We are entering an era of upright spikes. Clearly, the debt-driven global economy is spinning out of control. The aggregate value of the derivatives market is exploding and meanwhile food prices are spiking. Both of these are threatening huge economic dislocation and subsequent social turmoil that–just as I predicted five years ago–will topple governments. I stand by that prediction. (And, for the record, I’m not just talking about failed votes of confidence. I’m talking about revolutions.)
Note: Because SurvivalBlog’s diverse readership expects access on mobile devices, I intentionally minimize the use of graphics in my blog. But this particular topic demands some graphics, so I’ve linked to charts on a variety of web sites. (My thanks to all of them. I recommend that you truncate the URLs on the graph links to take a look at the other content those sites. A lot of them are fascinating.)
Back in 2007, I addressed the Upright Spike in Technology Dependence. But there are some other monumental shifts in progress, each with their own upright spikes. Consider these recent graphs:
- The U.S. National Debt, (which I addressed in an April 2010 SurvivalBlog article.)
- Food stamp enrollments are at an all-time high.
- Debt in relation to GDP is spiking, and the seemingly inexorable long term prospects are that we’ll have our own Greek Tragedy.
- Oil prices are getting increasingly volatile, with huge spikes. (We can expect the roller coaster ride in oil prices to continue.)
- Food prices are escalating.
- Residential mortgage delinquencies, although apparently past their peak, are still huge, and will depress the housing market for many years to come.
- Credit default swaps (a type of derivative) are spiking, showing a huge underlying risk in global credit.
- The spiking price of gold also reflects enormous risk in currencies and the global credit market.
- Long term Federal budget obligations are growing and expected to balloon to huge proportions.
Meanwhile, there are many more gradual changes are taking place, For example, see:
- Declining purchasing power of the U.S. Dollar 1900 to 2011
- Number of jobs moving offshore
- Our foreign trade balance, particularly with China, is growing steadily worse. (And according to the CIA Factbook, we have the ignoble distinction of being the world’s worst.)
- Base metals prices show that government figures on inflation are well-orchestrated lies.
- The Federal debt “limit” has become a standing joke.
Conclusion
If the National Debt is not brought under control, we will someday see mass currency inflation–perhaps to Zimbabwean proportions. Now that would be the upright spike that we all dread. If and when there is mass inflation, your only safe havens will be precious metals and practical, barterable tangibles. (There will be no “safe haven” paper currencies.) My advice is to get out of Dollars and into tangibles, soon!