Sunday, April 26, 2015

The Only Outstanding Question Left.

For anyone with more than a few brain cells left it's pretty clear that there is a financial crisis on the horizon.  There are those who admit it and have publicly rung the alarm bell and those who know it and choose to believe that the inevitable can be forestalled for as long as the powers that be think is necessary.

The reality is that the last thirty or so years of globalization has spread the infection of fiat monetary foolishness to every global corner of the world.  The only remaining question is from what corner will the triggering event emerge from.

The U.S. and to some extent the northern European nations have excelled in exporting their inflation to the rest of the world in order to replace production with endless consumption.  Sadly the rest of the world has bought into the scam and stuffed their coffers with debt paper of increasingly questionable and shrinking value.

It's no longer just a question of a reinflated U.S. housing market bubble bursting, but will it be the endless refinancing of hard assets in China or the continued falling of oil prices triggering a new collapse and regional unrest in Russia?  Will it be Greek default spreading to Italy and Spain and triggering a derivatives collapse? Will someone finally commit some ultimate act of stupidity in the Middle East and trigger a regional war and glass covered parking lots?

The point being, that there are so many potential triggers out there that the jugglers in the centers of power are going to drop a ball someplace, somewhere, somehow.  Pandora's box will be open and the furies of decades of hubris, arrogance and greed will be unleashed upon the world.

The only people who will be left unaffected will be the ones living in remote self sustaining subsistence cultures.  Sadly in the end the rest of us will either be left in a world of tyranny, dead or joining the world of subsistence living.

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