Gary North's Y2K Links and Forums - Mirror
Category: Domino_Effect
(feel free to mail this page)
(Links to documents appear after the summary.)
The domino effect is the problem of falling systems. One system fails, but another is dependent on it. Like a series of gigantic rows of dominoes, each within falling distance of another, so is the y2k problem and its effects. No one can even guess what these effects will be. This is what makes y2k the most complex problem facing the world -- possibly ever.
Consider banking. Banks are threatened by y2k. Depositors will draw out cash. Then the system collapses. If a business cannot pay programmers because its bank is closed, it cannot complete its y2k repairs. When it fails, the firms it supplied are trapped by production shortages. Etc.
The domino effect is one gigantic "etc."
Scientists speak of the butterfly effect: when a butterfly in California flutters its wings, it sets up wind currents that may produce a tornado in Texas. (That's because just about anything can produce a tornado in Texas.) This is an analogy, of course. We can't test the truth of this hypothesis. But it will be easy to test the domino theory if there is a run by Japanese housewives on the unliquid Japanese banks in 1999. These banks will start selling the U.S. government debt that they hold in the hundreds of billions of dollars worth. Interest rates in the U.S. will soar. The dollar will fall. Meanwhile, the run will spread to other nations.
Who knows where it will start? Only one thing seems certain: it WILL start. And when it does, every market institution and every government will suffer enormous setbacks. (See the category, "Banking.")
Banking is the obvious domino. Here's another: shipping. What happens to cities if gasoline is unavailable to truckers? If the computers that control train schedules break down? If rail freight cars cannot be located by defective computers? Think about your supermarket's shelves.
What happens to production when "just in time production" becomes "bottleneck production"?
Here's another: farming. Modern commercial farming is tied to hybrid seeds. The plants produced by hybrid seeds produce seeds that will not produce healthy plants if planted. Every year, almost every large farm on earth must re-order another batch of hybrid seeds. If, for any reason, the seed companies fail, or the banks fail, farmers will not be able to plant anything. This will lead to a famine. Let's not hedge our words: FAMINE. There is no way today to get enough non-hybrid seeds into production in order to avoid this problem. If this is one of the dominoes, the result will be widespread starvation.
This is an unpleasant thought. Are you willing to order a year's supply of non-hybrid seeds today for a few dollars, just in case? If not, you do not understand y2k and the domino effect. You do not take it seriously.
(Other categories: "Compliance," "Noncompliant Chips, "Too Late?")
Updated - |
Subject
|
24-Feb-97 |
Management's Problem: Systems Are Interconnected |
24-Feb-97 |
The Domino Effect: Everything Affects Everything |
14-Mar-97 |
Gartner Group: 50% of All Organizations Are at Risk |
05-May-97 |
Corporate Networks Aren't Compliant |
29-Jun-97 |
Importing Corrupt Data, Relying on Noncompliant Suppliers |
16-Jul-97 |
A Banker Describes the Domino Effect: Total |
05-Aug-97 |
An Example from General Motors |
05-Aug-97 |
Farming: Heavily Dependent on Computers |
14-Aug-97 |
How Your Local Community May Be Hit: A List |
15-Aug-97 |
Little Things Mean a Lot |
15-Aug-97 |
All Fall Down: The Little Things Will Get You |
20-Aug-97 |
Life in New York City in 2000 and Beyond |
23-Sep-97 |
London, 2000: A Grim Scenario |
06-Oct-97 |
88% of Companies Under 2,000 Haven't Begun Y2K Repairs |
14-Oct-97 |
