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For years we've preached the From the Outside In principle of markets: When trouble starts, it nearly always does so out in the weaker periphery before creeping towards the core.
We saw this in the run-up to the housing bubble collapse, as sub-prime mortgages gave way before prime loans, and in Europe, as smaller economies like Greece, Ireland, and Cyprus have fallen first and hardest (so far). We see this today in accelerating food stamp use among poorer U.S. households. In each case, the weaker economic parties give way first before being followed, over time, by the stronger ones.
Using this framework, we can often get several weeks to several months of advance notice before trouble erupts in the next ring closer to the center.
Which makes today notable, as we're receiving a number of new warning signs. The periphery is giving way.
The Periphery is Failing
by Chris MartensonFor years we've preached the From the Outside In principle of markets: When trouble starts, it nearly always does so out in the weaker periphery before creeping towards the core.
We saw this in the run-up to the housing bubble collapse, as sub-prime mortgages gave way before prime loans, and in Europe, as smaller economies like Greece, Ireland, and Cyprus have fallen first and hardest (so far). We see this today in accelerating food stamp use among poorer U.S. households. In each case, the weaker economic parties give way first before being followed, over time, by the stronger ones.
Using this framework, we can often get several weeks to several months of advance notice before trouble erupts in the next ring closer to the center.
Which makes today notable, as we're receiving a number of new warning signs. The periphery is giving way.
In 1859, a massive coronal mass ejection (CME) known as the Carrington Event slammed into Earth.
Fast-forward to 2013. Our planet is orders of magnitude more dependent on its technology systems. And a solar event the size of the Carrington Event has not recurred since. How vulnerable are we, should another one arrive?
NASA: Our Technology-Dependent Lifestyle is Vulnerable to Solar Flares
by Chris MartensonIn 1859, a massive coronal mass ejection (CME) known as the Carrington Event slammed into Earth.
Fast-forward to 2013. Our planet is orders of magnitude more dependent on its technology systems. And a solar event the size of the Carrington Event has not recurred since. How vulnerable are we, should another one arrive?