Thursday, September 22, 2011

Does the ‘gloom’ make the ‘doom’?

Wednesday, 21 September 2011 21:17
John Mangun / Outside the Box



What would you do if you knew tomorrow was the last day of your life?

That philosophical question has been asked for centuries. 

However, it may have become more relevant in the post-war and Cold War period when the vast majority of the citizens of the world were living under the cloud of nuclear war.

In the last decades, primarily because of instant communication and news, we had the greatest of human tragedies brought right into our own homes. Crime, natural disasters and war are offered as nightly fare on the news. We can experience nearly in real time as these events unfold and no matter how immune we might think we are, some of this hit home, touching our souls and our thinking. It seems as if no one, no matter his or her country or economic status, is safe anymore.

We are almost constantly bombarded by all the gloom that we can handle and it has been happening for a generation.

People are not very optimistic and positive about the future. You might say that we have reason to be afraid of the future. I mean, look at all the different kinds of major problems that even the average person may have to face. Not only must we consider the traditional “Acts of God”—earthquakes, storms and volcanic eruptions—but each can be compounded by subsequent “man-made disasters.”

The Japanese have known for 600 years that the Sendai plain could be subject to a tsunami. There are old markers in the area telling people not to live closer than a certain distance from the ocean.

But the ancestors did not have to confront the aftermath when a nuclear plan goes ballistic.

In the 1970s, the “experts” told us that the world was going into another Ice Age, which would cause massive starvation as crops would not be able to grow. Now we are told that so-called global warming will sink the land.

We live under the same psychological cloud as the child who is convinced that there is a monster on the closet, never knowing when it is going to strike.

In the last decades, fear of the future has become a worldwide pandemic.

The world is in the midst of a financial disaster that is going to last years, if not decades. 

Purchasing power, which is just another way of saying “standard of living,” in the US is the same as in 1996. It is as if more than a decade of hard work, wealth creation and advances in technology has been wiped out. How could this have happened?

We now obviously know that it is the result of very bad decisions on the part of governments, business, and, maybe most important, individuals.

Then you must ask, if you knew back then what you now know, would you have made those same decisions? Tens of millions of families bought homes they knew they could not afford, only because they believed that the price of the house would always go higher and that they would never have to pay the mortgage off. Does that make any sense at all?

Financial institutions invested in financial instruments that did not have any value whatsoever except if they could find another institution to buy it for a higher price just because that’s what they were all doing. Does that make any sense? Governments borrowed trillions to buy things “for the people” when they knew there would never be enough tax revenue to pay the debt. Does that make any sense?

What would you do if you knew tomorrow was the last day of your life?

Would you spend your remaining life helping others in order to leave a lasting positive mark on the world? Or would you sink to the lowest level of immediate gratification, completely disregarding the lasting consequences because you will not be here to face it?

Perhaps the world never look at future consequences because there was a hidden belief that the future would never come.

Year 2000 came and went and the world continued. 2012 will come and go and the world will go on. Perhaps all of the secular humanism doomsday thinking of the last decades has created the gloom the world must face today. So what do we think today and what do we do tomorrow when we are still here?

On a personal note, I invite you to visit mangunonmarkets.com. You can gain access to the PSE Strategy Guide for stock-market investors as well as other content that I hope you will find interesting. The web site is still on “soft launch” status but do not hesitate to ask your questions using the appropriate box.

E-mail to mangun@gmail.comand Twitter @mangunonmarkets. PSE stock-market information and technical analysis tools provided by CitisecOnline.com Inc.

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