This article was written by Brandon Smith and originally published at Birch Gold Group
In light of the recent resurgence of inflation on top of increasingly rigged employments stats, declining manufacturing and stagnant wages I think it’s important to revisit a fundamental question: What does an economic collapse look like?
As I have said for years an economic collapse is NOT an event, it’s a process. When people think of a historic crisis they usually imagine something like the stock market crash of 1929 at the beginning of the Great Depression. However, there were numerous indicators and warning signs leading up to that crash that should have tipped people off. There were even a handful of economists that voiced concerns about impending instability, yet they were ignored.
Then, after the crash occurred numerous establishment economists denied that the system was in any real danger. They continually claimed that recovery was “right around the corner”, but the recovery never materialized. Instead, the crash spiraled onward for over a decade until world war erupted, largely because the Federal Reserve raised interest rates into economic weakness (a disaster they have openly admitted to causing and a policy they are instituting right now).
The point is, the mainstream “experts” are almost always wrong. The skeptics of collapse either ignore the evidence or they don’t comprehend the implications of events. They don’t want to believe that the economy is broken and that consequences are possible. They operate from the limited view of their own personal experience. For most of their lives the system has functioned without catastrophe so that must mean catastrophe is impossible. In truth, catastrophe has merely been deferred to a later date, not prevented.
Our present day predicament has not reached Great Depression levels yet. We are currently in a stagflationary phase similar to what happened in the 1970s. For those that think we have it bad now, the 70s were actually far worse.
House prices nearly TRIPLED from 1970 to 1980 (the median house price was $17,000 in 1970 compared to almost $50,000 in 1980). Annual inflation on most goods and services was in the double digits and the minimum wage was only $1.45 an hour. Unemployment was high and interest rates were eventually hiked to around 20% by 1981.
The point is that these breakdowns in financial structures happen slowly, and then all at once. Much like the build up of an avalanche. For those that know history the signs are easy to see. For those that don’t, they’ll assume that all is well even when the house is burning down around them.
Another factor that makes people oblivious to the danger is the moving of goalposts; they get used to poor economic conditions and the decline is entrenched as the “new normal.” For example, in 2015 the average house rental was $1100. Less than ten years later the average cost is $2150; that’s double the financial burden. But today this price is considered par for the course.
Nothing gets better, the situation only ever gets worse, but since it happens over a period of many years (the process of collapse) the public largely accepts it and will even accuse those of us sounding the alarm of “doom mongering.”
As with any collapse there eventually comes a point of popular intolerance – That moment where people finally realize that the “doom mongers” were right all along and that the weight of the implosion is too much to refute. I believe we’re approaching that moment very quickly. In the meantime. Here are the five stages of denial that people go through before they admit that a fiscal calamity is upon them…
Stage 1: “I Don’t Know What The Conspiracy Theorists Are Talking About – I’m Doing Fine”
There’s an old saying from the Great Depression that goes something like this: “It’s only a depression for the people without jobs.”
If you weren’t a part of the 30% unemployed in the US at that time, then in your narrow world the Great Depression might not have seemed all that bad. In other words, people will ignore the sinking of the Titanic as long as they still have their own lifeboat.
I will say that this is a major problem in the midst of the stagflation crisis today, and it’s the root of what many Zennials are complaining about. In their minds, this is the worst economy in history of the world and they blame “boomers” for their pain. It’s really not (at least not yet), but it’s true that many “boomers” are going into the crisis with the advantage of time. They have had the time to build a lifeboat while Zennials have not.
It’s not about what’s fair, there’s no such thing as “fair” in economics. But older Americans need to realize that even if stagflation is not a crisis for them personally, it is indeed a crisis for younger people in particular. Any person still denying the reality of the collapse because “they’re doing fine” needs to shut up and take stock of the bigger picture.
Stage 2: “They’ve Been Talking About Collapse For Years And We’re Still Here”
A lot of people out there have childish notions of what a collapse is, mostly derived from Hollywood films and television. They imagine stock market mayhem, endless soup lines, mass starvation and even Mad Max-style destruction. When these kinds of things do happen it’s always at the END of the collapse process, not at the beginning. The former nation of Yugoslavia suffered through multiple inflation events before it finally exploded with balkanization and war. It didn’t happen overnight, but all the signs were there.
When analysts predict these events years ahead of time they are doing you a favor; they are giving you ample time to prepare. Unlike the banking elites and their proxies who only warn the public right before (or right after) the crisis hits a peak.
Believe it or not I still see deniers arguing that all is well today, even after massive stagflation, attempted nationwide medical tyranny, multiple regional wars around the globe that could trigger WWIII, constant civil unrest, etc. Is the threat of imminent death the only thing that will wake these people up to reality?
