My unpublished (100,000 word) book “The Financial Jigsaw”, is being serialised here weekly in 100 Issues by Peter J Underwood, author
Quote of the Week: “Expectations make people miserable, so whatever yours are, lower them. You’ll definitely be happier.” – Simone Elkeles
Sadly this issue is the last one in the book although there is an Epilogue which we will cover in the next few weeks. If anyone would like an electronic copy of the complete book, I should be pleased to email one on request to: [email protected]. The book has many footnotes linking to relevant and explanatory websites and videos.
This last issue deals with what life might be like as we gradually descend into a new economic world over the coming years. The Fed currently has a problem and it is likely that a major bank is in trouble. It is unprecedented that emergency QE and lower interest rates need be applied when the USA economy is supposedly racing along on all cylinders. They are not telling us something very important but we can only speculate at present.
Chris Martenson has a worthy article about all this which coincides with my views:
Quote: “Either way, the sword will fall. And after the dust settles, there will be clear winners and losers. Those with the proper framework and agility will prosper. They will understand that what actually happened was that wealth was transferred from those who thought they owned it (the claimants), to those who actually did (the possessors).
The only remaining questions are whether the wealth transfer comes about in the form of an inflationary destruction, like in Venezuela today, or as a deflationary bust more in the fashion of Greece recently (which lost its ports, roads, and utilities to foreign banks and creditors as a consequence of running up too much debt it couldn’t repay).
Either way, by deflation or inflation, the prudent financial responses remain the same. Own hard assets. Have multiple income streams. Be able to source a percentage of your own food locally and generate your own energy at home (solar, rocket mass heaters, etc.)”
https://www.peakprosperity.com/the-end-of-money-3/
Charles Hugh Smith has a short article explaining MMT and why our future is likely to include a severe collapse in consumption and the destruction of our money system: Quote:
“What’s needed is a radical reduction in consumption and a diversion from a consumerist Landfill Economy to one driven by incentives other than “more of everything” in the name of “growth.” As my long-time readers know, I see a new system of private-sector currency, DeGrowth and decentralization and the institutionalization of a more sustainable (i.e. less perverse and destructive) set of incentives as the only set of solutions that can fix what’s broken in the current socio-economic model. But that doesn’t mean MMT won’t be tried, as the three engines of “growth” over the past 20 years — soaring debt, financialisation and globalization — all falter.
To sum up: MMT is presented as the solution to the “problem” of insufficient government funding, but that’s not the real problem: The real problem is the purchasing power of the fiat currency that will be issued in the trillions of dollars. It’s a recipe for the collapse of money as we know it.
https://dailyreckoning.com/will-mmt-trigger-the-collapse-of-money/
Here is the link to last week: Issue 76
Now that the Brexit final conclusion has been delayed yet again, I will continue to provide weekly updates as events progress:
Brexit Update – 8th November 2019
The Brexit deadline is now 31st January 2020 and Boris still needs to get Parliament to agree his new exit plan (WAB) during this period. But now all has changed and MPs will be focusing on the general election (GE) so not much will happen until the voting is resolved on 12th December the outcome of which is highly unpredictable. You may follow a daily run-down on the current situation from my friend, Dr Richard North:
This article describes all the fudging that’s going on with the Withdrawal Agreement Bill (WAB): https://truepublica.org.uk/united-kingdom/brexit-the-cold-hard-truth-emerges/
AND after reading the above article I am going to stick my head out: I don’t believe that the GE will solve anything. My prediction is that we will end up with a hung Parliament, the WAB will not be ratified and another deadline extension will take us to the 31st July during which time a second referendum will be held and UK will finally remain in the EU and Art 50 cancelled – much to my distress.
Details of Parliament’s deliberations when sitting can be found here:
CHAPTER 13
The New Emergent Economy
“Winning is a habit. Watch your thoughts, they become your beliefs. Watch your beliefs, they become your words. Watch your words, they become your actions. Watch your actions, they become your habits. Watch your habits, they become your character.” – Vince Lombardi
“Everything is determined, the beginning as well as the end, by forces over which we have no control. It is determined for the insect as well as the star. Human beings, vegetables, or cosmic dust, we all dance to a mysterious tune, intoned in the distance by an invisible piper.” – Albert Einstein
“The Chinese use two brush strokes to write the word ‘crisis.’ One brush stroke stands for danger; the other for opportunity. In a crisis, be aware of the danger — but recognize the opportunity.” ― John F. Kennedy
Reviewing what might survive the coming collapse
There are three classes of things that might be functioning following a debt implosion or a fiat currency meltdown:
- Real-world tools and productive assets and land, that are owned free and clear
- Non-fiat currency financial assets (gold and silver) that is difficult for failed states and central banks to steal or expropriate. Perhaps even Bitcoin and blockchain systems might prevail
- Human skills and social capital i.e. the knowledge and experience gained over many decades for people who have retained traditional skills
Proponents of precious metals and cryptocurrencies both see their favoured assets as survivable assets that are difficult to steal or expropriate. It is impossible to predict just how desperate failing status quo institutions will get as their debt-based fiat currency dependent ‘wealth’ and ‘power’ implodes but we are probably safe in assuming they will get fanatically zealous about stealing or expropriating everything they can get their self-serving hands on before the tides of history wash them away.
