Part 2 of 3
There are those who believe that the economic collapse of the United States is impossible. But then there were those who thought the Soviet Union couldn’t collapse either, or the Roman Empire for that matter.
History is full of examples of how once powerful nations fell victim to the hand of greed, over taxation and inequality, and were, in the process, never able to recover to their former glory. How can America be so arrogant as to think that it is exempt from suffering the consequences of its profound financial errors?
Dmitry Orlov, a Russian engineer, chronicled his first-hand experience in observing the fall of the Soviet Union. He summarized it as “The 5 Stages of Economic Collapse.”
1-Financial Collapse
2-Commercial Collapse
3-Political Collapse
4-Social Collapse
5-Cultural Collapse
In his study, Orlov writes, “If the US government has to lend banks over 200 billion dollars a day just to keep the whole system from imploding, then the term "crisis" probably doesn't do justice to the situation. “
“To keep this game going, the US government has to be able to sell the debt it is taking on, and what do you think the chances are that the world at large will be snapping up trillions of dollars of new debt, knowing that it is being used to prop up a shrinking economy?“
“If the debt can't be sold, then it has to be monetized, by printing money. And that will trigger hyperinflation. So, let's not quibble, and let us call what's happening what it looks like: "financial collapse.”
While the daily lives of some people were not effected by the implosion of our financial system in 2008, there are many more who have felt its effect deeply. While millions of Americans headed for the unemployment line, millions more now live under the shadow of foreclosure.
”You will know that (collapse) has happened to you personally, or to your family, or to your town,” Orlov said.
In pockets of America, like Michigan, Florida and California, where unemployment and foreclosure rates are among the highest in history, there is no doubt that Stage 1 has been met with cold, hard reality.
Many, including Orlov are “quite convinced that nothing short of a profound cultural transformation will allow any significant number of us to keep roofs over our heads, and food on our tables.”
Right now, no one can say for sure exactly what the long term repercussions of the government bail out of our financial system will be down the road. However, it is widely believed that there will indeed be significant effects that will be felt by an enormous number of people, for many years to come.
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