What Happens Next?
TMFSinchiruna's amazing recent post about America's flirtation with banking armageddon got me thinking (oh boy!). So I called my fiance and we discussed it at length (after, or course, running down the recent happenings on the trashy reality TV shows we enjoy..... thank you VH1!!!). She's pretty savvy, but not thoroughly enlightened on monetary policy or Zimbabwe School Economics (aka Keynesian Economics) so we tried to walk through a few different scenarios.
What would happen if the banks did collapse? According to the reports, we were 24 hours away from complete global economic collapse. What would that entail? To be honest, I don't have any answer for that.
What would happen to honest homeowners like her she wanted to know? She owns multiple properties, with outstanding credit and steady rental income. But the banks really own those properties, and she understands that. What if those banks went under overnight? What would happen to her property? I don't have any answer for that.
I bring this up, because even though disaster may have been averted in September, it was probably just postponed. The real economic collapse could happen literally any day now. I think even the most naive Keynesian proponent has to acknowledge that, or so one would think. I assume that massive civil unrest would follow. How would government respond? Is Martial Law a possibility?
So what are some scenarios? It disheartens me, but I realize that most recently laid off workers blame free markets and greed for our current situation. We have pointed this out ad nauseum, but I'll restate the obvious: if free markets caused our problems then we should be able to note which free markets are at fault, but we can't. This is because the markets that failed are not free markets: housing, banking, investment banking, energy, money creation. All of these are either government controlled or government mandated cartels and monopolies that support the political elite.
Sad to say, but few Americans get it. We stand on the very precipice of disaster, and yet, the political elite / banking elite that created the disaster is going to get more power and control over our lives as a result. Very sad.
The question my fiance and I keep asking each other is: What Happens Next?
We're small potatos. We've got some coin stashed away and a little bit of property and equities, but we're insignificant. What about the productive people who are about to lose everything they've ever made for themselves?
What happens if the troops come home because America is broke? I suppose the politicians will attempt to cut VA benefits before anything else. Despite popular propaganda, Veterans have never been very high on the food chain of the income tax payer.
What if the government has to slash troop levels or bring everyone home in the middle of massive inflation and unemployment? What would they do with all these warriors? An easy solution would be to employ them to suppress the populace that will certainly be revolting. Scary thought, but logical. Just shuffle them off to the Department of Homeland Security. Put em to work looting whatever is left of the country while suppressing any resistance.
Please share with me your thoughts about What Happens Next. I'd love to hear what you think. I welcome all discussion.
Final note: As I have said repeatedly, the only important thing in this world is what you do with the brain you are given. If we continue to fill it with knowledge there is no government in the world that can stop us from living a productive life, unless they resort to violence. I was a Libertarian when I was broke, and I'll be one no matter how big or small my bank account gets. I am a Libertarian because of my disabled father, who lost his leg in Vietnam, yet never asked for charity and became a highly paid and decorated logistics officer for a Fortune 500 company precisely because he filled his head with knowledge and never wanted a handout. And I will be Libertarian forever, always hoping for the day that people will realize that the parasitic politicial class is a completely unnecessary farce.
David in Qatar