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SOAPBOX ORATIONS...
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Obviously, all articles are subject to discreet
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-------
Studying TEOTWAWKI: Why the "Smartest Men
in the Room" are Worried, by F.S.
By James Wesley,
Rawles on June 4, 2010
10:17 PM
http://www.survivalblog.com/2010/06/studying_teotwawki_why_the_sma.html
The purpose of this
article is to lay out the intellectual
underpinnings of what I will call the
neosurvivalist movement. The target
audience is those individuals either
beginning, or considering to start,
preparations for broad societal
emergencies. The intended result is to
demonstrate that far from being a fringe or
extremist movement, neosurvivalism is
rational and has emerged as a natural
result of broader social, cultural, and
technological circumstances grounded in
specific historical and contemporary
thinking.
This movement goes by many names, including
survivalism, prepping, emergency
preparedness, and so-called offgrid or
resilient communities. Businesses and
governments are likewise investing in
continuity of operations plans, disaster
mitigation, and disaster response. Everyone
it seems is concerned about the permanency
of civilization. While the focus of these
groups varies some are more green and
sustainability focused, others are profit
motivated, still others fit the traditional
media stereotype of militant and
self-defense orientated loners all are
worried about the fragile and
interconnected nature of modern society and
understand that the interconnectedness of
our civilization is its major weakness.
In recent American memory the fundamental game
changers were the dual warnings of 9/11 and
Hurricane Katrina. These two events
demonstrated that man-made and natural
disasters could seriously disrupt a modern
society, and that governmental plans were
insufficient to respond quickly to large scale
events. These events have spawned a large and
growing body of work on emergency response and
mitigation. The flagship publication is the
Journal of Emergency Management, an excellent
source of articles running the full gamut of
neosurvivalist concerns, a mission shared since
1993 (in the wake of the governmental failure
to properly respond to Hurricane Andrew) by the
Federal Emergency Management Higher Education
Program, itself designed to research and
educate in areas of emergency planning
concerns.
During the Cold War national attention was
focused on fallout bunkers and bomb shelters
and there was little public interest in broader
problems associated with societal collapse
until the mid-90s. That it has now reached a
point of near universal concern at operational
and strategic planning levels is most evident
in the last couple of years. While the nuclear
Civil Defense Programs of the 1950s and 1960s
are well-known, there was little focus by
federal planners on other societal threats
until the creation of FEMA in 1979, which slowly
expanded from almost purely nuclear civil
defense to the current focus on full spectrum
and or integrated all-hazards disaster
response. Prior to this it was assumed local
and state agencies would lead disaster
response, and they often did not. Cold War
preparations assumed a Federal-Individual
partnership, in which the government assisted
individuals by preparing self-help programs
for citizens protection. The classic example
was the backyard bomb shelter for individual
families, a mitigation program continued today
with state block grants usable for individual
family safe rooms or in-ground tornado
shelters. To highlight the American public s
general unwillingness to prepare, at the height
of the Cold War fewer than 3% of the population
had taken any personal measure to defend
against radioactive fallout. Current
assessments (following the U.S. Government s
introduction of the Ready preparedness
program in 2003) of those likely to prepare for
disasters typically include the following
characteristics:
1. Pays attention to the news
2. Aware of and concerned about
socio-environmental threats
3. Has personal experience with disasters
4. Has children in the home
5. Has strong community relationships (church,
civic organizations, etc.)
6. Has disposable income available to make
preparations
These characteristics are important because the
surge in neosurvivalism is often attributed to
religious, suburban professionals with
families. These are the people, to be frank,
with the awareness, good sense, and money
necessary to make preparations capable of
producing a meaningful result.
As much as government agencies and private
industry have embraced a general preparedness
philosophy in recent years, it often seems as
if academia largely undermines civil defense
strategy. Books such as The Imaginary War, One
Nation Underground, and Bracing for Armageddon
seek to ridicule and discredit preparedness
concepts in general, arguing the government
cannot be trusted to deal truthfully with the
public on such measures (a mantra most obvious
in the media frenzy over the duct tape and
plastic advisement issued by the new
Department of Homeland Security in 2003). That
this view often emanates from those corners
which often wish for more government and more
governmental control a schizophrenic position
perched perilously on the anti-nationalism
ideas of Eric Hobsbawm and Ernest Gellner, and
the liberal-democratic faith in deterministic
concepts of man s inevitable progress. It s
important to consider that media treatments of
private individuals engaged in preparedness
typically attack along these lines suggesting
that preparedness is a statement of little
faith in the government to handle emergencies,
and that individuals that do so are dangerous
or at least hold dangerous ideas. At the same
time, the media typically depicts governmental
agencies and programs as necessary,
particularly if their budgets are cut. Often
journalists interview academics who seem to
invariable fall in line with depictions more
appropriate for Cold War interpretations of
governmental malfeasance than the day-to-day
realities of a post-9/11 and Katrina world.
