It occurred to me recently, that I see the current US economy much like being on the RMS Titanic during its maiden voyage in April, 1912. There are many beliefs and perceptions regarding our current economy that remind me of what Titanic passengers must have experienced.
Most of America’s citizens believe strongly this country is too big to sink. They have been led to this belief by the news media and our esteemed politicians. Just like the Titanic we’re in the good hands of an experienced and knowledgeable crew.
The ship’s design was solid and unsinkable, and so is the foundation of this country. We live in complete confidence the crew will take good care of us through anything. We depend on our leaders to make the correct decisions to avert disaster.
The Titanic’s captain, crew and many passengers had knowledge of the icebergs nearby, but didn’t see them as dangerous. Only a few people thought the ship should take any kind of precautionary action. The masses were complacently denying the dangers around them.
The few who expressed concern were scoffed at, and called Doomsday Sayers. Most just considered them fringe lunatics, very much like people today warning of inevitable financial collapse from today’s federal debt management.
Many people, who acknowledged the potential gravity of the situation in the highly unlikely event of an iceberg collision, figured so much chaos would erupt; they would end up going down with the ship anyway. Options for survival weren’t even casually entertained by the vast, vast majority of passengers or crew. “Stay the course” they said.
Many others were having too much fun to consider the prospect of it suddenly ending. The ship was simply too great to sink, in spite of careless actions at the helm. Traveling full speed ahead, in the night fog, with icebergs everywhere was questioned by only a few “nut-cases”.
Of course, the few who sensed something wrong had no way of predicting the exact outcome of an event; only that it might end badly. A few plans were likely developed based on very limited knowledge and data.
This was okay though. The masses had no plan at all. Some sort of contingency plan, even the wrong plan greatly increased their chances of survival.
As with today, the masses were counting on the captain and crew to make the right decisions to avoid danger. When the iceberg was hit, the leader who got them into this situation kept reassuring the passengers no danger existed. “No need to worry”. Sound familiar?
The survivors weren’t so involved with enjoying themselves to realize their peril. They weren’t complacent. They were open to changing the course of their lives when it became essential to do so.
So, where are we now in this journey that so closely parallels the Titanic’s journey? I think we’re still at the stage where a few people recognize danger ahead, and think we should alter our course to avert disaster. The masses are complacent. They think things are much better than they really are.
Very few people are anticipating any radical changes in our lifestyle, and the government assures us the future they’re leading us to is gloriously bright. The dissenters are labeled as crazy or radical whack-jobs.
And just like the Titanic, this analogy probably doesn’t hold water. Let me know what you think.
Check out other informative articles on this website using the Search, Recent Articles, or Category features on the upper right side of this page.
If you are interested in buying gold or silver bullion at the lowest price, check out BullionVault.
If you are interested in learning more about rare American coin, or foreign coin collecting and investing see NumisMaster from Krause Publications.