- Personal Finance»
- Understanding Finance
The Economic Tsunami Is Coming. Are You Prepared?
You're enjoying a bright sunny tropical paradise morning sunning yourself on the beach at Kata Noi, Thailand, where you've wisely chosen to spend your Christmas Holidays, 2004. You're sipping your cold fruit drink under the swaying palms and thorougly loving the ambiance.
Aaaah... Isn't this great? You'd better believe it!
What you don't know is that a 9.3 subduction earthquake has just hit the west coast of Sumatra, Indonesia in what will come to be known as the Great Sumatra-Andaman earthquake and will generate a devastating tsunami to be known as the Asian Tsunami or the Boxing Day Tsunami. Almost 230,000 people in eleven countries will be dead in the next few hours as the tsunami inundates coastal communities with waves up to 100 feet high.
Oh, and by the way... that total will include you too. However, you can't be blamed for it as you are blissfully unaware. Even if you did catch a phrase or two from the radio bulletin on the speakers in the palm fronded bar a couple of hundred feet away, it just mentioned that there had been an earthquake in faraway Indonesia, no word whatsoever about a tsunami or any form of local warning. By the time that you realize that anything strange is happening will be too late. Bye! You're checking out. Hope you enjoyed life!
Although you are most likely reading this on a computer in the USA, Canada, UK, Australia, or maybe even India and not on a Thai beach about to be hit by a killer tsunami wave, you unfortunately may be in pretty well the same situation that South Asia beach vacationers were about four years ago. You're going about your day, completely unaware that something just happened very far away that is about to inundate you, and may very well wipe out everything you've ever known.
This tsunami is not a giant wave of water triggered by an undersea earthquake. Instead it is a giant wave of economic destruction triggered by a handful of ridiculously greedy financiers who gambled the welfare of the entire planet on qualifying minimum wage couples for half million dollar mortgages that they could not pay off if they lived to be 200 years old. The actual payoff did not even enter into the equation since these criminal economic genocidal maniacs brainwashed themselves and their prey into believing that residential prices would increase 10% or 20% or 30% per year for eternity so the mortgage they were signing up for would soon be a mere pittance as compared to the ever swelling value of their property.
The basic math that a meager one bedroom condo in a mid sized city would soon cost millions of dollars seemed to escape these financial wizards, and they continued to bamboozle naïve, innocent (and let's say it... downright stupid) potential homeowners into not reading the fine print and locking them into adjustable rate mortgages which in a couple of years would skyrocket from $1,000 a month to $6,000, with absolutely no regard to the inescapable fact that the couple's low paying jobs at Mervyn's and Circuit City couldn't possibly ever service that debt, let alone when their companies went bankrupt!
For the first time in memory, December retail sales were lower than November's which meant that for retailers all over the developed world who look forward to a Christmas buying boost to stay out of red ink, this was the first year without a Christmas. 80% of leading economists recently polled stated that the stimulus plan just signed into law by the Obama Administration will contribute a maximum of a single percentage point of boost to the economy, which is roughly equivalent to the lift that would be provided by sticking your arms out the window of a car that is falling off a cliff and flapping them madly. The U.S. economy is set to shrink by five percent in the first three months of this year and no one can really tell what's going to happen after that. Beyond here lie dragons.
In many of my economic Hubs I have been preaching the gospel of preparation and I am astonished that in my everyday contacts with regular working people, I find them sunning themselves on the economic beach completely oblivious to the wave that is about to wash them away. They always figure that a stimulus package or a bailout or a miracle by the mysterious magical savior Saint Obama will make all the bad news go away and return the world to the way it was before, when we could all ring up our credit cards on a decades long shopping spree, gleefully expecting that our country's ever-rising fortunes would allow us to pay the bill without a wince.
Unfortunately those days are gone and likely never to return. After half a century of barraging me to get a card, American Express is paying its cardholders $300 just to rip up their cards. If that is not an indication that the party is over, I don't know what is.
People of the HubWorld: Listen carefully to the words of the Prophet Hal who has come out of the Canadian wilderness to preach the economic eschatological prophecy! While the world still has a semblance of working order and organization, make immediate preparations to save yourself and your loved ones from the tsunami which has already been triggered and is making its way towards your little stretch of beach. No power on earth can stop this devastating wave, and although right now you might look around you and not see the tangible effects of this upcoming devastation, it's methodically making its way to you and when it finally does hit, you will stand no chance.
Flee to the economic high ground now. Create a living situation that is sustainable, protected, defensible and pared down to the bone. Don't expect your paycheck to keep coming, nor for your hoarded cash to be able to buy anything you need once the wave hits. Be prepared, prepared, prepared, prepared! Protect yourself and your family from the unimaginable chaos that is about to devastate the world. Don't wait. Act today! Before it is too late.
Hal has spoken. Let those that have ears listen to the words of the Hal!