I have written before (see here, here, and here) about the economic debacle which is coming closer and closer with each passing day. I am not an economist in any form of the word, but I can look at the situation around me and see that the world as we knew it is rapidly coming unglued.
A day of reckoning is inevitable. It will happen. Exactly how and when no one knows, but that does not void the guarantee that it will come. We need to be ready and prepared as much as possible, however, there is no chance that anyone can prepare for everything. Sometimes our efforts are productive and adequate. Other times we have to trust in God. Sometimes there is nothing else we can do and my gut tells me that we are going to have ample opportunity to learn what that trust means and how to put it into action.
I should not have to convince anyone of this (your vision is good enough to see it clearly), but in the event that you want to see some “expert” opinions from men who are better educated and more experienced in the field of finance and economy than I am, these links are included: David Stockman, John Mauldin, Alasdair MacLeod, and if you want something a little simpler and easier to understand, see MN Gordon.
Continuation of the status quo will only mean more of the same, over and over. The longer that the System continues, the greater will be the breakup when it comes. Too Big to Fail (TBTF) means guaranteed widespread destruction when it does fail.
Imagine a huge tree which is rotten at its core in a forest of much smaller trees surrounding it. Eventually (no one can say when) it will succumb to the forces of nature (gravity, wind, etc.) and crash to the forest floor. Inevitably, some of the smaller trees will be crushed and broken beyond repair. Some will be damaged but will recover to a certain degree. Some, depending on the direction of the fall, will escape unscathed and flourish in the space which has been opened. Ironically, there will also be a huge birthing of new seedlings around the lifeless trunk, all of which will begin competing with each other for light, nutrients, and space. The best and strongest will thrive and prosper. The worst and weakest will be crowded out as the forest regenerates.
This is the natural process of things and we should not be surprised nor afraid when it happens in the affairs of men. To be sure, the System we have today is immense and continually growing larger, but it is also corrupt and rotten to the core. Sooner or later, it will topple and crash to the floor, destroying an uncountable number of lives, crippling many more, and creating havoc and destruction on a vast scale. When this happens, there will be opportunity, freedom, and room to grow for those who were fortunate enough to avoid being crushed.
Unlike trees which cannot move defensively, people can. We can see what is coming. We cannot determine the exact timing and direction of the collapse, but we can take evasive action to protect ourselves against it when the event occurs. We may get lucky and find ourselves situated out of harm’s way, ready and able to spring up anew as a “green shoot” to start the process all over again. However, it should be stressed that the only guarantee in this is that the “Mother of all Sequoias” is going to fall. No one should expect to escape unscathed, although it is likely that some will. We can hope for that and make preparations as if it were going to happen, but we should also be prepared for the worst–which may come regardless of our wishes, hopes, and readiness.
What to do in the meantime? I can think of three things which are critically important.
- Build your faith in God. That will carry you through the tough times. Abandon any faith you have in the State. That will destroy you.
- Be ready mentally for anything. Get to the point where you are not afraid to lose it all, including your life and liberty. It might happen.
- Get out of debt if possible. Learn to live with what you have. Downsize if necessary, but escape the debt trap. This action alone will give you a sense of freedom which much of the modern world simply does not understand. Let the Joneses go down with the ship. You need to be in the lifeboat.