Stage 3: “Maybe Things Are Bad Now But The Crisis Is Transitory, It Will Be Over Soon”
This is the stage in which deniers finally accept that there is indeed some instability, but they cope with the issue by claiming the storm will quickly pass and there’s nothing to worry about. The thing is, they spent so much time trying to debunk the economists that were warning them they now fear being proven wrong more than they fear the crisis ahead. It’s a kind of mental sickness common to our culture – The absolute refusal of a large percentage of Americans to admit being wrong and moving on.
It’s okay to be wrong sometimes. It’s not okay to be in denial about it.
The claim that a collapse is “transitory” is a way for skeptics overwhelmed by facts and evidence to continue dismissing reality. If the economic decline doesn’t last very long then they never have to concede defeat to the “conspiracy theorists.”
Stage 4: “No One Saw The Crisis Coming”
I saw this argument thousands of times during the pandemic lockdowns and the initial inflation spike. There were so many people raging about the circumstances and a lot of them were the types of people that used to deny that anything out of the ordinary was going on. They started looking for scapegoats and they came up with the idea that there was no early warning.
If only someone had given them some kind of hint of what was about to happen, they would have prepared better, right?
The media and government officials tend to play into this stage of denial aggressively. In other words, this is the moment they assert that “No one saw this coming.” The event struck like lightning out of the blue. No one could have foreseen this outcome and there’s nothing anyone could have done about it.
Whenever I hear these arguments I’m reminded of the movie trend in the early 2000s of global disaster flicks. There’s always those scenes where the asteroid or the ocean wave or the tornado hits and we see thousands of people scurrying like ants, only to be crushed by a godlike force that they had no power to defend against. I never liked those movies, but I recognize that they play into a hidden element of fatalism in the human mind.
There is a strange mechanism in some people’s thinking that wants to believe they have no power to change their circumstances. They feel better assuming that the tides of fate are beyond their control and that there’s nothing they could have done differently. In reality, all they had to do was listen and think critically and they could have prepared accordingly. Their pain is the result of their own ignorance and ego.
Stage 5: “Everyone Saw The Crisis Coming”
Ah yes, the final stage of denial. This one is my favorite. It is the inevitable moment when skeptics fully concede that the economic collapse is a fact of life and then they claim they “saw it coming all along.” The inability for these people to admit they were wrong debases their ability to make informed decisions about the future.
They know a crisis is upon them and they’ll now pretend as if they knew it was going to happen. Therefore, all the “conspiracy theorists” that tried to warn them are not special or better informed than they are.
Of course, you’ll never see any evidence of these skeptics (and many mainstream economists) actually predicting anything. You will see them predicting the opposite and attacking anyone that suggest they might be wrong. One wonders why it’s so important for them to avoid giving credit where credit is due and learning from their mistakes, but when a person’s identity is so wrapped up in being the “expert,” the idea of completely fumbling the ball on the biggest economic disaster of their lifetime is too much to bear.
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How very true this is .A good example is my own wife.For many years I’ve been Preparing for this very time, but each time I did something to get ready I was met with her complaining about unneeded spending of our doomed ink and paper “money”. Thanks to your articles and also thanks to Alex and his Infowars,Steve Quayle,Mike Adams,DR.Bryan Ardis,and many others that put out the word on what’s happening and what’s going to happen,I have been ready as I possibly can be.Also no so called vaccine and no C19.Thanks to all!—She now sees whats going on when she grocery shops.
Warning the unaware, is often like feeding the unhungry – they won’t welcome it. Just yesterday, my wife’s aunt asked me about children and screentime, and when I spoke about LED screens and cell phone radiation, I got a discreet nudge, to hush.
To try to wake folk up, is to risk sounding far out, to them. Perhaps a better approach, is to answer only what is asked, then spoon-feed them, that which provokes further thought. You plant the seeds, then let time and the recipient, do their parts. Not deeply searching, not yet ready to receive.
Ask, and it shall be given to you. Seek, and ye shall find. Knock, and the door shall be opened to you. – Yeshua
Hey Brandon, very true and I agree. Changing the subject a bit, I haven’t seen any update so I’m wondering when we should be getting our copies of the comic book once it’s finished.
Yes, the comic is finished. The problem we ran into was the printing – The costs are high unless I order a much larger number of books than expected. So I had to wait a little while until I could get the funds together to make that order (the crowdfunding only covered 30% of the cost). I should have a more definitive answer on shipments by July but it looks like I’ll be able to print soon.
Gaunt, I was wondering too. :).
If you doubt the collapse, just do a little traveling and look for the tent cities. It’s not just men standing beside a tent, an old RV camper or a shopping cart with an sign anymore. It’s women now. Lots of women walking back and forth on bridges and overpasses. And no, I don’t believe from the way they are dressed that they are looking for street business, although if they were attractive enough, they would probably jump at the chance. They are completely destitute and hopeless. Many don’t even have a poor begging man that will let them live in his tent with him anymore. Our whole society overplayed its hand and many lost everything when the debt collectors came. Far more are on the edge and are just about to do the same thing.
