The nature of this rebellion is what I originally tried to get on to.
If as many economists are predicting - that the current situation will be financially equivalent of magnitude and depth as the 1930's.
I am predicting, since academics always err towards optimism that the situation will be politically and financially even deeper than the 1930's - and it is no surprise that the westernized economies and governments are busting there guts out to patch it up.
- If they borrow - they need to tax more or put it on finance - so they reduce debt by increasing other debt so all they do is default on payment to a later date - which makes the next visit even more painful, and transfers power to those that lend it - i.e. China.
- If they cut interest rates - they increase the inflationary burden and devalue the currency.
- If they print more money - they increase the inflationary burden and devalue the currency.
So, although our politicians are waving wands at the moment with $x trillion here, $x trillion there in reality there is no magic solution other than we simply need to reduce our exposure to debt, and this is what will happen - and indirectly or not, it will be taken from each individual somehow.
In the 1930's this elastic expansion (Actual Wealth/Debt) of our economies was quite modest by todays standards and the elastic relaxed to its original state and the political institution recovered.
In Germany this elastic expansion was more elongated since the Debt raion was exacerbated by repayments from the "Great War" under the treaty of versailles and its actual wealth was reduced since it no longer had a </ST1
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functioning defence structure (Army).
In Russia in 1916/7 the elastic expansion again was stretched too far mainly by ineffiecient Tsarist Nicholas II leadership so that (Actual Wealth/Debt) of the people and society could not cope.
The outcome is that the elastic snapped and the state could not reform - resulting in change of state - as I previously examined in my previous post.
This was Democracy to more Authoritarian rule via the Anarchic rebellion and riots.
We need to ask, one impotant question, and maybe you need to be crazy to even contemplate it - Will our economies and state survive this one given the actual wealth vs debt ratio is nothing by comparison to the 1930's.
The financial analysis of this is now deeper than previously thought -
But, worse politically the nature of government and people during the 1930's would have been more adequate in dealing with this than now.
Today we have institutions where all decisions are made without any serious consideration, power less dispersed and in the hands of inexperience and corruption - and is less popular with the people since records began.
Then you have the people, which have lost the majority of principles regarding respect, common loyality, society and altruistic community to greed, selfishness and immaturity.
Do you think they are going to stand in mile long queues for 8 hours to recieve there pittance of a benefit like our grandfathers?
And, just when you thought it could not get any worse - what will happen to racial/cultural harmony in our less culturally homogeneous towns and cities?
If historical accounts can be a measure of human direction in the coming months - the future looks bleak - and this is an inference I do not make lightly - the only way out from this situation will be a F****** bloodbath - ultimately a change of state.<O
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