U.S. Disaster Could be Imminent, August 9, 2013

We have continued to track social mood in the background these past few months, and have had nothing much to say about disasters for some time.  However, we have to mention this spike in disaster risk that has been forming over the last few days, and has just turned critical. 

 

According to U.S. social mood factors, the most likely type of disaster is MoodCompass type S SE.  For human caused disasters, this corresponds with terrorist attacks, violent protests, riots, and other anti-establishment violence.  We are all already aware of a high alert in many of our embassies overseas.  For natural disasters, the most likely type would be fires or earthquakes. 

 

According to NOAA, there is no extremely bad weather in the forecast.  Yet, globally, there is an extreme risk for a natural disaster on the scale of last year's Superstorm Sandy (worse than that if it happens outside the U.S.) on August 9 (which may also continue over the weekend).  The chart that shows the spike in natural disaster risk is below.

 

Update 8/10/13: The spike was a one day window, apparently we got through OK.  However, this indicates that we may be in for a time of increased global crises and both human and natural disasters.  Will keep you posted.

 

Major Event Warning

U.S. Social Mood patterns taken from Google Hot Trends and U.S. News stories indicate a spike in factors related to upheaval and instability. A major event which should have some impact to people in the United States may be imminent.  For the latest information visit http://moodcompass.com.

 

Update 7/20/12: Manifestation of this signal appears to be a shooting at a showing of a new Batman movie in Aurora, CO.  See link.

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...