Stock Markets are Too Big to Fail

We are witnessing the fall of an Empire in real time folks.

Yes, I'm referring to the US Military Empire, and no, the world isn't ending or falling apart because of it.

There are many analogies one can use to describe what is taking place on the economic world stage, but I think the comparison to a fleet of sinking ships is very apt.

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Just about every nation in the world is in a tremendous amount of debt, and if you think of a nation as a vessel on the water, too much debt puts a ship at risk of sinking under that weight.

So right now, every nation is doing everything they can to keep their ship afloat.

Some countries have more resources at their disposal, and also some creative ways to add buoyancy to their ship, but the important thing to remember is that every nation is slowly sinking right now under the weight of their own debt.

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I realize that might not be the most optimistic way of looking at things, but if we're being honest with ourselves we know that suffering around the globe is intensifying and growing as those who have wealth begin to protect it and put it aside for the future, while those who have nothing are left to contemplate a future they may or may not have.

The stock markets at present are adding buoyancy for some ships, especially in the US where a crashing Stock Market would mean a pension and insurance crisis, not to mention a dire collapse of credit and liquidity for a lot of businesses that are too big to fail. People need to have something to store their wealth in, but its been so long since the 1930's that most people have forgotten what it means to have no access to money.

Long story short, the banks are not your friend, nor were they ever. In the 1930's you couldn't access your funds or the bank took 90% of your funds if you tried to withdraw money. If you think this won't happen in today's economy then you might want to consider why you believe this time is different. These things don't happen by accident.

The disparity of wealth around the world is becoming a crisis that has no real solution other than evacuation and/or migration to greener pastures. It doesn't help that fringe climate events are becoming more commonplace and destructive. Whether you think we are partly to blame or not, it doesn't take away the reality that the climate is moving into a new phase.

With a climate that is less predictable and more aggressive, we are having a harder time growing food and keeping livestock healthy, which means we're in a desperate search for alternative food sources in the event there isn't enough food to go around. People that are trashing Beyond Meat on social media may be begging to have a bite 12 months from now. People don't understand that the world's food reserves aren't enough to last for months or years; it's weeks at best during years of good harvest and healthy livestock.

While food supply has historically been a distribution problem where some parts of the world were getting more food than they needed (i.e. America) and a lot was going to waste, the problem now is that the world's food supply is getting smaller and the crisis has a chance of becoming publicly apparent before the end of 2019, or in early to mid 2020. Without access to nutrition, medicine, clean water (thanks to pollution), clean air, and other necessities, a lot of people are going to suffer who aren't already.

Between dwindling resources and weakening relations between the east and the west, the deleveraging phase of the grand credit cycle we are in will either default enough countries that order is restored around the world, or we have another world war that nobody really wins. The USA literally cannot afford to fight in a large scale war, despite appearances, and neither can any other nation. But desperate times call for desperate measures.

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This post does seem like doom and gloom, and I wish it could be otherwise, but I'm simply addressing the reality of the times we are living in. I feel especially sorry for people who are caught up in social movements, as they will have difficulty accepting that there are more pressing matters coming than gender pronouns and human rights. When it comes to survival during hard times, people stop caring about the plight of others if their plight isn't life or death. Pick your battles, as they say, because there might come a time when you will have to pick wisely.

While it is overstated and cliche, make sure you have wealth stored in precious metals, crypto, real estate, or something that will hold its value. An oz of silver will always be worth an oz of silver, and an oz of gold will always be worth an oz of gold.

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Thank you for reading. Be safe and take care of yourself and your loved ones.