We’re heading toward the mother of all crashes (Mike Davis)

From Tom Engelhardt:

[Note for TomDispatch Readers: A heartfelt thanks to all of you who, in these dog days of summer, contributed $100 or more for a personalized, signed copy of Christian Parenti’s cutting-edge new book, Tropic of Chaos: Climate Change and the New Geography of Violence. For those who meant to do so but didn’t, the offer stands only till Wednesday ends. So hustle to the TD donation page by clicking here! For those of you following the Norwegian nightmare, check out Max Blumenthal’s old TD piece, “The Great Islamophobic Crusade,” on the American movement from which Anders Behring Breivik drew such inspiration or check out his more recent post at Tom]

When it comes to the Murdoch scandal, where everyone’s having such a rollicking good time, it hasn’t been particularly hard for reporters, pundits, and commentators to connect a few dots, even across an ocean. Yes, you can find actual experts claiming in print and online that what’s happening to Murdoch & Co. in England might affect the American part of his imperial media conglomerate, and that it’s even possible the whole structure of his world could be on a collision course with itself and hell.

When it comes to something larger and far less enjoyable though, like the global economy, you would be hard-pressed to find a similar connecting of the dots. China’s economy soars on one side of the planet (though with a multitude of half-hidden problems), while that country continues to outpace all others when it comes to holding U.S. debt. On the other side of the same planet, from Greece and Ireland to Spain and Italy, Europe shudders and fears run wild. Meanwhile, back in the U.S., the president and Congress have headed the economy merrily for the nearest cliff, while money is lacking even to keep court systems running in some parts of the country.

On all of this there is much reporting, much opining, many fears expressed, numerous teeth gnashed. Yet even when such pieces sit near each other on the same page or follow each other on the TV news, they are, with rare exceptions, treated as if they were remarkably separate problems, remarkably separate crises. And those long-distant days of the 1990s, when it was said everywhere that “globalization” was weaving our world into a single, vast economic mechanism, are now mere memory pieces.

And yet, what goes up…

Don’t even say it! Call it blindness, denial, what you will, but economically speaking, dots everywhere are almost religiously not connected, and so the thought that the global system itself might fail (as systems sometimes do) never quite manages to arise. Thank heavens, then, for Mike Davis, TomDispatch regular and author of Planet of Slums (and other books too numerous to mention), a man who has never seen a set of dots he didn’t care to connect. So take a break from denial for the following… (To catch Timothy MacBain’s latest TomCast audio interview in which Davis discusses a possible Chinese real estate crash and other perils of the global economic system, click here, or download it to your iPod here.) Tom

Crash Club
What Happens When Three Sputtering Economies Collide?
By Mike Davis

When my old gang and I were 14 or 15 years old, many centuries ago, we yearned for immortality in the fiery wreck of a bitchin’ ’40 Ford or ’57 Chevy. Our J.K. Rowling was Henry Felsen, the ex-Marine who wrote the bestselling masterpieces Hot Rod (1950), Street Rod (1953), and Crash Club (1958).

Officially, his books — highly praised by the National Safety Council — were deterrents, meant to scare my generation straight with huge dollops of teenage gore. In fact, he was our asphalt Homer, exalting doomed teenage heroes and inviting us to emulate their legend.

One of his books ends with an apocalyptic collision at a crossroads that more or less wipes out the entire graduating class of a small Iowa town. We loved this passage so much that we used to read it aloud to each other.

Read more.

2 replies on “We’re heading toward the mother of all crashes (Mike Davis)”

there’s a fellow, mark stansberry of stansberry investments, who among very, very few others like krugman or feinstein, foresaw the crash of 2008 by 2005-6. mark advised his investors to pull out from stocks and put it all into gold, gems… saved them everything when the crash cost others some $9 trillion.

now stansberry sees far, far worse for the US econ… he rightly points out that the IMF, doing the bidding of EU-OPE-china which see default in the near future by america on its debt… has stated that this year or early 2012, they will replace the USD as the standard currency of the world and replace it with the IMF’s own ‘bancmark,’ also solidifying IMF-WTO-worldbanc grip on the planet’s finances.

when that happens, he anticipates that we will go through what england did when the uSD replaced pound sterling in the 1950s – intense devaluation leading to hyperinflation. england was only spared long depression by being propped up by the US. as america has no such to rely upon… the dollar crashes to nothingness; economy totally implodes; unemployment skyrockets and the creditors come calling. finding nothing but worthless papers, they begin seizing collateral. just how much can be bought for $15 trillion?

food riots ignite, we can hope, the ‘american spring’ pro-democracy revolution here. martial law, civil war, chaos… followed by soviet union-style disintegration… the USG, utterly lacking any tax base then has just card left to play – it’s massive military might. there’s the question as to how the troops can be paid… but as the US virtually garrisons the whole world with some 770 bases… can it hold the world? will the USG contract ‘cornered cat syndrome’ and declare that ‘if we can’t have it nobody can!’

at any rate, it will not be pretty around these parts. advice? if you have any assets, convert to gold and gems and git while the gittin’s good. indeed, run for your lives.

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