100% Inflation – 90% Stock Crash – 50% Unemployment
March 30, 2012, Submitted by: KenBillionaire Donald Trump and best selling author and money manager Robert Wiedemer just predicted the market is going to get much, much worse. “This is no recovery,” he says [Wiedemer]. “And this is no ‘down cycle’ that will soon be followed by a reliable ‘up cycle.’
This is a big, multi-bubble pop and it’s far from over.”
In a nutshell, Wiedemers’ best seller book, Aftershock
Billionaire Donald Trump says the U.S. economy is poised for “massive inflation” and is warning investors to take steps now to protect themselves.
Trump told investors during a recent CNBC interview that they should not trust official government statistics. He even questioned the “official unemployment” numbers. “It’s over 20 percent. It’s not 8.3 percent,” Trump said.
John Williams’ www.shadowstats.com is an excellent site to discover ‘real’ unemployment numbers and how the government has changed the rules of how they are reporting this number over the years (skewed to make it look better than it really is).
Trump also thinks skyrocketing oil prices will cripple the U.S. economy. “Right now, [oil] is at an all-time record for this time of the year, in the summer they predict $5 gasoline, maybe $6.”
Robert Wiedemer stated in a recent interview, “The data is clear, 50% unemployment, a 90% stock market drop, and 100% annual inflation . . . starting in 2012.”
One could argue that Wiedemer has motive for painting doom and gloom to sell a book. However his previous economic predictions have come true, lending some credibility to his current stance (of which many others similarly agree). His co-authored book, America’s Bubble Economy, published in 2006, accurately predicted the Great Recession and the popping of the housing, private credit, stock and consumer spending bubbles (same as some others with contrarian views during that time).
I’m not a financial expert by any means, but even I realized that something was not right during that time, just as I feel something is not right, now. This false ‘recovery’ is 100% fake in my opinion, being financed by newly printed digi-dollars out of thin air. This is all going to bite us in the a$$ big time, one day. You can’t get something for nothing… there’s no such thing.
I haven’t read Aftershock
One thing for sure, it’s more fuel for the fire of prepping!
Appreciate topics of survival, emergency preparedness – or planning for disaster?
Read our current articles on Modern Survival Blog
twitter: MSurvivalBlog
Facebook
We Are All Just Boiled Frogs
March 10, 2012, Submitted by: Ken
We Americans have been subject to the boiling frog syndrome for decades. Did you know that you can boil a frog alive? If the frog is placed in cool water and the temperature of the water is raised sufficiently slow, the frog will not jump out and will be cooked to death. Most Americans are that frog.
The slow raising of the water’s temperature has been a creeping normalcy. What was normal to our parents and grandparents is by no means whatsoever, normal today. Although the frogs today go about their business as normal.
Many of the older and wiser bullfrogs have tried to warn the young frogs and toads, pointing out how the water around them is steaming. The frogs just croak how the water feels so good and how everything’s alright.
The frogs are almost boiled.
This metaphor is indicative of our current ‘system’, a system designed to flourish the more debt that is spread around. The belief is that the more debt there is, the higher the GDP or gross domestic product. GDP is the monetary value of all the finished goods and services produced within a country’s borders. It includes all of private and public consumption, government outlays, investments and exports less imports that occur within a defined territory.
The problem now is, people seem to have forgotten about the exponential-curve function, and how it works. We’ve taken on so much debt, that it takes even that much more debt to keep the GDP on the up-and-up because of the ever increasing interest we must pay on the debt. This is why Bernanke and the rest of the FED is adamant about keeping interest rates low. The minute they start to raise, then the pot will boil over. The frogs will be dead.
The problem is, given the bailouts and money printing required to keep the system from crumbling, the FED is having one heck of a time keeping the finger in the dike. The fact is that QE, quantitative easing, will be required to infinity to keep it together, a purposed method of injecting liquidity into the system (fiat money), which in turn will devalue the currency (increase inflation), which turns up the heat in the pan of water that the frogs are frothing around in…
They (the FED) are between a rock and a hard place. The inevitable will become reality and the pan will boil over, unfortunately with lots of frogs inside.