This and raw political partisanship explains
much of the disconnect the average American
feels about his place in society. That this can
manifest in profoundly important political ways
(such as the Security Moms so often depicted
in the media in 2004) only adds to the lack of
clarity in the general consciousness of the
population.
Fundamentally, Americans having been asking
themselves questions such as Is it wise to
prepare for disaster? If so, how much is
enough? To what degree should I believe the
government or the media? Journalists and
leftist academics generally provide a negative
reply.
It s important to understand that the above
actually represents a very small contrarian
academic view, and that generally academic
specialists support the conclusions of
neosurvivalism. Researchers such as Tainter,
Diamond, and Zartman all find the modern state
as an incredibly imperiled and fragile edifice.
Joseph Tainter s The Collapse of Complex
Societies follows in the footsteps of earlier
historians such as Oswald Spengler s Decline of
the West and Arnold Toynbee s A Study of
History in that it predicts that societies do
not enjoy progress endlessly, that eventually
societies reach a point of diminishing returns
when solutions to their problems invariably
cost so much that they create more serious
problems. This is an assessment shared by
Vaclav Smil in his book Global Catastrophes and
Trends. Smil foresees a connection between
global stability and energy consumption;
military and economic engines are powered by
the energy source of the nation, a reduction in
which can create substantial geopolitical
problems. Peak Oil researchers will
find much to agree with in Smil s work.
Jared Diamond is a Pulitzer Prize winning
academic whose work Guns Germs and Steel was
followed by his equally impressive Collapse:
How Human Societies Fail or Succeed. Diamond
comes down on the side of environmentalist
fears as a major threat to human civilization,
though to his credit he s more than willing to
entertain a joint effort at sustainability with
corporations. That Diamond s Collapse has
received positive reviews buttresses the idea
that societies can indeed fail, and that human
action or inaction can cause that collapse.
Posner s book, Catastrophe: Risk and Response,
comes to similar conclusions as Diamond, and
his exploration of events which can wipe out
humanity and how we should rationally respond
to them is a remarkable read.
William Zartman s book Collapsed States uses
post-colonial African Nations as the subject
for his study of how nations cannot easily be
put back together. Once a polity collapses, he
ominously predicts, only a powerful outside
force can reestablish its authority, and even
the success of such operations is spotty at
best (as U.S. adventures in Iraq and
Afghanistan can attest). The typical result is
ongoing instability, tribalism, and
intranational violence. Zartman is supported by
R.J. Rummel s work on what he calls democide
in his book Death by Government, which
demonstrates that failed states are generally
highly active in either perpetrating or
supporting genocide. Mary Kaldor comes to
similar conclusions in her work, including her
excellent book Old Wars, New War. Fearing one s
government as an agent of violence against its
own citizens is not paranoia it s an
academically supported position, and a cause
c l bre of the Amnesty International and its
supporters.
Finally, consider the concept of societal
collapse, something that Mr. Rawles and many
others write about. This too is a well-studied
and supported concept in academia. George Mason
University economist Robin Hanson has this to
say about it: While there are many kinds of
catastrophes that might befall humanity, most
of the damage that follows large disruptions
may come from the ensuing social collapse,
rather from the direct effects of the
disruption. He also goes on to say that if
individuals vary a lot in their resistance [to
disaster], however, then it may pay to increase
the variance in such resistance, such as by
creating special sanctuaries from which the few
remaining humans could rebuild society.
Archaeologists Harvey Weiss and Raymond S.
Bradley have said that The archeological and
historical record is replete with evidence for
prehistoric, ancient and pre-modern societal
collapse. These collapses occurred quite
suddenly and frequently involved regional
abandonment, replacement of one subsistence
base by another (such as agriculture by
pastoralism) or conversion to a lower energy
sociopolitical organization (such as local
state from interregional empire). Thomas
Homer-Dixon s work, such as Environment,
Scarcity, and Violence maintains (as an extreme
simplification) that environmental scarcity
results, ultimately, in violence (something
Smil and many other scholars have concluded).
That these scarcity issues cannot always be
solved is something Homer-Dixon explores in his
book The Ingenuity Gap. The result is
fragmentation and destruction, if not
extinction.
What I have attempted to do here is layout the
academic and intellectual work that has been
done in support of neosurvivalism. This is
necessarily only a short introduction to the
topic, and it focuses only on the academic
research angle, the books published largely
through academic presses such as Oxford
University Press, MIT Press, and Princeton
University Press. These books are read mostly
by policy makers and planners, generally not by
journalists or non-specialists. The reason I
have focused on these is to inform the general
neosurvivalist community of the immense support
that government and academia provide for them
as they make individual contingency plans. When
faced with family members and others who are
dubious about the practice of emergency
preparedness, a library stocked with the texts
I listed above may be the very best tools
available because they may help convince loved
ones of the importance of emergency
preparedness.
