This article from the marketwatch.com is about failed doom and gloom predictions.
Its well worth reading and although some of the content should be taken with a grain of salt (or two) it is true that some people just love fear mongering. The article mentions something I’ve written about many times before: Fear sells.
1) The economy and stock market will crash.
Even though there was clearly a serious economic crisis, the U.S. economy didn’t collapse as many predicted or some maybe even hoped for. Can it happen? Lots of things can happen eventually. Is it likely? Nope. The economy seems to collapse in Argentina every decade or so, other developing countries have similar problems, but its not that likely to see the same thing happen in the world’s most powerful country and anyone that spends his entire adult life predicting the end of the world every five years due to an American financial meltdown is either a lunatic or an unscrupulous money grabber.
2)The Euro will Collapse, along with the EU.
Again, can it happen? Sure, and some politicians grab plenty of votes with their anti EU stance, along with their poorly hidden fascist and racist agenda. Likely? No. In a world with countries such as USA, China and Russia, European countries can only be a strong enough force if they stay together. The EU and the Euro may not be perfect but it does make those within the union stronger than they would be standing alone. Countries that needed help such as Ireland are slowly getting back on their feet and the Euro isn’t likely to go away any time soon.
3) Gold will hit $5,000 an ounce.
As gold and silver “lose” value those that “invested” in it speculating are going nuts. “I’m losing money!”. Well, it depends. The gold and silver you have are still there, and if there is an economic collapse, even a big scare or crisis the price will no doubt go up, but the virtue of precious metals isn’t making people rich but somewhat retaining its purchasing power and value as centuries go by. The only difference between silver eagles at 40 bucks and the same coin at $20 should be that you can now buy two of them a month if that was the budget you had in mind for it.
4) The U.S. will suffer Zimbabwe-like hyperinflation.
Given that U.S. is nothing like Zimbabwe (or Argentina for that matter) its unlikely that you’ll wake up one day and see prices triple, the USD losing 70% of its value over night. Having said that I do believe that inflation is very real, and while a sudden collapse isn’t likely because hyperinflation isn’t likely either, we are seeing inflation rise and some very clear attempts made to hide it. What this basically means is that life gets more expensive, the same amount of labor gets you less goods and services and as time goes by most people are forced to live in slightly worse conditions. This slow decay of quality of living does exist and we can see it, but it sure isn’t the hyperinflation (or deflation) many doom worshiping prophets have predicted.
People, real-world survivalism isn’t about fear mongering. Having gone through what lots of self-claimed experts seem to fear (or maybe look forward to) and only guess or speculate about, I can tell you that so as to get by when things get that bad you don’t need to be some pessimistic doomer. Its actually the other way around, you need to be creative, resourceful and a positive thinker in general. You need to stay optimistic because if not you simply wont make it emotionally speaking when everything is in fact going to hell all around you. You wont make it in terms of financial survival when job unemployment sky rockets, inflation is killing you day by day and you need to make it work, may that be at your place or employment or in the business you run yourself. Its not about seeing the glass of water half full, its about having less than 1/10 of the glass full and still say “Hey, that’s not bad, its all I need. I’ll make it work!”.