The Coming Civil War (United States), Cool Maps, and Uncomfortable Truths

“Well, l could be wrong, but l believe diversity is an old, old wooden ship that was used during the Civil War era.  l would be surprised if the affiliates were concerned about the lack of an old wooden ship, but nice try.” – Anchorman

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So, I guess that my “Secretly Wants To Live in a Post-Apocalyptic Society” secret is out of the bag?  I guess I need more dehydrated food.  And scotch.

(Part II of this series is posted at: The Coming Civil War Part II, and a (Possible) American Caesar)

There are some posts where I know exactly what I want to say, and how I want to say it.  Often, those are fairly well scripted, either with a handwritten first draft or a set of researched bullet points.  I’ll expand those into the full post.  Those are nice.  The structure has been created.  The post flows out.

Some topics are topics that are well planned out (I actually plan the blog topics about three months out) and fit.  Some topics just hit me with a blast of inspiration and nearly write themselves.

And some are difficult.  Very difficult – they occupy headspace I know that I’m going to write about them, but the issue is so difficult that I want to make sure it comes out how I want it to come out, that it doesn’t inadvertently come out in some sort of ham-handed way.  This is one of those.  I’m sort of pleased with the results – it came out the way I wanted it to come out, just like the ending to Breaking Bad, or Jean-Claude Van Damme’s last optometry appointment – he still doesn’t need glasses, yay!

Don’t know a great way to put this, but we’re (in the United States, and in Europe, though my read there is much murkier) heading towards civil war.  In Europe, civil war means dissolution of the EU and (likely) expulsion of large numbers of immigrants.  But I’m not European, so I won’t go too far speculating about them.

I’m not sure if it will be a decade off or longer, but I put the arrival of this war as soon as 2024, and as late as 2032.  Not really any longer than that.  What would stop it is a prolonged, total war that would challenge the very existence of the United States.  External threats and an external enemy are the best way to create unity (and second term for a president named “Bush”).  And that’s not good, because a prolonged war always leads to extremes, and we have extreme weapons – in that way, a civil war might be the best-case scenario.  But I digress – back to civil war.

Why?  Again, this won’t be exactly the same civil war as THE Civil War – there are some facets that will rhyme, but others that won’t.  The major theme is division.  And what better way to show that than with . . . maps.

Here’s a map from Colin Woodward and Tufts University, and Brian Stauffer, depicting the 11 cultures that they contend make up the United States:

11nations

So, there’s this.  Accurate?  I would personally draw a line between those who like Star Wars® instead of Star Trek™.  Those people are awful.

And it’s not just culture, the Woodward/Tufts map is pretty accurate at predicting where we are today politically.  Here is a map of the Clinton/Trump 2016 vote count:

vote-by-nation-2016

The redder you are, the more Trump.  The overlay of the Woodard/Tufts map is clear.  These cultures are significant, and real, and explain NASCAR®, country music, and the inexplicable popularity of PEZ®.

And I think I’ve graphically made my case for there being a division.  But how significant is it?  Well, research shows that it’s pretty one-sided.  Liberals (at least young ones) are significantly more close-minded than conservatives:

civilwarstats

Yes, you read that right.  45% of liberals would be uncomfortable with a roommate with opposing political views.  12% of conservatives would be uncomfortable.  I guess this means that liberals don’t like diversity?

In 49 B.C., Julius Caesar was ordered back to Rome.  Quite specifically, he was ordered to leave his army, the 13th Legion (Legio XIII, Gemina, or “Twins”) beyond the border of the Rubicon river, which was considered the northern border of Rome.  He didn’t, and then spawned a civil war that (ultimately) led to the end of the Roman Republic and Caesar being proclaimed Emperor.  To this day we celebrate this event by ordering salads in Caesar’s name.

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The last time the 13th Legion was active, I think they got in line in front of me at Arby’s® in Boulder, Colorado after a Van Halen© concert.  Man, when 4,000 people are in front of you in line, you’d expect they’d run out of roast beef.   They did.  Thankfully they had lots of panda and koala bear left.  They also ran out of Horsey Sauce L.  They claimed they ran out of horses.

So we have divisions that are significant, enduring (these divisions aren’t new), and deep.  Yet for decades we haven’t had a problem.  Why are we at the Rubicon?

