite as well as before. The Muslim world will converge on Israel politically and will be supported to an extent greater than ever before due to worldwide souring of opinion towards the policies of the nation of Israel. High risk of expanded war in the region, with players such as Syria, Lebanon, and even Pakistan. Israel will have minor losses comparatively but will lose public sympathy (its most valuable asset) forever. No nuclear weapons will come into play, however. Israel’s economic status sours considerably. Iran will not play a large part, counter to most peoples’ expectations.
4) Obama appears to be Bush with a different face. Same policies, same excuses, same results. Slight variation on the implementation. (Coke with the sweetness of Pepsi — it’s Coke II!) Different group of blind supporters, I suppose. Huge let-down for those with half a brain, no surprise for those with a complete brain. Expansion of military engagements in the Middle East, blind support of the Federal Reserve’s disastrous policies (rather, existence), more spying on citizens, increased police aggressiveness, bailouts, and spending money we don’t have. Big push to “regulate” and filter opinions on the internet based upon the excuses of fighting “hate speech and “extremism.” Congress will continue to be mostly ineffective except at endorsing the President’s policies.
5) Huge housing bailout. Likely to include a massive delay of foreclosures, mandatory interest rates, changes in bankruptcy laws, tax laws, etcetera. Probably won’t occur until around tax time. Will help keep people in their homes and prevent a larger wave of rioting but will not cause prices to suddenly start rising. Established homeowners’ complaints will fall on deaf ears. Credit card bailout also a strong possibility. Corporate bailouts of every imagined (and unimagined) stripe are also likely. Bailouts of cities and states will be frequent and certain.
6) Unrest followed by deployment of soldiers as “helping teams” (read police state) and all the bad press, riots, and anger that accompanies such. Increase in power of local gangs and hatred directed along racial lines. Economic division will not be seen along class lines as is more accurate, but along racial lines. 2009 will be the first year most people start to think about the US as several different regions, rather than a single nation. Possibility of bank “holidays,” government-assumed control of private retirement accounts, even a dollar default. Like the 30s, massive anger towards bankers, and wealthy people in general, and massive sympathy for any criminals who take on the establishment. Possible relaxation on the rules, or lax enforcement, of criminal marijuana laws. Marijuana becomes the new prohibition issue with its myriad motivations and repercussions. Huge increase on the regulation of firearms and acts of “terrorism.”
And there you have it. Stay tuned next time for my regularly-recurring article of doom.
Crashing Down Now! 