I don’t know anything about the source of this article http://mondediplo.com/2011/08/02iceland on Iceland but it shows in microcosm what is actually going on in the world economy. Collapse is inevitable and has been for some time and the story in Iceland is typical of HOW the white-anting has occurred.
It may well be that we get a rise in the stock market before a much bigger drop – (a friend of mine who has a wave theory of market psychology has been predicting that – but he didn’t expect this drop to be as big as it has been) - but up and down or just down we can still expect much bigger drops to come. The general economy (jobs, houses etc) will start to really feel the heat probably about 6 months after that. I don’t know anything about the ‘physics’ of crowd psychology but we all know about the physics of gravity, and Wiley coyote ran off the cliff quite some time ago.
The bigger question in my mind is what do we do about the social problems that will follow. The ‘arab spring’ has been largely a result of economic problems impacting the middle class. How do we make the best of what happens? I’m asking myself that question as a member of a Christian community / mission order as well as dad / family member / individual. We can’t all shout “We’ll all be rooned!” and head for the hills.
This is not a double-dip recession – it is a continuation of what started in 2007 and has been held off temporarily by making things very much worse by sending governments (tax payers) broke by bailing out banks that deserved to fail. Ordinary savings in those banks could have been safe-guarded for a very much lower cost.
At another level this is a continuation of what first showed itself in 1987 and would / should have been able to run its course back then with less damage than will now occur if the general public hadn’t been encouraged to take on so much debt to keep the bubble growing in the years since then. The things that we have been encouraged to put our hope in – housing and super – will now show themselves to be debt-fueled rather than savings based.
You could say you don’t get something for nothing – but that plays to the lower side of human nature and perversely avoids the core moral issues.
I think a more sensible way to say it is that if you are not actively doing something good then bad things will happen: and if you do good things and bad things still happen – at least you still got to do good. Another way I like to think about is this: Never under-estimate the power and value of being a servant – God is the servant of his entire creation.
(This is a slightly edited version of something I wrote over a couple of posts to a private e-mail list a few days ago. It is edited just enough for it to make sense outside of the list context – nothing material is changed.)
