For example oil(gas) people will be ok with gas prices increasing 20% every year for a while until people wake up and notice its not the oil prices are rising its the fact money is loosing value. Once the masses realize money is worthless and refuse to accept fiat money there will be a short collapse, like the soviet union. However things will get better real quick. I would guess you only need 3-6 months of supply of food and ammo.
But yes. Excellent observation in my opinion.
Last edited by Natural Citizen; 02-20-2013 at 03:07 PM.
It's not like I'm just trying to win and get elected. I'm trying to change the course of history. - Ron Paul
Who has a higher standard of living? The man with the technology to mentally go anywhere on the face of the Earth (anywhere in the known universe, even), or the man with the equivalent of many, more dollars in his pocket who has to leave his house to use the bathroom and can't call anyone he knows on the magic device we carry around with us that we refer to as cell phones?
Standard of living is not just real wages.
Honestly, in consider that real wages were a bit higher in the 1970s.... but also that society was more violent, transportation to vacation destinations was more expensive, food more costly and less available, entertainment further from our fingertips --- Lord almighty, I'm conversing with someone I've never met, and will never even see, instantly. If we wanted, we could both download an episode of The Wire and talk about it in the chat, simultaneously. And then I could drive to a restaurant, listening to satellite radio on the way, and when I arrive I could eat fresh mozzarella that was imported from Italy this morning as an appetizer before an entre of, say, Kobe beef and Alaskan salmon, then drink a microbrew imported from Belgium. An average man is affording things that even a very wealthy couldn't have had several generations ago.
Life is good. Seriously, life is obscenely good. Don't lose sight of that.
Last edited by KingNothing; 02-20-2013 at 03:28 PM.
I might argue that the guy back in 1913 had a higher standard of living when you compare stress levels, tax burdens, overall happiness, and the strength of the family unit. Many people would gladly live more simply if they could. Honestly I think technology
has it's place but it's gotten out of hand. Is anyone here happier than they were 20 years ago? I'm not... especially with what I see coming.
To those suggesting that this decline proceeds predictably and gradually as before, I only agree for a time, then it turns very quickly. The tinder accumulates when many people realizing they are better off starting something of their own instead of working for an established firm begin to ignore and circumvent the draconian regulations that are piling up unabated. A mass of individuals gradually losing their servile preconditioning, not through ideological preaching, or economic education but through pursuing their own self interested quest for prosperity more creatively than before, because they must, (or at least the cost of doing so seems reasonable finally). Public services will become more costly, tax revenue will not keep up, and inflation will lead to increasing dissatisfaction from those working and those receiving, while tax revenue will not keep up without increasingly painful extractions from an increasingly less compliant populace. Citizens who feel like they are good and reasonable people, knowing many more, will be very demoralized by what they see as an unreasonable backlash by the state, and the upshot will be a widespread erosion of government legitimacy. People might well wake up, educate themselves and demand change, through established political channels. This is the nice scenario.
Should hyperinflation kick in (not cost push, but an accelerating flight into anything else, due to lost confidence in the soundness of the currency, in this case the world reserve) the results will be very ugly. No one knows when a hyperinflation will come, but it hits fast and can run its course in a very short time. In this country or in the EU it will most likely highlight severe regional inequalities with the very real potential for conflict. The current value of the US dollar is almost entirely tradition based, "it was worth that yesterday so why not today." In this context it is easy to see that once the ball begins to roll, there will be little to stop it and rebuild confidence. It could easily have been crippled in the late 70s, and we were not indebted as a nation, the world needed us.
Now? Before the Fed started buying up treasuries (and other junkier assets?) the trend of the 90s was culminating in 97% of loans to the federal government coming from foreign sources. When this trend slowed a bit the dollar took a major dive, so the Fed stepped in and took up the slack. (somewhat indirectly but the math works.) In the past year the Fed purchased more US government debt in the open market than the treasury issued (US government borrowed.) Remove that demand and our purchasing power plummets, let any of that cash trickle out of the banks and the same thing happens. The tinder could get sparked easily at any time.
“In the beginning of a change the patriot is a scarce man, and brave, and hated and scorned. When his cause succeeds, the timid join him, for then it costs nothing to be a patriot.” ~ Samuel Langhorne Clemens
Glen Bradley for Vice Chairman of the North Carolina Republican Party