“The sky is falling, the sky is falling!”

Remember Chicken Little’s refrain, “The sky is falling, the sky is falling?”

Today, many doomsayers predict the end of our economy in a few weeks, a few months, a couple of years or  even  several years. After hearing so many people talk about doom and gloom, some people get severely depressed while many just become desensitized to the fatalistic views.

For those of us who get desensitized, maybe instead of Chicken Little, we should think of the Boy Who Cried Wolf. He cried, “Wolf,” so often that when there was a wolf, people didn’t listen to him.

Perhaps that is the situation we face today. The economy is not cataclysmic yet, consequently fatalism begins to sound a lot like “wolf.” But, on the other hand, enough market indicators, not just the doomsayers, predict there will be further difficult times in the US and the world.

Take a look at this gentleman’s “proposition” for the US dollar’s demise in 2012:  USD collapse in 2012…end of the world as we know it.  You can find further information about the author, Chris Laird, here: http://www.prudentsquirrel.com.

Mr. Laird claims that if/when the US dollar collapses, expect these failures to begin happening:

  • “The US and Western economies will all face insolvency simultaneously, with the US first in line.
  • The entire Western industrial/consumer/credit economy will fall apart so fast it will make your head spin. The supply chain will stop and stores will empty in less than 3 days.
  • The USD will fall over 50% in one week’s time, till it temporarily stabilizes before its final last gasp. Remember the Lehman panic over those several weeks? You have seen nothing yet.
  • Worldwide currency panic will set in paralyzing what’s left of the world economy, that means the ‘emerging markets’ stop dead too.
  • China has a revolution, or goes into military mode, which is worse.
  • A one world currency will be demanded and implemented, and it better be fast too since the cities only have 3 days food on average.”

Other people also claim the US dollar will collapse in the near future. Much of the world’s economy ties either directly or indirectly to the dollar. As such, the dollar’s collapse could cause mayhem around the world. More importantly, it could disrupt our day-to-day lives for days, weeks, months.

Maybe desensitization as self-preservation solves a short term problem, but in the long term we need to be concerned and prepared for tough economic times.