Unlike in the 1930s, or others times of financial stress, investor losses and deflationary decline, today we are all helpless. Most families have no backup systems, no savings, no reserve, no plan, no place to get food or fuel if the stores are closed, no water or power if infrastructure cracks, even for a few weeks.
This means relatively small disruptions in the way things normally work have the potential to cause chaos. Take money, for example. Most middle-class people don’t carry any. In fact, it’s almost become a sign of lower socio-economic status to buy a tank of gas or pay for a hotel room or purchase new shoes, with cash. Instead, the vast majority of us use credit or debit to get through our days, with trips to the bank actually being few and far between.
Unfortunately, debit and credit only work when the lights are on. In a power outage, bar code readers don’t function, electronic cash registers go dark and online authorizations cease. In other words, no cash, no sale – if you can even find a store open. And the only gasoline around will be at rural stations which park a generator in the back. This means on the day when the first dimming occurs, you will be SOL if you don’t have a full tank and a wad in your purse. But, sadly, nine of ten people will not.
And why should we worry about failing infrastructure? Because of the financial crisis, which shows every sign of deepening and lengthening.
More than a few American towns and cities have gone bankrupt. The US government is sinking into an unthinkable abyss of debt. Public finances are disintegrating, and yet politicians know it is impossible to raise personal or corporate taxes. So, this is not going to end well.
Expect cuts in services, lower levels of response and public sector layoffs. <b>This could mean the next ice storm has the lights out for 12 days, instead of 24 hours.</b>
And if things start to spiral into deflation, then reduced government support will become the norm. Meanwhile a credit crunch can prevent the grocery store from borrowing enough on its line to stock its shelves, or the trucking company from getting insurance or enough diesel, or – God forbid – convince a faltering bank to cancel revolving credit, and turn your card balance into a demand loan.
Many may dismiss my cautions, saying a rerun of the Thirties is impossible. And they`re right. This time we`d be screwed.
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"For my part, whatever anguish of spirit it may cost, I am willing to know the whole truth; to know the worst and provide for it." - Patrick Henry
The level of injustice and wrong you endure is directly determined by how much you quietly submit to. Even to the point of extinction.