So, I've been vaguely pissed off at the state of the global economy for some time now. This was in some part due to my hating the idea of government bail outs of corporations that didn't do so much as give a fuck during their time in the sun; but mostly due to my own ignorance on the topic.
In an attempt to remedy this I have been reading here and there. The New York Review of Books has proven excellent, as well as various online sites.
I still have a fair bit to learn, but what i do know is this:
We are proper fucked.
The EU is all caught up in itself, with countries like Greece owing money to Italy, who owes money to Germany, who needs to bail out Portugal. Basically, bankrupt countries are lending money to other bankrupt countries. When the bail outs come, more money is borrowed.
The US is stronger than the EU but, from what i understand, this is because a very significant amount of the US dollar is owned by China.
The US is printing millions of dollars every day to pay back debt but, at the same time, they are borrowing more, hence Obama raising the debt level the other day.
Printing money in large amounts leads to hyper-inflation which people seem to think can't happen in the US. Well, apparently it can, and it is.
What this means for Australia directly I don't really know but, honestly, it doesn't matter. The significance of state borders is increasingly meaningless.
So, what does all this bullshit mean? Well, if inflation continues, and the the US dollar continues to lose value, more money has to be printed to keep up with demand. Things like bread and milk will start costing outrageous sums of money. This happened in Zimbabwe a few years ago. The government printed 60 trillion dollars, three eggs cost 10 billion dollars until, eventually, the currency was declared dead.
This, theoretically could happen in the States. This means high unemployment, state controlled prices for products like bread, and general unpleasantness. Basically, the stuff that happened in Weimar Germany following the collapse of their economy in the 1920s and 30's, can happen again.
Some critics say this is the fault of the Reserve Bank. I'm yet to fully work out what the Reserve Bank does but it seems as if they regulate money a fair bit. Critics say if we don't dissolve the Reserve, which since its beginning in the 20s has overseen numerous gargantuan fuck-ups, we are headed toward a police state of the highest order.
So yeh, I knew things weren't good, but it seems they are far worse than we think.
In the end though, if we are going to hell in a relatively large handbasket, it does mean i can move to Washington state and rip trailz all day.
Ah, fuck, where the hell will i buy my sweet Trek from? Quick, someone had me an oxy!