A Tsunami of Change is Heading Your Way
Don't wait for the wave to hit.Take measures now!
In the dreadful Boxing Day Tsunami which killed about 250,000 people, there was massive loss of life, maximally in the Indonesian province of Aceh. The massive quake was centred 160 kilometres off the coast of Aceh and was felt across Indonesia and as far away as Thailand.
But when the sea started to retreat in places such as Aceh and Phuket, curious locals flocked to the beach to observe the spectacle, unaware of the danger.
Surprisingly, the loss of life was much lower in the Simeulue islands, which are a lot closer to the centre of the quake. Why? Because once the quake was felt and the sea started to recede, older villagers in this earthquake prone region understood that a huge tsunami was coming, and told everyone to flee to the hills.
They had the experience of having witnessed quakes and tsunamis before and their quick actions saved their communities.
Human beings are not comfortable with change. But every day we are experiencing a lot of change in our homes, our workplaces, in our country and in the wider world.
The rapid changes in the world around us are constantly bombarding us in news programs but the real question is what to do about it, if anything?
We have all heard of the rise of China and India, climate change and ongoing military mess in the Middle East. Globalization, rapid technological change and reordering of economic power are all going on, as we sit on the beach and wonder how we will be affected?
And really what can an average person do about it all? You or I are unlikely to be able to solve the world's problems or influence presidents, politicians or company bosses.
The antidote to feeling powerless and overwhelmed is to turn your attention to what you do have control over. And ultimately that is yourself and your own affairs.
Unless you are in possession of a magic crystal ball, no one with complete accuracy can predict the future. However, if you have observed events before or have read about them, you can make some good guesses about likely events.
Sitting on your sunny beach, you are a world away from the deserts of Iraq. But what is now a highly unpopular war is being financed by the Bush administration in the same way that Vietnam was paid for - by printing US dollar bills. The 1970's wave that crashed around the world from this printing (and from the rise in oil prices) was a huge wave of inflation.
There are a lot of telltale signs that a new wave of inflation is coming, no matter what the politicians try to tell you. The boom in commodity prices and the rise in gold from USD250 in 2001 to USD 750 currently are all signs of the same problem.
And no matter how wonderful and benign the official (rigged) indicators of inflation are supposed to be - you should trust your own gut instincts. (The old line about "lies, damn lies and statistics" is still true.)
If you are informed and in control of your own situation, you are in a position not only to be protected but to also profit from events. Exactly what will happen, and when, is difficult to forecast, (and we don't presume to be able to do so), but adverse events when they occur are likely to be rapid and sudden.
The Global credit crunch appears to be easing with stock markets rising (but with the US Dollar falling) and the price of oil continuing to rise and rise. Many of the financial professionals such as banks are still reluctant to lend to each other.
While Mr Bernanke is lowering interest rates in the US, he is doing so not only because of credit woes but because the American economy is heading to recession.
If, as many are predicting, interest rates are cut further in October, further falls in the American currency are likely. A full-blown currency crisis is possible. Inflation waves are likely to crash on the un-expecting spectators massed on the beach.
October 1, 2007
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