THE COMING APOCALYPSE

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THE COMING APOCALYPSE
The world has witnessed the largest creation of wealth ever in history since the industrial revolution. Especially in modern times, we have witnessed huge wealth being created by such great organisations as ExxonMobil, General Motors. There were only a handful of billionaires in the early 20th century, now there are approximately 1,210 billionaires in the world. As an indication, the world’s largest asset manager is BlackRock Inc. with $3.65 trillion in assets under management.

This huge growth has been funded by debt. Governments borrow to build infrastructure and fund social programs with the intent to pay back the borrowings from the future tax revenue streams. Consumers borrow to pay for homes (mortgage), house hold items (retail credit) and miscellaneous luxuries (credit card). This then feeds a vicious cycle whereby the investments from the borrowed funds creates more demand and although in the short term, this will be see as robust economic growth. The long run view will show that all this growth is founded upon debt which still needs to be repaid.

WHAT HAPPENS WHEN THE CREDITOR COMES CALLING?
This is the nightmare scenario that Europe is now facing. Greece can’t meet its debt obligations; soon Spain and Italy (2 of the largest economies in the Eurozone) will hit the wall. The Eurozone makes up 20% of the global GDP.

USA is at the stage where its public debt is $15.93 trillion equivalent to 103% of GDP. This is unsustainable. A collapse is imminent. The US contributes approx. 30% of the world’s GDP.
At some stage the music will stop. The time is getting closer and closer. It is believed that this storm will hit within the next 2 years. (2012-2014.)

WHAT DOES THIS MEAN FOR PNG?
PNG’s economy is high dependent on commodity exports (Gold, Copper, Oil and gas). If there is a global financial collapse, all of the commodities with the exception of gold will significantly lose value. Overseas investments will dry up and multinational companies will scale back operations significantly.

Some of the potential results will include:
  • ·         Significant job loses.
  • ·         Drop in consumer demand.
  • ·         Drop in real estate prices.
  • ·         Large defaults for banks and credit agencies.
  • ·         Increase in social unrest and crime.
  • ·         Breakdown in disciplines forces (Police Force and Defence Force). Due to financial hardships, abuses of position will become common.
  • ·         Land issues (tribal conflicts and legal conflicts) will erupt.


WHAT CAN BE DONE
The PNG government need to be fully aware of the impending catastrophe. Trust funds need to be replenished and backed up with gold. These can be utilised to support our expenditure during the crisis period.

Food security and ability to control price for key items such as rice, sugar and cooking oil needs to be a key element in our National Strategy.

Our national planners need to look at the issue of mass unemployment. How can the unemployed people be utilised – mass social engineering projects etc.

For individuals, you need to find out at much as you can about this and start developing your contingency plans.
A useful site would be http://www.ehow.com/how_5069097_survive-after-total-economic-collapse.html

















Comments

  1. UnknownJune 17, 2020 at 7:29 AM

    In total agreement with you Jeff. A lot of what is happening is based on the present circumstances. The authority bodies or people in charge need to start preparing the people or planning for the future instead of concentrating on the present. In turn individuals need to start planning their lives and everything necessary to sustain themselves should they be unemployed.

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