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You’re Just Not Prepared For What’s Coming

Consumption

I hate to break it to you, but chances are you’re just not prepared for what’s coming. Not even close. 

Don’t take it personally. I’m simply playing the odds.

After spending more than a decade warning people all over the world about the futility of pursuing infinite exponential economic growth on a finite planet, I can tell you this: very few are even aware of the nature of our predicament.

An even smaller subset is either physically or financially ready for the sort of future barreling down on us. Even fewer are mentally prepared for it. 

And make no mistake: it’s the mental and emotional preparation that matters the most. If you can’t cope with adversity and uncertainty, you’re going to be toast in the coming years.

Those of us intending to persevere need to start by looking unflinchingly at the data, and then allowing time to let it sink in.  Change is coming – which isn’t a problem in and of itself. But it’s pace is likely to be. Rapid change is difficult for humans to process.

Those frightened by today’s over-inflated asset prices fear how quickly the current bubbles throughout our financial markets will deflate/implode. Who knows when they’ll pop?  What will the eventual trigger(s) be? All we know for sure is that every bubble in history inevitably found its pin.

These bubbles – blown by central bankers serially addicted to creating them (and then riding to the rescue to fix them) – are the largest in all of history. That means they’re going to be the most destructive in history when they finally let go.

Millions of households will lose trillions of dollars in net worth. Jobs will evaporate, causing the tens of millions of families living paycheck to paycheck serious harm.

These are the kind of painful consequences central bank follies result in. They’re particularly regrettable because they could have been completely avoided if only we’d taken our medicine during the last crisis back in 2008.  But we didn’t. We let the Federal Reserve –the instiution largely responsible for creating the Great Financial Crisis — conspire with its brethern central banks to ‘paper over’ our problems.

So now we are at the apex of the most incredible nest of financial bubbles in all of human history.

One of my favorite charts is below, which shows that even the smartest minds among us (Sir Isaac Newton, in this case) can succumb to the mania of a bubble:

How Newton's Fortune Fell To Earth chart

It’s enormously difficult to resist the social pressure to become involved.

But all bubbles burst — painfully of course. That’s their very nature.

Mathematically, it’s impossible for half or more of a bubble’s participants to close out their positions for a gain. But in reality, it’s even worse. Being generous, maybe 10% manage to get out in time.

That means the remaining 90% don’t. For these bagholders, the losses will range from ‘painful’ to ‘financially fatal’.

Which brings us to the conclusion that a similar proportion of people will be emotionally unprepared for the bursting of these bubbles.  Again, playing the odds, I’m talking about you.

How Exponentials Work Against You

Bubbles are destructive in the same manner as ocean waves. Their force is not linear, but exponential.

That means that a wave’s energy increases as the square of its height. A 4-foot wave has 16 times the force of a 1-foot wave; something any surfer knows from experience.  A 1-foot wave will nudge you.  A 4-foot wave will smash you, filling your bathing suit and various body orifices with sand and shells.  A 10-foot wave has 100 times more destructive power. It can kill you if it manages to pin you against something solid.

A small, localized bubble — such as one only affecting tulip investors in Holland, or a relatively small number of speculators caught up in buying swampland in Florida — will have a small impact.  Consider those 1-foot waves.

A larger bubble inflating an entire nation’s real estate market will be far more destructive. Like the US in 2007. Or like Australia and Canada today.  Those bubbles were (or will be when they burst) 4-foot waves.

The current nest of global bubbles in nearly every financial asset (stocks, bonds, real estate, fine art, collectibles, etc) is entirely without precedent. How big are these in wave terms? Are they a series of 8-foot waves? Or more like 12-footers?

At this magnitude level, it doesn’t really matter. They’re going to be very, very destructive when they break.

Our focus now needs to be figuring out how to avoid getting pinned to the coral reef below when they do.

Understanding ‘Real’ Wealth

In order to fully understand this story, we have to start right at the beginning and ask “What is wealth?”

Most would answer this by saying “money”, and then maybe add “stocks and bonds”. But those aren’t actually wealth.

All financial assets are just claims on real wealth, not actually wealth itself.  A pile of money has use and utility because you can buy stuff with it.  But real wealth is the “stuff” — food, clothes, land, oil, and so forth.  If you couldn’t buy anything with your money/stocks/bonds, their worth would revert to the value of the paper they’re printed on (if you’re lucky enough to hold an actual certificate). It’s that simple.

Which means that keeping a tight relationship between ‘real wealth’ and the claims on it should be job #1 of any central bank. But not the Fed, apparently. It’s has increased the number of claims by a mind-boggling amount over the past several years. Same with the BoJ, the ECB, and the other major central banks around the world. They’ve embarked on a very different course, one that has disrupted the long-standing relationship between the markers of wealth and real wealth itself.

They are aided and abetted by both the media and our educational institutions, which reinforce the idea that the claims on wealth are the same as real wealth itself.  It’s a handy system, of course, as long as everyone believes it. It has proved a great system for keeping the poor people poor and the rich people rich.

But trouble begins when the system gets seriously out of whack. People begin to question why their money has any value at all if the central banks can just print up as much as they want. Any time they want. And hand it out for free in unlimited quantities to the banks. Who have their own mechanism (i.e., fractional reserve banking) for creating even more money out of thin air.

