muses of the moment

June 21, 2012

Some things groovygirl knows for sure

Totallygroovygirl doesn’t know a lot. She doesn’t know exactly what will happen, how bad it will be, and the exact timing in this current Economic Crisis. She blogs about the most plausible scenarios and worse-case scenarios for your own review.

But she does know some things for sure. First and foremost, this is a paradigm shift.

  • Gold has a long cycle where it is undervalued and then overvalued. This is usually in relation to the purchasing value of the currency that it is valued in, but not always. We are in an uptrend of gold (and silver) in that cycle. The inflation-adjusted price of gold right now would be around $8000 per oz. So, we are nowhere near the top of the overvalued portion of this long cycle.
  • Global debt is imploding and every government’s reaction is to print more money, create more credit. The global economy can not support the debt that currently exists, that is why it is imploding. So, it can not support more debt. We can not grow out of this crisis by more debt.
  • Because the declining economy can not support new debt and credit, they will become more expensive or unattainable or both.This will suppress any economic recovery.
  • The global economy is contracting and will continue to contract until the global debt issue is resolved, meaning the underlying economy can support the amount of debt outstanding.
  • The odds of higher unemployment and lower wages moving forward into the foreseeable future are higher, not lower. Have some money or extra food or both saved for when you don’t have a steady income.
  • We are not in a recovery and do not expect the government to get us into a recovery. We are past the point of no return, the debt must be dealt with first and there is no political will anywhere on the globe to make that happen.
  • Commodities and resources are becoming scarce and expensive. Raw material costs will rise and, in some cases, create resource wars.
  • Because the world is in an economic downturn brought on by a global debt crisis, there will be more, not less, political strife, government coups, and civil wars. People, from those in power to those on the street to the parasites feeding off of each, will work from a place of fear of loss, not hope and opportunity. Understand where they are coming from. In uncertain times, people fear change and want security at any cost. You will have to chose for yourself where you, personally, will work from. Opportunity is much less energy-draining.
  • Every investment and economic system that currently relies on debt will be impacted in this continuing crisis. That means everything from housing to banking to currency to government current systems will be under stress for the foreseeable future.

If you keep these things in mind as you move forward, you will not be surprised and shocked at the future. You can be prepared as much as possible based on your unique situation.

This is a paradigm shift of every level of civilization affecting every cultural group and country on the planet.

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