Economic Collapse - Really?
The expectation that the economy may or will deteriorate beyond a typical recession is gaining wider acceptance every week. Let me explain why I am confident that this situation will become unmistakable within the next six to eighteen months. I will also discuss how serious this problem is likely to become.
Before we get too far into the discussion about what may happen in the economy, it is necessary to understand the nature of money and bartering. Money is fundamentally a way to facilitate bartering among a large group of people. When one person, lets call him George, needs something that a second person, lets call him Peter, can provide, George may try to offer something he owns in exchange for what he wants. This may become difficult if the George does not have anything that the Peter wants. The George is then left wanting unless he can arrange a series of trades or exchanges with other people until the George finally obtains something that Peter wants. Another advantage of money is if George has something that Peter finds desirable, but there is a wide disparity between the values of the two objects being considered for trade.