How Do You Recover From An Economic Collapse?
Posted by UncommonSense 8 years, 9 months ago to Economics
The author of this article sounds like he's yearning for The Gulch, but for some reason he's not saying directly, but goes on describing the very essentials of what would make The Gulch THE place to be. No looters!
According to this article, it would seem that I am in good position. I own a versatile tool and die business. The question of power is of concern though. Gone are the days of water-wheel driven overhead shafts and leather drive belts...
Respectfully,
O.A.
America won't experience a collapse like many say it will - a sudden onset of strife. It will be what you're seeing now - a slow, controlled, gradual decline. A technological spark may reverse it. We'll see. A step toward a cashless society, though, plays into the system controlling the decline further.
Edit: The only cure as I see it is to identify the rot and repair it before the collapse. I always hope this is possible.
The government may have reached the peak of its abilities. I hope so, anyway.
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I agree that we are likely to see a gradual decay rather than a sudden crash, which will make it more difficult to deal with.
Jan
Jan
OK, I do not actually know what "Mother Grumpitis" is, but it is such an excellent term that I existentially feel that I must suffer from it.
It will actually be easier to recover from a sudden catastrophic crash than from a slow dwindling of the spirit, but I fear that the latter is what is and will continue to happen. There is a known personality characteristic in humans that expresses different elements under stress than under normal conditions. A person who is normally a risk-taker may suddenly become risk-adverse in a crisis. I think that if we experienced a catastrophic crash, then people might be shaken out of their ennui. Right now we are seeing a slow erosion of both liberty and the desire for liberty and I regard that as very dangerous.
Jan, suffering now...
The bigger question is the one posed by the author: recovering from a more long-term and debilitating crisis. If the power grids are offline for an extended period (months+), our dependence on such for virtually everything will make recovery a slow process. Many people will attempt to move to places that have power, such as those supplied by hydroelectric dams like in the West. The biggest problems will come in areas dependent on shipped power (like high-population areas dominated by eco-nuts: see California, New England).
After that comes food production, which is highly dependent on fuel. The areas of the nation which have not only oil production but refineries will be able to continue to serve their populations.
The other major consideration will be monetary and trade value. You can bet that the US dollar is going to be worthless, not only because there will be little if any functional national government, but because most of it is virtual anyway. Precious metals and coinage are going to be the tool of trade.
One major result will be that there will be no time or ability to allow for moochers. Everyone will be reduced to subsistence living and what little they may have left over will go to trade with others. Those who are accustomed to others paying their way are going to be in for a rather major shock - one that will lead to rioting, looting, and destruction.
"No one in the 17th century who knew only the British East India Company and the Dutch East India Company could have foreseen the Cunard Line, the Northern Pacific Railroad, or TransWorld Airlines and the immense profits made by carrying very ordinary people on very personal missions. The goal then was to haul raw materials (especially gold and silver) back to Europe. No one in 1620 or 1720 could have seen the world of 1820 or 1920. "
http://necessaryfacts.blogspot.com/20...
The only way to recover from that, is to rebuild your own economy, bottom-up.
Credit moved the world out of the paleolithic era.
See here: "Debt - the seed of civilization"
http://necessaryfacts.blogspot.com/20...
If you read Atlas Shrugged the same theory is in there, also, actually. While gold stands symbolically important as wealth in private hands, the motor of the world was not gold. Midas Mulligan extended credit to the engines of creation.
Mulligan was a banker in the context of the American society described in the book. We can only assume that the banks were fractional reserve and the traffic lights were red on top and green on the bottom.
BUT: (There's that big but again) in doing that you might survive, but the guys with courage will be doing the opposite and gambling with the lower prices. They may lose all, but then, they may become jillionaires.
in today's complex economic society, we will be thrown back to the 1800's...it will not be pretty...we are already economically beyond the point of avoiding a collapse..the only unknown is the timing of the collapse...prepare now and be ready to survive...