There is a complete disconnect between the economy (business), and stock markets. It is a worldwide phenomenon.
The world economy was dealt a death blow by the closing down of businesses, supposedly because of a virus. In truth, the economy was already on its last legs – over-regulated to the point of grinding to a halt. The stock market is booming because of the flood of pseudo-money pouring forth from nations’ central banks – c$120b (yes, billion) per month in the US alone.
Many young people are full-time investors in the stock market or in ‘crypto currencies’ – ‘money’ that is even more make-believe than fiat. They have never done a meaningful day’s work in their lives; often because there is no work available. What does it matter – work and economies are so old hat?
There is confidence that the monstrously large world debt can continue growing forever. It cannot.
“If something cannot go on forever, it will stop.” Herbert Stein
But when will it stop?
That cannot be answered at this stage, but, like the US military collapse in Afghanistan, it will come out of the blue and be all over in days.
The pain will be immense. In N.S.W., Australia, police have already been augmented by the military. Martial Law was allowed in the back door by an ignorant public and an indifferent media
The collapse of stock markets will forcibly pull away the masks that most mistakenly had placed over their eyes and ears instead of their mouth and nose. The collapse of the residual facade of the real economy will follow immediately. Supply lines will grind to a halt and all those goods that people assumed would always be on supermarket shelves will be gone – in most cases, forever.
The banks will collapse, along with the debt and the bank notes that represented that debt, but which people believed were money. The most shocking collapse will be of governments, along with their welfare and pension promises.
You must have a large stock of dried food and a secure supply of water.
Ideally, you must also hold some silver in small denominations.
If you are a long way from home, get ready for a long walk.
One’s ability and willingness to adapt to change determines success or failure in life. Without change there is no life. Usually the change is gradual, incremental and easily adapted to. Sometimes it is sudden and dramatic and not easy to adapt to (death of a loved one). Sometimes it is so dramatic that people cannot adapt – or cope. Brace yourselves.