There are a lot of people, myself included, who can’t believe that the central banks have been able to keep things going so long by kicking the can down the road. “Kicking the can down the road” idiomatically means to defer something; to put something off. What has been deferred is world-wide economic collapse.
A woman named Ann Barnhardt has been in the news recently because she closed down her commodities brokerage in the wave of the MF Global scandal (where they stole a bunch of clients money and have yet to be jailed for it, or even charged). Ms Barnhardt believes the credibility of the commodities market has been destroyed. Furthermore, she thinks that the attempt to bail out Europe is just a matter of “kicking the can down the road.” In a recent interview she said, “At first it was kick the can down another 10, 12 years. Then it is kick the can down the road for another year. And then it was well, let’s kick the can down the road for another few months. Now we’re literally to the point where all we can do is kick the can down the road for a matter of a few days. It’s not going to make it. I will be very surprised if we make it until Christmas.”
I believe she is talking about this Christmas; as in a couple of weeks from now. Barnhardt says that bailing Europe out completely would cost 100 trillion dollars which is more than the world wide GDP.
Of course, doom and gloomers have been making these kinds of predictions for some time and the can keeps bumping down the road. Can it go on forever?
I’m guessing that most people haven’t given much thought to the possibility of total economic collapse whatever that might mean. A handful have made some kind of preparation for the possibility. Part of the problem is that we really don’t know what is going on. For example, until recently we thought that TARP was an 800 billion dollar bailout. Now we know the banks were given $7.7 trillion on which they made enormous profits.
The Transition Movement started based on the specter of Peak Oil and Climate Change and how that might affect the way of life we have enjoyed since WWII. Economic disaster seems like a much more likely possibility.
Ann Barnhardt details her particular POV about the lack of integrity in our economic and legal system. I highly recommend her interview for content and even entertainment value.
We have just seen an actual confiscation of wealth (MF Global). Time to pay attention.