"There is no means of avoiding a final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion or later as a final and total catastrophe of the currency system involved."
- Ludwig von Mises

Wednesday, November 10, 2010

An Update on the Rickard's Interview

Yesterday I wrote about Jim Rickard's assertion that the US Army is running war games that are centered on the scenario of an economic collapse.  The name given for the exercises was "Unified Quest 2011."  I looked that up but could not find anything related to an economic collapse scenario.  Thus, the only source I found for this is the King World News interview found HERE. Usually, I like to back up sources for my readers before posting such an article, but Jim Rickards is well respected in the US Defense community. His company Omnis Inc. has consulted for various branches of the US Military in the past. Nonetheless, I found one source for this assertion, that was tweeted by Jim Rickards late yesterday. It is from the website (subscription required) InsideDefense.com Newsstand. Here is the blurb of the article:

Army Officials Think Through The What-Ifs Of A 'Global Economic Collapse'

Army officials met outside Washington last week for a thought experiment about the implications of a large-scale economic breakdown that would force the Army to absorb significant funding cuts and prepare the service for an increased role in keeping domestic order amid civil unrest. 323 words
And here is the SOURCE.

But I also want to mention that such exercises are not uncommon, and I don't want to be an alarmist about it.  Hurricane Katrina was one catastrophe that showed the US government that it needs more preparation on handling unusual but rare events.  Such exercises, in my opinion are important as they can be applied to various scenarios, such as earthquakes, hurricanes, etc...

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