Archive for November 13, 2007
Do you know what “Heat Value” means?
Imagine I open up my wallet and pull out a One Dollar and a Twenty Dollar bill. When it comes down to it, if you burned them both, you would get the exact same amount of heat from each of them.
Get ready to grab a book of matches.
A report from the Royal Bank of Scotland this week predicted the total losses from financial write downs will be “somewhere between $250-billion and $500-billion.” For all of us normal folks who work day jobs and don’t make fat commissions off of creating a false economy based on future assumptions, this is bad, bad news.
After all, people are already getting thrown out into the street and crime is on the rise. And you ain’t seen nothing yet. This is why I previously wrote that the “Green” marketing campaigns for companies will only go so far. People that can’t afford to pay rent or for food certainly are less apt to care about offsetting their carbon footprint for purchases they make.
And I don’t feel so bad for the financial institutions taking it up the ringer right now. The people running banks and oil energy companies could have been pushing industry to make the switch to an alternative energy economy with value predicated on real energy values. That means you would only be able to use the money once, and then it goes away instead of recirculating and adding more money to the fake pile of value that is presently imploding.
But these are big concepts with lots of intricate details, and I’ll get to the point. FASB 157 will bring in an Accountant of the Apocalypse, and you will see many banks and companies fall to their knees. I mean, you can only bullshit mother earth for so long before fake money value meets the 4th Law of Thermodynamics.
So as the dollar dies, and all of the reactions begin to amplify, remember that cigarettes and alcohol are “Poor Man’s Gold”, and you can always barter with those. The only questions that remain are:
How fast will the collapse occur?
What are YOU doing to prepare for it?