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Friday, December 12, 2008

DEATH OF A CIVILIZATION IX

12/12/2008


DEATH OF A CIVILIZATION IX

It is not a surprise, not to me, for years I have foretold of the collapse of this economy of ours, of the world economy. I have told you step by step, what was wrong with the picture, where the money was coming from, where it was going and how the system was doomed.

I also told you how the lack of morals, values and ethics was contributing to eventual failure. Our economy has been based on the idea that everyone is buying, always buying and always spending money. Money was created by the Federal Reserve, we could have as much as we wanted.

That system failed, as you have seen. So where to next?

Looking back, the buying to run the economy, buying to bring prosperity, buying with money you don't have system failed. What is the next shoe to drop.

Remember when I told you , at the start of this series, that the computer you are reading this on may be the last computer you will ever own. The next shoe to drop will be this web based economy, the Internet age is about to go under. "Face book", "YouTube", "Google", "Yahoo", whatever, these websites are based on the income from advertising, on selling you stuff. As the economy is tanking and no one has money to buy anything these sites generate no revenue. They can no longer be free, they have to become subscription services. Meaning you have to pay to be on face book or have a g-mail address., or you poor schmuck, you have to get a real life in the "rt".
Oh you don't know how to live in the "rt".

So here it is how it goes, as you become poorer, the access to the web becomes more costly, as you need more access to the web the web becomes more inaccessible. No more free lunches. Once again , the whole model of living on the web becomes out of reach of the average person, web that was supposed to create equality and openness will kill the equality and openness.
At the same time, businesses that are providing free information content, TV channels, news papers and the news organizations, are losing money in advertising, they will also find it difficult to make money on the web and start to charge for access to their websites.

The other business model of late, volume merchendising, big box stores, where little profit on each sale make up for a larger profit on fewer sales will also fail as the sales go down and people have less money to spend. this will cause the Wal-Marts, Sam's club like businesses to increase prices, just when people have less money. It will take a while, like the slow death, people will sell assests, take money from their retirement funds, sell their insurance polices, second homes, rental properties, etc to pay for day to day expenses till there is nothing more left to sell.

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