Apathy To Economic Apocalypse To The Digital Age
After months of shrugging off debt problems in Dubai, Greece and other smaller economies, markets yesterday seemed suddenly aware of the risks of sovereign default.
Back in November, when the question of Dubai's solvency came to a head, it was ultimately bailed out by its rich older brother, Abu Dhabi. Now, the European Union is doing its best to avoid promising a similar bailout to Greece, though in the end few believe Brussels will allow Athens to go under.
The current crisis in Greece is only the worst example inside the EU. The PIGS—Portugal, Italy, Greece and Spain—all boast public debt above or headed for 100% of GDP. Though the PIGS acronym was apparently coined by British bankers, Britain, Ireland and Iceland also smell distinctly of bacon.
The problem isn't confined to Europe. Japan and the United States, by most reckonings the world's largest economies, also face pressing questions about their sovereign debt levels. To be sure, the U.S. and Japan can sustain such deficits more comfortably than small countries like Greece or Portugal where the government's ability to curb public-sector spending is rightly suspect. Yet even in economic giants, bad policy could cause investors to move out of debt they have long considered a safe haven. The moment is approaching when the artificial line separating the wealthy from emerging markets will lose much of its relevance.
OK....the world is REALLY going broke.....no big deal, most who read this blog already know that. Please note the words in the last sentence that have been bolded, it is something that I have been blogging about both directly and by inference. In the Digital Age, money and wealth from the industrial age will have much less, if any, significance in the Alstrynomic Digital Age where knowledge AND the implementation of that knowledge will be the driver of wealth.
What will a vacant shopping center be worth? Or a house in a city with little employment? ...we could go on and on, but you get the point.
We know when a nation goes to war, government can take our children........we know when a government is incentivized to attract people, it will give them 40 acres and a mule. The BIG question is what will a government need from its citizens when the government runs out of money?
My guess is they will supress reality until the day of reckoning or zombulation...which is getting much closer following 1.01.10.
Remember Fools, our government ran a surplus in The Great Depression.....so looking backwards gives you NO insight going forward.
This is what happens when you cut off a credit dependent industrialized world from money.....money simply runs out.....and when access to credit runs out as well......you are Zombulated.
Morphing from the Industrial Age into the Alstrynomic Digital Age will not be easy.....but the end result will propel man further than ever before.