Pretty slick, right?  Convince everyone that something you literally make in unlimited quantities out of thin air has value. So much so that, if you lack it, you end up living under a bridge, starving.

Let’s express this visually.

“GDP” is a measure of the amount of goods and services available and financial asset prices represent the claims (it’s not a very accurate measure of real wealth, but it’s the best one we’ve got, so we’ll use it). Look at how divergent asset prices get from GDP as bubbles develop: 

Asset Prices vs GDP chart

(Source)

What we see in the above chart is that the claims on the economy should, quite intuitively, track the economy itself.  Bubbles occurred whenever the claims on the economy, the so-called financial assets (stocks, bonds and derivatives), get too far ahead of the economy itself.

This is a very important point. The claims on the economy are just that: claims.  They are not the economy itself!

Yes the Dot-Com crash hurt.  But that was the equivalent of a 1-foot wave.  Yes, the housing bubble hurt, and that was a 2-foot wave.  The current bubble is vastly larger than the prior two, and is the 4-foot wave in our analogy — if we’re lucky.  It might turn out to be a 10-footer.

The mystery to me is how people have forgotten the lessons of prior bubbles so rapidly.  How they cannot see the current bubbles even as the data is right there, and so easy to come by.  I suppose the mania of a bubble, the ‘high’ of easy returns, just makes people blind to reality.

It used to take a generation or longer to forget the painful lessons of a bubble. The victims had to age and die off before a future generation could repeat the mistakes anew.

But now, we have the same generation repeating the same mistakes three times in less than 20 years. Go figure.

In this story, wishful thinking and self-delusion have harmful consequences. It’s no different than taking up a lifelong habit of chain-smoking as a young teen.  Sure, you may be one of the few who lives a long full life in spite of the risks, but the odds are definitely not in your favor.

The inevitable destruction caused by the current froth of bubbles is going to hurt a lot of people, institutions, pensions, industries and countries.  Nobody will be spared when these burst.  The only question left to be answered is: Who’s going to eat the losses?

This is not a future question for a future time; it’s one that’s being answered daily already.  Pensioners are already taking cuts.  Puerto Rico will not be fully rebuilt.  Shale wells drilled when oil was $100/barrel, but being drained empty at $50/barrel, represent capital already hopelessly betrayed. Young graduates with $100,000 of student debt face lost decades of capital building. The losers are already emerging.

And there’s many more to follow.  This story is much closer to the beginning than the end.

The bubbles have yet to burst. We’re just seeing the water at the shore’s edge beginning to retreat, wondering how large the wave will be when it arrives. Hoping that it’s not a monster tsunami.

The End Is Nigh

History’s largest bubbles have had the exact same root cause: an expansion of credit that causes leverage to go up faster than the income available to service it.

Simply put: bubbles exist when asset price inflation rises beyond what incomes can sustain. They are everywhere and always a credit-fueled phenomenon.

S&P 500 price chart

(Source @hussmanjp )

Look at the ridiculous trajectory of the S&P 500, especially since Trump got elected. I don’t know about you, but pretty much everything that has happened in the US over the past year has been either a diplomatic clown show or a financial cruelty to the average citizen. And yet prices have risen at their highest pace in two decades?

My view is that the Trump election was a totally unexpected black swan shock for the global central banking cartel, and it freaked out.  With the Dow down -1,000 points in the late night hours following Trump’s surprise win, the central banks dumped gobs and oodles of money into the equity markets to prevent carnage.

All that money calmed investors and sent prices roaring higher over the following months. The resulting 80-degree rocket launch will hurt a lot when it comes back to earth. Good going central banks!

This is all happening when we’re as close as ever to a military (if not nuclear) confrontation with North Korea, Russia is busy beefing up its war machine, Saudi Arabia has pivoted away from the US towards China and Russia, and most of our European allies are inching away from us.

Meanwhile, the FCC is about to rule against the vast majority of the public and allow US corporations to turn the internet into a pay-for-play toll road — completely undermining the core principle of the most transformative and useful invention of the millennium. By eliminating net neutrality the FCC has ruled ‘against’ you, and ‘for’ the continued usurious profits of the cable companies.

Worse, heath care premiums continue to increase by double-digits each year. They’re going up by a horrifying 45% in Florida and 57% in Georgia, to name just two unfortunate states out of many.

And to really rub salt in the wounds of the nation, the DC swamp is busy passing a tax change that will further drive an enormous gap between the 0.1% and everybody else by lowering taxes on corporate profits (already the lowest in the world if you measure both tax on profits and value-added taxes).

How to pay for the massive cost of this deficit-exploding bill?  Easy, just eliminate deductions for average people (such as the state and local tax deductions) and begin taxing the waived tuition of graduate students. That’s right, the government helped to massively bloat tuition fees via massive lending to students and then wants to squeeze the poorest and hardest-working among them.

I wish I were kidding here. But like a cruel joke re-told at the wrong moment, the GOP is busy destroying the meager and precarious financial situation of our citizens just so it can toss a few more dollars into the already-bloated wallets of the richest people in the country.

The long rise of the ultra-wealthy is not some mystery.  It arose as a predictable consequence of the financialization of, well…everything that began in the 1980’s:

US Wealth Inequality chart

The above chart speaks to a deeply unfair system that punishes hard working people in order to give more to those who merely shuffle financial instruments around or own financial assets.

This is the system that the Fed is working so hard to preserve. This is the system that Washington DC is working so hard to sustain.

