I’ve been putting off writing this post for a long time now but recent events make it clear that I can’t put it off any longer. Specifically, I’m referring to recent events in the Middle East. I’ve been following what’s been happening there very closely, especially over the past year. In a nutshell, the stage has now been set for a massive escalation in tensions that could spiral out of control very quickly. Iran has made it’s move and there is likely to be a counter-retaliation, which will further raise the temperature on the escalation ladder, and once we hit the tipping point, we will all feel the impacts. You may think that whatever’s happening is way over there and we don’t need to worry about any major impacts here, but you’d be wrong. You see, there is this very narrow passage in the Persian Gulf called the Strait of Hormuz. Ok, so why does this matter? Only because 30 percent of the world’s oil and natural gas is shipped through this passage. Now consider an escalation scenario where this passage gets blocked – what do you think would happen? If you guessed there would be a major energy-supply shock, you’d be right. But how bad would it get? Pretty darn bad. For starters, the price of fuel could go up by at least 3-4 times (in the range of US $8-$12/gallon) and possibly even way higher. And because oil prices drive the cost of just about everything (think manufacturing and transportation of stuff), the prices of everything would rise astronomically. Lots of trucking companies will end up going bankrupt because they won’t be able to afford the high costs of diesel. This means that lots of goods simply will not be transported, and those that are will cost even more due to added transportation fees and fuel surcharges (we’ve seen those before, right?) Inflation of 2% will be a very distant memory as we would be likely to see inflation in the double-digits, and climbing. If you heard about people fighting over toilet rolls at Costo during Covid and thought that was crazy, you’re going to see much more wild and crazy things happening as people get desperate for virtually everything. Shortages and super-high prices will be the norm, and crime will skyrocket. Winter time in the northern climes will be especially harsh as people won’t be able to afford heating costs. There would be runs on banks and those banks that are highly leveraged (including the Big Banks) will fail (except that some may get taxpayer funded bailouts). Business and personal bankruptcies will reach record highs as a combination of lower demand (due to fewer people/companies being able to afford sky-high prices) and crushing debt and higher expenses drive ordinary people and businesses into bankruptcy. Many people will lose their homes, cars and any other property of value. If you think this is a big exaggeration, go back and see what happened during the oil shock of the 1970’s. This time it’s going to be much worse. In short, it’s going to be a dog-eat-dog world. I strongly believe that, in order to make it through this, you’ll need to be able to think on your feet, make fast decisions under pressure, get others to cooperate and collaborate with you when most will be extremely self-centred, and solve big problems creatively and better than anyone else can. That means having a resilient and powerful brain/mind that you can count on to not only help you survive in extremely harsh conditions but also to be among the few who thrive. Because I believe our brains will be our most valuable asset in such a scenario to help us get through it, I’m creating a course called SuperBrain OS (SuperBrain Operating System) that anyone can use to learn how to use this amazing organ we’ve been gifted with in the best way possible to lead us away from despair, negativity and disaster and towards hope, positivity and success. If you’re interested, you can check it out here. |
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