insurance 2 of 3

SLOW COLLAPSE INSURANCE 2

We all pretty much agree that expecting Business As Usual to prevail until suddenly an overnight collapse sees you on your way four wheeling to your retreat which was under an insane amount of debt but which is now free since the bankers magically just disappeared along with the White House as Jerry Jihad nuked DC’s ass, well, that might not be the smartest prepping plan under your purview.  We have been in a slow collapse for almost fifty years, or about fifty because obviously Peak Oil and the gold window closing and the PetroDollar institution shouldn’t be considered an overnight cause of economic collapse but rather symptoms and so it is hard to pinpoint exactly when in the ‘60’s things started falling apart but I’d wager the end of the Baby Boomer era at the  beginning of 1965 might have been the first indicator since tens of millions of couples independently decided that their  personal circumstances dictated against spawning and there had to be a reason for that but it did take a few years after that for the general economic signs to manifest themselves.  It could have been something as simple as US Peak Iron Ore which occurred in the late Fifties, which might have been an early alert as the commodity copper is now.  Alas, it is all academic at this point and I think calling the beginning at 1967 might not technically be correct but it is ball park and a nice round number.

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Even if you agree with me that collapses are not Stair Step, nor are they inverted L’s but rather Waterfall in shape ( slow smooth decline until a sudden drop off the cliff ), it is still prudent to know that the best model never matches to reality completely.  We all depend on the welfare state, or the Public Safety Net if that title makes you feel better, for our emergency back-up in the economic collapse because it is difficult if not impossible to plan for both a long term of lack of welfare AND a long term after the collapse, mostly food wise.  It is hard enough to plan for five years of bare bones food, let alone five without Food Stamps and then five without oil ( twenty years food in wheat is affordable enough-the storage containers and the storage buildings for the containers are the main insurmountable costs for us po’ boys ).  We know with lack of food comes social unrest which is the last straw on the camels back once added to oil EROI collapse, economic collapse and centralization collapse.  No doubt the bitch goes up in flames once food doesn’t show up on the shelves.  But what if SOME food kept trickling in?  Enough supply disruptions occur that chaos ensues, but not enough to tip us over into anarchy.  It only takes long enough eliminating our current surplus that you’ll perhaps face the uncomfortable prospect of digging into your storage food.

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Well, of COURSE you should NEVER do this, as discussed previously, but allow me to propose a possible scenario.  I’ve previously complained that our private for profit corporations would starve us all as they sold our food to China for real wealth.  I probably based that on the doubling and tripling of food prices due to the ethanol fiasco ( prices are lowering now for basics-not processed-most likely simply due to lower demand.  You would think Mom getting unemployed the family does more home cooking rather than less, cooking from scratch, but evidently home cooking is now processed crap put in the microwave.  I could be wrong, but convenience and fast foods are going up in price and raw ingredients are going down, so there you go ).  Now I’m not so sure as it seems Chinas economy is much less sound than assumed.  But there is still huge profits to be assumed by selling to Uncle Sam.  As the recipients of Food Stamps increases, so does the sales of the major corporate conglomerates, both retail and food.  Food Stamps are welfare for the RICH, as the food growers and processors make millions, alongside big banks processing the EBT cards the bennies are stored on. 

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Wal-Mart saved a metric butt ton of money with ObamaCare, transferring employee bennies from the Walton fortune to DC.  The giant wheat growers/owners get paid handsomely through farmers aid and the corn growers make more through ethanol than sweetener ( you think the soda being sold as Retro, real sugar, is a return to concern for our health?  The cost of sugar can closely match that of corn syrup at times AND they charge you 30% more! ).  16% of ALL meals are served at McDonalds ( 40% of all meals are fast food, 40% of all fast food is Mickies ).  Corporations might, mostly, strive to sell you a cheap meal, but they make mega-bucks one nickel at a time.  The corporations investing in robots to process food cheaper need loans and the federal government needs loans to pay for Food Stamps and the central bank needs to make loans to somebody ( the public is tapped out, their credit revoked.  Gov loans or gov backed loans are where the action is now ).  It is all a cozy arrangement.

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Except.  Nothing works anymore and that is because, well, duh, we are in an accelerated collapse phase.  And, yes, I’m going to say it!  ENERGY.  That’s right bitches, energy, net energy.  I won’t say more right now.  You are so welcome.  Governments can’t even balance the budget.  Now, how hard is that?  They do a great job collecting money, yet can’t stop spending too much.  What a bunch of retards, they can’t even do one simple thing we pay them for, aligning two accounting columns.  Corporations can’t perform a simple function of selling a product at a profit.  They spend more effort cheating the customers and stock holders than offering a product.  And banks, even with FREE money they create out of thin air, can’t stop from going bankrupt.  Every level of society is incompetent and failing and it is NOT fixable ( the “e” word I can’t mention ).  So why should we assume that corporations are going to keep us fed, even as they make good money doing it?  If McDonalds can’t keep from feeding us pink slime sawdust, even with a 16% market share of the TOTAL frigging feed trough, the very epitome of the quantity manufacturing we’ve lived under for centuries, what hope that the entire industry can keep a simple logistics system functional and operating the moment the current system breaks down further?  The government can dump as many digits onto our Food Stamp cards as they desire, keeping up with hyperinflation, but we’ll still see huge disruptions in our food distribution system anyway.  We have all the gazillions we need to buy all the groceries we desire, but the food isn’t being delivered.

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When the last prop under the PetroDollar collapses, and there are so many different ways that could happen from Saudi refinery terror attack to Saudi shifting alliances to China to just one too many countries dropping the dollar as an oil purchase arrangement to Canada tar sands production disruption ( just one flood and one of their uranium mines took a big chunk out of global availability for quite a time ), we will see, instantly, inflation being exported as now to the inflation chickens coming home to roost.  It might not be hyper, but it will be at least higher, inflation.  And suddenly our entire economy sees another 2008 systematic failure.  Suddenly, the state issuing your food stamps screws up ( “borrows”, meaning “steals” ) federal funds and there is a delay getting you your bennies.  All at once, truckers go out of business, as soon as the inflation rate exceeds the companies razor thin profit margin.  Granted, their profit margins are crap because the dumb asses over borrowed to expand, but since they ALL did that they all operate under the same handicap. 

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The big combine manufacturers don’t get spare parts, and since they hold you hostage over proprietary software, you can’t fix it yourself.  Fuel shipments are late, delayed, or extra expensive, not because oil is but because the transport sector is, and food isn’t wantonly tossed about from warehouse to warehouse as it once was.  Delays of everything, price increases of everything, sudden toll road hikes or trucker safety inspection increases to jack up revenue for local governments starved for funds.  The system isn’t functioning now because it is so efficient, but because it is running on extra oil.  It is efficient only in money terms, and screwing with the money system screws with the efficiency.  Since profits are being squeezed everywhere, all proceeds of a shrinking pie being funneled into the failing banker sector, the only reason companies stay in business is by shrinking costs.  It doesn’t matter how, even if it is at the cost of staying in business in the future, it simply MUST be done.  And it has been, but it is a cannibalization.  Reverse the saving costs part, make ANYTHING more expensive, and nothing works in the private sector ( nothing is working, but there remains some functionality.  Increased cost kill that ).

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That concludes today’s discussion.  Continued and concluded tomorrow.

END ( related article link http://amzn.to/2gXsjkx )

 

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