It’s flat out unfair and punitive.  It both punishes and rewards the wrong folks, respectively.  Debtors are provided relief while savers are punished.  The young are saddled with debts and face impossible costs of living mainly to preserve the illusion of wealth for a little longer for the generation in front of them.

For so many reasons, folks, none of this is sustainable. If the system doesn’t crash first under the weight of its excessive debts or the puncturing of its many asset price bubbles, the brewing class and generational wars will boil over if the status quo trajectory continues for much longer.

In Part 2: When The Bubbles Burst… we detail what to expect as the unraveling starts. When these bubbles burst, as they inevitably must, the aftermath is going to be especially ugly.

Understand the likely path the carnage is going to take and position yourself wisely ahead of the crisis — so that you and those you care about can weather the turmoil as safely as possible.

Remember: the role of bubble markets is to injure as many people as badly as possible when they burst. Don’t be one of the victims.

Click here to read Part 2 of this report (free executive summary, enrollment required for full access)

PeakProsperity.com



120 Comments on "You’re Just Not Prepared For What’s Coming"

  1. Go Speed Racer on Sat, 2nd Dec 2017 4:42 pm 

    Well, I didn’t say I was prepared
    for what’s coming.

    That’s cause working average
    person has no means to
    prepare for what’s coming.

    You give me $2 million in suitcases,
    and sure I will put in a great big bomb
    shelter in my backyard, with a
    submarine hatch and a periscope.

  2. Makati1 on Sat, 2nd Dec 2017 6:01 pm 

    The title is probably the understatement of the year. Few Americans have a clue as to what is soon coming to their “American Dream”. Not a clue.

    Americans are being distracted big time by fluff like Tesla’s techie bullshit and the Trupium Tweeter’s last rant. Who is fucking whom and what new propaganda can be published to villainize Russia or push the scaremongering about China’s big “debt” problem, while ignoring the debt dinosaur in their own living room.

    But, stats are pointing to, at least, a subconscious recognition of the down slide. Drugs use is ballooning. Suicides are ballooning. Obesity (another form of drug use) is ballooning. Debt is ballooning. Chaos is spreading. All signs of the end being near. Third World America is already here. It just has not been acknowledged.

  3. denial on Sat, 2nd Dec 2017 6:21 pm 

    Mak you are the biggest loser I think I have ever read on the inter net….why don’t you do something else with your time? Yes we all know you hate the U.S big deal just shut the f up and let other people contribute. What is coming is coming to all countries…you are probably in one of the worst places to be if there is such a thing…..
    I try to skip your post but then start to read them before I see it is you…you have nothing to contribute other than your hatred for the U.S

    So shut the hell up you loser…..you are killing the discussions on this site

  4. Makati1 on Sat, 2nd Dec 2017 6:55 pm 

    Denial, Your name fits you perfectly. LMAO

    No, you read them because, deep down, you know I am correct. You can easily see “Makati1” as the first word. Don’t give bullshit excuses for reading them. Then your denial rant kicks in because you are scared shitless and feel helpless as to what is coming. Denialists don’t prepare, they just suffer.

    You, along with a few other worthless Americans, want to believe that the US is going to come out of the collapse better than any other country. NOT SO! The US is leading the pack in all of the negatives to come. It is built on the biggest mountain of debt in history. Now it is going for the title of the most drugged country in the world and the fattest/unhealthiest. Since 2001, more American military vets have committed suicide than were killed in all of the actions since. Not a sign of a mentally stable society.

    The higher on the ladder you are, the more pain when you splat on the concrete below. I am moving down the ladder and am nearing the bottom rung. I will hardly notice the fall/change when it happens. I’m preparing for that day. Are you?

  5. Davy on Sat, 2nd Dec 2017 7:08 pm 

    Mad kat, denial is tired of your shit too. You are constantly off topic and pressuring the discussion with your agenda peddling. You are what has made this forum go into the gutter. You are an extremist magnet and drag in trash because of it. You are in a nut shell a spoiler. All I can do I neuter you daily and make you look like the idiot you are. It is a constant battle but worth it. You are attacking me and my people with lies and half-truths. You cherry pick facts and dump them without meaning. The topics that develop from the articles are ruined by your regurgitate. You say the same things over and over which is caused by a dysfunctional personality. I hope more call you out. Thanks Denial for your words.

  6. GregT on Sat, 2nd Dec 2017 7:20 pm 

    “You are attacking me and my people with lies and half-truths.”

    Sticks and stones delusionalist, and what’s with the ‘my people’ bullshit? They aren’t yours, and they could care as much about what happens to you, as you care about what happens to them.

  7. Darrell Cloud on Sat, 2nd Dec 2017 7:28 pm 

    Roughly 1 percent of the population is actually farming. The other 99% are dependent on this one percent for their food source. I am in that 99%. I suspect in the coming collapse, farms will be overrun like they were in Weimar Germany. This will disrupt food production for the short term. Martial law may be imposed but making it work in a country the size of the United States will be interesting to say the least. There are a lot of people living hand to mouth. I would not want to be a trucker hauling commodities through a starving countryside.
    I think the first year of the collapse will be the most interesting. After that, things will start to normalize again. What will be left is a much younger population. Natural selection will thin the herd dramatically. The remnant will be smarter than your average bear.