Are you one of those frogs? Or do you see what is going on around you? The MSM, main stream media, has made it very difficult for you to see the steam rising from the pan. To see it, you must wipe the mist from your glasses and look carefully. You will see it if you try.
Jump out now, before it’s too late.
If you enjoyed this or topics of emergency preparedness, or are planning for disaster,
Read our current articles on Modern Survival Blog
Wyoming Exploring Doomsday Scenario
February 26, 2012, Submitted by: Ken
The state of Wyoming is working towards establishing a task force to explore the ramifications of a United States collapse. They are considering that in such an event, that they will issue new alternative currency, implement their own military draft, raise a standing army, and even acquire an aircraft carrier (they are landlocked the last I checked…)
The fact that the Wyoming state government is even considering such a government-run task force is a sign of the times. A sign of the dangerous and perilous times that we are all in today, despite what the MSM tells you.
It is a responsible thing to do – to consider a preparedness plan in the event of a political collapse, or a total economic collapse. It looks like Wyoming is on the right track, so as not to go down with the ship, so-to-speak. Good for them.
Now lets see what the federal government does to Wyoming for retaliation… cut funding for this or that perhaps??
CHEYENNE — State representatives on Friday advanced legislation to launch a study into what Wyoming should do in the event of a complete economic or political collapse in the United States.
House Bill 85 passed on first reading by a voice vote. It would create a state-run government continuity task force, which would study and prepare Wyoming for potential catastrophes, from disruptions in food and energy supplies to a complete meltdown of the federal government.
“To put your head in the sand and think that nothing bad’s going to happen, and that we have no obligation to the citizens of the state of Wyoming to at least have the discussion, is not healthy.”
Source: trib.com
If you enjoyed this or topics of emergency preparedness, or are planning for disaster,
Read our current articles on Modern Survival Blog
They Are More Powerful Than Governments
January 31, 2012, Submitted by: Ken
You may never have heard of them. The ISDA, the International Swaps and Derivatives Association, is an organization more powerful than any nation government, and is apparently about to redefine ‘sovereign default’.
Why are they so powerful? Because they represent (their members consist of) the largest banks in the world and they literally define (determine) what a credit event is. More specifically, the ISDA governs whether and when a credit event is determined to be a ‘default’.
Today we are standing on the threshold of a credit event that will determine how the Greek debt will be handled. The ISDA will determine whether this is a sovereign default or not. If it determines that Greece has defaulted, then the 5 largest banks in the United States will fail.
Why will these banks fail if Greece is determined to be in default by the ISDA? Because they (the banks) have gone wild issuing 97% of the world’s Credit Default Swaps, or CDS’s.
What are credit default swaps? They are a form of insurance which is purchased by clearing houses who purchase risky debt, such as that in the Eurozone: Greece (for starters). A credit default swap is an agreement that the seller of the CDS will compensate the buyer in the event of a loan default. The buyer of the CDS makes a series of payments (the CDS “fee” or “spread”) to the seller and, in exchange, receives a payoff if the loan defaults.
So, here’s the question…
Will the ISDA determine that Greece is in default?
Answer: No.
Why not? Because the ISDA, whose board of Directors include Bank of America, J.P. Morgan Chase, Citi, Goldman Sachs, Morgan Stanley, and other majors… will not shoot themselves in the foot. Instead, word has it that they will likely redefine the Greece ‘credit event’ as 30 cents on the dollar.
What is the likelihood of your mortgage lender saying the following to you, after you tell them that you don’t have the money and can’t pay them back? Lender: “It’s okay, we won’t categorize this as a loan default, just pay us back 30% of your loan, and we’ll call it good”. ??? Really?!
This is insane. What’s next for the ISDA? 10 cents on the dollar? What happens when they finally get to zero, which it should have been in the first place? How long can they keep this secret from the main stream? There isn’t much time left for this imploding system, and it is astonishing that the main stream news media is not covering this. A media blackout.
All of this will most certainly, definitely, lead to QE3 (quantitative easing) to infinity.
