Guys (and any gals?)... you must admit, we are watching a slow (super slow) train wreck.
I was happy Obama won, as this will be four more years of kick the can down the road. The conservatives in power across the US would have caused the 'armageddon' to start very soon. I mean to just say 'we will balance the budget by reducing taxes and cutting entitlements' - then see what would have happened.
Austerity will not obvisously work. If the entire world goes to austerity we have GFC2 PLUS followed by a real drama.
The only way out (in my mind) is to keep on the money printing road and con the middle and small man. Get everyone expecting lower living standards and no hope. Then the rich and govts just cream off the top and continue as always.
So in 20 or 30 years you will have all but the rich eating mince (never steak) and just living week by week for food. And expecting that.
Heck, even me just returned from a couple of weeks in a poor country saving money for some dental work. Overseas in a poor country I can get 1970s dental work for a few hundred dollars or I can get my dental work in Australia ala 2012 for a few thousand.
My point. Even in Australia people do not expect good dental care. It cannot be afforded. What is weird is that in the 1960s and 70s I, as a teenager, could save my pocket money, and go to the dentist for a filling. Now in Australia I have less money to spend on such as a full time worker.
My point is that even I expect a falling of living standards. I expect worse dental and medical treatment (dollar for dollar) than I got as a young man in America in the 1960s and 70s.
This is a prime simple example of the small, middle man getting screwed whilst the top take the cream. Eventually, the middle, small man will be back working under the same expectations of a couple hundred years ago.
Honestly, when, in Australia, was it almost impossible to buy a house. Young people BOTH work and and sell their souls for 30 years to have what Aussies in the 1950s could have on ONE family income. So... it is obvious the expectations of the small, middle man are now LESS in Australia (re housing) than in the 1950s.
Now a book could be written about how the small guy is being screwed year by year into lower expectations. And how the uppper (and govts) are simply plundering them. Think of the 'moral entitlements' of public servants. They know 'no matter what' they will be paid and increase their salary just because the small, middle man will pay (more tax) or the govt will borrow/print more money.
The only way to survive that next 20 years is for a slow, slow reset. One where currencies are devalued more and more and more. And the small guy is squeezed more and more (but so slowly he does not complain).
Through all this, since their is no alternative to fiat currencies, except for gold, I consider the price of gold will continue to increase. I dont really care how fast. I fear Timber's deflation. When (if) it hits the fan the world will stink to high heaven.
My hope is the stuff will continue to hit the fan so slowly that nobody will notice. Then in 20 or 30 years somebody may say 'hey, I think it stinks around here'. But 99% will just say 'nah, it has always been like this' - we all rent where we live and we pray we dont need to go to the doctor or dentist - but we are happy... meatloaf a couple times a week and watching the footy is all we need to stay happy'
This will need to happen VERY SLOWLY. Because most of us on here are in the way of the fan. And we will all be in the poo if it blows up. Just think... slowly, slowly.