  8. Davy on Sat, 2nd Dec 2017 7:28 pm 

    grehg, I am sorry you have no country but I do. This must be part of the reason you are so anti-American. You have no affiliation. All you know is hatred for the US as your identity.

  9. Makati1 on Sat, 2nd Dec 2017 7:52 pm 

    Darrell, Some have said that only 10% of Americans will likely survive the first year after the SHTF. That may be very close to the mark. Who survives will be those who are able to take from the fat and weak and have enough survival skills to start over. That would be the lower class, I think.

    Farming will end for the most part. When the chemicals stop flowing, most farms will not be able to grow more than weeds. Most edible stock will be eaten or die from lack of feed. It will be a whole new and very difficult world in America.

  10. GregT on Sat, 2nd Dec 2017 8:16 pm 

    “grehg, I am sorry you have no country but I do.”

    No need to apologize delusionalist. You are obviously much more powerful than I am.

    Couple of questions for you buddy:

    Why have you allowed ‘your country’ to be run by such complete morons?

    Why have you allowed ‘your country’ to brutally murder, in cold blood, so many millions of innocent people?

    Why have you allowed other people to run “your country” into the ground?

    “You have no affiliation.”

    Absolutely correct. I have no ‘affiliation’ with idiots and murderers. What’s you excuse? Especially when the country belongs to you?

  11. peakyeast on Sat, 2nd Dec 2017 9:38 pm 

    The history of the USA (from its conception until today) makes the history of Nazi-Germany look like a fairy tale story about a bunch of sweet white furry kittens that never could do anything wrong.

    Obviously that is something to be patriotic about if you are either without any knowledge of your own history or a totally deranged murderous lunatic.

    The latter is, of course, the general description of civilized statesmandship worldwide.

  12. MASTERMIND on Sat, 2nd Dec 2017 11:09 pm 

    Madkat

    Do you enjoy hurting animals as well? I mean you seem to take great joy in reading about and imagining about people suffering in the US…Notice the difference in me and you? I have never wished for something bad to happen to anyone your country..Why is that? Because why would I wish or want harm to come to another human. Especially if they have no control over any of it. ANd to be perfectly honest you can hate America and wish for our collapse all you want. I will never wish for your countries collapse ever. In fact I hope you are right that other countries can survive after the collapse if my country can not.

  13. jh wyoming on Sun, 3rd Dec 2017 12:22 am 

    I find it fascinating that only a minority of posts respond to the article, while most are attacks on each other. Amazing that our species has lasted this long really, when just under the surface is so much hatred.

    Now in partial response to the ARTICLE, here is part of it in quotations:

    “I don’t know about you, but pretty much everything that has happened in the US over the past year has been either a diplomatic clown show or a financial cruelty to the average citizen.”

    And the cruelty gets heaped on with the new tax code. Wow, what a giveaway to the campaign donors of the R’s. At this point I hope the whole shebang collapses just to punish those that orchestrated this tax policy and the one’s they serve. Let’s get into it, I mean all out collapse, bankruptcies, defaults, fighting in the streets, mayhem, chaos and what better time to do this than during Trump’s clown presidency bizarre.

    Now all the responses filled with hatred can ensue. Ok, go ahead.

  14. Makati1 on Sun, 3rd Dec 2017 12:55 am 

    jh, there are a few here who cannot just ignore opinions they don’t agree with. Especially if it is pointing out the US slide to the 3rd world. It brings out the need in them to dominate the discussion and be right. They will wave the bloody flag until they are shot down in the street by their neighbors.

    I agree with you. Lets get it over with now, before even more happens. Take down the US ability to have 800 military bases, 11 carrier fleets, and the ability to start wars whenever/wherever they want. I would like to have a world to live my last years in that is not radioactive.

  15. Davy on Sun, 3rd Dec 2017 2:50 am 

    “Darrell, Some have said that only 10% of Americans will likely survive the first year after the SHTF. That may be very close to the mark”
    What about Asians mad kat, how many of them will survive? Do you have a definition of SHTF? No you don’t because the range of variables is too great to pinpoint a number. You are just peddling agenda for personal emotional reasons. You hate America emotionally. This is not about intellect and reason it is about something to do with a dysfunctional personality.

  16. Davy on Sun, 3rd Dec 2017 3:01 am 

    “No need to apologize delusionalist. You are obviously much more powerful than I am.”
    I am not seeing a therapist if that is what you mean. I am not unsure of my sexuality like you have indicated. It is amazing the things that come out of drunks late at night. They tell there true story in a few lines.

    “Why have you allowed ‘your country’ to be run by such complete morons?”
    Grehg, what are we talking about dumbass. The government or the people. I am happy with my local and regional government. We are doing OK here. I have problems with DC politics. Besides this is not your business. I find Canadians hypocritical morons but I only tell you Canadians this when you are up my ass which you are constantly. You are a disgusting people who live the deadly serious passion of hate of a neighbor.

    “Absolutely correct. I have no ‘affiliation’ with idiots and murderers. What’s you excuse? Especially when the country belongs to you?”
    Your sick grehg, it is showing with your comments lately. I completely understand why you are off in unreality and hate. You are not mentally sound. You stalk and prick daily looking for a reason to attack people and cause discontent on this board. You and mad kat tag team this effort. I would not be involved with this behavior except that I will defend myself and my people. You are a disgusting person that deserves no respect. What kind of person lives such a deadly serious passion daily, an idiot and a mentally deranged one does.

