Beware of Zombies Yes, the handwriting has been on the wall for a long time. But what does it say? We’ll answer that without hesitation. It says “Beware of Zombies.” And here we offer a simple test so Dear Readers can tell which side they’re on. Ask yourself: In the absence of government would people still willingly give you money to do what you do? If the answer is no, you are probably a zombie. Here’s how it works… When people realize they can use the police power of the government to get other people’s money, they rarely hesitate. In the case of the Motor City, unionized workers found that they could use government to back their demands. Gradually, wages and benefits rose… After World War II, Germany and Japan built new auto industries, with factory workers who were willing and able to turn out better cars at lower prices. Detroit, by contrast, let its machinery get old… and let its workers get soft. Due to poor quality, out-of-date styles and high costs, the US auto businesses could barely make a go of it. Light manufacturing was fleeing the country – to China, Southeast Asia and Mexico. The heavy industry – car making, steel, mining – was a sitting duck. It couldn’t protect itself from zombies. The zombies soon got control over the government… and then preyed upon fixed industries. The Jig Is Up Only four years ago, the US federal government bailed out GM. Or rather, it bailed out its zombified labor unions – guaranteeing wages and benefits the company couldn’t afford to give. What was happening in the motor business was happening even faster in the Motor City. As Detroit zombified, productive businesses and taxpayers moved out. Zombies were all that was left. People on welfare. People working for the government. People who were disabled. Crooks, malingerers, shysters – they were all there, getting money for nothing in the age-old zombie fashion. Was there no way to turn Detroit around? Of course there was. It was obvious how to do it. But who wanted to do it? The more dysfunctional the city became the more money the city’s sleaze-ball leaders got from the federal government. That’s how zombieism works: The worse things get the better they are for the zombies… Zombieism is like drug addiction. You rarely just “give it up.” Instead, you have to go all the way… and hit bottom. Detroit may be hitting bottom now. And how long will it be before Baltimore and Chicago go broke too? It depends on how fast interest rates rise. The higher they go the harder it is for these cities to keep up with their promises to the zombies. And since interest rates are probably embarking on a long-term secular rise… it is just a matter of time before they all go broke. That is when the jig is up. Zombies fall. The credit-based money system collapses… Gold rises.
Posted on: Tue, 23 Jul 2013 22:00:25 +0000
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