In closing, the U.S. government has been urging
American citizens to prepare for nuclear war
since 1947, for all-hazards emergencies since
the late 1970s, for terror attacks since 1999,
and for national health disasters, such as
pandemics, since 2006. Every U.S. state has a
disaster management agency, which often has
funds available for disaster mitigation in
individual homes. The Red Cross urges emergency
preparedness as well, including the requirement
for two weeks of food at home and one gallon of
water per person per day, as well as the
packing of an evacuation bag, with three days
food and water in it. The reason people do not
prepare is because they do not match the
criterion I listed above they either do not
have the disposable income (meaning they choose
to spend family funds on other priorities) or
they are unaware of the dangers to which they
are exposed. In addition, academic researchers
from the best universities have produced
copious evidence to support any number of
rational preparation schemes, to include
preparation for total societal collapse.
Following the recommendation of the government
disaster planning agencies and the scholars who
specialize in studying disasters is the result
of neither paranoia nor foolhardiness. It is
prudent, logical, and rational. Pretending none
of this is an actual threat, and refusing to
make even the most basic preparations, is
lunacy.
The following academic texts may prove
interesting to the general survival community.
These are not how-to survival texts, but
nevertheless are books very worth the reading
because they help the reader to understand the
potential survival situation which may result
from a disaster or societal collapse. (And this
alone is an invaluable service for emergency
planners, institutional or individual.) Those
marked with an asterisk are, in the author s
opinion, especially useful:
David W. Orr, Down to the Wire:
Confronting Climate Collapse
Johan M. Havenaar, Toxic Turmoil:
Psychological and Societal Consequences of
Ecological Disasters*
Robert A. Stallings, Methods of Disaster
Research
Havidan Rodriguez, Handbook of Disaster
Research
Piers Blaikie, At Risk: Natural Hazards,
People's Vulnerability and Disasters*
Maxx Dilley, Natural Disaster Hotspots: A
Global Risk Analysis
Robert D. Putnam, Bowling Alone: The
Collapse and Revival of American
Community*
Greg Bankoff, Mapping Vulnerability:
Disasters, Development and People
David R. Montgomery, Dirt: The Erosion of
Civilizations
World Health Organization, The Management
of Nutrition in Major Emergencies*
Richard A. Posner, Catastrophe: Risk and
Response*
Michel Agier, On the Margins of the
World
Karen Jacobsen, The Economic Life of
Refugees
Mohamed Gad-el-Hak, Large-Scale Disasters:
Prediction, Control, and Mitigation
United Nations Human Settlements Programme,
Enhancing Urban Safety and Security
Vaclav Smil, Energy: A Beginner's
Guide*
Nayef Al-Rodhan, Neo-Statecraft and
Meta-Geopolitics
Nick Bostrom, Global Catastrophic Risks
Dmitry Shlapentokh, Societal Breakdown*
Michael Bollig, Risk Management in a
Hazardous Environment
Carl Sagan, The Cold and the Dark: The
World After Nuclear War*
Jerome H. Barkow, The Adapted Mind:
Evolutionary Psychology and the Generation
of Culture
Azar Gat, War and Human Civilization*
Henrik Hogh-Olesen/Azar Gat, Human Morality
and Sociality
Glenn M. Schwartz, After Collapse: The
Regeneration of Complex Societies*
Herbert Gintis, The Bounds of Reason: Game
Theory
Daron Acemoglu, Economic Origins of
Dictatorship and Democracy
Douglass North, Violence and Social
Orders*
Mark Juergensmeyer, Terror in the Mind of
God
Marc Gopin, Between Eden and Armageddon
Kenneth D. Rose, One Nation Underground
Colin S. Gray, Another Bloody Century
Robert D. Kaplan, The Coming Anarchy*
John Robb, Brave New War*
Fathali M. Moghaddam, The New Global
Insecurity*
Kaldor, Old War, New War*
Tainter, Collapse of Complex Societies*
Jared Diamond, Collapse: How Human
Societies Fail or Succeed
Walter Dodds, Humanity's Footprint:
Momentum, Impact, and Our Global
Environment
Goudsblom, The Course of Human History:
Economic Growth, Social Process, and
Civilization*
Bill McGuire, A Guide to the End of the
World
Vaclav Smil, Limits to Growth Revisited: A
Review Essay
Vaclav Smil, Energy at the Crossroads
Vaclav Smil, Global Catastrophes and
Trends: The Next Fifty Years*
-----------------
7.1.09------------
Surviving
Hyperinflation:
An Update
by Eric
Englund
http://lewrockwell.com/englund/englund54.1.html
by Eric
Englund
Recently
by Eric Englund:
Ford Motor Company, Goldman Sachs, the SEC,
and the
New Wall Street
 
In the early
1980s, Harry E. Figgie, Jr. (the founder of
Figgie International, Inc.) became concerned
that the United States government was
following the same destructive path that lead
countries such as Argentina, Bolivia, and
Brazil into hyperinflationary economic
collapse. In the 1980s, each of these South
American countries were running massive
annual deficits, were accumulating
unmanageable national debts, and each
respectively had a central bank creating
money, out of thin air, at a reckless pace.