  17. Davy on Sun, 3rd Dec 2017 3:08 am 

    “The history of the USA (from its conception until today) makes the history of Nazi-Germany look like a fairy tale”

    Go blow yourself peak dumbass. Europeans have no finger to point at Americans. Your ism of all the various kinds have destroyed the world. The worst of the US is your creation. You are another one of the quiet hypocrites on this board. You are another one of those dumbasses from one of the richest countries on earth pointing fingers. You are just like the west Coast Canadian dumbasses hypocrites. What are you doing flanking dutchy? You up for giving Dutchy the Nazi some cover? I am not about talking up the US. I am about self-defense from ass wipes like you dumbass Eurotards, Canadians, and expat anti-American Americans. Dumbass throwing rocks in glass houses.

  18. Davy on Sun, 3rd Dec 2017 3:11 am 

    “Madkat Do you enjoy hurting animals as well? I mean you seem to take great joy in reading about and imagining about people suffering in the US”
    Mad kat has bragged about hunting cobras at the fantasy farm. He is a lunatic who hangs out in the 27th floor of the condo in Makati, Manila dreaming up fantasy. I can just see a 75 year old decrepit old man chasing a cobra around in his fantasy in the condo in Manila.

  19. Davy on Sun, 3rd Dec 2017 3:15 am 

    “I find it fascinating that only a minority of posts respond to the article, while most are attacks on each other. Amazing that our species has lasted this long really, when just under the surface is so much hatred.”
    Yea, Wyoming, the anti-Americans that make it their point to attack and go off topic daily can’t understand it either. They want this board to be about their agenda of Anti-American hate. The articles don’t mean anything anymore it is all about their agenda. If I were not and a few others here they would have free rein to dominate all topics with anti-Americanism. Until I finally decided to moderate this behavior this forum was an anti-American magnet. There are still some lunatics hanging around but I have them neutered. They can’t stand it. Too bad I am not going anywhere.

  20. Davy on Sun, 3rd Dec 2017 3:21 am 

    “And the cruelty gets heaped on with the new tax code. Wow, what a giveaway to the campaign donors of the R’s.”

    Yea, sure, Wyoming what planet are you from. Can you tell a rich Democrat from a rich Republican? Do you realize most companies give to both parties? What a joke. Are you another one of the warped democratic liberals fakes who dies no harm? Are you rich too? Have you been reading all the dirt about how awful the Democrats are too lately? This Trump witch hunt is exposing how awful the democrats are and this happens when self-righteous people who have soiled underwear point fingers. Both parties are disgusting Mr.Wyoming.

  21. Cloggie on Sun, 3rd Dec 2017 5:11 am 

    Yet another “the end is neigh” article, based on finance only.

    That means the remaining 90% don’t. For these bagholders, the losses will range from ‘painful’ to ‘financially fatal’.

    Russia went through a real systemic collapse between 1990-2000, because it had to change from a communist towards a capitalist economic system, yet very few people died (read Dmitri Orlov). Average flat temperature was something like 15 degrees Celsius. People couldn’t buy anything beyond bread and milk. A shopping bag was called an “avoshka” (a “maybe”), because you could get out with it but it was unclear if something wold be in it when you returned home.

    But, it doesn’t take much to simply survive: oxygen, water, some shelter and a bit of food, that’s it. There was no hunger, but boy (or girl rather), how slim these people were!

    It is likely that the US, after gradually losing the petro-dollar subsidy, will go through a financial collapse, implicating the rest of the world as well.

    Nevertheless the economic situation in the US-2017 is much, much better that the USSR/Russia-1991. The US will not have to change its economic system, only adaptions to the existing system.

    Where Soviets made hundreds, Americans make thousands per month. Where the Soviet production apparatus was outright desolate, the American one is still pretty good. Nothing will be “fatal”, as the article suggests.

    Once the financial collapse comes, if it comes, people are going to be stripped of a lot of virtual wealth, pension funds, retirement age expectations, unemployment benefits, health care goodies, public services like swimming pools. People will go for months to their old jobs, even if they are hardly paid. Same thing happened in post-Soviet Russia.

    The net result will be that America will have become a large “normal country”, that no longer can afford to be the world’s policeman, or pretend to be.

    That’s what will happen if there will be only a financial collapse.

    But… additionally there is a “diversity time-bomb” ticking. What happens if the central government won’t be able to dole out goodies any longer, like these EBT cards? Easy prediction: “proletarian shopping” will be big, very big. Order could collapse in large parts of the country, running the risk of a mobilized and armed white majority population.

    That’s the real collapse that is looming and that situation was NOT present in post-1991 balkanized USSR. The USSR, that was economic egalitarianism, not ethnic/racial egalitarianism, like in the US. In the USSR, ethnicity was registered and no attempts were made to mix populations, at least not after Stalin. Eventually the USSR fell apart in 15 relatively stable states, each with a predominant ethnicity. The only exception was Chechnya, part of southern Russia. They wanted to break away from Russia, but that uprising was extremely brutally suppressed.

    If you as an American want to prepare yourself for difficult times ahead, location and a vegetable garden are more important than solar panels on your roof.

