We Are On the Precipice of Enormous Financial & Economic Change (+3K Views)

Lorimer Wilson December 14, 2012 Comments Off on We Are On the Precipice of Enormous Financial & Economic Change (+3K Views) 4,328 Views

We are on the precipice of enormous financial and economic change. It is not change for the good, especially for the United States. Excesses and mis-allocated resources of several generations are about to be exposed as modern industrial nations sink deeper into the economic hole they have dug for themselves. The purging of these economic mistakes will be painful, could create new wars as politicians attempt to deflect blame and may end up changing the political form of government in some countries. (Words: 364; Charts: 1)

So writes Monty Pelerin (www.economicnoise.com) in edited excerpts from his article* entitled The World Is Changing And Ignoring This Reality Is Not Healthy.

Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!), may have further edited ([ ]), abridged (…) and/or reformatted (some sub-titles and bold/italics emphases) the article below for the sake of clarity and brevity to ensure a fast and easy read. The author’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article. Please note that this paragraph must be included in any article re-posting to avoid copyright infringement.

Pelerin goes on to write, in part:

The U.S. is especially vulnerable with respect to the transformation ahead. Having the dollar as the reserve currency for the world has allowed this country to endure excesses unavailable to all other countries. The luxury of the dollar as the world’s reserve currency is about to end. When it does, the U.S. becomes just another inefficient, over-indebted dysfunctional economy, little different than the weak sisters of Europe.

Simon Black provides some commentary** on this matter:

The entire global financial system is based on the idea that the U.S. can and should be the center of the economic universe. The dollar is used extensively in cross-border trade; US banks are the cornerstone of the global banking system; and US government debt is the foundation of nearly all financial markets around the world.

… things have changed now. The rest of the world has grown beyond this system, and it’s time for the system to change.

… the U.S. has become markedly less relevant in the global economy. As such, there’s really nothing to prevent the system from changing.

… the only people pretending to not notice are the political elite in the U.S. who are too busy printing money and indebting the economy.

The trend is very clear. It’s one of those things that future historians will look back on and say, ‘Well, duh, obviously.’

Investors beware! We approach times never before imagined.

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*http://www.economicnoise.com/2012/12/11/the-world-is-changing-and-ignoring-this-reality-is-not-healthy/; **http://www.sovereignman.com/lifestyle-design/the-luckiest-people-on-the-planet-10194/

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