Economy

The World is Whistlin’ in a Hurricane

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from The Wealth Watchman:

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The Eye of the Storm

Living further down South, one of nature’s forces we had to deal with were the occasional hurricane tail winds.  Now, hurricanes are deceitful, in that they seem like total chaos, with no rhyme or reason to them, but they aren’t, not by a longshot.  In fact, there’s a rhythmic order to them, as any hurricane or cyclone of significance, has an eye, a “mastermind” seemingly behind the entire thing.

There are many theories about how the “eye” of the hurricane develops.  One of the prevailing theories though, is that when a low air pressure area is formed, the winds start to flow there to “fill it in”.  Those winds are then pushed aside and deflected, due to something called the Coriolis Force.

This is a force that is derived from the earth’s rotation itself, which works to deflect any winds coming toward the center of the low pressure area.  Depending on whether the storm is north or south of the equator, the winds are pushed either right or left.  For instance, since the Caribbean is north of the equator, when air pressure pushes those converging winds, they push them from left to right.  This is why all hurricanes in the Caribbean turn counter-clockwise.

Hurricane 15

The eye of the hurricane is a curious and dangerous thing, for different reasons, depending on where you are.  If you’re unfortunate enough to be on a boat, while caught in the eye of the storm….you will be pulverized, as all the waves are pushed toward the center of the hurricane by the “Eyewall”(the eye’s edges, which are formed by severe storms).  While the Coriolis Force may push winds aside, they do not push aside converging waves.  This creates a perfect scenario for some severe waves to all converge in one place, growing sometimes up to 140 feet tall!

However, if you’re on land, and somehow make it to the eye of the storm, then your experience is totally different.  As the eye of the storm is the most peaceful and calm place around for hundreds of miles!  Caribbean natives or tourists, who’ve been caught in the isles during a hurricane will all tell you the same thing:

There’s an eerie calm about it all.  Except for the broken windows, bashed up cars, or damaged houses…everything inside almost feels totally normal.  Almost.

The eye, which can be 20 to 40 miles in diameter, is larger or smaller, depending on how strong the converging winds are pushed aside.  Meaning, the larger the eye is(the longer the calm lasts), the stronger the hurricane actually will be when it arrives on the other side.

I believe the exact same scenario is what we’re currently living in, in that we’ve all been trapped inside the eye of the largest hurricane forces that the global economy has ever seen.

The “Eyewall” Grows Closer

This economic eye, which started in the spring of 2009, by the artificial “Coriolis” of central bank manipulation, has now lasted a full 6 years!  Yet, unbelievably, after the close call they received in the last financial crisis….the general public seems to have forgotten all about it!

They seem to be fine with leaving their life savings in banks, and debt instruments:

Despite the widespread, bail-in legislation that’s been passed…

Despite most “too big too fail” banks being levered 20, 30, or 40 to 1…

Despite the many erratic banking glitches since 2012…

Despite the fact that the pulse of interest rates has flat-lined around the globe…

Despite Australia announcing that it will soon charge a tax on bank deposits…

Despite JP Morgan having started to charge a fee on some deposits…

Despite half of Europe now having a negative interest rate environment..

Nothing seems to phase the general public’s impervious wall of blissful denial.  They seem quite content to trust the entirety of every new paycheck, and even much of their life savings to the system that was nearly sucked down a vortex, just a few short years ago.

When you tell them of all this, and tell them that it’s not just “a little rain” that’s on its way, and that now’s not the time go out for a leisurely stroll, they ignore the warning signs, and take it all in stride!

Hurricane 10

 

It’s as if the old rules of “self preservation” don’t even apply anymore.

It’s all very Twilight Zone, isn’t it?

Read More @ The Wealth Watchman.com

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