  22. GregT on Sun, 3rd Dec 2017 5:33 am 

    “the anti-Americans that make it their point to attack and go off topic daily can’t understand it either. They want this board to be about their agenda of Anti-American hate. The articles don’t mean anything anymore it is all about their agenda. If I were not and a few others here they would have free rein to dominate all topics with anti-Americanism.

    Until I finally decided to moderate this behavior this forum was an anti-American magnet. There are still some lunatics hanging around but I have them neutered.”

    Get help buddy.

  23. Davy on Sun, 3rd Dec 2017 5:34 am 

    “It is likely that the US, after gradually losing the petro-dollar subsidy, will go through a financial collapse, implicating the rest of the world as well.”
    Dutchy regurgitate. Same shit different day of anti-American Eurotard agenda peddling. Read this dutchy and get back to me. I have posted this several times with the words but what good does it do for someone like you completely oblivious to reality other than your fantasies.
    “The Demise of the Dollar: Don’t Hold Your Breath”
    https://tinyurl.com/y7g22gdn

    “The net result will be that America will have become a large “normal country”, that no longer can afford to be the world’s policeman, or pretend to be.”
    Ahh, ok, where does that leave Eurotard land? I think when the US falls, as it surely will, Eurotard land will fall just as far if not further. We have less population pressures and better resource situation in North America.

    “If you as an American want to prepare yourself for difficult times ahead, location and a vegetable garden are more important than solar panels on your roof.”
    The same is true for you Eurotard. Get ready for a variety of dangers no different than a typical American

  24. Davy on Sun, 3rd Dec 2017 5:37 am 

    “Get help buddy.”

    29. GregT on Thu, 23rd Nov 2017 3:47 am
    http://www.internationalman.com//articles/the-cardinal-sin-of-international-finance
    Good find Davy. I spoke with my psychiatrist, and she says that you rock. You are my new hero Davy. I don’t normally do gay sex, but she says that it would be worth it.
    Would you mind sucking my cock before I fuck you up the ass? Honey.
    30. Makati1 on Thu, 23rd Nov 2017 4:02 am
    Hahahahahahahahaha! Thanks Greg. ^_^
    31. GregT on Thu, 23rd Nov 2017 4:07 am
    And BTW Davy, only 15000 people in Dent county. Watch your back buddy. You never know who might be looking for you…
    Have a great day.

  25. deadlykillerbeaz on Sun, 3rd Dec 2017 5:47 am 

    Collapse schmollapse, utter nonsense!

    Getting to be about time for another mass shooting or some such violent action causing 20 deaths or more. Gotta get back to the new normal, whatever that is.

    Somebody has got to go nuts sooner than later, takes away the boredom.

    Just have to wait, it is just a matter of time. Somebody will go all Charles Whitman, just you wait and see.

    Megadeath here we come.

    Somebody should form a rock and roll band and call it Megadeath. Be real cool.

    All of the gloom and doom has been going on for many moons now and it does get old.

    Besides, all of the money always goes back to the sources, either Washington, DC or the Pentagon, take your pick.

    In addition the the financialized economy, it is also a military dictatorship. An empire at that, everywhere you go, a US military installation is nearby, and it will be a super modern super-sized armed to the teeth super fortress.

    It is hiding in plain sight, that military empire, the military industrial complex is here right now. It rules.

    It’s holding for now, doesn’t look too near collapse, no doubt, it might and can, but the lights are still on.

    Be time for a drink purdy doggone quick.

  26. GregT on Sun, 3rd Dec 2017 5:47 am 

    Patience delusionalst.

    All in good time. 🙂

  27. Makati1 on Sun, 3rd Dec 2017 5:53 am 

    Cloggie, you touched on the real danger in the US. The end of government handouts to about 50% of the US population. As I mentioned in another comment here recently, more than riots are going to happen when the SNAP card is worthless. There was an event where they were off line for about 4 hours and riots broke out at many locations. What will happen when they are down totally, forever? What is the saying? “Three meals from anarchy”? How about three days without food? Three weeks? More? Then there is Welfare, Medicaid, Medicare, Social Security, Unemployment insurance, and on and on.

    250,000,000+ guns in the hands of the serfs, but will they actually be a benefit or will they just cause the owners to get killed? When you pull a gun, you better be ready to kill with it fast. You can be sure the other guy/gal will be. Especially if they are a member of one of the 33,000+ gangs in the US. Murder is common for them. You would not last a minute if they wanted what you have.

    I prefer to live outside the war zone. That is just one of the many reasons I left the US 10 years ago. I was an officer in the National Guard during the 60s riots. I saw what will happen this time, only it will be multiples worse. The divide is huge and multifaceted. Chaos will rule.

    Can you imagine how helpless the obese, drugged up typical American is going to be? Imagine trying to run from an athletic young thug if you weigh 200 kilos. lol

  28. Davy on Sun, 3rd Dec 2017 6:00 am 

    “Patience delusionalst. All in good time.”
    Go play with your buddy mad kat. He has a boyfriend so maybe you guys can do group sex thingy.

  29. Davy on Sun, 3rd Dec 2017 6:05 am 

    “Cloggie, you touched on the real danger in the US. The end of government handouts to about 50% of the US population.”

