The prudent sees danger and hides himself, but the simple go on and suffer for it. -Proverbs 22:3
Many posts the last few months have been on economic and, by extension, political topics. This isn’t really typical for this blog, but the events of the last year have been game changers. I believe we have experienced a fundamental shift in this country. We have perhaps seen the end of Pax Americana. The worst is yet to come, because all indications are that Il Duce Barack’s worshippers will receive the shovels from King George’s men and widen the “borrow & spend” hole even faster.
The reason I’ve written about economics so much is that when the economy is fundamentally altered, everything will be altered with it: the church, political movements, social policy, the work force, our lifestyles, our neighborhoods, etc.
How will people react if our standard of living reverts to what it was in the 1970s? That may be a best-case scenario. What if it reverts to the WWII years? We could see the rationing of those years, but this time with the decaying remains of the boom years: vast swaths of vacant commercial real estate, abandoned cars, and neighborhoods filled with boarded-up homes.
If the dollar collapses, which is what the government’s policy of printing money and providing cheap credit is encouraging, we could see a return to subsistence living in a country where most citizens no longer know how to “live off the land.” Unlike in the WWII years, we have tens of millions of people who are (sinfully) living mainly off the declining assets of other citizens. Tens of millions more are receiving government money for everything from health care to retirement. What will happen when that money can’t buy anything? What will happen if there’s no food and no purchasing power to obtain it in the inner cities? Riots? Government confiscation of property and assets? Looting of the suburbs? What if cities cannot afford their police forces?
Men, this may be a good time to stock up on supplies and take the dust off that pistol or 12-gauge and relearn how to shoot it (as an aside, ammo and guns have been flying off the shelves, possibly because people expect the Democrats to find ways to achieve gun control via the back door of taxation and other regulation). Different perspectives will provide you with ideas for increased financial diversification. The mainstream financial industry mechanically tells us to buy and hold a mix of U.S. stocks, bonds, and cash, but what good will that do if the dollar collapses? “Safe” investments — fixed income, cash — aren’t safe any longer. I’m guessing the same is true of many annuities and pensions (those with government pensions will be safer, of course, since the government can borrow, spend, and extort from the private sector).
Whereas from my perch in IT I believed that the Y2K stuff was silly, I think today’s situation is decidedly different, and those who think this is nothing but Y2K-style fear-mongering are being foolish. There will always be those trying to make a buck or a name for themselves, and there will always be “black helicopter” crackpots, but the fiscal problems are real. Disregard both the right-wing talkers who defend the disastrous Bush administration and Obama’s idolaters. While we may see short-term rallies in the markets, we will have to pay our piper for the fiscal insanity.
That said, hopefully the posts on this blog over the past few months have not come across as fear-mongering. Fear not! (Ex. 14:13). In 100 years all of this stuff will just be evident to all as part of God’s plan, and there is no need to panic with our Lord in control. Instead I hope in some way these posts help you prepare for what may well be coming. I hope they will encourage you to observe and discern as events unfold. It’s good to keep our eyes on the effects of this.
These will be times that try men’s souls.