I dread this but by next year....
This is a discussion on This is what happens in an economic collapse, take note. within the News & Links forums, part of the General Discussion category; Scenes From Putin's Economic Meltdown - Alec Luhn - POLITICO Magazine...
I dread this but by next year....
Good thing my wife and I are already poor.
edited to add: global war will look like a good option to any of the big powers (Russia, China, US) that may be collapsing.
Last edited by rice paddy daddy; 12-22-2014 at 06:00 PM.
"There is nothing so exhilarating as to be shot at without result." Winston Churchill
"Leave the artillerymen alone, they are an obstinate lot." Napoleon
Member: VFW, American Legion, Vietnam Veterans of America, Society of the 5th Infantry Division, Sons of the American Revolution.
The spike price in oil had a much larger impact in in the recession dubbed the 'sub-prime mortgage crisis' Than it's given credit for. Oil has very inelastic demand, so the recent quarter after quarter growth of non-opec supply, prices have predictably crashed. We as a nation are producing a little more oil as suppliers and paying MUCH less as consumers, therefor the transfer of wealth is shifting away from nations like Russia, Saudi Arabia, Iran, Venezuela, and (Sorry neighbors) Canada & Mexico.
The result, assuming oil prices remain level with today's price, America's business and consumers will have a combined extra 1/3 of a TRILLION dollars to spend in 2015 that they didn't have in 2014.
The boom won't be limited to just the US, any country that depends more on Oil consumption than production will benefit, and the boom will spread.
Politically the liberal anti-business side of the US government is effectively muted for the next two years. This, combined with the decreases in oil costs, will enable businesses to make more risky and more profitable moves with their capital. What capital you ask? Business have been afraid to invest for years. US business and consumers are sitting on more cash than ever in history.
Now, the unknown, places like Russia, and the entire middle east who's economy are dependent on oil. Their future is looks bleak. OPEC is in a tough situation, cut production to bring prices back? The rest of the globe will increase production to match, effectively weaning the world off of OPEC, and crushing their single product economies. Cornered animals often strike, and history has shown us cornered nations often do the same.
Just my over-simplified take on the state of the globe in 2015.
I have said it before. If the Keystone pipeline is allowed to proceed as it damned well should, The Skunkworks at Lockheed Martin make good on their promise of a fusion reactor in 5 years and we keep reaching for the stars with Orion and the Deuterium fusion propulsion engine that is already in the testing stages come to fruition we will rule the world. The Russians have nothing to offer and China's economy will decline, it is artificially inflated anyway.
"There is a destiny that shapes our ends, Rough, hew them as we will."
LMT, at this time, appears to be a solid long-term investment. Well, it's been solid for the past 2 years, but if their confidence in Skunkworks turns out to be well placed, I would expect them to add at least an extra zero to every P&L many years from now. Beware of the short term though. 93% of their revenue comes from government contracts, so short term, you're betting on how they do with Govt contracts, and how hard they'll be hit with the large pensions owed to the baby boomers.
Disclaimer: I am not a licensed personal financial adviser.
I read the link, why are they not stocking up on food?? To hell in a hand basket, that tech gizmo won't do much for you. Guess I don't understand their culture. The last thing I would buy would be electronics. Pending monetary downfall.. jmo
Most ARE stocking up on food, don't rely on an article to give you full info.