Here are the simple facts:
1.Most people who have jobs in the West are not creating value that is required by the rest of the world
2. More and more people just don't have any jobs because their education level is not high enough (a combination of poor degree choices and lack of unskilled jobs).
3. We, the western nations, have spent so much on non profitable endeavours (mis-allocated capital) that we can never hope to pay back the debt we have collected.
4. The East will never be able to buy stuff at the rate the West did from 1999-2007 (stimulate demand). It is ingrained in Chinese/Japanese culture to save.
5. The Euro will collapse in its present form due to excessive debts and an entitlement welfare state that no longer provides a cushion in hard times but an alternative to actually working for the economic benefit of the nation!
6. There are less people (as a percentage %) in work today than ever before since the 1920s.
It doesn't take a genius to see that the Kelptocracy that has been run as a pretend "Democracy" for the last 25 years is collapsing under the strain of its own lies.
We are in the end game of this political and monetary system. It cannot go on like this - the masses need to break free and educate themselves without the supervision of the "chosen few" elites in government
If you are reading this as a UK citizen here are the harsh realities you will face:
1. Working much harder for less
2. No state benefits or pensions unless you are actually fully disabled
3. A movement down in your quality of life to something approaching 1970s levels - e.g many grown up children living in a small house with fewer people owning their own properties and a lack of credit to purchase anything in advance e.g furniture, clothes, appliance repair
4. Watch the lives of "celebrities", politicians general capitalists diverge from your own to a point which will become un-recognisable. You will be ruled by a class which does not face the same hardships you do and that will really be the final nail in the coffin as widespread looting and rioting will begin.
How to fix these issues:
1. There is no quick fix. There are some options which we as a society need to decide upon
a. Have a war which brings increased production and reduces consumption
b. Generate exports & jobs through innovation and real engineering to fulfil this demand in the economy
c. Ensure our children are given the skills to innovate, risk and learn from failure without destroying their hopes of having a stable family life
d. Cut the welfare state and non-means tested pensioner benefits
there are many catalyst hinting a stock market crash or recession. Oil price getting high.companies cutting jobs, war in middle east, to be born war in philippines and china, japan and china, north and south korea, israel and iran. major economic banckruptcy in Spain....
ReplyDeleteat the turn of events, will people stay alive and sane by end of 2012?
As with all major economic cycles there will be some pain and we will come through it in the end. However, the policies we are creating seem to be extending the decline into a slow labourious affair rather than a short sharp correction.
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