    Yea, like the social security check you receive and should not be. Just wait until that check does not arrive and you are out on the street in Manila in the slums. You will last about a week before you whine to your kids to being you home. I wonder if they want you back? They may just leave the raving lunatic to waste away in a Manila slum

  30. pennzoilbill on Sun, 3rd Dec 2017 8:09 am 

    Everyone should be concerned about the middle aged, single, and childless African american, poor white American, or American minority group who actually graduated university with $100k of debt because they believed in this nation on paper. Instead of raising kids, I retrained (not by choice but understand that free is not accepted) and now might be able to survive the wave because I never left the old neighborHOOD and I used my little riches to but wealth. It looks like by skipping my first divorce (another symptom of the bigger problem) I will have the pick of the prettier survivors. And yes, someone did start and band called megadeath and they are cool, or as Beavis would say, they rock.

  31. pennzoilbill on Sun, 3rd Dec 2017 8:13 am 

    Excuse my shitty cell phone insurance replacement bad touch screen Auto correcting rant, I will attempt to use a proper computer next time.

  32. Makati1 on Sun, 3rd Dec 2017 8:25 am 

    Davy, I am prepared for the end of SS. I keep telling you this but it never gets past your mental block. I’m secure here. You can never be secure there. The IRS and/or banks will take everything the minute you stumble.

    I can live on less than $300 per month. My SS is multiples of that and it has been invested in real things of value. Not paper dollars or digits in a computer system somewhere that will evaporate when the SHTF. Do the math. 20 years at $300/mo. = less than $80K. And that is just one income stream. Not the major one. My mother didn’t raise a fool. Yours obviously did.

  33. Makati1 on Sun, 3rd Dec 2017 8:32 am 

    Davy, I laugh at your attempts at conjuring up a life for me. You have zero knowledge of my life beyond what I post here. I have a business partner and good friend. That you want to make it out to be some sexual thing is evidence of your own sexual problems. Do you “take care” of your goats? I understand that it is common with goat herders.

    At my age sex is a thing of the past, not important anymore. Good friends are. And I have a number of them here. You probably have none, other than your animals.

  34. Sys1 on Sun, 3rd Dec 2017 8:39 am 

    Nowadays, USA is just a heat engine spreading plastic wastes in the oceans and CO2 in the atmosphere, all of that in the name of their god, money. Their exponential debt is crazy, their love for robots and AI is in fact their hate for humans.
    The love of money made USA destroyed people and Earth. I wish this sick country far worse than Staline Russia or Adolf Hitler Germany to get down to hell as fast as possible.

  35. Boat on Sun, 3rd Dec 2017 8:55 am 

    Sys,

    And your one weird dude. We don’t hate humans, we like the idea of exploiting robots to serve humans. What is with you foreigners being worried about US debt, if it bothers you so much, send me a payment.

  36. Ghung on Sun, 3rd Dec 2017 8:56 am 

    Yet another thread spoiled by selfish assholes.
    You know who you are.

  37. joe on Sun, 3rd Dec 2017 8:58 am 

    What’s really happening? Think of the current cycle.
    http://www.scmp.com/business/article/2122619/does-inverted-yield-curve-spell-trouble-us-economy
    With clear signals being offered that the age of low rates is finished we will begin to see money moving out of equities and into the real economy but only after the Trump tax cuts become law. Thats gonna be some months from now and years before its gonna have its full impact. So whats gonna happen in between? The obvious answer is that not much can realistically happen if things continue as they are. If Bernie Sanders had become POTUS as should have been the case then a social Democrat like him would have passed a budget that really could make America great again. Instead the corporate 1% will use productivity gains from automation of service sector and white collar jobs to have one or two last big parties, then who knows, download our brains into computer software and beam our consciousness into space……
    Anyway, main message is this, money supply and interest rates are key to everything in a services economy, the rest is bullshit. Prepping can’t help the man who spends his life online worrying about peak oil and crashes, so if you are reading this, it’s probobly you.

  38. Davy on Sun, 3rd Dec 2017 9:30 am 

    Joe, come on, it is a ride down anyway anyhow. If you can’t see that you are blind. This included your overpopulated Island. Plus why is a Briton like you obsessed with the US. Talk about GB occasionally or move here and get your citizenship.

  39. Davy on Sun, 3rd Dec 2017 9:35 am 

    Mad Kat, in a Manila slum you will live on $300. I am sure you are being supported by the boyfriend currently. What happens when the boyfriend kicks you out and the SS stops? UT O, Mad Kat is 75 in a foreign country with no family.

    BTW, dementia issues again Mad Kat. Remember you are ignoring me??

  40. Darrell Cloud on Sun, 3rd Dec 2017 10:49 am 

    It is a mistake to think that we out here in the hinterlands are not thinking about post collapse. Streets will form up militias like they did during hurricanes. Google you loot we shoot for images of this occurrence. My neighbors have come together in the last four hurricanes to help each other and look after local security. Beans and rice will become tiresome but we will eat and we will look after our own.

  41. Apneaman on Sun, 3rd Dec 2017 12:30 pm 

    Heaven forbid the capitalist utopia should collapse and put an end to all that happiness.

    Happiness

    https://vimeo.com/244405542

  42. paulo1 on Sun, 3rd Dec 2017 12:52 pm 

    Other than the usual personal attacks, statements like, “only 10% of US citizens will survive” is absolute nonsense. Most people will survive just fine. There will be some huge adjustments as reality sinks in, but despite BOTH Political parties obvious and inherent corruption, the People have lot more strength than people think.

