Could the economic chaos which ripped through the markets this week mark the beginning of the end of the Liberal West?
Well, one can always hope!
The crisis, is far from over, the root of the crisis, is the mountain of debt on which we sit, there is the hundreds of trillions of mortgage debt, the trillions of credit card debt, the trillions that is owed by government, the hundreds of trillions of unsecured derivatives, the tens of trillions owed by government (ie:us) to keep the welfare states afloat, that is a lot of debt.
The collapse of Lehman’s, AIG, HBOS and Merill Lynch were only the symptoms of the problem, the problem is that we can’t possibly pay all this debt back, no chance! What we face is civilisational bankruptcy, many of us personally face bankruptcy as well. No amount of government interventions can stop it, well it could have, but they would have had to intervene ten or twenty years ago to make borrowing harder and saving easier and more profitable, they would have had to reform the welfare state and commit the state to being debt free, but as we know that did not happen, because that is the fundamental weakness of a democracy, the politicians are focused, not on our future, but on how they can get reelected in two or four of five years time, democracy is doomed to death by its own most glaring weakness, its inability to think of the next generation.
So we have all had a great time buying rubbish we don’t need with money we didn’t earn and all we now have is debt, strangely in the preceding twenty years, debt was sold as an asset, now banks and other financial institutions realise what everyone else instinctively knows, debt is debt, it ain’t an asset. So debt is harder to trade, those stuck with bad debt are being dragged down as house prices come back to Earth, how the mighty have fallen!
It’s not only the banks and governments who are to blame, although they have earned the most lavish contempt, it is all of us who bought into this scam, everyone who has a credit card they can’t manage, everyone who bought a house they couldn’t afford, everyone who took out loans for things they didn’t need, all of us are culpable and are now getting our just desserts.
I say this as someone who did all the above, except the unmanageable mortgage thing, but thankfully I have got out of credit card debt and most of the loan.
To think people were taking out loans for a holiday!! What is that? Pure stupidity, loans should only be for something that will profit you and yours, like a car or a start up loan or something similar, it should provide you with something tangible and lasting, not some photos and sunburn!
The last time we faced such a crisis was in 1929, I think we are facing something far worse then that, at least then most people stayed within their means and saved what little they could, most people didn’t own their own houses, so mortgage debt wasn’t as monstrous as now, most people could do real things, such as grow veggies and cook, and clean and make things, such as clothes and chairs and tables and such like, very few people can do that now, we can programme something or flip burgers or do things online, very few of us could do easily what our grandparents and great grand parents did daily.
The Depression almost marked the end of democracy, this upcoming depression could kill it once and for all, this may be the moment we have been waiting for! The next few years could be years of political ferment, we could see the rise of nasty totalitarians, leftists, neo-NAZIs and the like, we must be ready in the next decade or so to take our own advantage, to propose a return to faith and tradition, and the rejection of mass democracy.
Of course our elites would try as best they could to fight all the anti-democrats to retain power, they could themselves become the new totalitarians, not something I think is beyond the realms of reality, these people have been in the business of banning things since at least the beginning of the twentieth century.
So, we shall see in the next few weeks and months how this turns out, how bad it will actually get, myself, I hope it is really bad, I hope the whole system is shaken down, that as many big businesses as possible go under, that as many governments as possible fall and that in their new found poverty the masses can wake up to the reality of what has been happening over the past fifty or sixty years, what our rulers have done to us.
Then and only then will we have a chance to restore our nations.