In looking at the frighteningly similar
profligate behavior, on the part of the U.S.
Government, Mr. Figgie became concerned that
hyperinflation could emerge in the United
States as well.
PARDON THE
INTERRUPTION
I wrote the
opening paragraph, and the balance of this
essay, in January of 2004. Since then, the
national debt has grown from $6.9
trillion up to $11.4 trillion an increase
of about 65%. Uncle Sam s
unfunded liabilities now exceed $100
trillion. Per the Federal Reserve s own data,
the United States
monetary base has skyrocketed from $735
billion, in January of 2004, to over $1.7
trillion today. To believe that the paper
tickets in my wallet, Federal Reserve Notes,
will somehow gain value over time has always
struck me as absurd. In my opinion, the stage
has been set for an explosion in the prices
of everyday goods and services. Economists
Robert Murphy and Thorsten Polleit have
recently written essays (linked here and
here)
affirming my trepidation. To be sure, I
firmly believe tough economic times, marred
by harsh inflation, lie ahead of
us.
AND NOW,
BACK TO THE ESSAY
As a
businessman and an entrepreneur, Harry Figgie
was concerned that his business enterprises
may not survive if his management teams were
not prepared to operate under the unstable
conditions wrought by heavy inflation. Since
little had been written about managing a
business under hyperinflationary conditions,
Mr. Figgie initiated a research project to
find out what a business must do to survive
the ravages of inflation. So, in his own
words, here is what he decided to
do:
As a
result, we initiated research of our own,
and chose our target South America
specifically Bolivia, Brazil and Argentina
as the best available examples of
economies suffering high inflation
rates.
We put
together a three-person team headed by Dr.
Gerald Swanson, a University of Arizona
economist and director of the Academy for
Economic Education.
The team
went to South America four times over a
two-year period to study the development of
inflation and its impact on businesses,
individuals and governments. They
interviewed 80 leading bankers and
industrialists and a considerable number of
ordinary citizens throughout Argentina,
Brazil and Bolivia.
As a result
of this research, Dr. Swanson wrote
The Hyperinflation Survival Guide: Strategies
for American Businesses; which was
first printed in 1989. The superb content of
this book can be attributed to Mr. Figgie s
foresight and to the outstanding research and
writing of Dr. Swanson. What follows are a
brief "Austrian" perspective about this book
and then specific details regarding the
book s content.
AN
AUSTRIAN PERSPECTIVE
The
Hyperinflation Survival Guide: Strategies for
American Businesses is a book that
provides sound business strategies for
business managers and entrepreneurs to
implement when operating a business under
economic circumstances in which monetary
calculation becomes increasingly difficult
due to a rapid decline in money s purchasing
power. Although the term "monetary
calculation" is not found anywhere in this
book, it is crucial to understand monetary
calculation is a method of thinking for a
businessman. As the extraordinary economist
Ludwig von Mises explains in his magnum opus
Human Action:
Monetary
calculation is the guiding star of action
under the social system of division of
labor. It is the compass of the man
embarking upon production. He calculates in
order to distinguish the remunerative lines
of production from the unprofitable ones,
those of which the sovereign consumers are
likely to approve from those which they are
likely to disapprove. Every single step of
entrepreneurial activities is subject to
scrutiny by monetary calculation. The
premeditation of planned action becomes
commercial precalculation of expected costs
and expected proceeds. The retrospective
establishment of the outcome of past action
becomes accounting of profit and
loss.
A tool
businessmen use to determine the success or
failure of past actions is a financial
statement which includes a balance sheet
and an income statement. It is important to
understand that all entries in the balance
sheet and income statement are expressed in
terms of money. Under conditions in which
money s purchasing power is stable, a
businessman can directly correlate whether
his company s capital base (i.e. the
company s net worth as reflected in the
balance sheet) is expanding or contracting
depending upon if the company turned a profit
or made a loss. Such monetary calculation
assists a businessman in deciding to maintain
or change a business plan based upon
satisfying the ever-sovereign
consumer.
But what
happens to monetary calculation under
conditions of inflation? As Murray N.
Rothbard explains in his fabulous book
Man, Economy, and State, businessmen
may be "tricked" into making poor decisions
thus causing consumption of
capital:
the
inflationary process inherently yields a
purchasing-power profit to the businessman,
since he purchases factors and sells them
at a later time when all prices are higher.
