I have talked elsewhere on this blog and Twitter about the likely meltdown of the global economy. I hate to be alarmist or sensational, but the more I look at the numbers, the more convinced I am that no other outcome is ultimately now possible.
In Europe this week, the situation in Cyprus is in my view a foretaste of the type of events that will spread across the western economies in the coming months and years. The inability of politicians to find a solution is now beyond doubt I think.
If you've worked hard, saved and invested your money all your life, you are about to be punished very severely for this as the citizens of Greece, Spain and Cyprus have recently discovered. In fact it’s already happening by stealth means as low interest rates, inflation, stagnant earnings and rising taxes combine to extract wealth from the middle classes to pay for unsustainable government spending and bank bailout programmes.
Here noted investor, free market advocate, and author Jim Rogers gives an interview with Glenn Beck. He asks whether the latest State of the Union address makes you wonder whether President Barack Obama is "delusional" or just a good liar? It’s a good question, but I think the answer doesn't really matter. What matters is understanding what is coming and how we can prepare ourselves.
So what can we do about this at a personal level? Well an MBA is possibly the most redundant qualification in the US right now says Jim. On the other hand, as food supplies become more and more critical, farming will become more valuable than ever, ‘the farmers will be driving Lamborghinis!’ says Jim.
This isn't enjoyable to watch, but I’d rather know about the looming threats than stumble blindly into them. My thanks go to Glen Beck and Jim Rogers for their insights.
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