Reply #22: Great Article, well sourced....but [View All]

[rustydad]

It fails to mention the fourth elephant in the room. the black stinky one.....oil. Our economy is grossly dependent on cheap energy, especially transportation energy....oil. As we approach the peak of world production and demand outstrips supply the price will skyrocket. The nations that will be the most affected will be those like us, with dept going nowhere but up. As the efficient producer countries with trade surpluses like China, Japan, India, and others spend more on energy they will have less to invest back into the US. Without dollars coming back in the form of investment we will see prices for our imports also soar. In essence more and more of the worlds coinage will find it's way to the oil producing countries. And most of these countries have soaring birthrates and will spend their new wealth on improving the lifestyles of their populations.

We will find that we can no longer afford all the crap at Walmart nor to fill up the SUV at Exxon. The result will be hyper inflation and economic stagnation. Unemployment rampant, foreclosures and bankruptcies beyond imagination. Pensions evaporated along with Social Security. Vast layoffs in the public sectors as cities, counties and states see huge declines in revenue. The home finance bubble will come crashing down with million of people just walking away from mortgages they can no longer pay down. Banks will fail just as the Savings and Loans did only far worse because the Feds will not be able to bail them out.

The only question I have is whether or not the powers to be know all this or not. If they do, what are they planning on? Are they all preparing to cash out and flee to mountainous tropical islands? Are they gutting our economy, lining their own pockets eventually to flee like thieves in the night? Or are they truly stupid? W certainly is but is he even relevant other that a figurehead to TPTB?

Or our TPTB planning on taking on the world militarily and thumbing our noses at the economic system that supports our extravagant lifestyle? Can they really think this can work as we cannot even control a weak ME country called Iraq? Do TPTB really give a s*it about the average American? I doubt it. My best guess is they will grab as much wealth as they can and when TSHTF the will be gone. And those of us of the masses will be looking at a giant banana republic.

We are likely truly screwed but when it's all over we will at least be absent the bums. Bob