I do agree the signs are all around us.
A significant increase in second homes/VRBO rentals have gone up for sale here in vacation land CO.
Other signs:
Can’t find help.
Parts and services are junk.
Shrinkflation, inflation .
Increased regulations, compliance ordinances, taxes without return of goods/services .
I shan’t go on because we all see it and preaching to the choir has gotten old.
“… an economic collapse is NOT an event, it’s a process… stages of denial that people go through before they admit that a fiscal calamity is upon them…”.
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And the very first event of this long process of economic disintegration is what in fact set up the inevitable collapse of the entire economic house-of-cards in the very beginning. It’s ‘First Cause’… to use an old theological term.
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United States Incorporated has survived up until now – over one-hundred years since the pivotal and tragic year of 1913 — on one thing: conjured, fake currency. Made-up ‘money’ extracted out of thin air. Monopoly Money that the World treats as something real and of value.
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It’s been one long amazing magic trick. But that’s the thing. It is – and always was – nothing but a magic trick. A mind and shell game to convince people that when you use this papered ink or empty digital digits you can buy real goods and receive actual services from others. And this has probably been the single most successful magic trick in all of human history.
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But some might also call this a cynical Dark Magic trick. To base one’s economic life on a valueless product that relies on mass consciousness delusion to make it work. To make it work because you con people into thinking it CAN work. To treat something that is NOT real, AS real. And doing that also debased all of Reality itself.
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US Incorporated could not have made it this far without this Magic Trick. US Inc cannot survive today for one nan-second if everything had to be paid for with something real. There just is not enough real stuff like precious metals or other things of real value to conduct business or to sustain an economy of hundreds of millions of people.
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So the final event of the process of economic collapse is then the spell loses its power. When the fake currency is no longer accepted as having worth. When you can no longer acquire goods or services with it. In short, the end of the Magic Trick Line. When people just don’t fall for it any more.
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But the Powers-That-Be like where They sit today… looking way down at all the rest of We the People. They employ creative thinkers who game-theory stuff out so They can always stay five steps ahead of us. And that means that They no doubt have planned for this collapse day and for Them to remain on the Mountain Top and leading all the rest of us by the nose as always.
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And what will that plan be? More phony tricks like Digital Currency? No currency at all? – where Daddy Government does own everything and we are supposed to ‘like that’.
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Who knows what kind of nonsense They will spring on us. But one thing you can count on:
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It will be just another Dark Magic Trick. One that They hope that we’ll all fall for – again.
I take about the same approach as “Beewolf.” I just relay what I actually see, and let the people I tell parse the info and heed or ignore at will. For instance; I cross the same railroad crossing every workday, at the same time every day. The eastbound freight comes through at roughly that time as well. I get stopped by that train two or three times a week. All of a sudden, when I’m getting stopped by that train maybe twice a month, and the rail signals aren’t showing anything coming (all signal lights out), I know something’s up. That’s the info I put out. Whether those I tell do anything with it is up to them.
All I know is:
-For the first time ever, my monthly grocery bill has exceeded my monthly mortgage payment, and we’re eating LESS of EVERYTHING.
-Gasoline is STILL roughly double what it was in 2020.
-ALL of my utilities have gone up, with my electric bill up almost 60% since 2020. “Thanks,” Gavin Newsom!
-I can’t afford what I could in 2020, and I’m making somewhat more than I did in 2020.
-The “value” of my house has increased by OVER ONE HUNDRED PERCENT in the last nine years. NO ONE with an average income can afford a house now, and RENT is even WORSE!
Watching the economy is like monitoring a crack in the plaster in your house. If you plaster over it and it doesn’t reappear, all is well; normal settling. If you plaster over it and it reappears soon after, there’s something wrong with the foundation. Of course, you have to bother to acknowledge the crack is there, and you have to bother to plaster it up to know what’s happening. Unfortunately, most folk don’t even see the wall…
Brandon, have you seen this? If true, this is Huge!
https://www.bizcommunity.com/article/saudi-arabias-petro-dollar-exit-a-global-finance-paradigm-shift-670911a
I see the content wss removed from the last post on petrol dollar. Try this one.
https://www.msn.com/en-za/news/other/saudi-arabia-s-petro-dollar-exit-a-global-finance-paradigm-shift/ar-BB1nYFLK?ocid=BingNewsSerp
For those who know, nothing needs to be explained.
For those who want to know, explain themselves.
For those who do not know, no explanation is adequate.
For those who don’t want to know, declare you a fool.
Greetings from the Netherlands
Like it!
Gonna save it.
Gotheart.
USA Ca.