For lefties too stubborn to quit
CPOI Statement: National Day of Action against water charges 21:22 Fri Oct 31, 2014 | guestposter
An appeal to (right-wing) authority? 11:15 Fri Oct 31, 2014 | WorldbyStorm
The National Museum and while we?re at it remember those ?solutions? to the crash? 09:55 Fri Oct 31, 2014 | WorldbyStorm
This Week At Irish Election Literature 05:04 Fri Oct 31, 2014 | irishelectionliterature
More unintended consequence after the referendum on Scotland and independence 22:35 Thu Oct 30, 2014 | WorldbyStorm
Cedar Lounge >>
Life should be full of strangeness, like a rich painting
EXISTENTIALIST STOCK BUSINESS PHOTOS 12:03 Wed Oct 29, 2014
Irish Labour Movement 1889-1924: Lecture Six - Syndicalism in Ireland 09:02 Fri Oct 24, 2014
Global Finance, Money & Power: Lecture Seven - Bonds and Money Markets 08:26 Thu Oct 23, 2014
Irish Labour movement 1889-1924: Lecture Five - 1913 Lockout 09:47 Fri Oct 17, 2014
Global Finance, Money and Power: Lecture Six - Tax Havens 07:09 Thu Oct 16, 2014
Dublin Opinion >>
Northern/Irish Feminist Judgments: First Workshop ?The Foreign Subject? Wed Oct 29, 2014 12:22 | GuestPost
The Extraordinary Synod in Rome. Will it bring extraordinary times? Wed Oct 22, 2014 07:09 | GuestPost
A new Constitutional Settlement for Northern Ireland: Queries from International Law Mon Oct 20, 2014 10:27 | Aoife O'Donoghue
Why Budget 2015 must be that last of its kind Fri Oct 17, 2014 08:36 | Liam Thornton
Socio-Economic Rights & Budget Analysis: Some Notes on Available Resources, ?Progressivity? and Non... Thu Oct 16, 2014 11:55 | Liam Thornton
Human Rights in Ireland >>
Farewell from NWL Sun May 19, 2013 14:00 | namawinelake
Happy 70th Birthday, Michael Sun May 19, 2013 14:00 | namawinelake
Of the Week? Sat May 18, 2013 00:02 | namawinelake
Noonan denies IBRC legal fees loan approval to Paddy McKillen was in breach of E... Fri May 17, 2013 14:23 | namawinelake
Gayle Killilea Dunne asks to be added as notice party in Sean Dunne?s bankruptcy Fri May 17, 2013 12:30 | namawinelake
NAMA Wine Lake >>
Welcome to the downward spiral!
Sunday February 24, 2013 10:52 by Luke Eastwood
Despite the continued 'green shoots' talk, recovery seems increasingly far away.
It does not take a genius or even an economist to realise that we are in fact in the depths of a major depression, which is continuing to worsen. The mainstream media, especially the USA media 90% of which is owned by just 6 corporations, continues to talk up a recovery but this is pure hyperbole that an intelligent person should be able to see through.
Peak oil pundits have suggested that the effects of hitting the plateaux would be like a car that keeps stalling each time it gets into second gear. This crude analogy seems to be entirely appropriate – attempts to kick start the western economies have short-lived and limited effects because the underlying problem of relatively high production and employment costs will not go away. This is exacerbated by the high price of oil, which itself feeds into the increasingly high prices of basic commodities such as food and minerals.
So now rather than peak oil, we might be finding ourselves in a situation of peak everything! As prices rise and debt levels too the printing of more money (quantative easing) makes the situation worse by devaluing currency, making everything even more expensive, fuelling even higher inflation and continuing to reduce the buying power of every individual’s pay packet.
Economies with cheap labour and an abundance of resources (e.g. China) have done very well due to the imbalance between their production costs and those of western economies. However, as the western powers lose their buying power and people increasingly focus on necessities instead of luxuries, they too may well be affected. With a collapse in its export market China may not have a sufficiently strong local or domestic market to continue its expansion and any fiat currency based system of commerce that is not expanding is in crisis.
So what does the future hold? Simple household economics will tell you that if you don’t have enough money to cover your costs then you have to cut your spending until it is equal to or less than your household income. Using myself as a perfect example – I have relatively well paid professional employment but I have remained on the same salary to 5 years.
In truth my static salary has led to a reduction in income, in part due to inflation but also due to rises in taxes. So in order to compensate for this reduction I have had to reduce my household spending by finding better deals (e.g. cheaper insurance), providing essentials myself (food and fuel) or by simply cutting certain items from my monthly budget.
I’d consider myself fortunate that I am able to continue with my life pretty much as normal after accepting some cutbacks and adjustments. Many millions of people are not half so fortunate. In the western economies millions of people are defaulting on their debts, losing their homes and falling into poverty. Elsewhere the situation is far worse – in Egypt for instance most families spend 80% of their income just on food!
All indications are that this depression is far from over, in fact it looks set to become increasing severe in the years ahead. This situation may be exacerbated further by the currency wars that have begun and indeed by the real proxy wars between the main rival blocks (NATO and SCO) taking place in Africa and Arabia as I write.
Given this grim outlook I would consider it wise to be prepared for the worst, although I am ever hopeful that we might escape the worst case scenarios predicted by some commentators. If you can – pay off your debts; save some money as physical cash or metals; reduce your outgoings on unnecessary expenditure; become more self-sufficient. Even if things do not turn out as bad as predicted – cutting away self-indulgence and becoming more self-reliant are positive steps towards gaining more control over your own life – something worth doing even if a financial collapse is not coming.
Luke Eastwood is a writer and horticulturist living in Ireland,