Despite obvious warning signs, people universally allow themselves to ignore reality

Despite obvious warning signs, people universally allow themselves to ignore reality

Published on 09/09/2014

Everyone in the country was in shock. People’s new worth had devalued more than 50% overnight. This was Mexico’s devaluation of the peso in 1976 which followed a statement from the President that their currency was safe.
Looking back, it was so obvious. Mexico had a mounting debt, destructive policies, and a woefully unsustainable fixed exchange rate with the $. All the writing was on the wall. But most people ignored the warning signs and kept their money in pesos.

Dec 31st 2001 – Argentina devalues the peso and so reduces the citizens wealth by 50% overnight- yet a month earlier, the President told the nation he would maintain the country’s peg against the $ .

Looking back, the economy was in four years of deep recession & there was huge government debt resulting in a default. But most people ignored the warning signs and kept their money in pesos.

* By May 1939 Hitler had stated very plainly, “the decision remains to attack Poland at the first opportunity.” Germany had 60 divisions massed on the Polish border ready to invade.

Yet people in Poland were told to keep calm, remain in place, and have confidence in their leaders & millions allowed their confidence to be misplaced in leaders who assured them that everything was OK.

Are we so different today? The raw numbers tell us that most banks in Europe & the US are insolvent. Most western governments are bankrupt. Pension and social security funds are insolvent. Financial markets are at precarious valuations. Government debt is un-repayable with spending is out of control & the $ is beginning to unravel as the dominant reserve currency.

Yet we’re all told to keep calm by our leaders. There’s nothing to see here, nothing to worry about.

Deep down, do your instincts tell you that something is seriously wrong with the system?

It’s human nature to want to believe that everything is going to be OK. And when our political leaders whisper soothing words of hope and optimism, we take the bait. Looking back, it’s all going to seem so obvious. If a major currency/banking/debt crisis hits within the next 12-months, people will think, “How did I not see that coming?” 

From an article by Sovereign Man

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