DUMPies are Destitute Unprepared Mature People who had “confidence in the system” and who were “sure everything would work out all right.” They were the last people who purchased tickets on the Titanic; however, they discovered too late that their faith was in the wrong place.
My view of the immediate future is one of gloom but long-term it is glory! However, we must live in the here and now, and we would be wise to plan for “hard times” because hard times are coming according to unbiased experts.
Recently, David Walker, Comptroller General of the US (America’s top inspector) compared the U.S. to the Roman Empire and said that our government is standing on a burning platform! He said, “With the looming retirement of baby boomers, spiraling healthcare costs, plummeting savings rates and increasing reliance on foreign lenders, we face unprecedented fiscal risks.” However, Americans yawn and get more engrossed with sports, hobbies, game shows, sitcoms, etc. They hum, “Let the Good Times Roll” while the ship of state lists to the starboard.
The Bank of International Settlements (BIS) warned in June of this year “the global economy could be on the brink of a major depression similar to the one that passed in the 1930s.”
The financial “experts” (those talking heads who never told people to sell before the dot.com crash or warned of the popping of the real estate bubble) always put a positive spin on every negative problem. Every downturn is always a “buying opportunity.” However, when you look at the unemployment figures, plunging real estate values, consumer spending, manufacturing, savings, bankruptcies (personal and corporate), credit-card debt and loan defaults, it is obvious that the nation’s economy is in deep trouble.
Remember that not one famous Wall Street financial oracle told us to SELL before the market started sliding. No, the brokers always tell us to "buy on the dips” They are called "brokers" because if you deal with them very much you will be broke! None of the Wall Street hot shots or television pundits told us to sell Enron even as close as a couple of weeks before it sank! As the ship was going down, it was time to buy more shares of the Titanic!
Those of us not trained in economics can understand a simple fact: when falling income and rising debt converge on the same family or business, the result is financial disaster. We are at that juncture today, even a Harvard professor knows we are speeding swiftly into a major depression! Yet the wise guys on Wall Street and media pundits tell us "the fundamentals are strong" as American Home Mortgage went broke recently putting 7,000 people of out work and today it was reported that the largest mortgage lender in the U.S. is in deep trouble and has to borrow money to stay afloat!
I expect many large corporations, banks, S & Ls, and insurance companies to go belly up. If one has money, he should diversify. In fact, rather than have savings or CDs in banks, I would have some in Swiss annuities. Often the very wealthy are greedy but they are not stupid. They send their wealth outside the states before the blood flows in the street—Wall Street, that is. However, I don’t believe there is much safety anywhere.
Our problems are not exclusively American. Japan has been sinking into recession for many years after many of their high dollar U.S. investments went south a few years ago. You may remember that Japan walked away from their investment in Rockefeller Plaza and others.
Japan’s economy is one of the strongest in the world with the second best (after the U.S.) GNP and the worst debt and pension crises of any advanced economy. They are the lender to the world—the source of 60% of the world’s loans. Where will the money come from when Japan dries up like an old Jersey cow? It is impossible for Japan to continue on its present course.
Mexico has problems in at least 14 states besides Chiapas. Two political assassinations and about 200 extortion kidnappings have not helped stabilize the nation where the peso was devalued in 1994. The U.S. bail out was too little too late. I expect massive bankruptcies, social unrest, assassinations, political corruption, and general turmoil. Moreover, it is folly to think it will not cross the Rio Grande since everything else has!
Putin may lose control of Russia and a new “strong man” may appear who will try to reconstruct some of their losses after Communism’s collapse. I see many more problems between Russia and former members of the Soviet Union. Many of the “republics” have “former” Communists in the driver’s seat, and they can’t drive since they always turn left! In addition, the Russian mafia is almost running the nation. It is sure running many of the banks. Bribery, political corruption, and intimidation are widespread. Not only could the economy collapse, but anarchy could also be their future.
Of course, there are massive problems in France, England, Germany, etc. The dark cloud covers most of the world indicating a storm is coming. Make reasonable preparations, and lash yourself to the Mast. Finally, be of good cheer for the Son is above the storm!
I am suggesting that the party is over. Off stage, the fat lady is clearing her throat. Difficult days are ahead for all of us especially for DUMPies. It is time to save, cut back, make do, do without, plant a garden, fill a large pantry with food and water, and buy some gold and silver. Abraham did!
Copyright 2007, Don Boys, Ph.D.
Dr. Don Boys is a former member of the Indiana House of Representatives, author of 13 books, frequent guest on television and radio talk shows, and wrote columns for USA Today for 8 years His most recent book is ISLAM: America's Trojan Horse! His websites are www.cstnews.com and www.Muslimfact.com.