It appears that the predictions of the economic downturn is upon us. This morning, the DOW dropped below 10,000, (a bench mark), gold is beginning to go back up, and from the various news sources the banksters around the world are scurrying around looking for a hidey hole or getting bailed out by various governments.
It is generally not smart to take a single day’s activities and proclaim a general pattern from it. However, we have been looking at a serious unraveling of the gangsters running the banking and government services for some time now. The question is now whether we have actually gone over the cliff. Will something be done to pull the asses of the criminal banksters and grifters of the economic system out of the hole they have dug over the last 10 years? I suspect not, but, as I often state, we can expect surprises.
My best scenario on this is that all this scary stuff remains in the financial sector and doesn’t flow into the society as a whole. But, I have small hope for that. When the significantly large amount of the population suddenly can’t eat at McDonalds any more, or their ATM card won’t get them their week’s groceries any more, when they can’t fill the gas tank to get to work, then all hell will break loose. I sure hope all of you have pulled whatever cash you had in a bank out and put it under the mattress or maybe buried it in a fruit jar in the back yard. I know we have. While that amount in the bank was piddling we took out all but what is needed for paying immediate bills. Just in case you understand that if there develops a general run on the banks, they will close their doors. No checks, no ATMs, no cash withdrawals and probably a complete shutdown of credit card usage. The projections circulating around on the web is when/if this happens, no money will be available for one to two weeks at least. It also means that deliveries to local stores will dry up regardless of how much cash you have around.
For over two years now, Freeacre and I have been warning people that if this occurs, you need to be prepared. At first glance, it appears that we are in the middle of the SHTF scenario. The fact that the Feds are going to begin pumping money into the economy in some form or another that also means that what your dollars will buy is going to go down, it will take more dollars to buy the same items.
What will really be interesting to see are the effects on the retired part of our population, especially those dependent on investments for their retirement incomes, and the social security net. I hope you all realize that the social security “fund” has trillions of dollars of security IOU’s from the government, no cash. Those of us which have that income as sole income are just going to be shit out of luck. It will be interesting to see just how much adjustment for inflation in SS payments will be made this January. So what are people depending on SS to buy groceries going to do? Keep in mind these are mostly older folks from the baby boom times that predominately have the attitude of entitlement. In some respects, they are legitimate, having spent a lifetime putting money into the SS fund and then either not getting anything back or in dollars so valueless that you can’t buy groceries. Most of these older folks depending on largess from the government are older and a whole lot more cranky and have a tendency to be a bunch less forgiving about interrupting their retirement income. Will they finally say “fuck it” and pick up a gun, or just sit around in their easy chairs and point fingers and bitch at whoever they deem as responsible?
What will the younger folks still working and trying to make ends meet do when they can’t get groceries? Go to protests on the streets demanding the government bail them out too? They best not be holding their breath for that one.
I’ve come across all kinds of articles speculating on active rebellion, a shooting war with the government and the PTB. A lot of these articles don’t take into account the modern technology held by the authorities in just that case. No matter what, the civilian population is out gunned by several orders of magnitude. Obviously, at least to me, is that a bulk organized rebellion is not going to make it. A general mass confrontation with the forces the government can put out there against the civilian uprising will fail. There are numerous articles I have been coming across that talk about other than a mass confrontation. In any event, as in most civilian rebellions, the casualties will be large. I am surmising that for a civilian rebellion to be successful at all there is going to have to be a general change in attitude to one that says I would rather be dead than a slave. Considering for how long the western societies have practiced economic slavery that would be quite a shift in attitude.
If this is indeed the tipping point it’s all down hill from now on, I expect access to the internet at it best, to be severely limited, at its worst, shut down for the civilian population. If this is not the tipping point, we can expect a gradual further worsening of the whole economic situation, which eventually will bring on the tipping point and the rebellion in some form begin. If we are not at this tipping point, there will be some ups and downs within the economic and financial areas, accompanied by wild gyrations in money supply, dollar values and stock markets. That this can be ended and be back to business as usual is simply not going to happen. Somewhere, somewhen, this whole mess is going to go over the cliff.
Whenever this tipping point comes, or is here, rebellion is going to occur and martial law in some form and severity will accompany it. I think it is entirely possible that the coming elections will be shut down. In any case, I predict that our situation is going to get worse, much worse. So batten down the hatches and get ready for the ride for our lives.