The businessman may thus keep abreast of
the price increases (we are exempting from
variations in price increases the
terms-of-trade component), neither losing
nor gaining from the inflation. But
business accounting is traditionally geared
to a world where the value of the monetary
unit is stable. Capital goods purchased are
entered in the asset column "at cost,"
i.e., at the price paid for them. When the
firm later sells the product, the extra
inflationary gain is not really a gain at
all; for it must be absorbed in purchasing
the replaced capital good at a higher
price. Inflation leads him to believe that
he has gained extra profits when he is just
able to replace capital. Hence, he will
undoubtedly be tempted to consume out of
these profits and thereby unwittingly
consume capital as well. Thus, inflation
tends at once to repress saving-investment
and to cause consumption of
capital.
Indeed,
inflation can lead to entrepreneurial error
and, thus, to business failure.
SPECIFICS
FROM THE BOOK
The
Hyperinflation Survival Guide provides
excellent strategies for businessmen to adopt
and act upon should hyperinflation emerge.
Although this book is geared more toward
owners/managers of manufacturing companies,
operating under inflationary conditions, any
businessman (and any individual) can garner
sound advice from this insightful book. The
four chapters in this book cover financial
management, marketing strategies,
manufacturing decisions, and industrial
relations.
Chapter one
of this book titled "Financial Management"
can be summed up as follows: "Cash
management is the difference between profits
and bankruptcy. The single fact that
influences every decision is: Time eats
money." The following list highlights a few
of the important financial-management issues
covered in this chapter:
-
Make
absolutely certain your managers
understand the time value of
money.
-
Never
allow your cash to remain
idle.
-
Good cash
management can provide a major source of
profit, while poor cash management can
destroy a company in a matter of
months.
-
Be
prepared to convert dollars into a stable
foreign currency.
-
Be aware
that the stock market may become an
uncertain source of capital.
-
Be
prepared to maintain more than one set of
books.
-
Inventory
valuation should be based on NIFO (next
in first out) rather than
LIFO.
-
Develop
an appropriate inflationary adjustment
for capital replacement or the value of
your capital will disappear.
Chapter two
is titled "Marketing Strategies." Pertaining
to the "4Ps" of marketing (price, promotion,
place, and product), this book concentrates
on pricing and product.
Since
government intervention and regulation
inevitably become more oppressive during
bouts of high inflation, it is important for
businesses to sell products with the largest
profit margins. As Dr. Swanson points
out:
A fact of
life in a hyperinflationary economy is the
disappearance of products whose controlled
price does not cover the cost of
production. In Brazil, for example, dairy
products such as milk, eggs and cheese
became unavailable when the regulated price
was set below their production
cost.
Likewise,
in the United States, high volume products
with extensive competition characteristic
of many consumer products may be the
first to disappear should inflation begin
to rise, because they tend to have low
profit margins.
With respect
to pricing, the book conveys that pricing
" policies undergo a dramatic transformation
during hyperinflation. Fluid pricing becomes
an absolute necessity, and prices must change
frequently and sharply to accurately reflect
the impact of inflation. True costs become
increasingly difficult to track, even as the
need to do so grows more
important."
For
Americans, it is hard to imagine products
disappearing from the marketplace let alone
having to cope with hyperinflation. Just
imagine the nightmare Bolivian businessmen
went through, in 1985, when inflation hit
50,000% annualized. Upward price adjustments
would have to be made by the hour. These
upward adjustments accumulate to the point of
seeming absurd. For example, under 50,000%
inflation, a $25 necktie would cost $12,525
one year later.
In chapter 3
(titled "Manufacturing Decisions"), Dr.
Swanson emphasizes that management must be
flexible and innovative. Corporate survival,
furthermore, may require radical decisions.
For example, during " periods of high
inflation, manufacturing operations are
particularly hard hit. In fact, in some
extreme cases in South America, corporate
attempts to survive have led some companies
to shut down their manufacturing operations
in favor of speculation, which can be a more
profitable use of capital." The cold reality
here is that the rates of return on
speculating in commodities and currencies,
under conditions of severe inflation, may
exceed the rates of return on capital
projects. Correspondingly, this means
laborers will lose their jobs.
Other
important points, covered in this chapter,
include the following:
-
Anticipate
that your purchasing department will
assume a more important role in the
long-run survival of your
firm.
-
Be aware
that hyperinflation creates increased
opportunities for corruption.
-
Effective
cost control requires that you develop
methods for estimating your internal rate
of inflation.
-
Anticipate
difficulty in maintaining capital
expenditure programs.
Chapter 4 of
this book is titled "Industrial Relations."
It could just as easily be titled "Employee
Relations." As Dr. Swanson and his team
discovered in South America, the impact of
hyperinflation on wages and benefits was
stunning. For instance, " Brazilian employees
who were not given raises in the first three
months of 1988 watched their buying power
plummet 64 percent. Even worse was the spring
of 1985, when Bolivians saw their real income
drop 90 percent in only three months." Such
bouts of inflation become especially
difficult for businessmen to cope with as
inflation is inflicted upon society by a
government s reckless monetary creation (out
of thin air) while, in turn, government
regulations for the alleged purpose of
controlling inflation prevent employers
from granting raises to employees. Employers,
unfortunately, take the brunt of the blame
for the declining living standards (that
employees experience during bouts of severe
inflation) when government is the real
culprit.
