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Origins of the Collapse

Tuesday, 19 June 2012 14:59 Written by  Matthew Conlan

While many visiting this site and in the broader “Prepper” realm have differing views of what the degree and final make-up of the struggles ahead will resemble when TSHTF, my personal interactions with fellow like minded individuals have indicated that most see this in some way stemming from some variety of economic collapse.  I could not agree more.

Barring tsunamis, earthquakes, or the Mayan calendar, we will first witness a collapse of the modern financial system.   For this reason, it seems of value to include a column of the broader financial world and how to protect one-self  (and even profit) along with the more familiar topics being discussed on a site with a community of individuals dedicated to protecting themselves and their families during the oncoming crisis.  I hope to do this in simple, easily-digestible language for those who are not accustomed to reading about finance or world economics on a regular basis.

I am not a financial adviser or economist by trade (if I were, you should ignore me) and would strongly advise anyone to perform their own research after reading any of my opinions.  I am an ardent student of financial markets, history, international politics, the world economy, banking, and real money: gold (and her lesser cousin, silver).  Over the past decade I have taken an interdisciplinary approach to understanding and trying to predict the outcome of what will be the seminary event of our lives: the collapse of the World’s Monetary System due to insolvency on an international scale.

The reason for our current struggles and insolvency is simple: debt.   The Governments and national economies of the World have reached the limits of their credit and ability to borrow.  Since the collapse of Lehman Brothers in 2008 the Central Banks of the World have accelerated their use of every kind of  chicanery to keep the current fiat-based credit system alive – QE1, QE2, Operation Twist, currency swaps, the European Financial Stability Facility (EFSF), etc.  Each new scheme keeps the System alive a little longer, but creates greater underlying instability.  Each new scheme buys less time than the previous one.   Keeping the Leviathan alive at all costs is now the unspoken game being played. 

Without being philosophical, every economic and monetary system reaches a point where it is no longer useful or viable.  We are at the point where systemic instability has become so precarious that a seemingly minor event can be the catalyst for collapse.  I do not know what that event will be, but I am fairly convinced it will happen without warning and its resulting effects will develop rapidly.  The conditions are ripe for such an occurrence. 

Who could have predicted the Arab Spring which began with the self-immolation of a Tunisian street cart vendor in December 2010 and spread like wildfire across the Arab world resulting in the removal of dictators in Tunisia, Egypt, and Libya, as well as uprisings in Bahrain, Syria and Yemen?  These were entrenched rulers who had been in power for decades with no seeming immediate threat to their positions.  Weeks later, they were deposed.  This is the nature of complex biological systems (economies, national sentiments, monetary systems, stock markets) when instability hits an inflection point.  The survival of the current economic system is based on confidence which can vanish in a lightning flash.

People frequently make the mistake of thinking in linear terms.  People believe that there will be ample warning of a crises event and that things will develop gradually in such a way to give plenty of time to prepare.  This is rarely the case.  V.I. Lenin once noted that there are periods of decades where nothing happens and there are periods of weeks where decades happen.  We are in the later period now. 

The point is this: despite the seeming calm placid waters on the surface, deeper down, roiling instability could manifest at a moment’s notice.  By then it will be too late for those suffering from normalcy bias.  Despite your own self-doubt and the discouraging, even mocking reproof of others in your immediate circles due to short-sightedness and complacency, you are doing the right thing by preparing and educating yourselves.  It will not be long before you are vindicated.

Last modified on Sunday, 19 August 2012 14:11
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