Well, we were ethnically much more uniform than today.  The United States in 1965 (at the time of a major change to immigration policy) was 85% white.  Now?  62%.  That’s a pretty significant change, and one that impacts politics.  Again, cultural divisions lead to war.  And the easiest division is what you look like.  I know that people like to fight and will pick any old reason to fight.  Religion in Northern Ireland (Protestants and Catholics), football in California (Raiders™ vs. 49er’s©), and really important stuff (Star Wars© vs. Star Trek™).  People will fight each other to the death because we don’t like each other’s hats.  Historically, multi-cultural societies . . . fail.  Spectacularly.  (Again, this is not an indictment of any individual group, just a reading of history.)

But civil war in the United States is . . . very singular.  The Civil War was built upon philosophical differences (with very human consequences).  Issues involved in the Civil War include slavery, states’ rights, and Northern industrialism versus Southern agrarianism.  But one of the underlying causes might just be that map of the 11 cultures shown above.  The Northern states were built on the Puritan ethic.  They make up the Boston/New York corridor and the swath heading west from that.  The Southern states were built upon scoundrels – the Irish malcontents and Scottish reivers that immigrated later.  They’re the ones that make up Greater Appalachia.

So what will cause a civil war in the United States?

The first thing is the philosophic divisions listed above.  The desire for the freedom of individual determination is still strong in the Deep South and in Greater Appalachia and the Far West.  That hasn’t changed.  The Puritans in Yankeedom and the Left Coast still very much want to make their values the only values that matter.  Note the graph above that shows relative discomfort with diverse exhibited by liberals.  Ouch!

These groups have hated each other since the 1600’s.  And it will never go away, especially as long as the New England Patriots® keep winning Super Bowls™.  The two sides have never spoken the same language.  The time that both North and South united?  After the Civil War, the North (magnanimously) allowed the South to keep their heroes (Lee, Stuart, Jackson, Davis) and they were transformed into American heroes rather than insurrectionist traitors.  Not a bad trade.

There were places that held out – the first celebration of July 4th after the Civil War in Vicksburg was on July 4th, 1945.  Admittedly, Vicksburg surrendered on July 4th after a horrific siege and devastating defeat for the Confederacy.  It took 80 years and winning not one, but two world wars for Vicksburg to celebrate national unity on a regular basis on July 4.  These divisions remain to this day.

But what else will cause this war?

The Fourth Turning – it’s time.  Here’s a previous post (The Economy, The Fourth Turning, Kondratieff, and You.) that explains this timing in more detail.  The last generation to have experience the horror associated with total war, with the mobilization of the entire economy of the United States to defeat a foe is . . . dead.  The youngest boys that landed on Omaha Beach on D-Day are 95 today.  They control nothing.

Our leadership, our population has no connection to those that saw the horrors of a continent ripped apart by war.  They led our nation (and all of the nations of the West) and their actions were held in check by the horrors that they had seen.  Now their experiences no longer temper the actions of the leaders (and desires of the people) to avoid apocalyptic levels of violence.

Let’s continue with economics – I’ve discussed before that the current economic practices have a time limit (More Budget Doom, The Rolling Stones, an End Date, and an Unlikely Version of Thunderstruck).  One cause of civil war (not necessary, but certainly an exacerbating cause) is economic collapse.  When people have more to lose than to gain, they won’t fight.  As Janis Joplin said, “Freedom’s just another word for nothing left to lose.”  And when people are ruined?  They fight.  See the French Revolution (Robespierre, Stalin, Mao, Mangos and A Future That Must Not Be).

Economics will be a trigger, but not the underlying cause of division listed above.

So, we have a civil war.  What’s the end look like?

Breakup.

I don’t think that the things that have held us together as a nation will continue to hold us together.  What values do we have in common anymore?  It seems like . . . none.  Let me elaborate.  I could do a post on each of these (and likely won’t – other people cover this on a regular basis, so unless I have a Wilder take, I won’t):

We don’t speak the same language at all, anymore.  Even though I have friends that don’t (at all) agree with me politically, I fear that they aren’t the norm.  The end state isn’t 11 countries.  It’s probably (at least) four.  I can see a Heartland State, an East Coast, a West Coast, and a Northern Mexico.  Los Angeles will be Mexico.  Portland, San Francisco, and Seattle will be East Coast.  The Boston/Manhattan/DC corridor will be East Coast.  Northern Mexico will be as shown as El Norte.

But on the bright side?  Jean-Claude Van Damme doesn’t need glasses!!! How awesome is that?

2018 Wealth Predictions: 1st Quarter Update

“Battalions of Orcs are crossing the river.  lt is as the Lord Denethor predicted.” – Lord of the Rings

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Two million dollars?  Some people don’t make that much money in a whole year!