As standards
of living decline, Dr. Swanson found that
" individuals tend to seek the support of a
group to represent them in order to survive
constantly rising prices." He further
articulated:
This is
certainly true in Bolivia, Brazil and
Argentina, where the union movement is very
strong in both the public and private
sectors. Some South American business
leaders go so far as to complain that union
leaders actually use hyperinflation to
their own advantage, recognizing it as a
major source of their power. Because wages
continually lag behind rising prices during
hyperinflation, there is a near-constant
need for negotiations, as union members
press their leaders to push for higher
wages.
Other notable
labor-relations issues covered in this book
are summarized below:
-
Labor
relations staffs should be prepared to
face stronger unions and virtually
continuous negotiations.
-
There is
a high likelihood that wages will at some
point be frozen, and labor will apply
pressure on management to circumvent
controls.
-
Prepare
to shorten pay periods.
-
Anticipate
morale problems among middle management,
which often bears the greatest burden
during hyperinflation.
-
Consider
the type of index you will use for
cost-of-living adjustments, and be
prepared to make adjustments
often.
-
Fringe
benefits must be adjusted to reflect
inflation or they can
disappear.
This book s
appendix provides a nice bonus as it covers
the disastrous results of the wage and price
controls President Nixon implemented to
"combat" the United States 4.7% inflation
rate and its 5.8% unemployment rate. Two of
the most notable actions President Nixon
undertook on August 15, 1971 included an
immediate 90-day freeze on wages, prices,
salaries and rents and of course, the
reprehensible floating of the dollar; by
severing the last vestige of the dollar s
linkage to gold. For a president to assert
that severing the dollar s link to gold will
help reduce inflation completely defies
logic. In reality, what President Nixon
"accomplished" was to enable the federal
government to create money without limit. How
such an irresponsible action can be construed
to be anti-inflationary is a sad testimony to
the economic illiteracy of the American
populace.
To buttress
the point, about economic illiteracy, here is
an excerpt from this book s
appendix:
Domestic
reaction to Nixon s proposal was
overwhelmingly positive. Leaders of the
nation s corporate giants, believing that
some sort of action was overdue, responded
with general enthusiasm, and opinion polls
showed broad support among the
populace.
Financial
markets reacted with unprecedented gains,
as trading on the New York Stock Exchange
hit a record 31.72 million shares, and the
Dow Jones Industrial Average set a one-day
record by climbing 33 points. Bond prices
also rose sharply in heavy
trading
In all,
President Nixon implemented four phases of
wage and price controls, with the final phase
ending in April of 1974; and the results were
predictably terrible. There were, for
example, shortages of beef and textiles.
Prices rose, moreover, at an average annual
rate of 6 percent while the controls were in
place, yet in the eight months following the
end of Phase IV, prices climbed at an
annualized rate of over 12
percent.
CONCLUSION
Of the books
published regarding hyperinflation, this may
be the only one that provides effective
strategies for operating a business under
conditions of a rapidly depreciating
currency. To reiterate,
The Hyperinflation Survival Guide: Strategies
for American Businesses was written
by Dr. Gerald Swanson an associate
professor of economics at the University of
Arizona. Harry E. Figgie, Jr. sponsored the
research and the original production of this
book. As it was originally printed in 1989,
it was way ahead of its time. This, however,
does not change the fact that Dr. Swanson s
book will prove to be an excellent resource
for businessmen and individuals once the
Federal Reserve's destruction of the U.S.
dollar enters its terminal stage.
Let me close
with a little bit of sobering
humor:
There are
10^11 stars in the galaxy. That used to be
a huge number. But it's only a hundred
billion. It's less than the national
deficit! We used to call them astronomical
numbers. Now we should call them economical
numbers.
~ Richard Feynman
(1918 1988)
June 29, 2009
Eric Englund [send him
mail],
who
has an MBA from Boise State University, lives
in the state of Oregon. He is the publisher
of
The Hyperinflation Survival Guide by
Dr. Gerald Swanson. You are invited to visit
his website.
Copyright
2009 Eric Englund
-----------------
http://www.321gold.com/editorials/mathid/mathid101508.html
It
is
Time
Sam
Mathid
Oct 15,
2008
What is beyond
the collapse?
The construction
of the collapse was loosely
as thus:
-
Governments
inflated their
currencies.
-
Malinvestment
resulted
-
To cope with
the problems of
malinvestment,
governments inflated
their currencies
more.
-
Huge
malinvestments
resulted.
-
To cope with
the problems of huge
malinvestments
governments inflated
their currencies
hugely.
-
Currencies
utterly collapsed (still
playing out).
The feeble
construction known as the
world economy has been held
together with the glue of
lies and pathetic conceits
such as:
-
Pieces of paper
printed by governments,
and not backed by
anything of value, could
successfully be used
instead of real
money.
