Contrarians on the current crisis

The economic contrarians I read these days are holding their collective breath. Many of them have spun scenarios in the past about what the plunge into the abyss will be like, but now that events indicate that we’ve finally tipped over the edge, the contrarians are content to stop ringing the alarm bells and merely watch things unfold.

Not all of them, though. As I’ve said before, it’s difficult to find contrarian scenarios that are specific about the likely consequences of tipping past this or that point. Nick Jones has written one though, about what he thinks will result from the Fed’s recent abandoment of the dollar. It taught me a few things.


4 thoughts on “Contrarians on the current crisis

  1. I dont know… He seems to have a rather vested interest in making things out to look a certain way. His peice is full of links to sell you his investment strategy information. He could very well be right, but the sales pitch aspect sure detracts from his credibility.

  2. Angela,

    It isn’t Mr. Jones’s expectation that the dollar will collapse that caught my attention—plenty of folks with various vested interests have various opinions about that. What I like was his explanation of how the dominoes will fall during a collapse, which struck me as simple and clear and independently verifiable.

    Put another way, Mr. Jones didn’t do anything to persuade me that the dollar will collapse, but he did help me see that if and when it does collapse, a number of dire consequences are very likely.

  3. Nick Jones makes the excellent point that all fiat currencies eventually inflate to death; that is their intrinsic nature and it cannot be stopped. What makes things bad, however, is that, as the bully empire of the world, the United States has been able to put off the day of reckoning by exporting its debt-money to the whole world for many decades. This is but a small tip of a far greater iceberg, however. The Scriptures make clear that all nations that forget God are turned into hell. This is not a theoretical hell, but the wrath of Lamb from His throne in the here and now. As enormous as the dollar crisis is, our nation has been arrogantly violating God’s law for many generations. The synergistic affect of all our national sins heaping together indicates that we are far more fragile than we think and are quite prone to suffer catastrophic consequences that could be triggered by any number of things, which will snowball rapidly. Nick Jone’s appraisal of the dying dollar is but one of many triggers that I believe is set to go off in God’s timing. Our declining American standard of living is artificially maintained and propped up solely by debt. It is my assessment that when the debt implodes this standard will drop into a third world status and Americans will have to learn again in the fires of tribulation what it means to provide for themselves by the sweat of their brows, should the Lord be gracious to grant such mercies. I know, such a scenario is simply preposterous here in the land of unending credit, cheap goods, and good old American ingenuity, especially when we are the ones to suffer it, but the enormously powerful American debt-based system by its nature is also quite vulnerable to enormous consequences. The one-eyed Cyclops has a dangerously thin Achilles tendon that is exposed to the whole world, which now gathers to strike the blow. The fact that there are hundreds if not thousands of Christians awakening to the approaching storm and hungering for biblical reformation encourages me that the Lord is working in them prudent wisdom as they see harm approaching. The question is, will they act upon it in NOW in faith or will they linger while looking to Egypt to save them, and there are absolutely no solutions in our Egyptian economy and culture for the Lord has no fellowship with the iniquity of fallen man. The answer lies in proactively building a decidedly Christian culture, which begins first in cultural secession where the Lord’s people separate themselves from the heathen culture — wherein they have unequally yoked themselves (per Nehemiah 9 & 10, 2Cor 6:14-18) — to turn back to the Lord and the Everlasting New Covenant, the terms of their life. This whole process of reformation begins within the local church within the local community upon the land the Lord places them.

  4. The referenced article is an obvious advertisement. Maybe it is because my sib and I are first-generation-to-leave-poverty kids, but the economic growth of the past 25 years seemed pretty real to us. The houses on our former family farm are many times bigger than anything there before, and owned by financially secure people. Are we due a real economic crisis cycle after decades of prosperity? Probably. Is gold an answer? Maybe, but you can’t eat it, wear it, or get out of the weather in it, and in a true economic collapse back to local barter a wheelbarrow full would be worth less than an acre of good ground and some seed. I come from the American South. We can remember poverty. We have loads of literature about true catastrophe in our recent collective memory that make the forecasts of the doomsday-sayers look like what they are-ADS! “We’re all going back to the Stone Ages-unless you buy my product!” Right. I can do high tech- but I can also knit, sew, and grow a mean garden. Depend on God rather than your stuff. Gain skills. Get out of debt. And look at the pics of the great-great grandfathers who fought in the Civil War and survived Reconstruction and remember: It’ll all work out.

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