I'm lovin' me my Glenn Beck. Yeah...sometimes he's a little over-the-top, and he certainly has got a Howard Beale vibe going on, but the guy is making scary sense.
So, yeah...I admit it...there's a lot of video here to watch....but do watch it. We're headed into totally uncharted waters.
I owe my h/t to Karl Denninger at market-ticker.org for these three videos. I read him all the time because he scares me worse than Stephen King.
Now let me add my amateur-economist's analysis to a point Beck touches on at 8:15 or so of the last video.
With words to this effect, Beck asks if the other countries in the world aren't going to be in the same sinking boat that we find ourselves in. I think he's exactly right, and underestimates this point. Take a look at yet another video.....
Yes...its al Jazerra....and there is a point to be made there too. But discounting that for the moment, this story illustrates the problem that China faces too.
For the last 30 years, China has been trying to get their peasant Third-World country into the First-World. To do this, they have kept their currency artificially devalued, so as to facilitate the export of the products that they make. What they're most concerned with is jobs...not the products of those jobs. They're quite content to spend money on cities that no one will live in because they need to keep the construction jobs (read: "economic activity") going.
We're not seeing this reported on any of the American (or Western) media because we're beholden to the debt that China holds. al Jazerra, in essence, the media organ of the Arab OPEC states, has a different set of priorities. They can report the Chinese problems in a candor that Western media cannot. However, the OPEC states are not without their own problems. Absent their oil, they have almost no industry. Their people are not far removed from living in the desert, and many are illiterate. They have few skills, and have to import white-collar and blue-collar labor to give them what they now have. They can operate what are in effect, massive welfare states because they are able to poke holes into the ground and pump out the wealth that supports it.
And here's where my fears are headed.....
All wars are economic.
China can't keep inflating their "production bubble".
And since the world runs on oil, the OPEC states will grind to a halt. (Not to mention the crazy-mad religious motivations that they have.).
These three groups all want to keep things going when we can't keep things going. And something's gotta give. Who'll give first?