Storms long lurking on the horizon have come ashore this mid-September. They have sent fell winds and waves over sea walls devastating lives and properties in Galveston and Houston. They have sent recession’s tidal surge undermining the foundations of two investment banking icons to rattle Wall Street in a flood of bad debt carrying off the flotsam of fortunes, the jetsam of economic portfolios and perhaps the intensifying undertow will soon undermine the world’s largest insurance company.
Early morning (Central Time) on 13 September 2008, Hurricane Ike, a Category 2 storm with a Category 4 storm surge surmounted the sea walls of Galveston and washed out neighboring communities on barrier islands down to their pylons and cement foundation tomb slabs. Lower lying neighborhoods of Houston, the fourth largest city in the United States, have become a macabre “Venice” with many neighborhood streets becoming unwilling canals. The adjacent oil refineries that make 25 percent of the nation’s gasoline thankfully have escaped destruction but the oil ship channels choked with the detritus of coastal towns must be cleared before oil shipments are safe to anchor. The refineries stand, while the houses of many refinery workers are flood damaged rendering them homeless. The flow of gasoline from Houston will be off line for weeks affecting the US economy.
While the world watched Ike drown Texas, a different “Hurricane” was baring down upon another sea wall — the kind that is built on the foundations of confidence with the bricks of faith and mortar of belief in the solvency of the US economy. The storm warnings had long been unheeded. The wall — or better, the sea Wall “Street” — was breached by a storm surge of bad faith, bad debt, coming with a black water crash as black as Black Tuesday 1987.
In came Hurricane “Black Monday” on 15 September, washing away 4.4 percent of the Dow Jones stock exchange value in one day’s trading. This hurricane was a category 504.48: a -504.48 stock market drop, that is.
Great banks were carried away in the deluge, but these were not the cause of the sea wall street breach. Yes, stalwarts of industry lasting for 158 years, such as lending and investment banker Lehman Brothers, saw their offices evacuated by thousands of brokers and workers, carrying away their belongings in boxes in throngs no less pathetic than refugees of hot and greenhouse gas bothered mother nature’s super-storms, but this was not the cause of the stock market dive. It was not the announcement of the biggest bankruptcy in history: Lehman Bros. spinning down the hurricane eye wall of insolvency along with its $639 billion value. It was not the storm that drowned the bull icon of Merrill Lynch after 94 years of resilience, its remains sold and picked at by black Bank of American crows for $50 billion.
The stock market plunged into the flood because AIG, the largest insurance giant in the world, is that safe “house” in a casino-like economy of the last few decades that could cover the bets lost in investment gambles. It is like that shining casino moored and floating off the Mississippi coast in 2005, a sitting duck in the path of Hurricane Katrina’s atomization. The stock market fell into dark waters because AIG lost over HALF its stock value in one day’s trading.
We now stand at the threshold of a future timeline I predicted back in December 2007 that could begin in this pivotal year 2008 and continue for 36 years unabated. We will begin seeing the connection between global warming ginning up natural disasters that undermine the economy. The weak link is an insurance industry that is expose to default (all their fault too) because it is overvalued, debt ridden, and unregulated. It will face huge payouts to shore up the rising wave of storm damage coverage because the year 2008 did see a catastrophic spike in devastating storms, regional flooding, tornadoes and a killer hurricane season as predicted.
This vision is still slightly ahead of those who can only feel the pain of the housing investment scandals that have blown down icons like Merrill Lynch, Lehman, and may yet topple AIG and Washington Mutual a few weeks or months from now. They might not yet see the connection between these two storms — Ike and Black Monday. They will see the connection clear enough in October when the cost of storms of nature combine with the cost of scandalous economy to begin spreading their flood of credit loss into the offices and stocks of the credit card industry.
Back in December 2007, I drafted and documented the following predictions that appeared in “Predictions for 2008″:
“A new civilization-topping trend will sustain a spike in 2008. A trend we must all do our best to forestall. An endemic and new level of ecological disasters‚Äö?Ñ¬?and freak weather of vast destructive force will appear‚Äö?Ñ¬? will be seen as ever more intertwined.”
Few last December saw this deep recession coming. Eventually this two-year crisis will correct itself even if it takes a drastic redefinition of the illusory rules of economy to achieve it.
In “Predictions for 2008″ I explained that the economy is like a religion. It is fundamentally faith-based. If you convince enough people to invest in the naked Emperor’s imaginary new clothes, if you get enough people to blindly follow a persuasively fabricated economic dogma — be it a system buying and selling beans, precious metals, notes of credit, or zeros and ones bought and sold in cyberspace — you can keep the game going, adapting it to each crisis.
“America will not go down in collapse,” I wrote, “Even if it is foolish enough to let its president or its proxy, Israel, drag it into a war with Iran in 2008‚Äö?Ñ¬?There will be one nasty recession in 2008 the likes of which hasn’t been seen since the 1970s‚Äö?Ñ¬?”
With that said, I cautioned my readers that a perfect storm of economic depression can come in two years from a factor players of the economic game can’t control. You can run your casino-economy just fine, sometimes winning, sometimes losing. You can break and remake the rules at your pleasure in your imagined economic world until a storm surge of a Hurricane Ike or Katrina floods through your gambling establishment.
“Mark me clearly,” I continued, “No manmade economic fantasy will be the cause of a sudden collapse. They’ll make up a solution as it goes along to keep the economy afloat.
“If collapses suddenly in 2008 or 2012, it will be from forces outside of human control. I have always warned that it is not the ‘economy stupid’ but ‘the ecology stupid’ that will break the world’s economies. Ecological disasters and climate change are the real creditors that will call humanity’s economic game off on account of rain, rising oceans, central continental droughts, famines, and so on.”
I hope otherwise will happen, but it may take a perfect storm of illusory economic games flooded out, craps tables and all, by climate changing storms, before we imagine a better, healthier game of profit for all, including Earth’s delicate ecological balance.
Imagination is a two edged sword. In the hands of the unconscious it projects economic rules that are prone to crashes. In the hands of a meditator, imagination becomes objective, creative and innovative. Imagination becomes a tool of harmony and balance.
There is a new humanity coming. One we can give birth to inside our sleepy sheeple selves this moment. It will transform economics from a Darwinian struggle of unconscious animals playing survival of the fittest games to a system that rewards merit and consciousness with wealth in all forms of life. It will have the highest of gold standards, the golden rule: do unto others as you would have them do unto you.
We will follow a new value system based on love.
I refresh here what I predicted in “Predictions for 2008.”
Perhaps today, Black Monday, on 15 September, we begin a 36-year journey towards a “humanitary” industrial complex wherein an economy of supply and demand will slowly, perhaps painfully even, evolve out of the current inhuman nightmare of supply and demand towards a newly perceived and humane dream: economics based on a value system of “balance and synthesis.”
Prophets of this new humanity foresee this new system.
We will give birth to it within ourselves through practicing the science of self-observation. New awareness by becoming acquainted with our inner nature will bless all dimensions of our lives. Economy with meditation can spread the light of a divine dispensation of richness in all dimensions: physical, emotional and spiritual in our lives.
(Black Monday, 15 September 2008)
Read more climate change predictions.