How does a financial crisis impact society?

The Great Correction in the economy will result in a lower standard of living in the West throughout the next couple of generations. When we get to the future, the future will already be spent!

Society can respond by 'closing in on itself', or by submitting to its creditors.

A closed society, historically, is defeated, smothered.

If the 2nd route is taken, a humbler people will emerge, a more old-fashioned community, who share and care for each other, rather than compete mindlessly.

The potential exists for a great Revival of Spiritual Values, as the material world gets shaken to its core.

For a more in-depth discussion, consider the writings of Larry Burkett and William Bonner.

For investors, volatility provides special opportunities. Watch for emotion-driven selling or buying.

At the moment, deleveraging is occurring.

Expect the DJ Avg. to eventually trade at 5-7 times earnings.

However, when Governments intervene and 'paper over' the financial crisis, then 'Paper money' (i.e. U.S. Dollars) will go the way of every Fiat currency in the history of the world!

Hyperinflation is 'ON HOLD' while Chinese and other Governments artificially support the U.S. Dollar.

Commodities prices will recover first following a financial crisis.