Hard Times Ahead: How Oil Prices, Inflation, and the Falling Dollar will Produce a Global Depression.

 

                              We live in a time when the USA owes trillions of dollars to other countries.  All the Social Security money and Medicare money has been spent, instead of saved and invested, and the Baby Boomers are now starting to retire.  We’ve been in denial about our energy sources, and our energy production all these years and now oil is spinning out of control and taking the world’s economy with it.  Because we’ve been in denial about credit, from credit cards and personal debt, to mortgage lending, to all the crazy financial instruments of today, we’ve been forced to devalue our own currency,  at an alarming rate. About three months ago during the Bear Sterns fiasco we hit what I think will be the trigger point for the next Great Depression which I fully expect within three months from now.

               Here is how the song is sung, sing along with me, wont you?  First we gave mortgages to every clown out there with no regard to credit worthiness.  Next, we got into big trouble when major financial firms were suspected of being unsound so we rapidly expanded credit while debasing our  US Dollar. With the dollar in the basement, the oil speculators went wild, figuring that oil is the place to be when you can’t trust a dollar anymore.  The oil prices are off the charts and this in turn exacerbates the problem of the falling dollar, while also causing gas, food, and shortly the price of EVERYTHING ELSE TO SPIKE. Our creditors look at us with disbelief while we refuse to develop and drill our own oil and our politicians preach that we “Cant drill our way out of this”.  We lower interest rates to support our exploding debt while the bill for our “entitlements” come due without a rational policy for entitlements.  It usually takes about six months for a disaster to express itself in the economy.  I think Bear Sterns started the clock.

               Now we  know what an alcoholic feels like because we, like the alcoholic, have lived in denial all this time about basic matter concerns with our survival.  Money needs to be worth something.  We need to live within our means.  We only grant credit to people who are credits worthy. Building oil refinery’s so we always have plenty of capacity, drilling our own oil, while doing our best to minimize the ecological impact, is not optional: WE MUST DO IT. We need to place logic and reason ahead of our self image and desire to be environmentally hip.

We have so many years of poisonous class rhetoric and “identity politics” that we can’t avoid racial and class violence during what is sure to be a major social upheaval. In the Great Depression of the thirty’s, crime actually went down.  They had social workers interview people and ask them why they didn’t turn to crime when facing destitution and Respondents mostly always said: “Because that would have been wrong.”  People don’t act that way anymore. This time around there is going to be violence.

               When I was a kid, I used to be amused at all those little pamphlets that the religious nuts would hand out to anyone that would take them.  It was always titled something dramatic like “Beware the Mark of the Beast” or “Don’t Take the Mark of the Beast!” The idea of all the governments of the world coming together to create a one world economic system was absurd.  Give unto me, a break, I would think, and shake my head ,while pondering the prospect of all the different governments cooperating on anything! For crying out loud: Our own government can’t agree that we should drill for oil and deport illegal aliens!  In my wildest dreams I could not imagine anything that could produce such an event.  I can now.

               If I’m right then we’re on the cusp of a real live depression, at a time when we are about to elect a real live socialist, Barak Obama. How would a dyed in the wool socialist get us out of a world curency crash?  Eh?  I suspect that the world’s central banks will band together to create a super currency, or at least regional currencies, like the Euro and the coming Amero.  I think banking, and currency will be stabilized in order to stabilize the oil prices.  I suspect that while all this is going on we are going to have massive inflation to essentially reduce, to manageable levels, the amount owed to the Baby Boomers for their Social Security and Medicare. Given all the security concerns, and the massive illegal immigration going on, in both Europe and America; we’ll need tamper proof ID’s that will probably have biometric properties. This would also be a good way to tackle identity theft and government pension plan controls and even medical records that are tamper proof. 

               The bible puts it this way:

Ezek 7:10-13

10 “The day is here! It has come! Doom has burst forth, the rod has budded, arrogance has blossomed! 11 Violence has grown into a rod to punish wickedness; none of the people will be left, none of that crowd — no wealth, nothing of value. 12 The time has come, the day has arrived. Let not the buyer rejoice nor the seller grieve, for wrath is upon the whole crowd. 13

               It sure looks to me like we are on the cusp of a global crisis that is likely to usher in the first of our global solutions and global institutions to defend the “common good”.  It’s strange how so much of it just happens to line up so close to those goofy pamphlets the religious nuts handed out long ago.  And they got it from a book by lots of different authors written over thousands of years that seems to have so much to say about today’s headlines!   Must just be a coincidence huh? I leave you with the following thought from the New Testament.  Peace be with you.

Rom 13:8-14

8 Pay all your debts, except the debt of love for others. You can never finish paying that! If you love your neighbor, you will fulfill all the requirements of God’s law. 9 For the commandments against adultery and murder and stealing and coveting — and any other commandment — are all summed up in this one commandment: “Love your neighbor as yourself.”   10 Love does no wrong to anyone, so love satisfies all of God’s requirements. 11 Another reason for right living is that you know how late it is; time is running out. Wake up, for the coming of our salvation is nearer now than when we first believed. 12 The night is almost gone; the day of salvation will soon be here. So don’t live in darkness. Get rid of your evil deeds. Shed them like dirty clothes. Clothe yourselves with the armor of right living, as those who live in the light. 13 We should be decent and true in everything we do, so that everyone can approve of our behavior. Don’t participate in wild parties and getting drunk, or in adultery and immoral living, or in fighting and jealousy. 14 But let the Lord Jesus Christ take control of you, and don’t think of ways to indulge your evil desires.

NLT

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2 responses to “Hard Times Ahead: How Oil Prices, Inflation, and the Falling Dollar will Produce a Global Depression.

  1. I recently came accross your blog and have been reading along. I thought I would leave my first comment. I dont know what to say except that I have enjoyed reading. Nice blog.

    Tim Ramsey

  2. Credit card debt is on its all time high with today’s economy. Hopefully people can obtain the help they need to get out of debt. Thanks for the article!

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