Another economy has collapsed

Nightmare becomes reality in Sri Lanka as govt has no choice but to declare economy has ‘collapsed’:

After months of shortages of food, fuel and electricity. Sri Lanka’s prime minister said this morning the country’s debt-laden economy has “collapsed.”

Prime Minister Ranil Wickremesinghe told Sri Lanka’s parliament today that the South Asian country is “facing a far more serious situation beyond the mere shortages of fuel, gas, electricity and food. Our economy has completely collapsed.”

I didn’t see the exact words but I strongly suspect the high price of oil on the world market contributed.

There are other economic stressors out there. The most obvious are wheat and fertilizer from the Ukraine/Russia region. There are countless others. Some are ripple effects from the war. Others are from other areas of the world and less direct such as the chip shortage and inflation.

There will be more collapsed economies in the coming months and perhaps years. The ripples and, perhaps even, tidal waves are just over the horizon.

We live in interesting times. Prepare appropriately.

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10 thoughts on “Another economy has collapsed

  1. I understand a big factor is their economy’s collapse is that the government mandated that all food be produced “organically.”

    • Last year, they did exactly that, and the resulting shortages seen this year are what kicked off this spring’s violence. The drop in production was so bad, their .gov dropped those requirements for this year.

      • Here in the US, The groups that farm in traditional ways (organic, IOW) and are considered the world’s experts at it, lose 25% of their output compared to next door farms that use current best practices.

        THAT 25% LOSS IS THE BENCHMARK for organic farming. Most others don’t get close.

        It is not possible to feed the current world population by using “organic” methods.

        • Keep in mind that the left wing crazies don’t just want “organic”; they also want “no GMO”. And that translates into a MUCH larger output drop than best case organic practice — think of a factor of 3 or 5.

    • … and a big, big factor in its overall economy was that it was a net exporter of food to surrounding countries. By “big, big”, I mean that, IIRC, they don’t have any other export goods at all.

      Now it is a net importer of food just to keep its people alive, and that purchase has wiped out their supply of foreign currency. If they are getting any food on debt, that’s a hole they simply haven’t a plan to climb out of.

  2. Another element, as I recall, is that they were suckered into signing agreements with China to build “infrastructure” and have China hold a lien on all that. So, in a sense, they have signed over the country to the ChiComs.
    The obvious answer would be to disavow those loans, and make a mutual defense treaty with India.

  3. I’m not sure exactly what constitutes “collapse” in a nation that topped out with an average income of $4000 per year.

    Put it this way: if the US regressed to the living standard of Portugal, it would be considered a collapse of biblical proportions. Portugal is about six times as wealthy, on average, as Sri Lanka.

    This has “gimme” written all over it.

  4. Once again, we see government meddling is going to cost people their lives.
    The lesson of today, and all history is that trusting government will get you and your family killed. Starved, or murdered in some other fashion.
    From some Somali warlord, to global governance. They all act/are the same in the end. The scale is all that changes.
    And we the people always are the ones to pay the price.

  5. From Revelation 18;
    The merchants of these things, which were made rich by her, shall stand afar off for the fear of her torment, weeping and wailing,

    And saying, Alas, alas that great city, that was clothed in fine linen, and purple, and scarlet, and decked with gold, and precious stones, and pearls!

    For in one hour so great riches is come to nought. And every shipmaster, and all the company in ships, and sailors, and as many as trade by sea, stood afar off,

    And cried when they saw the smoke of her burning, saying, What city is like unto this great city!

    And they cast dust on their heads, and cried, weeping and wailing, saying, Alas, alas that great city, wherein were made rich all that had ships in the sea by reason of her costliness! for in one hour is she made desolate.

    The “great city” herein is Babylon, the modern iteration of which is the global, ecumenical, church/state alliance, having a combination of mindsets, laws, practices and characteristics from Ancient Rome, Greece, Medo-Persia and literal Babylon. It is the culmination of millennia of work to redo and rebuild what God undid on the Plain of Shinar, thus, “Babylon”.

    The prophesy therefore describes a global collapse. Whether we’re seeing the beginnings of such (that is to say; the final collapse) is up for debate, but it certainly wouldn’t surprise me.

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