Our world is a riskier place than it used to be. Whether from escalating conflict in the Mideast, rogue nations brandishing nuclear weapons, random attacks against innocent civilians, ruinous natural disasters, the emergence of global pandemics, or the fallout from volatile energy prices, we are increasingly vulnerable to a host of threats. Most Americans seem aware of these dangers, if only cursorily. We are familiar with war, diseases, and earthquakes. We understand that certain groups seek to subjugate others militarily or economically. We recognize that many individuals despise our country and wish to destroy everything for which we stand.
We know enough to be concerned about these risks and remain on the lookout for any signs of danger. We also realize that we may one day need to take action to protect ourselves and our loved ones.
But that is not the case with the devastating economic cataclysm that lies ahead.
Lacking the most primitive early-warning signal available to miners, we have no “canary in the coalmine” to raise the alarm over the broad scale dangers of a toxic confluence of debt, derivatives, government guarantees, and unfunded retirement obligations.
There have indeed been voices in the wilderness warning of the dangers, but most have only highlighted certain aspects of this disturbingly vast labyrinth. The majority of Americans have blithely assumed that with rules, regulations, and capital cushions in place, as well as our long history of muddling through difficult times, there is no real cause for concern. Yet when it all starts to go wrong, and the supposedly unimaginable evolves into a horrifying reality, it will be too late to react. It will then be clear that these four developments have formed an explosive mix that is too unwieldy, too complex, and too rife with conflicts of interest for any individual or organization to come to grips with. As with deadly carbon monoxide spreading quickly and insidiously in the depths of a mine, many will find themselves overcome with financial ruin before they know what hit them.
Financial Armageddon: Protecting Your Future from Four Impending Catastrophes is a layperson’s guide to four threats and the far-reaching impact they are poised to have on our lifestyles, our economy, and our society. The first is a burgeoning tower of public and private debt wobbling precariously on a foundation of greed, overindulgence, and fraud. The second is a multitrillion-dollar house of cards to which all Americans are exposed, though few of us know it. The third is a vast array of largely hidden promises that will ultimately remain unkept. The last is a retirement mirage that will leave millions cast adrift or financially enslaved until the day they die. Each is a ticking time bomb—all ready to explode at once.
A book on these threats has not yet been written for a few reasons. Many potential authors who are otherwise up to the task lack a solid understanding of the big-picture risks associated with modern day financial products, relationships, and markets. Moreover, the vast majority of those who are aware of the problems are bankers, Wall Street operators, and industry insiders who do not wish to kill the golden goose of profitability. Or they have decided to adopt an ostrich-like professional posture about the systemic dangers, despite their personal misgivings.
With time running out, a tragedy is in the making, and every American must acknowledge, understand, and prepare for it—before it is too late.
Comments