The next decade

I have written many times over the years on my blog and various forums on where the US was headed. Some have been dire but all have been realized or are in the process of being realized. However, even though life has changed the world has not ended, in fact the world is not about to come to an end anytime soon. That being said the prospects for the next decade in the world does not look good.

The world is headed for a long depression, there is no doubt about it, as a matter of fact we are already in it. No country will be spared. The way we react to this as humans on this planet will say a lot about us.

Scenario one; for the most part, we are good to each other and share what we have with our “neighbors”. This would include countries helping countries and we get out of this in time with no major wars or chaos.

Scenario two would be that people and countries get so desperate that there is total chaos, stealing, killing for basic stuff, fire, riots, increased deaths through crime and through total neglect in society from health to infrastructure to car and home maintenance. Wars declared because countries will be trying to steal other countries resources with the official declaration of WWIII, before we get out of the depression.

We would all hope for scenario one but knowing common human behavior Scenario two is most likely. In that case, expect Russia, China and some Mid-eastern countries to be on one side, while the US, Europe and India will be on the other side. Where South America ends up will be interesting and I believe that there will be a major grab for control one way or the other of South American countries because it is resource rich. At the end of it, just like after WWII, expect a new world order with a redrawn world map either physically or ideologically. Us as individuals will need to take steps to minimize the adverse impact of scenario two.

It is very likely that there could be a bank holiday for some time where people would have no access whatsoever to their money or gold, or possibly even of the government taking or “borrowing” some of people’s wealth for “the cause”. My advice would be to keep some of your wealth out of the bank where you would have quick access to it. Expect runaway inflation and gold to hit at least 2k by end 2011. If we see hyperinflation expect, 5k gold and commodity price increases across the board.

Will it be scenario one or scenario two? I say scenario two but hope for scenario one. I have not been wrong on any of my forecasts so far but hope more than anyone that I am totally wrong on this one, but I do not live my life based on hope so I do whatever I can to make life bearable over the next decade. Yes the next decade will be very interesting.