Because no living generation has suffered what is likely to be a world-changing event such as that which is to come it is not possible to find an example of how difficult life might become. However, Venezuela is close to such a meltdown and their experience today might be worth recording.
Life after collapse: a Venezuelan example
If you have ever wondered what life would really be like in a post-collapse society look no further than Venezuela? Here is a real-life example which I share, word-for-word, of everyday life as experienced by one family living there today. The country has been collapsing ever since a socialist government destroyed the economy. This is a summary timeline:
- 2012 Private ownership of guns was banned
- 2013 Preppers were relabelled “hoarders” and the act of stocking up became illegal.
- 2014 the government instituted a fingerprint registry for those who wished to buy food to ensure they didn’t take more than their “share.”
- 2015 things began to devolve more quickly as electricity began to be rationed and farmers were forced to turn over their harvests to the government.
- 2016 the government said that people should look out for themselves because there was simply not enough food and despite rationing an electricity shortage continued
- 2016 also brought news that the country was out of stock of everything: food, medicine and nearly all basic necessities. People were dying of starvation and malnourishment which made other illnesses even worse. Hyperinflation brought exorbitant prices, like $150 for a dozen eggs.
- 2017 civil war is near (if not already happening.) Although the government are calling it “protests” violence between the people and the government is ongoing. This rage is stoked by wealthy Venezuelans who enjoy luxurious meals, fabulous parties, and lush accommodations while the rest of the country struggles to find a bag of rice.
It appears there is no end in sight to the tribulations of the Venezuelans. A reader from Venezuela took the time to report what life is really like in the country. Her story is detailed below, but please bear in mind that her English is a second language [and has been corrected where possible]:
“I’m a Venezuelan mom of a 1 year old baby. And we are living a war here. You can’t go outside to buy food or supplies or medication because each activity is a high risk and more with a baby. So I stay home as much as I can. There are a lot people outside trying to live normally, trying to go to work and buy foods and continue their lives. But when you are working or whatever thing you’re doing you don’t know is you will be able to come back home safe… people continues to work to get whatever miserable pay to buy some food.
Everything is so expensive. Perhaps the beans and rice are affordable but still not cheap and is so hard to find food. options are limited because of the price… you can only buy one item or two of pasta, rice, like I say the less expensive food , and you have to wait in long lines at your own risk because there are a lot of fights in this store. Imagine tones of people wanting to buy the same product. This have being worst since perhaps about 5 years now… because of scarcity.
Malls and big stores are basically alone because there are places where “collectives” use to attack, with bombs and there is a group of about 40 men in motorcycles that have been creating chaos in the whole city, every day they take the city they have plenty of arms and they just go through the city shooting building houses, stealing stores, people on the streets, batteries of cars, everything they want… this situation is far worst that we ever imagine. They kill people every day and they are pay mercenaries from the government because no one does anything.
The government people are also killing innocents. kids… teenagers, the youth, we are panicking. We bought a land 3 years ago. I got pregnant and we decided to wait. The land is a safe zone but is 5 hours from here and is a very small town of 11.000 people. I live in a city with about 3 million people at least for now the town are peaceful but there isn’t electricity and there isn’t an asphalt road so this doesn’t sound lovely for thief that are now looking for biggest fish to cash. According to our neighbours the town is in calm nothing has happen. We need to go as soon as possible. I am scared because what you say is also true. But in the city there are no options at least not now; what do you think we should do? I realize appreciate what you recommend.
I’m sorry for my bad English I’m trying to write this while playing with my baby.
Venezuelan houses are already bunkers. This has being like this ever since I can remember. Perhaps 20 years… Every regular house is made like bunkers. Pure concrete from the botton to the walls to everything. Every house has also 2 to 3 security doors really big and heavy ones and on top of that we have fences and electric fences on top Of BIG GATES. And trust me is not enough to be safe.
The army has damaged gates and has entry to different houses looking for students, or rebels… and also innocents people has died because they were sadly in the middle of this events. I don’t doubt that country land might have problems too. But so far cities are pure anarchy and madness. There are several groups creating chaos… the army, the mercenaries, the thief, and the rebels that want to kill Chavismo and politics and whatever on their way. A few days they put a bomb into a propane gas distribution cargo and it blew away and this have being affecting every single thing, they steal cargo transporting food or gas and even fuel… so there is no much to do now.
