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06/01/2012

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John D

This look at the US economy sort of ties into my thoughts on what in the end will trigger our collapse. With the unemployment news, markets are tanking, oil is down 3%, DJIA down 2%.

I have a goal to run a marathon this year, and I am always up against 'weak links'- either my heel, my shin, knee, hamstring, etc. I can't run more than my weakest link allows me to. I look at society and see a lot of potential weak links- oil, water, phosphate, complexity, population growth, oceans dying, etc. What is going to be the one that triggers the acceleration to the end game?

My belief is that the weak link will turn out to be fear and panic. Once these two start to gel, we will see runs on banks ( as in Spain), hoarding of goods, calls for idiotic short term solutions by idiot politicians. This can turn into the death spiral for our complex economy. In the end it may not be the actual resource and environmental destruction, but the fear panic in the loss of the dream of perpetual growth.

Ben

Christine Lagarde was asked by David Wessel to describe the global economy in one word. Christine responded by answering unstable, highly unstable. That says it all.

Paul Buza

Great article

I can deal with adversity much better than false hope. I welcome a much needed correction or great reset rather than perpetuating false hope.

So todays news, as bad as it was, appears to be a step in the right direction. Maybe this will wake people up and lead to real change?!

Mike Roberts

Saw this on the BBC:

Responding to the job figures, US President Barack Obama said there was "a lot of work to do to get to where we want to be... but we will come back stronger".

While pointing out that the manufacturing sector had been "consistently adding jobs for the first time since the 1990s" ...

http://www.bbc.co.uk/news/business-18297143

I have no idea why anyone would want to be president of the US (or anywhere else, for that matter), except that clearly Obama is deluded and actually believes that he can, single-handedly, steer the ship around the iceberg. I assume other candidates must be similarly deluded.

Mike Roberts

Just thought of checking Gallup and found that it was reporting a drop in unemployment to 8.0% (with drops in both the seasonally adjusted and unadjusted rates). Apparently, also, more underemployed people (47%) are hopeful of finding (better) work.

It seems that official and unofficial numbers can't be trusted.

Anywhere But Here Is Better

John D's comments about fear and panic are interesting. The short-termist captains of titanic market manipulation have since time immemorial been using artificially generated fear and panic (duly disseminated by their shabby cronies at News Corp inter alia) to profit from the constant instability that denotes capitalism in its death throes.

The mechanism: encourage sheep to buy stocks at inflated prices via 'upturn' pronouncements, then incite the same sheep to go to slaughter (sell at a loss) after collapsing the market using fear stories. Repeat until the grave.

When 'real' fear and panic break out, it will be interesting where the mobs head first. So many targets, so little time.

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