Hang on, it Could be a Bumpy Ride

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Bumpy Road Ahead Sign
Those of us in the passenger seat have to hope this course correction will set us back on track and not result in a spinout or crash.

The government of Canada is about to collapse as Justin Trudeau’s finance minister resigned rather than take a demotion. The opposition party is already calling for elections, and word is Trudeau may resign. What brought this on? The threat of tariffs from Donald Trump. Of course, it didn’t help that Trudeau’s approval rating was lower than Biden’s.

In Germany, Chancellor Olaf Scholz lost a vote of confidence earlier this week, ending in a collapse of his government. It will be interesting to see if any party can pull together enough votes, or form a coalition with other parties, to form any kind of government. There are multiple reasons for the collapse, but Germany’s economy has been crashing with its powerful manufacturing sector suffering. Some of their woes are driven by the government’s enforcement of green-energy and clean air rules, which are hurting their competitiveness, and the huge number of Syrian and other refugees that have flooded the country for the last decade.

Just a week prior, France suffered a similar fate as its government collapsed, due in part to budgetary and tax issues. After appointing his fourth prime minister in a year, Macron is under pressure to resign.

It’s tough to equate a peaceful transfer of power in Canada or France with the rebellion in Syria, but that is another government that collapsed. OK, the country collapsed while its leader bugged out, seeking safe harbor in Russia where his life and his ill-gotten gains will be protected. But it is yet another example of the turmoil we are seeing on the global stage.

It’s the Economy, Stupid

President Biden likes to claim our economy “is the best in the world.” That’s not saying much if all the economies in the world are in the crapper. Many European economies are suffering. Germany used to be the engine of Europe, but that engine is now missing on several cylinders and needs an overhaul. That won’t be easy while Russia is threatening war in Europe, Trump is promising new tariffs, NATO is demanding higher defense spending, and China is out-competing and underselling Germany companies. Germany is quickly becoming an example of what happens in a highly regulated socialist market when the socialist run out of other people’s money.

In Germany and France, we are seeing a theme that will happen here one day soon: the country and its taxpayers cannot afford to continue to pay for the costs of social programs. Perhaps the U.S. has already hit that point, but because the dollar is the world’s reserve currency, the cash shortage doesn’t affect us as much.

Granted, things are worse in France and Germany. Compared to workers in the U.S., those in Germany who are gainfully employed have more vacation, work fewer hours, enjoy longer maternity leaves, and it is almost impossible to fire them. But many states in the U.S. have higher and higher minimum wages, increasingly generous benefit plans, and we’re supporting millions of illegal immigrants with food stamps, welfare, free education and healthcare. We are leaning increasingly socialist, thanks to the leftists in our government.

Watch what happens in Europe as governments collapse and economies shudder so you can prepare to weather the same here. Not this year, but within the decade.

Do Governments Collapses Matter Here?

Does the collapse of the Canadian, German and French governments matter to preppers in the United States? Not immediately. It won’t change our lives in ways we can notice. But in the long run, what happens in the world affects us here. It affects prices, alliances, the behavior of our enemies, allies, and frenemies. It could have ramifications for the dollar, for oil, and even for the cost of food. They could be the harbinger of a global recession or encourage enemies to strike when there is a lack of leadership.

When there is a great deal of upheaval in the world, the U.S. cannot escape unscathed no matter how much we would like to step back and say, “It’s got nothing to do with us.” In fact, it could be argued that many of the problems in Europe, and elsewhere, are because the United States, the world leader, had a weak president and ceased to lead. By stepping away from the mantle of leadership, the U.S. left a vacuum that other countries have tried to fill.

Global Threats

The multiple governmental collapses, the wars, the threat of more war, the emergence of the BRICS, the alliance of China and Russia, all combine to threaten the global status quo. A new world view, much like that of the Cold War years with two opposing groups of countries, is rising from the ashes of the world that emerged after the collapse of the Soviet Union. Europe is finally realizing that the “peace dividend” weakened their position in the world. They must adjust, and so too must the United States.

When apple cart is upset, some apples get bruised. As preppers, we need to be aware of the potential threats and take steps to protect ourselves.

What are the potential threats?

  • Proxy wars and the possibility of a world war and/or nuclear war.
  • Trade wars and a realignment of trade, which will hurt China.
  • Economic problems, possibly leading to an economic collapse.
  • Food shortages.
  • Gas/energy shortages.
  • The collapse not only of ruling parties, but of some countries, sometimes by peaceful means and other times by revolution or civil war.

Outside the threats, we will see other changes, such as less global cooperation and more competition. Countries will begin to drop out of agreements that hurt them economically, whether the agreements relate to reducing carbon emissions or over fishing. A more competitive world with less cooperation will mean more aggression between countries, more threats, more subtle sabotage, and the need to become stronger. We will need to rebuild our military strength, adopt new technologies and methodologies, and become more competitive in all arenas.

As preppers, there’s not much we can do except continue to prepare for the worst while hoping for the best. However, if you analyze at what is going on in the world and invest your money carefully, you might be prepping for a comfortable retirement.

The Trump Effect

It may be the election of Donald Trump has brought many of these issues to a head. Like the passengers in a car thrown sideways when it takes a sudden turn, Americans are in for an unexpected jolt. While Americans voted for change, they may get more than they expected, but that might be a good thing. Just as a sharp twist of the wheel can keep the car from running off the road or avoid an obstacle, so too can a rapid turn of the government. Those of us in the passenger seat have to hope this course correction will set us back on track and not result in a spinout or crash.

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