Friday, April 09, 2010

The biggest obstacle is wishful thinking

I always enjoy the research, opinions and insights of Maxed Out Mama.

She appears to have a background in banking at a level that requires facility with facts, trends, details and analysis. In today's (April 9 2010) post she guides us through an assessment of China's effect on oil prices, Walmart's sales trends, and the likelihood that whatever is happening in Greece will repeat on a grander scale in (much much bigger) Italy within two years.

Then she sums up her concerns like this:
The US has a hard economic - and thus social and political - adaptation ahead of us, and almost all the interests that should have been trying to plan for it have instead been trying to fool people into thinking that we don't.
This, I think, is my deepest concern with Western Civilization. We expect our leaders to tell the truth, our journalists to seek the truth, and our advisors to create strategies for us based on truth. Instead we get global warming alarmism and blandishments as to the state of the economy, to name just two of our current pathologies.

The green movement requires little of its adherents, but it expects the targets of its hostility to remain in business locally paying taxes and attempting appeasement. It slides away from any attempts to connect it with consequences such as malaria deaths from the banning of DDT.

The financial system runs on faith. The whole fractional-reserve banking system requires people to not show up en masse asking for the cash that they left at the bank. Ever.

On this blog I have attempted to point out simple facts, such as the relentless debasement of our currency. One would think that our economic advisors would have information like this to inform their strategies for managing our wealth.

I support Maxed Out Mama's viewpoint. There are destructive trends afoot, and we are not made healthier by our ignorance of them.

Protect yourself, by living within your means, by hedging against financial losses caused by either inflation or deflation, by recognizing that our health care system will increasingly fall short of our collective needs and figuring out how to improve your personal odds, by arming yourself with facts against alarmists of all sorts (even me!), and by figuring out how to be of greater service, however you fit into the world.

Chances are that the average westerner has seen the peak of civilization as we know it. From here, debts become due, unsustainable systems fail, and reality intrudes.

God, I hope I am wrong. Dear reader, tell me that I am, and why.

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