Reading Zero Hedge on Thanksgiving was depressing. No, it wasn’t war news that had me worried; it was the financial news. For example:
- The real income of Americans (accounting for inflation) has fallen since Joe Biden was elected.
- 80 percent of Americans have less money and fewer assets today than they did in March 2020 when COVID hit.
- Americans savings peaked in August 2021. Thanks to inflation, savings are down about 90 percent since then as our fellow citizens spent $1.9 billion of funds they had saved.
- Many Americans are turning to credit cards to pay for groceries.
- Visits to food pantries continue to increase, with many first-time visitors.
- Credit card balances are up and defaults are higher than they were in 2008 when we were in the Great Recession.
- Americans are also borrowing from their 401k plans to pay their rent or mortgage.
- 40 percent of the taxes collected in October went to pay for interest on the United States deficit. Ouch.
- Moody’s downgraded our country’s financial prospects.
I can only conclude two things: one, Americans are poorer today than they were three years ago and are struggling to make ends meet; and two, when we hit a recession, things will get so much worse we should expect blood in the streets.
Blood in the Streets
I don’t mean blood caused by rich stock brokers jumping out of skyscraper windows , like we hear about in the Stock Market Crash of 1929. No, I mean people robbing, killing, ransacking, marauding, looting, and wilding in the streets of our major cities because they are angry, hungry, frustrated, and see no other option. I’m not talking about a crime wave; I’m talking about a crime tsunami. People who strike out because they feel they have no other choice.
Today, we see rising levels of retail crime by organized gangs stealing high-end bags, purses, shoes and clothing, often to resell online. We also see drug addicts and the homeless stealing from drug stores and small retailers to feed themselves or their habit. There have also been reports of criminals targeting trucks on city streets and railcars on sidings as they look for an easy score or a way to make money.
This is just a taste of what is coming. We are not like North Koreans; we won’t be satisfied eating grass or weeds. Hungry Americans will find someone who has money or food and kick their ass and steal their stuff.
You think a drug addict is bad? Most Americans are addicted to eating, and when they can no longer afford food, they will no longer be raiding the Nike store or Nordstrom’s. They are going to be looting the Kroger and A&P. They are going to be hitting the food aisles of Target and Walmart and walking out with carts that have not been paid for, daring anyone to stop them. And for the time being, no one will. And then the pendulum will swing.
Consequences
As a result of retail crime, stores are locking up everything from Spam to toilet paper to help reduce theft. We understand Walmart is prepared to move to a curbside pickup-only scheme, where they lock the doors and treat the store like a mini warehouse. You will have to place your order online and pick it up or have it delivered. That will prevent retail theft, or at least shift it from Walmart to the customer.
You can imagine what will happen next: criminals will target delivery drivers and will engage in “follow home” robberies where they follow unsuspecting consumers home from the store and attack them in their garage, stealing what they purchased but also gaining access to their homes which will be quickly stripped of valuables.
When we reach this level of unrest, there will be an immediate demand for armed guards. Police will have all the overtime they want plus the ability to work off-duty jobs in security. Stores and communities will deploy new security robots. Some people will want to be arrested just so they can get three hots and a cot.
Pick your favorite dystopian movie or novel. This is how it starts. Money grows tight and the government cracks down. The “crisis” becomes an excuse for even more bad behavior and corruption grows. That gives rise to rebellion.
A Dystopian Future
In third world countries, the wealthy often drive armored cars and have guards or drivers. Here in the U.S., those of us who cannot afford that will have to be their own guards. That means shopping as a team, where all team members are armed and someone is literally riding shotgun. It means taking basic precautions, like wearing body armor and backing into your garage so you can see any threat. It may mean having gates on driveways and fences, large boulders, ditches or other landscaping features designed to prevent easy vehicle access to your property. Developers will design new construction with security in mind.
It will mean more gated communities, more security patrols, more drones, license plate readers, facial recognition and other surveillance technology. More invasion of your privacy “for your own good.”
Have you heard of the concept of “15-minute cities?” They are pushing them to cut down on gasoline consumption, but it will be used to fight crime and control people, too. Our freedom to move about the country will be stifled in the name of safety.
Does all this sound impossible? Outlandish? Only if you are naïve. I’m not saying it will happen, only that it could. And the driving factor will be a poor economy and an angry populace, two things that are growing every day.
Here are a few of the article I read:
great article.
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