Nouriel Roubini, who has been nicknamed “Dr. Doom”, is known for predictions of impending disaster in the economy of the world. What he and others may not tell you is this is all part of a long-term cycle and it is normal for economies to reset and rebuild.
Economic “Doom” isn’t all the fear it’s cracked up to be. In fact, it isn’t really a doom situation at all. It is truly a great opportunity, if it even happens, for the populations involved to start fresh.
Here are a few thing to think about:
- The U.S. has changed or reset the currency many times, even in the last 50 years
- World currency and economies have slipped and fallen many times, yet here we are
- Federal Guarantees have failed in one form or another, often disguised by “new” guarantees
- Some percentage of the population will still want to eat, and will still work to do so, even if they barter
- A new economy always comes with new opportunity
- For a brief period, some will get to pay their taxes with currency which soon becomes worthless anyway
- When economies fail, many of the citizens have little currency of any value at the time, and it can be a big relief to replace this with a new currency and “guarantee”, allowing prosperity once again
- Savings shouldn’t be in the form of currency anyway, it should be in the form of yielding assets
These are only a few thoughts which highlight the potential positives following “Economic Doom” (if anyone wants to call it that).
My personal opinion is that in times of disaster and fear, humans often show their best nature and are more likely to help each other, by doing more of what’s right. One reason I didn’t like Steven Spielberg‘s version of War of the Worlds is he portrays the worst of humanity rather than the best. Only a small portion of the population becomes so selfish when all are threatened. It is difficult to imagine all the homes and suburbs of Kansas City disappearing, or the water being turned off by the city, grocery stores closing, and vegetable stands going away, all because the dollar just isn’t the dollar we expected. What do you have to trade?
How is it possible that Economic Collapse could turn out well? It is easy to assume people will starve, or there will be more war and chaos, but maybe those are the symptoms of the top of an overly-controlled and dictated economy and the effect of such is already in motion. After the global collapse in the 1930’s, caused by mismanagement of government trust and investment abuse, war later came in the form of WWII. The interesting thing is they may not be as related as we believe. Often the powers dictating the outbreak of war tend to be oblivious to the economic situation. In fact they may take advantage, as Hitler did.
If you want to read and absorb more economic fear from “Dr. Doom”, read this http://bit.ly/RQdJo9 .
How are you preparing to do well in any event?