By JC Collins
The end of the current economic model is often predicted across wide spectrums of internet based forums and news sites. At times it appears the only thing that can, and will, ever happen is absolute anarchy and the collapse of everything we know and hold dear.
Every negative news story, be it a drop in the stock markets, lower interest rates, bond spreads, volatile credit markets, and many more, are all taken as the honest-to-god truth that a catastrophic economic crash is just around the corner.
It’s always been just around the corner.
The commitment to a horrible outcome by some armchair economists and legions of online analysts is absolute. Even to the point where any positive news is immediately considered to be the result of manipulation for nefarious purposes.
This is in stark contrast to the mainstream sources on television who minimize negative news and never consider the possibility that a larger financial contagion could spread and cause a systemic crisis globally. The reluctance on their part to acknowledge anything outside of the accepted circle is resolute.
It would appear that both sides are locked in a battle of denial with nether able to consider the foolish conclusions and analysis of the other side. It’s either collapse or happy days are here for ever.
The middle ground is in fact the reality and where a sensible approach should be taken. The odds of a total economic collapse are minimal. Equally so, a never-ending miracle should be viewed as fiction, as any observer who has been in this world for a reasonable amount of time can confirm that all things move in a cyclical fashion, and nothing stays down or up forever.
As such, there is no real end or beginning to much of anything. All things are the product of past transformations and future planning. The current economic model is not so much ending as being evolved into a healthier version which can serve to kick-start a new cycle of growth.
How long this cycle lasts is not as important as the fact that it will eventually give way to another contraction.
Many attempt to predict these cycles, and even come up with all-sorts of supporting math and statistics which appear to be reasonable and universal. It goes without saying that almost anything can be explained and described through such methods. But the methods themselves prove very little because patterns are found in all things, including the clouds in the sky and the plants in the ground.
Whatever will be will be, and humans will continue to see what we want to see and apply that filter to all things through equations and fallacies.
But that still doesn’t change the fact that transformation is happening all around us at all times. Something doesn’t change. Things are changing. Always.
With that in mind, it is worth reflecting on the volumes of information which have been provided here on POM supporting the actual transition of the international monetary system. The old economic model is not ending. Just like a new economic model is not about to begin tomorrow. Both models are overlapping as the transformation of the global economy takes place over years.
We only get to observe the process and learn as much as we can about its fundamentals to ensure we are positioned correctly for six months, one year, or two years, or perhaps even ten years down the road.
Think long-term economic and financial longevity with a spattering of short-term rewards. – JC
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