    The bones are strong. The population is relatively small per land mass. There is water and food production. There will be food and shelter. Peope may whine about how they once drove a BMW and vacationed every year, but big effing deal. It was unrealistic and too good to last.

    The biggest problem I see is the coming Police State and crackdowns. Snowden provided a warning, but it has not been heeded. Now, the mess is unfolding and the Plutocracy and their political minions will go apeshit trying to retain their spoils.

  43. Apneaman on Sun, 3rd Dec 2017 1:46 pm 

    Sure paulo as long as you continue to pretend the humans have not radically altered every single natural cycle on the planet, then sure, your little happy fantasy will come true.

    As long as you pretend to think you understand the American psyche, then sure, it will be happy sailing. Americans will collapse like the buy the world a Coke commercial – tell yourself.

    As disgusting and boring as never ending personal attacks are, at least they are real.

    Fantasist who continue to spout their unlearned wishful thinking and head up ass denial like you are even worse and more boring.

    Do you really think those hundreds of millions of private firearms and billions & billions of rounds of ammo will stay locked up in the gun safe? I suggest you go look at a few US Black Friday videos and ask yourself if that’s how they behave while there is still abundance how will they behave when there isen’t?

    You may have built yourself a nice warm N fuzzy Canadian doomstead, but you are not one bit prepared psychologically for what is coming. So consider yourself normal.

  44. Apneaman on Sun, 3rd Dec 2017 1:52 pm 

    More Cancerous behaviour & consequences from the non white man.

    Pollution stops play at Delhi Test match as bowlers struggle to breathe

    Sri Lanka say conditions in smog-hit Indian capital left players vomiting, and some of them took to field wearing face masks

    “A cricket Test match between India and Sri Lanka was repeatedly interrupted on Sunday with claims players were “continuously vomiting” due to hazardous pollution levels in the Indian capital.”

    https://www.theguardian.com/world/2017/dec/03/pollution-stops-play-at-delhi-test-match-as-bowlers-struggle-to-breathe

    Professional athletes barfing their guts out. I wonder what it does to the the elderly and vulnerable.

    Congratulations India on becoming a member of the neo liberal Cancer club.

  45. Apneaman on Sun, 3rd Dec 2017 1:54 pm 

    UK government ‘being dragged screaming’ to tackle air pollution

    MPs say ministers are showing no confidence in tackling the illegal levels of air pollution that prematurely kill an estimated 40,000 people a year

    https://www.theguardian.com/environment/2017/nov/30/uk-government-being-dragged-screaming-to-tackle-air-pollution

  46. Apneaman on Sun, 3rd Dec 2017 1:56 pm 

    Surely there must be a solution to the ever growing global toxic air pollution crisis?

    Oh yeah the old stand by.

    Air Pollution Denial Is the New Climate Denial

    The latest right-wing lie is even crazier than the supposed global warming “hoax.” But it’s gaining influence in the Trump administration.

    https://newrepublic.com/article/141260/air-pollution-denial-new-climate-denial

  47. GregT on Sun, 3rd Dec 2017 1:59 pm 

    “And your one weird dude. We don’t hate humans, we like the idea of exploiting robots to serve humans.”

    That would be ‘you’re’ one weird dude Kevin. And what’s with the “we”? Multiple personality disorder?

  48. Apneaman on Sun, 3rd Dec 2017 2:09 pm 

    “Green and brown, it appears, are the new white across the southern European peaks as climate change, which historically has done its most noticeable damage closer to sea level, now reaches higher.”

    “”From 1960 to 2017, the Alpine snow season shortened by 38 days—starting an average of 12 days later and ending 26 days earlier than normal. Europe experienced its warmest-ever winter in the 2015–16 season, with snow cover in the southern French Alps just 20% of its typical depth.

    Last December was the driest in 150 years of record keeping, and the flakes that did manage to fall didn’t stay around long. The snow line—the point on a slope at which it’s high enough and thus cold enough for snow to stick—is about 3,900 ft., which is a historic high in some areas. But worse lies ahead as scientists predict melt even at nearly 10,000 ft. by the end of the century.

    All this is doing terrible things not just to Alpine beauty but to Alpine businesses—especially ski resorts. Globally, the ski industry generates up to $70 billion per year, and 44% of all skiers—and their dollars—flock to the Alps.”

    “In the Dolomites, it takes 4,700 snow-blowers to keep trails covered for skiing”

    http://time.com/italy-alps-climate-change/

    Typical “solution” from the suicidal Cancer apes.

  49. MASTERMIND on Sun, 3rd Dec 2017 2:11 pm 

    Madkat

    Nobody trust the dumb Chinese. Even there own citizens…And Russia’s GDP is less than Italy’s….You are as dumb as rocks.

  50. Apneaman on Sun, 3rd Dec 2017 2:13 pm 

    The collapse of ecosystem engineer populations

    ” The collapse takes place without warning and happens just after the population reaches
    its peak number. We conclude that overpopulation and the consequent collapse of an expanding
    population of ecosystem engineers is a natural consequence of the nonlinear feedback between the
    population and environment variables.”

    “Nonetheless, our re-sults show that the collapse of an expanding population of ecosystem engineers seems to be a robust, unavoid-able consequence of the nonlinear feedback between the population and environment variables, so a more detailed
    modeling of human societies will probably have little effect on our findings”

    https://arxiv.org/pdf/1711.09424.pdf

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