The distinct danger of being naive
Don’t assume it’ll all be OK or that you alone will be able to evade the consequences of collapse.
The writer and commentator Charles Hugh Smith is known for his discussions on global economic trends, the decline of the middle class, and the future of economies around the world.
In a post yesterday, he presented a somber forecast of what he says is “the most likely trajectory of the global financial system, based on history and the dynamics of human systems.”
He describes the unsustainable expansion of credit, which has far outpaced real production and consumption and has been supported by inflated asset price bubbles that will inevitably burst.
Most importantly, Smith warns against the naively optimistic idea that it’s possible to completely evade the consequences of economic collapse by holding hard money assets or offshoring wealth. He argues that emergency measures and increased surveillance will likely thwart such attempts.
As the bottom 99.5% feel the squeeze, their rage at those at the top not paying their fair share will rise exponentially, and the political pressure on authorities to go after the hyper-wealthy will become too intense to ignore. Many of those trying to save the system will have already had enough of coddled billionaires, bankers and financier grifters.
Another conviction that will be revealed as naive is the faith that the rules will stay unchanged, allowing us to hoard our stash and emerge unscathed to scoop up the bargains offered by the less prescient. History is again rather definitive: the rules will change overnight, and continue changing, as needed. One “emergency measure” after another will be imposed and become normalized.
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