I promised a quarterly update on my Wealth predictions for 2018.  So, here it is.  So far, I’m doing okay.  We’ll check back in June to laugh at the how things have gone off the rails.

Bitcoin

Bitcoin is the ugly stepbrother of currencies.  Or it’s Cinderella®.  I categorized the risks previously:

  • It (may) be vulnerable to hacking since it’s based on an NSA product – there may be hidden back doors.
  • Wal-Mart® doesn’t take it.
  • It’s as volatile as a bi-polar ex-wife on meth.

New Risks since December Prediction:

The IRS has categorized each Bitcoin transaction as a taxable event.  Yeouch.  Nobody keeps those kinds of records, and that is an absolute block for people wanting to use it like you’d use a dollar bill.  That moves it from a currency to an investment vehicle.  Use as a currency inherently raises the value of Bitcoin, but this moves it away from that.

My prediction in December:

“I think it might have more to fall before it becomes stabilized, maybe to $10,000.  But I predict it would be higher than $20,000 next December.”

First Quarter Scorecard:

How’s that working so far?  Bitcoin dropped to my $10,000 number and kept right on going until it hit $7,000.  Recently, it’s been bouncing around my $10,000 prediction for the stabilization number.  Is $20,000 still possible?  Sure, but less likely if it’s harder to use as a currency.  I would change this one if I could (note:  The Boy has partial Bitcoins I won’t let him use, due to the taxable thing.  Irony:  He paid a bitcoin for some hosting about 5 years ago.  Yeah.  $10,000 for internet hosting.)

The Stock Market

In December I said:  “The biggest risks are North Korea, Iran, and Saudi Arabia, with anything that created higher oil prices being the biggest risk.  Chances of impeachment this year?  Nearly zero.”

New Risks Since December Prediction

  • Democrats taking the House of Representatives in November – this is a risk because it greatly increases political uncertainty. Again, impeachment this year is nearly zero probability.  In 2019 with a Democratic House?  Low, but non-zero.  That’s a huge risk the market has not priced in.  October will be the most volatile month this year, if the Republicans keep the House.  If they lose the house – November will be a very difficult month in the Market.  But if Pelosi keeps talking – the Republicans have nothing to fear.
  • How much will the Fed increase interest rates (see below)?
  • Is Facebook® in trouble for data? Facebookâ„¢ might be the spark that melts the market down . . . or not.

2018 Prediction on the S&P 500:

“Up.  Not 24%.  But up, say, 10%.  2019?  We’ll see.”

First Quarter Scorecard:

So far, year to date, it’s up 1.01%.  Seems in line with my prediction (so far).

Interest Rates:

We’re recovering from the longest period of low interest rates in history.  All of history.  It really won’t make a difference, but the Federal Reserve simply must increase rates so that we can pretend that the money isn’t all made up.  Eventually if there’s a credible alternative (Bitcoin? Swiss Francs?) the Federal Reserve will have to raise interest rates . . . a lot.

If it’s too much this year, we’ll enter a recession – maybe right away.  I don’t think that’s likely in 2018.  Trump’s Fed chair will want to raise the rates – after this election.  Maybe right after, so the economic pain is over and done with by the 2020 election.

2018 Prediction on the Federal Reserve Rate:

“Up slightly.  Eventually (2019, 2020?) up a lot.”

First Quarter Scorecard:

Zero change in the Fed funds rate.  Mortgage rates have gone up from 3.95% to 4.46%.  Not a lot, and not even a record number for the last decade.  Seems in line with my prediction (so far).

Gold/Silver:

2018 Prediction on the Gold/Silver:

“Meh.  Wanders back and forth.  Probably ends the year +/-10% of where it started.  2019 or 2020 might be different stories, and longer term it will still experience huge upward swings during times of uncertainty.  It appears we’re currently at the “no crisis” pricing, which would probably be a good time to stock up.”

First Quarter Scorecard:

Gold is up 1.8% in the quarter.  Silver is down 3%.  It’s wandering (for now), so it’s in line with predictions.

Please note that when a stock market crisis hits (not if, but when) ALL asset classes will drop in price (except for food and ammo).  That’s generally a great time to buy gold.  If it’s an inflationary spike?  Yeah, you’ll be too late for the party – people will dump dollars to buy commodities like gold.

Disclaimer:  I haven’t started any positions in anything above the last three days and don’t expect to start any in the next three.  So there.  Also, I’m not a financial advisor, and this set of “predictions” is probably as good as a blank Ouija® Board and probably worse than flipping a coin.