Saturday, November 13, 2010

Mystery Person Contest


Today is Mystery Person Contest Day, but there is no mystery about who this person is. There is also no mystery about how the Weimar Republic came to an end. As we saw this week, things continued to get worse and worse and worse in the Weimar Republic. The currency was worthless, there were no jobs, and the people were cold and hungry. Then a brilliant orator entered onto the stage, and he promised to bring Germany back to its former glory. He had a nice "list" of people and groups responsible for Germany's problems. He appealed to a sense of German Nationalism and pride. The story ends in another World War, and countless millions of innocent people being exterminated.

As you followed the blog during the week, I hope you were able to see that our Federal Reserve is making some of the same key decisions that were made in the Weimar Republic . . . . namely, a policy of expanding the money supply in an attempt to spur the economy, and worse yet, the Fed has showed its hand that it will be monetizing the deficit over the next 8 months.

I don't know what will happen in this country. I hope that our Fed is smarter than the bankers in Weimar Germany. I hope everything turns out OK. What I do realize is that throughout history, when countries print money to pay for deficits, the outcome can be disastrous for the people.

So, my question for you is, have you thought about what you would do if a financial crisis occurred in this country? Would you just sit idly by, and hope the government would take care of you, or would you be able to take care of yourself? Would you be able to provide for your family?

I was blessed to be able to have the resources to build the greenhouse. I realize that people are in different situations, and some are already struggling. A greenhouse would likely be out of the reach of many. However, I used to have a friend who always said, "Don't let what you can't do keep you from doing what you can do". I encourage you to consider taking up gardening as a hobby. Look at that backyard. How much time, money, chemicals and effort are you expending keeping that yard green. Turn it into a garden. Grow your own food. Spend time with your family in the evenings with this hobby. You might just find that it was one of the most rewarding and fun things you ever did. You could even start now by putting plant stands and grow lights in the garage, and getting your bedding plants ready for spring planting.

Another thing to think about is aging parents. Have you put any thoughts into how you would care for aging parents if they lost their retirement, and if social security was not available, or if it did not provide even for sustenance living? Is there a plan other than they stay where they are and eat cat food.

Americans are an optimistic group, and that is good. I grow concerned, however, as I observe we also have a tendency to not want to think about certain possibilities because the implications are so profound. Unfortunately, many would rather simply not think about the possibility of hyperinflation, and simply assume everything will be OK. 

I am not predicting a National Disaster. I am saying that there is a reasonable possibility for additional chapters to the financial crisis we are in. I am asking you to consider whether you should be taking certain measures now to prepare for that possibility.

38 comments:

  1. I just finished catching up on the week in pictures! I always learn so much from your commentary and those of the readers. Thanks for putting it into perspective, PJM
    Pam

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  2. I have never actually looked at the ingredients in cat food, or if they even list them. Did you know that the letters in MOTHER IN LAW can all be rearranged to spell WOMAN HITLER?

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  3. Great week of posts, Mr. PJM, and lessons.

    Thank you for sharing and reminding!

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  4. Is it Nancy Pelosi?

    John

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  5. Interesting reading this week PJM.

    What would or will I do when the sh** hits the fan?

    Until yesterday I was at a loss for ideas, then I saw the evil Nate Mass's discovery of your vacation home in Neuschwabenland. Talk about timing.

    I am loading my canoe and getting it fitted for an ocean crossing. Plenty of food, clothing, an extra paddle or two, (don't want to be stuck stuck up that proverbial river without one).

    So soon it will be "howdy neighbor".

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  6. Gosh, looks so familiar. I'll guess Julius Schreck.

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  7. Louis Farrakhan?

    John

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  8. DAG, makes you wonder what it was about Neuschwabenland that reminded people of the old Swabia.

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  9. Excellent presentation of parallels between Weimar and current circumstances. Yes, the world is going to hell in a handbasket - the question is WHEN it all turns upside down.

    And people and communities are planning for this eventuality. Look up "resilient community" and "transition community" - There's even a vibrant transition community in the extended San Luis Obispo Central Coast where naysayer Nate Maas lives. Wish I lived back in that area! I'd be networking with kindred spirits.

    A really interesting writer, John Robb, can be found at Amazon.com and
    http://globalguerrillas.typepad.com/

    Scroll down for recent posts about resilient communities.

    http://globalguerrillas.typepad.com/globalguerrillas/2008/01/the-resilient-c.html

    Good job, PJM!

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  10. This is not the 1st time agencies have pumped money in to help the economy and not the last.
    Your being a little dramatic to think we are heading for such a disaster as you suggest.
    We have several indicators and measures that help protect us from what happened to Germany in the 20's. You really need to do some more research.

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  11. Aha, so from the Treaty of Versailles we did end up here!

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  12. I'm already turning the front yard into food production, just a bit more each year. I've got herb beds, tomatos, leaf lettuce (quite pretty), cucumbers and blueberry bushes. Fortunately we don't have a snooty homeowners association!

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  13. Today's mystery person is the current US President.

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  14. OK, my last guess... Moe Howard?

    John

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  15. For Anonymous: the problem is a whole constellation of government actions in the recent past, not just the current devaluation of our currency.

