Quite right TJ, and it has already happened: <trade will continue. trade with wastrels will decline, and with the worthy, ramp up. >
In financial relativity theory, it's the relative proportions which matter. While my spending hasn't increased much, it has zoomed compared with the spending of others whose spending was based on borrowing a lot of money to revalue their houses upwards, "freeing" equity to enjoy today.
After a lifetime of learn, work, save and invest I now get to enjoy spend. Not only do I get to enjoy spend, it feels like vindication of my caution when wastrels were partying and laughing at Mr Practical Pig with the brick house [as in The Three Little Pigs]. When Pinocchio went to Pleasure Island and the foolish boys turned into donkeys, I was working and saving and investing my pennies.
Having waited decades for the return of the Great Depression, it seems almost normal that it might arrive, like a long lost friend.
The wastrels will be appreciative of me employing them [once they have become accustomed to greatly reduced pay rates which they are NOT yet accepting]. There is a risk that they will just steal my assets and that is quite a significant risk and governments are busily doing that now to "bail out" those who wish to continue to live in the manner to which they have become accustomed though it was an unearned lifestyle.
There is more to go. I was chatting to a "chippie" [aka carpenter] at the Newmarket viaduct construction site [being an ex civil engineer, I'm very interested in such things]. He said he used to build houses and wants to get back to doing that but meanwhile he is hired to do boxing and other woodwork. The money to pay him is from taxation expectations built up when he was working and paying high taxes as a house builder with the houses financed by money borrowed from Mrs Watanabe. It seems that his current money stream will also shut down in a year or three as tax revenue implodes and government spending is necessarily cut.
The wastrels most in trouble will be the army of benefit bludgers who have no visible means of support. They have had 30 years of great profits on the backs of an expanding welfare state funded by debt. What they'll do as the profits are cut will be interesting.
Meanwhile, we are 2 years into the market clearing process and so far, things are okay. Hopefully things will come right without too much damage [meaning no self-sustaining black hole implosion]. My guess is we'll all soon be happily using CDMA/OFDMA smartbooks and bathed in peace light harmony happiness health prosperity longevity fun and love.
Mqurice |
