Insider
Executive Summary
- Why most of those around you will not prepare, despite the obvious risks
- Why the risks are bigger now than most realize
- Positioning yourself ahead of the trend
- The steps for prudent preparation
If you have not yet read Part 1: When The Rich Become Preppers, It’s Time To Worry available free to all readers, please click here to read it first.
People Aren’t Rational
Unfortunately, very few people make decision based on logic and/or rational calculations. Most go by emotion. If their pre-existing belief system is confirmed by something they will do it (or buy it, or learn it) but if not, then forget it. Data doesn’t matter.
I am sure you’ve all encountered this in your own lives, perhaps by trying to spread the warnings of The Crash Course to otherwise intelligent, thoughtful people who somehow just cannot even bring themselves to confront the troubling data.
Not because they are unable intellectually, or even that the data is all that troubling, but usually because their belief system cannot digest the information contained therein. One of the more dominant belief systems out there is that “the government will take care of me/us.”
This is not at all surprising given that we are raised in a very structured and authoritarian educational system. Most of us that is. The repetition of believing that a right answer always exists at the front of the room subtly reinforces the idea that you can trust in the hierarchies present in your culture.
And so it’s not much of a stretch to then invest that same comfort of knowing in the hierarchy of the political structure, or government, too. To attack or undermine the idea that there is a large, benevolent set of public institutions out there is to undermine the very basis of faith in authority.
That’s a biggie for most people, and not easily dislodged. This is why it can be so difficult to get someone to even consider storing an extra months’ worth of food in their otherwise barren pantry. It has nothing to do with cost or space…it has to do with the new belief system that would have to be installed first which is something along the lines of “maybe the system I trust so completely is slightly untrustworthy, and the people operating are not really as in control of it as I like to think.”
And even then, it’s not that simple. Dislodging a belief system and installing a new one is not an intellectual process, but an emotional one. Those are expensive for people under even the best of circumstances but really quite difficult if one lives in a country where emotions are clamped down, not permitted, drugged away, or otherwise subjugated and not allow to flow freely.
The point of all this is to be able to rotate the cube a bit and ask what happens when a mass of people suddenly all decide that their existing belief system isn’t working out anymore?
The herd is now skittish as a result of the tensions which are, in my experience, as high as they have ever been across the social fabric.
Rich people are feeling nervous because…
Preparing Prudently
PREVIEW by Chris MartensonExecutive Summary
- Why most of those around you will not prepare, despite the obvious risks
- Why the risks are bigger now than most realize
- Positioning yourself ahead of the trend
- The steps for prudent preparation
If you have not yet read Part 1: When The Rich Become Preppers, It’s Time To Worry available free to all readers, please click here to read it first.
People Aren’t Rational
Unfortunately, very few people make decision based on logic and/or rational calculations. Most go by emotion. If their pre-existing belief system is confirmed by something they will do it (or buy it, or learn it) but if not, then forget it. Data doesn’t matter.
I am sure you’ve all encountered this in your own lives, perhaps by trying to spread the warnings of The Crash Course to otherwise intelligent, thoughtful people who somehow just cannot even bring themselves to confront the troubling data.
Not because they are unable intellectually, or even that the data is all that troubling, but usually because their belief system cannot digest the information contained therein. One of the more dominant belief systems out there is that “the government will take care of me/us.”
This is not at all surprising given that we are raised in a very structured and authoritarian educational system. Most of us that is. The repetition of believing that a right answer always exists at the front of the room subtly reinforces the idea that you can trust in the hierarchies present in your culture.
And so it’s not much of a stretch to then invest that same comfort of knowing in the hierarchy of the political structure, or government, too. To attack or undermine the idea that there is a large, benevolent set of public institutions out there is to undermine the very basis of faith in authority.
That’s a biggie for most people, and not easily dislodged. This is why it can be so difficult to get someone to even consider storing an extra months’ worth of food in their otherwise barren pantry. It has nothing to do with cost or space…it has to do with the new belief system that would have to be installed first which is something along the lines of “maybe the system I trust so completely is slightly untrustworthy, and the people operating are not really as in control of it as I like to think.”
And even then, it’s not that simple. Dislodging a belief system and installing a new one is not an intellectual process, but an emotional one. Those are expensive for people under even the best of circumstances but really quite difficult if one lives in a country where emotions are clamped down, not permitted, drugged away, or otherwise subjugated and not allow to flow freely.
The point of all this is to be able to rotate the cube a bit and ask what happens when a mass of people suddenly all decide that their existing belief system isn’t working out anymore?
The herd is now skittish as a result of the tensions which are, in my experience, as high as they have ever been across the social fabric.
Rich people are feeling nervous because…
Executive Summary
- The gigantic predicament we all face
- What you should do, as a concerned individual
- What WE should do, as a society
- Contributing to the new narrative
If you have not yet read Part 1: Mad As Hell available free to all readers, please click here to read it first.
It simply has to be said; there appears to be little to no public appetite for facing reality.
At least not without some sort of a calamity or forcing function to press the issue that will wake up enough people and call out what leadership actually exists to finally step up and begin to deliver.
The many predicaments and extreme complexity require astonishingly great leadership to address and there’s really none of that to be found anywhere at the moment.
So we must adopt a two prong approach in our lives to both deal with the coming calamities and lay the groundwork for the next stage of things.
As it stands right now, the central banks are mainly interested in propping up the asset markets which is only serving to enrich the already stupendously rich with a few minor scraps for enough upper and middle class people to keep them content to play along. While this is being done, enormous imbalances are being created even as the underlying structural issues remain unaddressed.
