Wednesday, August 10, 2011

London Calling: How Did it Come to This?

Gerald Celente, of Trends Research often says, "When people lose everything, and have nothing else to lose, they lose it", or "When the money stops flowing to the people, the blood starts flowing in the streets".

London is a nightmare slowly unfolding. The world is a different place after September 2008. Too much debt has meant we have lived beyond our means for too long. Consequences will always flow from this. One of them is the disenfranchisement of the middle-class and the disadvantaged.

Social capital that is built up over many years, can be stripped away very quickly when people get desperate. Remember how neighbours would turn on their Jewish 'friends' during World War Two when push came to shove. Our societies have a thin veneer of civilized behaviour. Niall Ferguson states that empires do not ordinarily decline slowly, there is a tipping point where decline is rapid. Could we be entering that time? Or is this a warning only?

The anglo-sphere has ruled the world for a few centuries. The traditions and social capital built up over that time have been beneficial for the way we organize our Government and institutions. It has allowed us to create a world based on contract and law and not custom and kinship. We have fought wars to maintain this lifestyle. However, can we survive as a culture when the next war is an internal fight amongst ourselves for resources to survive? Will it come to this?

Yes there are mobs that take the chance to loot for personal gain and hate. The causes of such unrest are complex. It is not even an issue that capitalism has failed. Capitalism has never really been allowed to function correctly when big Government gets in the way. Socialism isn't the answer either. Simply taking from the rich and giving to the poor causes misallocation of capital.

What will happen here in New Zealand? When, and not if, the money stops flowing to those on long-term unemployment or who are very dependent on welfare? Will we see unrest the likes not seen since the Springbok Tour of 1981?

It may be a good time to reflect on how we can prepare for the coming storm. Do we go so far as to store food and fuel and have cash available? Do we have somewhere to go out of our city in worst case scenarios?

Hopefully we will not repeat the words of King Theoden in "The Lord of the Rings: The Two Towers" when the hoards of orcs were beseiging Helms Deep, and all looked lost for their civilisation: He stated, "How did it come to this?"

Gold in New Zealand dollars: $2072.15 per oz
Previous all time high: $2187.70 per oz

Silver in New Zealand dollars: $45.19 per oz
Previous all time high: $59.19
per oz

The Anglo-Far East Company
The Original Private Gold and Silver Bullion Custodiann
Your reference: an-001

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