While falling prices may strike the layman as cause for celebration, economists believe that it can kick off a nasty, and often inescapable, negative cycle, which many believe leads inevitably to a prolonged recession, or even a depression. However, these same economists acknowledge that falling energy prices may offer a stimulus, equivalent to an enormous “tax cut,” particularly for lower and middle income consumers for whom energy costs represent a major portion of disposable income. They suggest that the money consumers and businesses no longer spend on gasoline and heating oil could be spent on other goods and services thereby creating demand in other areas of the economy. Even Fed Chair Janet Yellen, a staunch advocate of the economic benefits of rising consumer prices, has extolled the benefits of falling oil prices.
For most of history, our ancestors lived in clans with other family members, or in small villages. Everyone pretty much knew who was trustworthy. People behaved better because they wanted good relationships with family members and neighbors. It’s one reason that today we trust friends and family more than strangers.
Only recently have humans interacted with lots of people. Today, “50 percent of the population lives in cities,” points out entrepreneur Julien Smith. “We’re surrounded by strangers, and you end up with these systems in place that progressively get built (to determine:) ‘should I trust this person?'”
“Whether one is a conservative or a radical, a protectionist or a free trader, a cosmopolitan or a nationalist, a churchman or a heathen, it is useful to know the causes and consequences of economic phenomena.” That quotation, from Nobel laureate George J. Stigler, is how Dr. Thomas Sowell begins the fifth edition of “Basic Economics.” It’s a book that explains complex economic phenomena in a way that many economists cannot. And, I might add, it provides an understanding of some economic phenomena that might prove elusive to a Ph.D. economist.
Among the Democrats, Hillary Clinton is honing her message to appeal to the mindset of the left wing of her party, whose support she will need in her second attempt to get the nomination as the Democrats’ presidential candidate in 2016.
Had the French government adopted a consistent policy of protecting the freedom of speech, nothing like today’s attack on the satirical magazine, Charlie Hebdo, would ever have occurred. Muslims and Islam would not be so visible in France had the government also put out the unwelcome mat to Muslim “refugees,” as most European and American governments have. With the Muslim “refugees” and “asylum seekers” came Islam, on one hand, the cruddiest “religion” on the face of the earth, and, on the other, a totalitarian system of slavery and submission, applicable to Muslims and infidels alike.
If you were waiting for a “black swan event” to come along and devastate the global economy, you don’t have to wait any longer. As I write this, the price of U.S. oil is sitting at $45.76 a barrel. It has fallen by more than 60 dollars a barrel since June. There is only one other time in history when we have seen anything like this happen before. That was in 2008, just prior to the worst financial crisis since the Great Depression. But following the financial crisis of 2008, the price of oil rebounded fairly rapidly. As you will see below, there are very strong reasons to believe that it will not happen this time. And the longer the price of oil stays this low, the worse our problems are going to get. At a price of less than $50 a barrel, it is just a matter of time before we see a huge wave of energy company bankruptcies, massive job losses, a junk bond crash followed by a stock market crash, and a crisis in commodity derivatives unlike anything that we have ever seen before. So let’s hope that a very unlikely miracle happens and the price of oil rebounds substantially in the months ahead. Because if not, the price of oil is going to absolutely rip the global economy to shreds.
What do we need to do in order to prepare for the coming economic collapse? Are there practical steps that we can take right now that will help us and our families survive the economic depression that is approaching? As the publisher of The Economic Collapse Blog, I get asked these kinds of questions a lot. Once people become convinced that an economic collapse is coming, they want to know what they should do. And so in this article I am going to share some key pieces of advice from some of the top experts in the entire country. If you are not convinced that economic disaster is on the way, this article might not be for you. Instead, I would encourage you to go to my website where you will find more than 1,200 articles that set out the case for the coming economic collapse in excruciating detail. For those of you that are interested in getting prepared, I apologize in advance for the outline format of this article. To examine each of these points in detail would take an entire book. In fact, I am the co-author of a book that will soon be published that discusses many of these things in great depth. But you don’t have to wait for a book to get prepared. Mostly, it comes down to common sense. In this article, I share 89 common sense tips that will help you get prepared for the coming economic depression. Hopefully a lot of people will find these to be very helpful.
This first set of tips are 11 things that I strongly encourage my readers to do…
Central banks lie. That is what they do. Not too long ago, the Swiss National Bank promised that it would defend the euro/Swiss franc currency peg with the “utmost determination”. But on Thursday, the central bank shocked the financial world by abruptly abandoning it. More than three years ago, the Swiss National Bank announced that it would not allow the Swiss franc to fall below 1.20 to the euro, and it has spent a mountain of money defending that peg. But now that it looks like the EU is going to launch a very robust quantitative easing program, the Swiss National Bank has thrown in the towel. It was simply going to cost way too much to continue to defend the currency floor. So now there is panic all over Europe. On Thursday, the Swiss franc rose a staggering 30 percent against the euro, and the Swiss stock market plunged by 10 percent. And all over the world, investors, hedge funds and central banks either lost or made gigantic piles of money as currency rates shifted at an unprecedented rate. It is going to take months to really measure the damage that has been done. Meanwhile, the euro is in greater danger than ever. The euro has been declining for months, and now the number one buyer of euros (the Swiss National Bank) has been removed from the equation. As things in Europe continue to get even worse, expect the euro to go to all-time record lows. In addition, it is important to remember that the Asian financial crisis of the late 1990s began when Thailand abandoned its currency peg. With this move by Switzerland set off a European financial crisis?