Some of these are even dead simple, single factor financial issues, which should be among the easiest to detect and address yet these to remain unexamined and unaddressed. Examples include exponentially increasing debt-per-capita in Japan (goosed by demographics) and pensions being utterly gutted by too-low interest rates.
If the simple math of these situations is still too difficult and complex to allow for any sort of proper response, we have to then conclude that the more subtle and intractable and larger issues we face are even further out of reach.
Here I am talking about needing to…
Fixing The Future
PREVIEW by Chris MartensonExecutive Summary
- The gigantic predicament we all face
- What you should do, as a concerned individual
- What WE should do, as a society
- Contributing to the new narrative
If you have not yet read Part 1: Mad As Hell available free to all readers, please click here to read it first.
It simply has to be said; there appears to be little to no public appetite for facing reality.
At least not without some sort of a calamity or forcing function to press the issue that will wake up enough people and call out what leadership actually exists to finally step up and begin to deliver.
The many predicaments and extreme complexity require astonishingly great leadership to address and there’s really none of that to be found anywhere at the moment.
So we must adopt a two prong approach in our lives to both deal with the coming calamities and lay the groundwork for the next stage of things.
As it stands right now, the central banks are mainly interested in propping up the asset markets which is only serving to enrich the already stupendously rich with a few minor scraps for enough upper and middle class people to keep them content to play along. While this is being done, enormous imbalances are being created even as the underlying structural issues remain unaddressed.
Some of these are even dead simple, single factor financial issues, which should be among the easiest to detect and address yet these to remain unexamined and unaddressed. Examples include exponentially increasing debt-per-capita in Japan (goosed by demographics) and pensions being utterly gutted by too-low interest rates.
If the simple math of these situations is still too difficult and complex to allow for any sort of proper response, we have to then conclude that the more subtle and intractable and larger issues we face are even further out of reach.
Here I am talking about needing to…
Executive Summary
- Why No Nation Truly Has Full Control Over Its Currency
- Why Sovereign Efforts To Control Currencies Is Driving Capital Into Digital Currencies
- The Driver's Of Digital Currency & Value
- Calculating Bitcoin's Fair Value
If you have not yet read Part 1: Why The U.S. Dollar And Bitcoin Keep Rising available free to all readers, please click here to read it first.
In Part 1, we reviewed the dynamics of demand and utility that drive the valuation of any tradeable good, service, commodity and currency. We established that it’s impossible to understand how a fiat currency such as the U.S. dollar can retain a value above its tangible value of zero unless we accept its utility value and its non-tangible sources of value, i.e. the wealth and wealth generation of the issuing nation and state.
We now turn to the second half of the question posed in Part 1: Why isn’t the market value of a digital currency such as bitcoin zero?
Or perhaps more interestingly: How high might the price of bitcoin go?
To answer this question, we must investigate another question: Can any state control the value of its currency and its place in the global economy? I suggest the answer is no. Beneath a surface veneer of status quo continuity, nations and states are losing the ability to control their role in the global economy and thus the utility of their currency.
To understand why, we turn to socio-historian Immanuel Wallerstein.
Who Controls a Rapidly Changing World-System?
Wallerstein is recognized for advancing the concept of world-system, his term for what I call a global Mode of Production, i.e., the political, social, financial and economic system that governs the relations of power, labor, capital, trade and resources (broadly speaking, our understanding of Nature and the extraction of its resources). In a recent essay China is Confident: How Realistic?, he observed that "countries (have lost the ability) to control what happens to them in the ongoing life of the modern world-system."
These two paragraphs get to the essence of his analysis…
Estimating Bitcoin’s Fair Value
PREVIEW by charleshughsmithExecutive Summary
- Why No Nation Truly Has Full Control Over Its Currency
- Why Sovereign Efforts To Control Currencies Is Driving Capital Into Digital Currencies
- The Driver's Of Digital Currency & Value
- Calculating Bitcoin's Fair Value
If you have not yet read Part 1: Why The U.S. Dollar And Bitcoin Keep Rising available free to all readers, please click here to read it first.
In Part 1, we reviewed the dynamics of demand and utility that drive the valuation of any tradeable good, service, commodity and currency. We established that it’s impossible to understand how a fiat currency such as the U.S. dollar can retain a value above its tangible value of zero unless we accept its utility value and its non-tangible sources of value, i.e. the wealth and wealth generation of the issuing nation and state.
We now turn to the second half of the question posed in Part 1: Why isn’t the market value of a digital currency such as bitcoin zero?
Or perhaps more interestingly: How high might the price of bitcoin go?
To answer this question, we must investigate another question: Can any state control the value of its currency and its place in the global economy? I suggest the answer is no. Beneath a surface veneer of status quo continuity, nations and states are losing the ability to control their role in the global economy and thus the utility of their currency.
To understand why, we turn to socio-historian Immanuel Wallerstein.
Who Controls a Rapidly Changing World-System?
Wallerstein is recognized for advancing the concept of world-system, his term for what I call a global Mode of Production, i.e., the political, social, financial and economic system that governs the relations of power, labor, capital, trade and resources (broadly speaking, our understanding of Nature and the extraction of its resources). In a recent essay China is Confident: How Realistic?, he observed that "countries (have lost the ability) to control what happens to them in the ongoing life of the modern world-system."
These two paragraphs get to the essence of his analysis…
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