-
Wealth creation
could be separated from
production.
-
The more
control government took
of the economy, the
stronger the economy
would be.
-
The
disintegration of the
moral, spiritual and
intellectual fabric of
the western world had
nothing to do with
governments control of
the
economies.
I have had
readers make the point that
if the whole edifice was
built only on an illusion
of wealth creation, then
how come there was so much
prosperity for the last few
decades? The answer to that
is horribly simple. We
expropriated and wasted not
only such real wealth
(production) as there has
been in the present times,
but we wasted the
accumulated wealth of all
the preceding generations,
and finally (and most
disgusting of all) we then
went into vast debt and
consumed the wealth of
future
generations.
The whole lot,
every last nickel, has
either been doled out in
the gutter of political
corruption, or flushed down
Wall Street's slimy drain;
all abetted by a malign,
mumbo-jumbo nonsense called
Keynesian economics.
Nowhere is there reference
to prior criminality and
stupidity on such a grand
scale. There is no
historical
precedent.
For three
generations the public have
been lied to and lulled
into a false sense of
security by the media, by
the education system and by
governments.
Now, more than
ever, there is a desperate
need for the truth. The
restoration of hope for the
future can only begin with
the truth. A foundation of
truth is the bedrock of any
decent society, which is
why the enemies of freedom
seek so desperately to
suppress it, and why sane
people value the virtue of
truth so highly.
The truth is that
the current system has
become corrupted beyond
possibility of repair, and
needs to be allowed to
collapse. It will do so
anyway, whether we 'allow'
it or not. It must
collapse, so that something
more attuned to the genuine
needs of people can be
created. Destruction must
often precede creation...
slums have to be razed
before fine living quarters
can be
constructed.
When a system is
corrupt it will attract
only corrupt people and
only the corrupt will
flourish. We have provided
history with a wonderful
example of that. Look at
the legislators who sit in
not only the American
Congress, but in the UK and
Australian parliaments, and
in governments all across
the western world. Only an
utterly corrupt system
could elevate and reward
such second-rate
people.
As of this
morning I see that the DOW
rose almost 1000 points
overnight in the US. This
on the promise of
politicians taking firm
action. Looking to
politicians to effect a
solution for this situation
is as futile as poking
around in a parrot's
entrails in an attempt to
divine Saturday's winner at
Randwick. Bush claims that
it is an effort to preserve
the free market. The free
market needs no help, it
needs less hindrance. It is
government 'help' that has
killed the economy. As
Reagan once said: "the nine
most scary words in the
English language are 'I'm
from the government and I'm
here to help.' It's
actually eleven words, but
what's a 20% error with any
government
figure.
Look at the
criminals who infest Wall
Street, the Federal Reserve
and the Treasury. How
foolish and shifty they
look as they sit blinking
in front of the television
cameras struggling to
provide coherent answers to
simple questions; and yes,
on one level it is
laughable, but that is our
money and wealth that has
been destroyed. That is the
material present and future
of our families that has
been stolen.
Our education
system is run by people
whose job is to ensure that
children attain adulthood
without gaining any
dangerous ideas about
personal integrity or
individual responsibility.
Our media no longer even
pretends to publish the
news, they are merely
organs of propaganda for
the government, and for
those vast corporations
allied to government. It is
time to be done with all
our institutions. No part
of what we have is worth
saving. The corruption has
penetrated and permeated
from the very top to the
very bottom. Society has
been rotted down to the
last point of resistance...
the core level of the
family and individual. The
institutions have become a
part of the problem, not
the solution. The solutions
can now only be at the
level of the family and the
individual.
We need a new
system which allows people
(who, despite all
inducements to be
otherwise, are mostly
honest, hard working and
decent) to produce and
prosper. A system that
allows everyone the rewards
of their efforts. A system
that keeps government
locked away, not only by
Constitutionally binding
laws (we tried that), but
by harsh and prescribed
penalties for the flouting
of those laws.
We need a system
that keeps government
completely out of the
economy. The first great
breakthrough in the
establishment of boundaries
between government and
people was the separation
of the State from Religion,
the second will be the
separation of the State
from Money and the
Economy.
There is no place
for government in monetary
or financial dealings
between free people. No
matter the occasional
foibles and failings of
individuals, people will
always be as saints
compared to the systemized
criminality that infests
our corridors of power.
When government pokes its
dirty and self-serving
legislation into the
economic pie, there is an
immediate corruption of
that pie. The pie then
gradually deteriorates
until eventually and
inevitably the economic pie
becomes so rotten that it
collapses. That is the
point where we now find
ourselves.
Eventually people
are going to find out how
it is that they have been
ripped off so grossly. At
that point the expression
of the voice of the people
will move from the
sedateness of the ballot
box to the get down and
dirty level of the streets.
What is important is that
people's wrath is directed
toward the right target.
There are many easy yet
wrong targets such as
neighbours, other races,
immigrants, religions
etc.
