The world is beginning its descent into Hell as predicted by a few economic commentators. The Sovereign debt crisis that first raised its head in Dubai nearly two years ago is starting to gather steam.
One commentator has compiled a list of the 30 countries currently living on a wing & a prayer. This was passed to me by a reliable source who like me keeps an eye on a certain group of commontators & we compare notes. In that list New Zealand ranks 13th & Australia is also in the top 30.
They did not mention who was top of the list actually, but I would wager it is the US with over US$200 Trillion(840% of GDP) in debt most of it 'off book' just like ENRON. Britain would be up around the top five. China could even feature though for different reasons.
New Zealand is estimated to be at 200% of GDP but there is a difference. Most of NZ's debt is private. But what bailouts do is transfer that debt to the government & from there to the central bank so transfer the wealth & power to the private bankers who really run things.
Even when you don't want a bailout or know it is bad for you.
Just look at Ireland. If as looks like will happen they accept the bailout then the International Monetary Fund & the European Union will control Ireland, not the Irish. Already the austerity plans been drawn up include a drop in the minimum wage.
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We already see what austerity measures result in. Riots & civil disorder. Britain has taken measures, but says it is not as badly off as Ireland. Not sure where they have got that from. The only difference between the European countries, Britain & the US is the later two are still able to print their own money(courtesy of the private banks better known as the central banks) which will be actually worse in the long run.
During this last week whilst New Zealand has been fixated on the tragedy in the mine, we had our credit rating outlook lowered. This will force the government to take more austerity measures. We already have teens challenging the police over gatherings & alcohol. It is only a short step from there to the riots in Britain as it has spread through social media & all are aware of it. In fact social media was used to organize one of the marches in Britain. One that got out of control in the most recent set of marches.
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For the average person what they will see is rises in food prices, jobs lost & unemployment will just sky rocket. It is already much higher than offical figures as those figures are manipulated or leave out the people no longer in the system.
As was pointed out in Ireland when as part of the austerity it is proposed to limit time on unemployment. Hey that's great but where are the job's?
This will all result in a rise in crime.
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So what sort of things could trigger a turn for the worse in regards to civil disorder? In France it has been the raising of the retirement age, in Britain the proposed raising of education fees & cutting cash flow to other education.
In New Zealand it could be frustration with the recovery from the Christchurch earthquake, the snow storm in Southland or the investigation into the mine incident(historically these inquiries result in a lot of anger & accusations). Even more so the holding back of information like the rupture of the gas pipe into the mine or yesterday after constant denials that anything was different about the earthquake an interesting article.
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That article first referred to the fact that though the first wee shake was 7.1 it actually realeased the energy of a 7.8 which has scientists a bit mystified, followed by the comment that a "spaghetti junction" of faults lay under the Canterbury plains & had been known about for years. New ones were forming & they all pointed at Christchurch. Now people have been feeling that this was the case but it has been denied since the wee shake with one 'expert' saying there would be no faults actually under Christchurch even though the media had the day before revealed the existance of the Addington fault from the 1869 earthquake.
So withholding information that shouldn't be then it coming to light could be a trigger to social unrest. Others have used the wee shake as an excuse for them commiting crime.
Combine natural disasters with a financial crisis & you have the ingredients for a time bomb. But it is also the time of opportunity & that is not criminal opportunity.
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One commentator has likened the current situation in the US with so much currency been printed as to the conditions in place in France prior to the French Revolution where many people ended up loosing their heads. The guilliotine was operated & executions carried out apparently by the Ministry of Public Safety.
Another commentator in the US has warned that people need to start stock piling food & buy a rifle then wait for the riots to stop. It is likely to be really that bad. This was from a financial commentator not a survivalist.
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People are really starting to feel this is all true. It is the time of opportunity also, but most people are starting to feel this. It has been funny how people's attitude change towards you as they start to feel that though they had felt what you have been saying is incorrect because the government or experts tell them so, to what their gut feeling now tells them is starting to happen.
It is just like Health & Safety are supposed to be, prepare for the worst, but hope for the best. Look for the opportunity.
http://www.foxhoundsecurity.co.nz
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