Communities in the city are not organize since they really need to find food and basic resources so each individual is waiting in long lines to buy a bread or a medicine or whatever they need… and people doesn’t want to organize they don’t see this could go like this for years… I assume that we got used to live in some sort of chaos and violence. But the true is most people is praying and just wishing this will pass soon. that this will pass as the moment a new president arrive. And what if it doesn’t? Let’s be clear that we have so many resources, and Canada and USA are pulling all of the gold and all minerals now so no country really matters what we are suffering as long as they can get their way. We really feel hopeless.”
Conclusion
As we end this last Chapter of my book it is fitting to remember that we are privileged people and as I re-read my Introduction I can attest to the fact that I have led a very privileged life and that I recognise there are countless millions suffering the sort of fate we have read about here.
It has been a wonderful journey of discovery for me, and I hope too, the reader, because now we can look forward to Part 2 and the real purpose of the book; that of surviving and prospering in the crisis to come when we will be looking at the tools we will need to excel in a society very much changed from that to which we have been accustomed.
NOTE
An Eplilogue follows in the next few weeks, which actually is the start of Part 2, and which will be completed when the current situation resolves itself and we can know the conditions which we will be enduring at the time following the next economic and financial crisis.
Addendum
“One Second After” by William R. Forstchen
New York Times best-selling author, William R. Forstchen, brings us a story which can be all too terrifyingly real; a story in which one man struggles to save his family and his small North Carolina town after America loses a war, in one second, a war that will send America back to the Dark Ages. A war based upon a weapon, an Electro Magnetic Pulse (EMP); a weapon that may already be in the hands of our enemies.
Months before publication, “One Second After” has already been cited on the floor of Congress as a book all Americans should read, a book already being discussed in the corridors of the Pentagon as a truly realistic look at a weapon and its awesome power to destroy the entire United States, literally within one second. It is a weapon that the Wall Street Journal warns could shatter America. In the tradition of ‘On the Beach’, ‘Fail Safe’ and ‘Testament’, this book, set in a typical American town, is a dire warning of what might be in our future. It is perhaps worth your time to read, if only to get another’s idea of what a post-collapse society might look and feel like.
Epilogue to be continued next Saturday
I had a hard time figuring out why the elites want open border, for now. They are literally bringing in the next set of slaves since our birthrates have fallen. They get a twofer also in that they are importing people that are already subjugated to elitism’s power, marxist or socialist minded. They will be very easily controlled. There will be a revolution when the everything bubble collapses, many will perish and the Bill of Rights will be eviscerated., for the revolution will be paid for by the blood of patriots and there will be few left to defend freedom or even the thought of freedom.
After watching the above you can easily review history from just Bush’s reign and see what we should have done to get rich but in the present with the everything bubble its murky. Seems, survival in and of itSelf should be considered wealth when this 4th (really 250 year) turning ends. I bet on rural farmland, precious metals, trusted family/neighbors, and skills. Of course a means of protecting the previous is a given.
I wonder if these thieves / bankers, corporation, and corrupt politicians will pay a price for this downfall? I see the four horsemen as corporations, the elite, govt and lastly the people. It is the first 3 against the people. Until we stop allowing them to divide us and we begin to ignore their bread and circuses we have not a chance.
I agree with all you say, thank you Prof for your contribution. Not many people are aware that the British empire never really went away; it merely transformed into a dark financial empire centred on the City of London and controlling the global system through murky off-shore financial centres. Some say over $30Trn is hidden in these places.
Oligarchs will crash the dollar before Nov2020 to create Chaos (Rev 6 the Four Horsemen), to get rid of Trump and to implement their New world Order: no cash, only Central Bank e-money and Chips (ref Rev 13:16,17). The GSM has already reduced 2019 grain production 20% (a Black Horse) and the environmental communist will assure swine flu reaches the USA (a Pale Horse) via protected migratory birds. Blue Cities exist by extracting wealth from Producers but the Democrats will sacrifice the (few) Producers to the (many) Takers (ie, communist induced starvation of the Goy). The UN will send troops to support the communist (Democrats) as they have in every crisis. Whenever Useful Idiots who voted for Democrats flee to the mountains (Matt24:16), we Deployables will be waiting…
Don’t necessarily agree but your scenario is possible. It scares the hell out of me.
Fear is an emotion that restrains our actions and distorts outcomes. Next week’s issue deals with this aspect of the New Emergent Economy following the imminent crash.
All so true, thank you Robert and your understanding of the bible is admirable. I too am studying Revelation – looking for interpretations as the end times unfold. I agree that we are not far away from the coming crisis which will require a personal transformation for each of us as we adjust to a new paradigm. Next week’s issue (The Epilogue) covers aspects of this pyschological adjustment.