During his State of the Union speech on Tuesday evening, Barack Obama is going to promise to make life better for middle class families. Of course he has also promised to do this during all of his other State of the Union addresses, but apparently he still believes that there are people out there that are buying what he is selling. Each January, he gets up there and tells us how the economy is “turning around” and to believe that much brighter days are right around the corner. And yet things just continue to get even worse for the middle class. The numbers that you are about to see will not be included in Obama’s State of the Union speech. They don’t fit the “narrative” that Obama is trying to sell to the American people. But all of these statistics are accurate. They paint a picture of a middle class that is dying. Yes, the decline of the U.S. middle class is a phenomenon that has been playing out for decades. But without a doubt, our troubles have accelerated during the Obama years. When it comes to economics, he is completely and utterly clueless, and the policies that he has implemented are eating away at the foundations of our economy like a cancer. The following are 27 facts that show how the middle class has fared under 6 years of Barack Obama…
Control freaks want to run your life. They call themselves “public servants.”
But whether student council president, environmental bureaucrat or member of Congress, most believe they know how to run your life better than you do.
I admit I was once guilty of this kind of thinking. As a young consumer reporter, I researched what doctors said was bad for us and what products might harm us. Then I demanded that the state pass rules to protect us from those things.
It’s the season for giving.
That doesn’t mean it’s the season for government.
Government creates loyalty in the minds of citizens by pretending to be Santa Claus, doling out gifts and favors. Politicians claim they help those unfortunates who aren’t helped by coldhearted capitalism.
The truth is, government gets in the way of charity, making it harder for people to help others and for the poor to help themselves. It also gets in the way of commerce, which is what really makes people better off.
“Let’s be honest here. Islam has a problem.”
Those are key sentences in an incredibly hard-hitting speech that Louisiana Gov. Bobby Jindal will give in London on Monday. It is the toughest speech I have read on the whole issue of Islamic radicalism and its destructive, murdering, barbarous ways that are upsetting the entire world.
Charlie Cook, a veteran inside-the-beltway political analyst, recently wrote of a focus group discussing the 2016 presidential election. He observed that the conversation among 12 Colorado voters “would be jarring to anyone who assumed that the nominations of Bush and Clinton are inevitable.” Cook added that, “When half a dozen voters in a conversation say they would back a law that would ban any Bush or Clinton from running, it makes you sit up and take notice.”
I stand with the Santa Barbara News-Press. How about you?
The newspaper is under fire for refusing to kowtow to left-wing word police and militant propagandists who demand unfettered illegal immigration. Last week, in the wake of angry protests against the publication, vandals threw paint bombs and spray-painted graffiti on its offices.
So, what exactly is the News-Press’ unforgivable crime? Calling illegal aliens “illegals” in a headline for a story about illegal aliens descending on California DMVs. A new law went into effect last Friday allowing illegal aliens to obtain driver’s licenses without proof of lawful residence. The article featured interviews with ecstatic illegal aliens, including one who has been in the country illegally for “22 years.”
An examination of the European body politic is the first order of business: how healthy is this creature? For diseases don’t break out in a vacuum: they erupt because the organism’s immune system is somehow compromised. The air is filled with pathogens galore, but most have no effect because they are fought off by the body’s natural defenses. Yet here the germs have overwhelmed these, and the result is that the body is at war with itself. A civil war, in other words, in which society turns on itself and tears itself apart.
Reconstructing the events surrounding the capture and death of 43 Mexican students
Criminal organizations in Tamaulipas state are growing their ranks through forced recruitment
The town’s students, like those killed in Iguala, have a history of fighting for social causes
Parents of missing trainee teachers clash with Mexican army at demonstration
Prosecutor says Fernández de Kirchner conspired to hide Iran’s involvement in case
Alberto Nisman, who has been investigating the attack at the Israeli-Argentina Mutual Association (AMIA), which left 85 people dead and dozens injured, demanded that Fernández Kirchner and government officials testify about their roles in reaching an agreement in 2013 with Iran regarding the inquiry.
Nisman had accused Fernández de Kirchner of cover-up over 1994 Jewish center bombing
Authorities found the body of 51-year-old Alberto Nisman in his apartment in the Puerto Madero district of Buenos Aires just a day before he was scheduled to appear in Congress to explain the charges he recommended should be brought against the president and government officials.