THE U.S. ECONOMIC COLLAPSE WILL TRIGGER A
REVOLUTION
Introduction by Hugo Adan
August 23, 2014
The author of this article -Harry Dent- who predicts the inevitable collapse and revolution in America is not a Marxist nor a bolshevik. He is a financial speculator who does not belong to the 1% of the super-rich, he consider himself member of the middle class who is also involve in Wall Street business. I make this clear to let notice that the profiteers of the current neo-liberal upper classes are deeply divided. They all know that the collapse is starting with falling down of the dollar and this will generate an inevitable social implosion. Their common concern is how to profit from such crisis and the answer is converting their dollars into gold. Why the inevitable economic collapse and revolution?. To Dent "the financial engineering on Wall Street has accelerated (unfortunately), creating
greater speculation and leverage in the economy and generating greater profits
for those invested (along with the potential for bubbles to burst like in the
1930s). The
Federal Reserve and central banks around the world have also done
some engineering of their own, artificially maintaining stock and debt bubbles.
They’ve poured free money into the economy, benefiting the banks, financial
institutions and the top 1%. The thing is, when you fight
against nature, you eventually lose. And I believe that all the manipulations
and engineering that has distorted the natural cycle will eventually be the
Western world’s undoing. We’re rapidly approaching the point where, unless something
changes, everyday people will start to revolt against the excessive gains and
tyranny of the rich". Up the here he uses some basics of Marxist analysis. Why he don't go further and explore the need for independent organization of the working classes and middle classes? Why to use the proxy of cycles instead and come up with the theology of "when you fight
against nature, you eventually lose"? He doesn't say "if you fight agains God, you loose" Why this cheap logic? .. because he is not a real economist nor a political scientist, I guess. The fact is that there is not such "natural determinism of cycles". Cycles are an artificial manipulation of statistics that depends on which variables and indicators you use. There is nothing "natural" in economics and politics, not even divine or evil extra-terrestrial forces deciding when economics and politics will collapse. Of course the economic collapse and political revolution will come but the econ and polit explanation has nothing to do with the laws of nature. The stat- graph he present is just an illustrated guess, nothing else.
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By Harry
Dent August 22, 2014
‘The
system has been captured by a few malevolent men. When the stock, bond and housing bubbles
all implode simultaneously, all hell will break loose in this country. It
will make Ferguson, Missouri look like a walk in the park. I wonder if the occupants of the
Eccles building in Washington DC will get out alive”. See: THIS IS YOUR ECONOMIC RECOVERY
WITH AND WITHOUT DRUGS By: James_Quinn Aug 19, 2014. http://nd-hugoadan.blogspot.com/2014/08/this-is-your-economic-recovery-with-and.html
When
the next economic collapse comes, and it’s inevitable, the revolution against
the upper class will kick into higher gear!
Let
me explain using my long-term economic cycle — the new 80-year, four season,
Generation Wave — and an important 250-year cycle…
Just
like the weather, the economy shifts through four seasons as
generations pass through it: spring, summer, fall and winter. There are dynamic
fluctuations that favor innovation… then efficiency… then inflation… then
deflation… all through different booms and busts.
A
boom in the fall follows the summer inflationary season. During this fall boom,
new technologies move into the mainstream and entrepreneurs and financiers gain
the most (as we have witnessed since the late 1970s).
That,
in turn, creates a longer-term trend…
That
is, everyday people gain as well, thanks to higher wages and increased
productivity.
These
trends occurred frequently from 1933 to 1972. Everyday people adopted the
technologies that enabled a rise in productivity, and so enjoyed an increase in
their wages, bringing lower-cost products and a better standard of living.
In
fact, we saw the last broad, middle-class boom during the spring season of the
economic revolution from 1942 to 1968. During that time, overall income of the
average household grew faster than the income of the top 1% and top 10%!
In
1929, the top 1% held 50% of the wealth, but they lost their grip on it. By
1976, they only held 24% of the wealth. Then they regained some of that lost
wealth, holding 50% again by 2007.
During
normal cycles, 2007 would have been the peak of such income inequality. But not
this time…
Since
2000, the middle class in developed countries like America and Europe has seen
their wages stagnate as emerging countries like China take over the
manufacturing and office tasks at lower prices. We call it “The Great Asian
Deflation.”
And
the cost of education has inflated so fast that it’s increasingly out of reach
of the average person (but that’s a whole other topic for a future article).
However,
entrepreneurs have done well, as they create long-term gains for the economy
and everyday people through their innovations, new industries and business
models.
And
financial engineering on Wall Street has accelerated (unfortunately), creating
greater speculation and leverage in the economy and generating greater profits
for those invested (along with the potential for bubbles to burst like in the
1930s).
The
Federal Reserve and central banks around the world have also done
some engineering of their own, artificially maintaining stock and debt bubbles.
They’ve poured free money into the economy, benefiting the banks, financial
institutions and the top 1%.
But here’s
the rub.
All
of this “engineering” has altered the natural cycle. Instead of peaking in
2007, as it should have, the rich have continued to prosper while everyday
people have stagnated or declined.
The thing is, when you fight against nature, you eventually lose. And I believe that all the manipulations and engineering that has distorted the natural cycle will eventually be the Western world’s undoing.
This extended bubble is now (belatedly) reaching its peak, a fact we know because income inequality has become so extreme. We’re rapidly approaching the point where, unless something changes, everyday people will start to revolt.
This is a fact further supported by the larger political and social revolutionary cycle that occurs about every 250 years, when the average Joe rises up against the excessive gains and tyranny of the rich.
In the past we had the Protestant Revolution (early to mid-1500s) against the tyranny of the Catholic Church and the American and French Revolutions in the mid- to late-1700s… Image Location http://sovereignsociety.com/files/2014/08/081814_ENMa1.gif
And now it’s time for the next one.
I think that income inequality and special interests have
created such an extreme situation today that everyday people will begin to
revolt in developed countries. It won’t just be those in the dictator-driven
economies of the emerging world trying to make themselves heard and force
democracy for the first time.
Sure, the coming “Western” revolution won’t be pretty, but
it will usher in the next great resurgence of the middle class in developed countries,
and it will accelerate the new middle-class surge in emerging countries.
This revolution will raise the everyday person up and bring
the upper class back down to size — as has every economic revolution in
history. And as new technologies move mainstream and become less exclusive, the
uprising will gather momentum.
So if you’re rich, protect your gains now before Rome falls.
If you’re middle class, hunker down and wait for your day in
the sun. It will be well worth it when that time comes.
Harry
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