Insecurity, Insolvency and Indifference - November 2010

Change is in the air, and projected collective mood indicates the beginning of a new paradigm. However, this approaching new reality may not bode well for the optimists. On a societal level, November holds a disheartening mixture of collective apathy, discord, despair, and intolerance. Such wide scale dysphoria is difficult to contain for long, and may result in some individuals or groups acting out in bursts of violence or other anti-social behaviors. Global leaders and governments, needed to keep the ever illusive recovery on track, as well as maintain a stable geopolitical environment, will likely find it difficult to accomplish anything of substance where cooperation is required. Things could even get more interesting should a less stable individual who also happens to be a head of state gets too caught up in the tide of antipathy.

According to projected collective mood and perception, there is high risk for terrorist activity as well as large impact natural disaster(s), especially in the first half of the month. With coffers lean and ammunition for economic remedies running thin, the clock continues to tick on an ever nearing market meltdown. There is continued discussion of a possible currency war, and such a scenario would fit well within the November “look out for number one” attitude. The next episode in the “new normal,” however it plays out, does not look pretty. Rather than a next chapter in global recovery, it may turn out to be the early stages of a systemic breakdown.

The above is an excerpt from the November 2010 issue of MoodCompass, a publication of A New Story Foundation. To view the latest projections related to human perception of the natural world, see Earth Cycles.

Ready for a Greater Depression?

It's normal for markets to disconnect from collective mood at major turning points, especially when turning in a negative direction. This is exactly what has been occurring for the past month or so. However, the extremity of the current disconnect is quite unusual, and implies a vulnerability to destabilization in the markets unlike anything we have ever seen. Imagine the crash potential as a loaded spring, waiting for the slightest nudge to set it off. Anything could do it: a terrorist attack, geopolitical tension or escalation, a natural disaster, or even simply that the market is "overbought." Compare the current crash potential (see chart) to the crash potential just before the sharp September/October 2008 sell-off.


The likelihood of an extreme market sell-off, or crash event, before the end of the year continues. While it is conceivable that some artificial mechanism could continue to prop up the stock market, the most likely scenario, the path of least resistance, is for the pressure of this wide gap to be relieved.

Everyone has heard of the 1929 stock market crash. What most people don't realize is that the really big losses came after the initial recession and recovery-- the 1930's were the era of the Great Depression. While Main St. may have little remaining interest in the stock market directly, the growing spectre of a Greater Depression should at least give people pause. What will our culture of individuality and independence do in the face of 20% plus unemployment? Will we find the means to adapt to a period of chronic economic slowdown and decline? There is every indication that this is the direction we are heading. Ready or not...

U.S Chaos and Global Volcanoes - September 2010 Vidocast

Highlights: U.S. chaos and violence, N. Korea crisis, high natural disaster risk. A global mood "weather forecast" for September 2010.

Global Destabilization - August 2010 Videocast

Highlights: Pervasive global destabilization, Widespread social turmoil, Elevated economic risk, Increasing geopolitical uncertainty. A global mood "weather forecast" for August 2010.

Major Event Alert: Aug 2010 Videocast

By mid-August 2010, major destabilizing events likely: public vulnerability spike, beginning of sharp market drop. Technical presentation of mood cycles illustrates.

The Precipice of Economic Collapse - July 2010

Independence Day in the United States is usually a call to celebrate unity and to be thankful for freedom from tyranny and oppression. With the collective mood continuing to deteriorate, there is no room for such positive ideation. It is more likely that this 4th of July, the theme of revolution and revolutionary war will be emphasized. Civil unrest and protests in the United States should escalate this month. Outbreaks of violence are increasingly likely. In spite of the constitutional declaration, there is no “WE THE PEOPLE” in America.

Globally, the mood should also reflect anger and fragmentation. Geopolitical tension should be quite high, while cooperation among world leaders difficult to discern. The world economy is on dangerous ground, and increased discussion of an up and coming sequel to the “Great Depression” is likely. Investor panic and high market volatility should be expected. Will the globalization paradigm continue to survive? Or, if the trend continues, will global goods, services, and destinations, at some point, become a nostalgic memory?

The above is an excerpt from the July 2010 issue of MoodCompass, a publication of A New Story Foundation.

Civil War Strategies - July Videocast

Highlights: U.S. divisiveness expanding with violent outbreaks likley; investor panic and more talk of "Great Depression II;" increasing global unrest, violence. A global mood "weather forecast" for July 2010.

September – The Great Market Crash of 2008

As I wrote this month's MoodCompass intro, I could only wonder when I might get to write about some good news. It just seems to keep getting worse... Here's the excerpt from the September issue:

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How do we say this… Let’s see… THIS LOOKS REALLY BAD!!! Last month we discussed an event or series of events centered around August 8-11 that could change the geopolitical and/or global economic landscape. The Russia/Georgia conflict certainly qualifies. This month, the globalization experiment continues to be severely challenged as cooperation between nations and even within nations continues to deteriorate. The global economy, already damaged, is likely to be severely crippled by the time this month is over.

However, our primary concern this month is not “the world.” It is one country in particular… the United States of America. For the last few weeks, optimism has been on the rise. There have been calls of bottoms in the stock market, beginning with the zany Jim Cramer of CNBC. Analysts have begun suggesting that it is time to buy stocks again. As of Friday (the 22nd), the stock market is up for the month of August. In a bear market, fading pessimism is not a good sign. It is a clear sign that the next leg down is about to start, and this next one looks particularly severe.

There may be increasing signs that the American consumer is not doing well, or that businesses are in trouble. Anxiety among stock market traders may begin to increase as the stock market does not sell off like “it should” in the face of the seriousness of the global and national indicators. Eventually, the rubber band will snap. This next one should be unlike any stock market decline in recent memory.

It is the aftermath of this, how it changes the face of America that is of primary concern. How will all of our lives be affected as the investments, the life savings of so many are wiped out? How do retired persons or those about to retire who did the “right thing” now face that they have nothing of substance to live on? How do businesses large enough to be publicly owned companies continue to retain workers when their capitalization has been practically erased? What is the effect of such extreme socioeconomic changes just before a presidential election?

This is not good news. There is no apparent silver lining. We have taken on the task of warning of approaching storms. It is time to hunker down. This one will be a doozie.

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http://anewstory.org/moodcompass/Sep08_MoodCompass.pdf
(current issue viewable by subscription only; reprinted with permission of A New Story Foundation)

For more information on MoodCompass, check out MoodCompass.com.

Depression Era Clothing Gives a Heads Up

There is more and more talk about the Great Depression, and still more denial that its 21st century version is fast approaching. The fashion trends for the fall are expressing what our collective unconscious "knows." The quote below from the New York Post heralds this new trend. Expect fashions to get much more plain and depression-era like in the next few years, as this year's is a "lighter" version of the 1930's fashions.

"The duds say it all-- and it's depressing. Taking a cue from the grim economy, this fall's fashions at Banana Republic, Gap and H&M are featuring a distinctly Depression-era trend of cloche hats, pencil skirts, conductor caps and baggy, vintage-style dresses. One of the most popular styles appears to hark back to the impish newsboy getup of the 1930s baggy trousers, caps, pinstriped vests, oxford lace-up shoes and utilitarian handbags."
-- The New York Post, July 28, 2008