Sunday, August 28, 2011

Hurricanes and The Great Deflation

All eyes have been on Hurricane Irene (2011) and its impact on the Atlantic seaboard for the last several days. The storm was not particularly powerful, peaking at Category 3 before making landfall a few days ago. The hurricane caused more than $7 billion in property damage and left 5 million people without power. The real area of concern, however, was that the storm went very far north, hitting New York City and Boston, something that was unheard of just 20 years ago. This is yet another indication that global warming is for real, a small taste of what is yet to come during "The Great Tribulation".

There is a reason for a socionomic perspective on hurricanes and their aftermath. The reason is that hurricanes that make landfall inflict massive property damage, requiring the government to step in to help rebuild. In times of strong economic growth, the government has no problem throwing in enough funds to help affected cities and counties clean up the wreckage and rebuild. It's another matter, however, to contemplate what happens when a hurricane causes massive property damage during a time that taxpayer dollars effectively dry up, rendering the government unable to respond to the disaster.

We are already seeing warning signs of a coming scenario where the government will be rendered unable to respond to disasters caused by hurricanes. Rep. Ron Paul made a comment that "there is no magic about FEMA" yesterday, arguing that the government's role in disaster relief should be reduced. On the same day, Rep Eric Cantor argued that funding for disaster relief should be offset by cuts elsewhere. We are already seeing the effect of austerity measures on disaster relief, an effect caused by declining tax revenue.

As "The Great Deflation" continues to unfold with increasing momentum, expect the government's ability to respond to disasters caused by hurricanes to become increasingly compromised as tax revenue dries up at a rapid clip. By 2017, the government will be unable to respond to disasters caused by hurricanes, leaving affected communities completely on their own. It's hard to imagine what would happen if a Category 5 hurricane were to hit a major city during the Bachmann Administration Period (2017 - 2021) -- the consequences would be truly horrendous with unprecedented property damage, multi-year blackouts (several years before the power gets restored), full scale anarchy, and possibly a full scale social breakdown.

Preparation is of utmost importance, especially with the worst of "The Great Deflation" yet to unfold. The American people will be increasingly on their own in dealing with the aftermath of disaster caused by hurricanes as the government's ability to respond is diminished in the years ahead. With austerity on the rise, it is not at all farfetched for FEMA to be abolished altogether in 2017 during the Bachmann Administration Period under the pretense of balancing the federal budget.

Hurricane Irene (2011) making landfall in New York City is another warning that man-made global warming is for real. While the worst of man-made global warming is over 30 years in the future, we are already starting to reap the consequences of abuse of fossil fuels now as greenhouse gases continue to be pumped into the atmosphere.

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