No magic act put on by government will stop the economic collapse.

I have been warning for quite a while that an economic collapse is coming. I do not think the bankers and politicians will be able to end this downturn with a wave of their magic wand even if they may be able to pull off that illusion for a short period until the greater reality hits.

America’s have been spending beyond their means for many decades and very greedy people have been gambling with all their investments. Now the chickens are coming home to roust and the financial house of cards is about to fall.

When unemployment starts rising and debts are not paid you will see a downward spiral begin that will either lead to a great depression or great government intervention bringing hyper-inflation. Either outcome will be tragic for most Americans.

Then Americans might realize that even this nation is not exempt from judgment. The next President whoever he or she may be, will be seen as a total failure. The President will be sitting over the start of an American disaster that could last into the foreseeable future.

Economic winter is on its way

All that two decades of frantic bailing out and bubble blowing has accomplished is to enrich a few fortunate investors and delay the inevitable while significantly jacking up the terrible price that Americans will ultimately pay. The business cycle can be influenced, but it cannot be eliminated. For every economic action, there will be an equal and opposite reaction, and since the financial house of cards has been built ever higher and ever more vulnerable during this decades-long period of delay, chances are very high that the collapse will be swifter and more brutal than even the economic pessimists can currently envision. This is far from a failure of the free markets; it is merely more evidence of the futility of central economic planning.If we are fortunate, it is only a long and hard economic winter that is approaching. If we are unfortunate, it is the financial Fimbulwinter that will precede a political Ragnarok.