The right target
is governments. The
criminality and
breathtaking greed of
Bankers and Wall Street,
that has brought the whole
western world to its knees,
could never have happened
without the legislative
complicity of government.
Our western system of
governments, not just the
American system, are rotten
to the core. Definitely the
American system is more
corrupt than any other, but
that is only a matter of
degree, not of
standard.
It is time for a
revolution, but not just
more of the same old
mindless and horrendous
violence of the 20th
Century, with its pointless
wars. Another century spent
fighting wars to determine
which is the best form of
total government control of
monetary and fiscal affairs
would likely see the end of
the human race. A pox on
all of those governments.
The original Constitution
of the United States of
America would be a good
starting point, but with
changes sufficient to
ensure that the errors of
the past could not again
happen.
It is time for
the second American
revolution. America is the
only place with the
tradition of freedom and
the intellectual
underpinning (not to
mention the arms) to make
it happen. There would be
many willing and happy to
come and help. There must
again be a beacon for
freedom in the world. The
fight is not just for the
future of America, but for
the future of the
world.
Many in the
American intelligence and
military, from the top to
the bottom, would renege on
their allegiance to the
government in an instant in
the event of a revolution.
They are deeply troubled by
the nature of the system
that they serve. Indeed, it
is possible that there are
very few who would fight to
keep the current elitist
system intact.
Bush has already
deployed the First Brigade
of the Third Infantry
Division within mainland
America. More troops are to
follow. Will these troops
remain reliable and true
for the elites against
their own countrymen? Hard
to say... especially for
the elites. Bush's striking
down of Posse Comitatus,
which disallowed the use of
the US military on home
soil, is a double edged
sword. It is a decision and
a precedent that could come
back to haunt
him.
It would be easy
to argue the merits of a
military coup in America.
The arrest of George Bush,
Dick Cheney, Hank Paulson,
Robert Rubin et al with the
dissolution of Congress,
followed by an announcement
of immediate criminal
investigations into the
whole upper hierarchy of
the political and financial
establishment would, after
the initial shock had
subsided, have massive
public support.
Colin Powell
sitting in the White House
and presiding over a new
Constitutional Convention
would do a lot to reassure
Americans and the rest of
the world that America was
serious about addressing
its problems. Maybe the
military are the one
institution that could
redeem
themselves.
The fortresses of
our ruling elites around
the world were almost
impregnable during the
complacency of the past few
decades. That complacency,
born of the illusion of
prosperity, is about to be
replaced by a public rage,
born of the reality of an
imposed poverty. The time
for truth is now, and the
truth is that it is time to
bring down the fascist and
socialist elites and their
Keynesian economic cronies
who have destroyed so much
and so many.
Is my message
'doomy'? Absolutely not, it
is a message of hope and
salvation. Could poverty,
violence, war, hatred,
sickness, moral rot and
spiritual oblivion become
worse in this century than
it was in the last? Only if
we allow a continuation of
the same corrupt monetary
system. We are in a vast
debtor's prison and the
guards are the very people
who created the monetary
system that ensured the
financial ruin. Not only is
the message hopeful, but
throwing these criminal and
pompous bums into jail, or
out into the street, would
be a lot of fun.
Sam
Mathid
|
~~~~~~~~~~~~~~
"In the first place, we
should insist that if the immigrant who
comes here in good faith becomes an
American and assimilates himself to us, he
shall be treated on an exact equality with
everyone else, for it is an outrage to
discriminate against any such man because
of creed, or birthplace, or origin. But
this is predicated upon the person's
becoming in every facet an American, and
nothing but an American... There can be no
divided allegiance here. Any man who says
he is an American, but something else also,
isn't an American at all. We have room for
but one flag, the American flag... We have
room for but one language here, and that is
the English language... and we have room
for but one sole loyalty and that is a
loyalty to the American people."
Theodore Roosevelt 1907
~~~~~~~~~~~~~~~~~
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
"Insanity in individuals is
something rare - but in groups, parties,
nations and epochs, it is the rule."
--Friedrich Nietzsche
DON'T BEAT YOURSELF UP WORRYING
--
JUST PREPARE!
"All you can do is all you can
do, and all you can do is enough;
the rest is God's grace."
-
Christos
"Once a government resorts to terror
against its own population to get what it
wants, it must keep using terror against its
own population to get what it wants. A
government that terrorizes its own people can
never stop. If such a government ever lets
the fear subside and rational thought return
to the populace,
that government is
finished."
- Michael Rivero
"Mankind must put an end to
war,
or war will put an end to
mankind"
- John F. Kennedy
"In a time of universal deceit, telling
the
truth becomes a revolutionary
act."
- George Orwell
"If man will only realize that it
is unmanly to obey laws that are
unjust,
no man's tyranny will enslave
him."
- Mahatma Gandhi
"Rebellion against tyrants
is obedience to
God."
-
Thomas Jefferson

|