Senior American Programmer Writes Y2K Survival Book |
22-Oct-97 |
Most Systems Will Not Be 100% Repaired: Contingency Planning |
23-Oct-97 |
Same Boat, Many Holes |
23-Oct-97 |
How Noncompliant Suppliers Will Topple Others |
24-Oct-97 |
If Public Faith Collapses. . . . |
24-Oct-97 |
Little Things Can Kill You, Figuratively (You Hope) Speaking |
30-Oct-97 |
Oil Drilling Rigs Threatened |
01-Nov-97 |
A Few Companies Are Getting Tough on Suppliers |
03-Nov-97 |
Factors That Make a Community Vulnerable |
03-Nov-97 |
Health Care: Noncompliant Suppliers Threaten the System |
03-Nov-97 |
Seattle's Vulnerability: The List Is Long |
04-Nov-97 |
A List of Major Dominoes: An Engineer's Perspective |
04-Nov-97 |
What Every Business Needs to Know About Its Suppliers. Fat Chance! |
08-Nov-97 |
Life-Support Systems Are at Risk, Says UN Official |
13-Nov-97 |
Energy Systems at Risk |
18-Nov-97 |
Accounting Problems Will Begin in Britain on April 6, 1999 |
18-Nov-97 |
If 5% to 20% of Businesses Go Bankrupt. . . . |
25-Nov-97 |
The Real Problem Is Systemic |
26-Nov-97 |
Ed Yourdon on the Domino Effect |
01-Dec-97 |
Inc., Magazine on Yourdon & Survival |
29-Dec-97 |
Why Engineers Are More Skeptical Than Managers |
13-Jan-98 |
Asia Is Facing a Major Problem |
05-Feb-98 |
80% of British Suppliers Are Not Compliant |
16-Feb-98 |
Nightmare Scenario in Manufacturing, Says INDUSTRY WEEK |
17-Feb-98 |
Replace 12,000+ Suppliers in 1999? No Problem! |
06-Apr-98 |
General Motors Has 85,000 Suppliers. Is One Compliant? |
07-Apr-98 |
Layers of Dependency Described Graphically |
13-Apr-98 |
Global Positioning System: Another Bug |
15-Apr-98 |
Big Dominoes in Asia |
15-Apr-98 |
40% of Asia's Mid-Size Firms Won't Make It -- Gartner |
15-Apr-98 |
20 Million Noncompliant Suppliers in the U.S. |
15-Apr-98 |
Visa Faces Supplier Problem |
15-Apr-98 |
The Specter of Famine |
16-Apr-98 |
Government Noncompliance Will Create Corporate Noncompliance |
20-Apr-98 |
Global Positioning System's 1999 Rollback Threatens Everything |
21-Apr-98 |
Small Businesses Will Bring Down Large Businesses |
21-Apr-98 |
Companies Refuse to Say Whether They Are Y2K Compliant |
29-Apr-98 |
Surveys of Suppliers Are Swamping Suppliers With Paperwork |
04-May-98 |
British Select Committee Describes Domino Effect |
07-May-98 |
Pharmaceutical Industry: Cut Back, Scale Down, Soon |
21-May-98 |
Red China Faces Y2K Problems |
21-May-98 |
Yardeni on Worst-Case Scenarios |
25-May-98 |
List of Hypothetical Foul-Ups: Jan. 3, 2000 |
12-Jun-98 |
Germany Threatens Europe With Chaos |
12-Jun-98 |
The West Must Help Asia, Says Asian |
12-Jun-98 |
GM Strike: A Minor Prelude to the Big Crash |
17-Oct-98 |
Water Systems in Great Britain: No Problem!
|
17-Oct-98 |
The Computerization of American Farming
|
19-Oct-98 |
Manager Will Shut Down This Grocery Store During Panic Buying
|
22-Oct-98 |
40% of Small U.S. Businesses Have Made Not Y2K Preparations
|
23-Oct-98 |
Gold Mining May Cease in 2000
|
28-Oct-98 |
Latin America Has 75 Working Days to Fix Code
|
28-Oct-98 |
Senator Tells CIO of Domino Effect. The Man Hadn't Heard of It.
|
29-Oct-98 |
Carla Emery Warns of Complete Breakdown
|
29-Oct-98 |
Food Supllies: Preparing a 4,000-Acre Farm for Y2K
|
29-Oct-98 |
Farming Family's Personal Preparations
|
30-Oct-98 |
40% of Small Businesses in U.S. Plan No Action
|
30-Oct-98 |
An Accountant Provides a Y2K Economic Scenario
|
02-Nov-98 |
Urbanization: Which Nations Are Most Vulnerable?
|
02-Nov-98 |
Unilever Has 75,000 Suppliers
|
04-Nov-98 |
One Domino Falls. No Problem, Says Journalist
|
09-Nov-98 |
Boeing Admits It May Have a Problem With Suppliers
|
13-Nov-98 |
CBN Focuses on Food Chain Supply Problems
|
13-Nov-98 |
A Noncompliant Bar Code Through the Heart of Delivery Systems
|
13-Nov-98 |
London Metals Exchange Threatened
|
13-Nov-98 |
| |