Why the Upcoming Economic Collapse is Being Hidden in Plain Sight

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This is not a conspiracy theory. This isn’t an alarmist perspective, either. Go to your local economy professor or banking expert to verify that there will be a worldwide economic collapse in the near future. At this point it would take a miracle to keep it from happening in the short term and nothing can stop it from happening in the long term.

We won’t dive into the details too much about how the economic collapse is shaping up, what effects it will have on individuals around the world, or even how it can be prevented. There are plenty of sources that go in-depth on these topics. Here, we’re going to discuss how and more importantly why the powers that be are hiding the upcoming economic collapse. Hopefully, those who have read my posts in the past realize that I’m not an alarmist nor am I one who blames everything on “the man.” In this case, however, there are alarm bells that plenty of people are ringing and it’s my responsibility to chime in with a slightly different perspective, one that doesn’t require a degree in economics to understand.

And yes, this time we truly can look to “the man” when it comes to the upcoming troubles, but only because they really have no other choice (at least from their limited perspective).

First, “hidden” in plain sight is not the right way to put it. There really is very little hidden other than some preparations likely being made by the economic elite in the world. Rather than calling it hidden, the proper way to categorize it is that it’s been made more complex than it really is. To use an appropriate analogy, let’s compare the current and future state of the world economy to an under-powered car going up a steep hill.

Imagine that the “CentralBankCar” driving the economy has already taken on a tremendous amount of weight, more than the engine can handle. This is, of course, representative of the burdens the CentralBankCar took on after the 2008-2009 collapse-avoidance maneuvers. It’s now a car with more weight than the engine can really handle.

To keep things going forward, they’ve put their foot all the way down on the gas. This represents the current state of interest rates. They’ve floored it and they have no way to make it go any lower. Unfortunately, there’s still not enough power to keep it going at a good pace so they’ve actually gotten out of the car and started pushing it as well. This is quantitative easing, producing power that the engine really doesn’t have to keep it running.

So, we have a car with too much burden trying to make it up the steep hill of global economic needs with the passengers now out of the car pushing it up the hill to try to supplement the power that’s coming from a gas peddle pushed all the way to the floor.

Eventually, the car’s going to run out of gas. It will roll back over the people that are currently pushing it and careen back down the hill of the world economic condition. It will crash. We’ve exhausted all possible solutions.

Before the CentralBankCar runs out of gas, the powers that be will have to do something drastic. Or they won’t. The problem that we’re all unwittingly faced with requires a different analogy that I’ll bring up below. First, let’s look at the ugly solution that may or may not occur. To keep the CentralBankCar from rolling backwards to an utter crash, they would have to jettison some of the cargo. They’d have to reduce weight. Unfortunately for the average person who doesn’t realize what’s happening, we’re the weight. Our credit, our properties, even the money in our wallets represent portions of the weight that must be jettisoned. To do this would require drastic actions that most governments will avoid at all costs… at least we’d hope.

The question that governments and bankers, powers and principalities face today is whether to let the crash happen and hope to recover relatively quickly or prevent the crash by taking control of all debt and therefore most property. As insane as it sounds, those are the real options that they have before them. They could dramatically cut expenses to the point that they will likely no longer be able to operate. They could raise taxes to the point that people will no longer be able to operate. They could do both. Even if they do, there’s no guarantee that it would save the world economy because of the repercussions that such actions would have on other parts of our economy.

Trying to explain all of this in a blog post is difficult and that’s the very reason why the coming economic collapse is hidden in plain sight. It’s an extremely complex issue that makes most people glaze over. They have to count on that fact. They realize that a huge component in the success of an economy is perception. If the people believe the economy is collapsing, they’ll unwittingly contribute to making it collapse more quickly. As much as I’d love to say that it’s the evil bankers and politicians who are hiding these things from us, they’re not. It’s all right there for everyone to see as it should be, but it’s veiled in enough confusion and doubletalk to prevent it from becoming a self-fulfilling prophecy.

Economic Collapse

Now, for the unfortunate analogy that represents our reality. The ship is sinking and there aren’t enough lifeboats for everyone. There are millions, even billions of people who will drown in the waters of economic collapse. The question is whether they will start pushing people off the boat or wait until it starts rapidly sinking. Either way, they’re getting on the lifeboats and many of us will not be given that option.

It’s not my intention to scare people to the point of acting inappropriately. Things are simply out of our hands. Personally, I’m not worried because I have faith, not in the economy but in God’s plan. Now is the time to be fully prepared for what’s to come.

Soshable

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Why most of the Valley was plain wrong about Asia (To the tune of some $15b)

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Back in 2009, while writing a book about entrepreneurship in the emerging world, I spent 40 weeks traveling through Africa, Asia, and South America.  When I came back to Silicon Valley between trips, I heard a lot of smart people saying very stupid things about the places I’d visited.

Incredibly savvy Valley investors would argue that countries like China or India were best at producing copycat versions of Valley companies, and weren’t capable of much “innovation” beyond that. Some would even claim that, because many of these places were still in the process of building the infrastructure that the Western world takes for granted, developing countries simply weren’t ready to start innovating when it comes to, say, the consumer Web…

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