WATCHMAN of the OC

Death of the Dollar Still Inevitable: The Dead Cat Bounce Explained

So where are you putting your money, Nicholas? The last several days on Seeking Alpha there have been numerous articles on how Europe is on the brink of a severe credit crisis that dwarfs the U.S. The Euro will collapse also. Japan is too export dependent to survive a long downturn, so there goes the Yen. So what is your solution? Russia? Brazil? India? Wal-Mart does not take gold for food and clothing.

The Great Consumer Crash of 2009

I would politely ask Bull Frog 3 to think in terms of hard times, not The End of All. There is a difference, as I've outlined below........

THE FUTURE OF FAMILIES IN AMERICA


In this ever changing and increasingly perplexing world, many Americans peer into their future with uncertainty and confusion. I am convinced that a widespread deception is at the core of this confusion. Modern day Americans have been duped and are in dire need of clear teaching and leadership about the times we live in.

We in America have been led to believe that Americans will escape suffering and hard times. Where does this belief come from? To begin with, it evolves from “life as we have always known it.” Our generation has experienced one of the most prosperous eras of any nation in history. As a whole, we don’t have a clue as to what real suffering and difficulties are; we just know the “good life.” Additionally, the popularity of all the “super success books” focusing on easy wealth accumulation, have diverted Americans from observing the events unfolding right before our eyes. We have been fooled into thinking that America guarantees us a soft life because we are # 1. But this deception leaves Americans confused, asking, “Where is the good life?” Why is this happening to me? This isn’t what I’ve been promised!” As a whole, the American people of today have bought into the American Dream & the Gordon Gecko entitlement philosophy, hook, line, and sinker. However, neither history nor reality gives credence to this popular “easy times for life” gospel of today. It is not consistent with current trends, or history itself.

And what does history demonstrate? In 1900, Great Britain ruled the world, fully convinced she would forever retain her supremacy. However, gradually over the next hundred years, her standard of living fell by 50% compared to the rest of the developing world. Meanwhile, due to our nation’s industrial productivity and military might, America’s standard of living surpassed Great Britain, more than tenfold. By 2000, Great Britain and America had merely swapped places as world rulers. Do we really have any reason to believe we will maintain our preeminent position? Or will America, like Great Britain, fall to the wayside and become a far lesser entity in the world? All current indications point to America falling from the top, and falling hard.

It behooves us to contemplate the fast-approaching storm that will soon hit all of America, especially families and the poor. Out of the East, China and India are fast becoming economic superpowers, soon to claim America’s status as world leader (as America once did to Great Britain). China’s GDP (gross domestic production) is currently running at about 12% -15% a year. At this rate, China will add approximately 300-400 million middle class consumers over the next ten years, all with surplus money to spend. This scenario will create enormous upward pressure on commodity prices such as gasoline, wheat, corn, cotton, lumber, steel etc. Furthermore, India is on track to add another 100 million middle class consumers to the planet and on top of that, there are over one hundred smaller, but expanding, economies in nations such as Russia and Brazil with a current GDP of at least 3% - 4%. Collectively, we’re looking at close to one billion consumers poised and ready to purchase our precious commodities. At the same time, globally, we are losing approximately 38,000 acres of arable land a year while adding approximately 100 million people per year. What will the end result be? The “pinch” Americans now feel at the check stand will escalate into an “economic tsunami.” Our nation will suffer hardship never thought possible in America.

To further confuse people, politician after politician, President after President, keeps promising Americans a better future, a future they cannot produce. And Americans, so used to good times, desperately cling to the promises, not wanting to face a life of less that seems to be inevitable.

Now more than ever my fellow Americans, we need to live wisely, build community, save and invest our recourses, and adjust quickly to the global changes of our world.

The Great Consumer Crash of 2009

Not to mention the fact that the jobs created by all the unnecessary strip malls will go away for a very long time. All of the construction trades, all of the suppliers such as glass, tile, roofing, carpet, stucco, lumber, steel, concrete, paint etc...and all of the transportation and manufacturing jobs. Many of these jobs were filled by people who have immigrated (legally?) from south of our border. What will these people do with no safety net and no family structure as support? Plus with all of the divorce and fragmentation of our own communities/family's, people will not have anywhere to turn. So, I fear we will first see people begging at grocery store parking lots, and then grocery bag snatching so they can feed their kids. It will be scary. The America we knew as young children is passing into history. So very sad.