    Examples: warrantless searches under the patriot act - government intrusion into the private sector such as the GM takeover, with distribution of ownership rights to the union - compulsory purchase of private insurance in Obamacare - the writing of legislation in secrecy and holding votes without allowing adequate time to even read the bills - the appointment of so-called czars without any congressional oversight - the soon to be realized subversion of congressional power by executive fiats (cap and tax imposed by Energy Department rules) - the list could be much longer.

    The nanny state is growing by leaps and bounds and, when it is in full flower, it will not be kind to freedom.

    .

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  16. To add to Montana's post, actually to change a line: - the writing of legislation in secrecy and holding votes without even reading the bills.

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  17. Thank you Montana,
    I agree with much of what you wrote.
    To add, attacking a country and spending 3 trillion dollars on a never ending war...$10,000 cost per man, woman, and child.
    Part of todays hugh deficit is by the prior administration.
    Much of what you described also was inacted more than 2 years ago.

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  18. This chart shows yearly government spending with and without our Iraq/ Afghan involvement.
    It's a factor but not a major one.

    http://www.americanthinker.com/2010/08/iraq_the_war_that_broke_us_not.html

    "If you think healthcare is expensive now, wait until you see what it costs when it's free" P.J. O'Rourke

    John

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  19. Sorry. Let's try that url again.


    http://pumabydesign001.wordpress.com/2010/08/24/guess-what-obamas-failed-stimulus-program-cost-more-than-the-iraq-war/

    John

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  20. Appreciate the info John.
    I wish some day conservatives and moderates would pull together instead of being so far divided on all issues

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  21. "The sky is falling, the sky is falling, we're all gonna die!!! What a bunch of hooey! People need to get real."
    Rush Limbaugh, 2004

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  22. "These comparisons by the left of Pres. Bush to Adolf Hitler are completely unpatriotic, UnAmerican!!!"
    Sean Hannity, 2004

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  23. "It is my considered opinion that history will record the greatness of Bill Clinton and that it will be recorded at my expense."
    Newt Gingrich, 2010

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  24. 'Funny' how the "anonymous" posters don't have the cajones to post except as Anonymous.

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  25. I can register as "John in NY" (which would be factual) and leave no profile. What would that prove?

    John

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  26. rTo SmartGirl
    Your guess: current president.

    Wrong. You lose.

    Have you ever done an IQ test?
    It could be negative.

    Dave

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  27. In reply to Anonymous's:

    "rTo SmartGirl
    Your guess: current president.

    Wrong. You lose.

    Have you ever done an IQ test?
    It could be negative.

    Dave"

    SmartGirl, you are correct!

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  28. Geez, PJM, ya sure stirred them up today. Love your blog, keep up the good work.

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  29. Despite me being anti-gun ownership (Hey, I live in Germany, so different background), selling my business, buying a farm, fence and a gun doesn`t sound too bad. If only I had a clue about farming besides playing the Harvest Moon games.

    As for the mystery person, It´s Charlie Chaplin wearing a different hat.

    @PJM: How do you think Iraq will end? Do you think you can ever get out of there without it ending like Israel at best or Germany at worst?

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  30. I agree with anonymous Dave, though it's probably best to ignore utterly stupid remarks.

    *sigh* I guess ignorant and thick citizens can be as dangerous to society as dictators.

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  31. Interestingly, the Germans are now in a position of economic power in the EU, and are, essentially, enforcing the same sorts of auterity measures on the rest of the EU that they've been enduring for the past century.

    We should be aware that the lifestyle changes we will be faced with if we end up in a hyperinflation scenario go beyond shortages of food. For a more recent example of what things might look like for us, we could look to Zimbabwe, which recently (in the last ten years) went through hyperinflation, and it's not just people going hungry, but shortages of EVERYTHING. We should absolutely learn to garden, and, perhaps, raise a few chickens or ducks, but also figure out how to live if the power goes out (because it will) or there's no gasoline to full up the SUV.

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  32. Dave:

    Thank you.

    Anon:

    Everyone is entitled to their opinion, even you.

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  33. I forgot - in line with this topic, does anyone remember the "bomb shelter" phase that we went through during the '50s and '60s.

    Everyone was building underground shelters in their yards and we had the "duck and cover" drills in school. Yeah, as if hiding under your desk with your hands over your head was going to save your life in a nuclear blast.

    Anyway, I wonder how many of those bomb shelters are left. If the things that PJM is hinting at come to pass, then maybe those who are able to sustain themselves will have to hide in bomb shelters or arm themselves against the starving, hysterical mobs who are unprepared.

    Scary thought, isn't it?

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  34. That pic is obviously Prescott Bush. I must be missing something because we're already in a financial crisis thanks to the tax cuts in time of war, and the wars themselves as well as the predatory practices by unregulated corporate greed. I've personally had a job eliminated and have taken another one at a significantly lower pay. The only thing I can think of to prepare for the worst (and with the Republicans back in charge in January I know it's going to happen) is to make sure the can opener is working and buy a gun.

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  35. Oh, and a 700 million dollar stimulous is not more than 1.4 trillion dollars spent on misguided wars, no matter how fuzzy your math is.

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  36. Donna;

    Awesome- thanks !

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  37. Donna...
    Unverified quotes concerning war vs "stimulus" spending prove nothing. Your use of the terms "fuzzy math" and "misguided wars" are your opinions and do nothing to substantiate your claims.

    I suggest you research to find how many permanent jobs were created by the "stimulus package" (our tax dollars).

    John

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