(QE) is an unconventional monetary policy used by central banks to stimulate the national economy when conventional monetary policy has become ineffective. A central bank buys financial assets to inject a pre-determined quantity of money into the economy.
What does all this mean to you and I?
Answer: The powers-that-be will continue to prop up their chosen too-big-to-fail entities and sovereigns in order to keep the ponzi scheme going until such time that the empty shell collapses on itself. According to Jim Sinclair, who alerted us about this ISDA action in a recent post, he believes the system is more at risk now than it was in 2008, that people don’t understand the fragility of the system, and the system as it exists today will collapse and simply cannot go on more than another 2 years. That brings us to 2014. If he’s right, we’ve got 2 years to prepare.
Be Prepared. If you enjoyed this, or topics of current events risk awareness and survival preparedness, click here to check out our current homepage articles…
It Won’t Be Mad-Max, But It Will Be Mad
January 16, 2012, Submitted by: Ken
The collapse. Blogs talk about it all the time. Some portray a future resembling the 1979 movie, Mad Max starring Mel Gibson depicting an apocalyptic future of gangs and individuals killing each other for the world’s last resources. In today’s reality, a more likely scenario of apocalypse will be one of economic meltdown, which may occur rapidly or may occur in slow motion – but will occur nonetheless, and will cause pain, hardship, and a given amount of social chaos for a period of years.
Like much of the Eurozone, the U.S. is broke. Although increasing numbers of people are realizing this, the fact remains that many people are not fully aware of the magnitude of the situation and are not aware of the fact that this has been cleverly hidden from them, albeit temporarily.
The consequences of years of over-the-top debt spending and promised financial obligations are catching up with most of the subsidiaries of the U.S. government. What do I mean by that? The cities and towns, counties and sates are running large deficits with mostly zero chance to balance without severely cutting benefits and programs or severely taxing the businesses and citizenry even more than they already are.
Either way, it will only increase the downward spiral as fewer dollars will be available for people and businesses to spend. Politicians absolutely do not have the guts to pull the plug (self preservation) and will absolutely continue to kick-the-can down the road – that is, continue to borrow more money from the FED to keep the government running at current levels of spending.
The thing is, and the the thing that’s going to ultimately cause the implosion, is that the U.S. government can continue to borrow newly printed money from the FED, at will… whereas the U.S. states, counties, cities and towns cannot print their own money to back-fill their deficits. The ONLY way that they can ever hope to resolve their debts is to drastically cut off their spending (they will still owe and have to pay their existing debt) and/or they will have to drastically increase their tax revenues. That’s it. No other way.
When the ratings of these various entities begin to be downgraded due to their excessive debt-to-income on their balance sheets, their cost of borrowing more money goes much higher – which only makes the problem worse. This is happening all over Europe right now, and will certainly happen in the U.S. in the not too distant future. When it does, very painful choices will have to be made, and the middle class will suffer greatly.
The middle class will suffer the most because either way, they will get slammed more than they already have been slammed. Many will have their pensions drastically cut. Taxes will go higher. The spending power of their dollar will continue to diminish as the Federal Reserve loans more money to the U.S. government. More jobs will be lost as fewer people spend a diminishing amount of money. Those who have jobs will continue to slip further behind as ‘real’ inflation far out-paces their wage.
There is NO EASY WAY OUT of this looming mega disaster. NONE.
We can only hope that their is a crash landing rather than an all out nose dive into the ground at cruise speed. The point is, the future may not be Mad Max (except perhaps in pockets), but it will be ‘mad’. There will be those that are going to be entirely stunned when the depression catches up with them, caught entirely unaware. These folks will probably suffer the most since they will have done nothing to prepare or to change their ways now in order to soften the blow later.
So, I’m warning you now, IT IS GOING TO HAPPEN. The magnitude and duration is unknown, but the net amount of pain will be severe – either very long and moderately painful or shorter and mind-numbingly painful. My bet is the long version because the government doesn’t want a massive social meltdown which would surely occur given a short and severe outcome.
Be Prepared. If you enjoyed this, or topics of current events risk awareness and survival preparedness, click here to check out our current homepage articles…
