I’ve got to say that the economic numbers, the markets, and the apparent enthusiasm seem quite out of place with economic reality. It is astounding how the controllers of today’s modern economic systems have not only staved off a complete crash during 2008, but have risked the system way worse than then while having also manipulated perception to the extent that NO ONE seems to be concerned about today’s realities all these years later.
It’s as though NO ONE seems to be concerned at all about our gargantuan national debt and unfunded liabilities, the insane global debts, the unimaginable intertwined systemic risk of global derivatives (can you fathom the word, ‘Quadrillion’?), and the burgeoning debt of most Americans and American families who live a lifestyle nearly paycheck to paycheck.
If the majority are so incredibly mind-numbed dumbed-down stupid, then why don’t we just vote ourselves that the government send each of us a check for a million dollars? NO ONE CARES about the debt, so, why not??? Hey, no ramifications right?
And now that Trump has been elected, the exuberance is rocketing to the moon that we shall all be saved from any economic woes to come! We as a people are not grounded in reality, and the masters of our economic systems are taking advantage of it to the fullest extent. What gives???
I have written quite a number of articles expressing this type of economic concern over these past years, and it has reached the point where it’s not ‘crying wolf’, but it has reached the point of watching the wolves devour the sheep! One bite at a time!
NO ONE CARES that the national debt is only a few dollars away from $20 Trillion. What’s a trillion? Who cares! There have been no consequences and therefore there will never be any consequences!
NO ONE CARES that the unfunded liabilities of the United States are $104 Trillion. Whatever – just spit out some more electronic digits – there are no apparent consequences!
NO ONE CARES about this stuff because there have been no hard felt consequences for living ‘high on the hog’. Our masters have kept most of the people fat, dumb, and happy, and the best part is…they’re getting dumber by the minute!
They’re so dumb that they are easily and entirely controlled by the barrage of daily brainwashing from the controllers of the mainstream. They have little or no knowledge of history, consequences, or anything at all except for what’s on TV tonight! Or who’s on Facebook right now! NO ONE CARES!
The title of this article, “Is A Devastating Economic Crisis In Our 2017 Future?” is more or less ‘tongue-in-cheek’ in that every year one wonders if this is it, and then there are never any consequences… The band plays on and the Titanic never sinks!
So, having ranted away, and if people are so entirely out of touch with what has really been happening (I could write a book), then what difference does it make to continue down the road of colossal debt? It seems that the powers-that-be are simply winking at each-other as the tune keeps playing on while the people dance to the music…
Are we the stupid ones for not joining in and living high on the hog?
Are we the stupid ones for not entering the casino and playing the game?
After all, there are no consequences right?
Sometimes I am glad that I am old (not always, but sometimes) as I can sit here retired, relatively debt free and not be in “want” of too many “things”. We don’t even have a smart phone as we have no cell service here.
We live in a beautiful isolated place, have food and water storage, a garden, internet, and plenty of toilet paper. By being old we also have wisdom. The wisdom to see what has happened in the past and where we are headed and to know what is really important. We have told our relatives who are still in big cities to come here anytime, we have room for them.
Trump may stem the tide for a while, but they are going to dump everything they can on him to make him fail. I noticed people think everything is going to be OK now but that is usually when the bottom drops out.
@ old lady
I must interject, sorry.
You are not old, old is a state of mind that’s fairly numbing. We are well aged/informed/experienced, like a good mellow cheese or a fine wine. The more years spent the more knowledge/wisdom we gather, the “finer” the thinking and realization of how life really is. And I will admit, the more I want to be disported from most of the, as Ken calls em, Sheeple.
Is it not unfortunate that the Wisdom, you speak of, is so lacking in the Young and the Leaders of the Sheep?
Why is it so hard to learn from History, from the Past, from the Elders?
I just shake my head in sadness at times for seeing what is truly happening to this GREAT Country.
NRP
@old lady, says “they are going to dump everything they can on him to make him fail”. Can’t agree more! Everything has been set up for US to fail in about 8 years now. I can’t help but feel that no matter how hard Trump works and tries, he will be unable to fix anything. luv ya’ll, Beach’n
@ Beach’n
I agree but please remember, when it does crash, and it will crash, Obama will NOT get blamed nor will Trump, it will again revert back to that darn Pres. Bush, again!!!! HAHAHAHA
For is that not what Obama and his Libs said for 7.5 years?
NRP
NRP
Dh asked me to type this reply to your statement above.
He whole-heartedly agrees with what you had to say. Yes, I do his typing for him, or it would take all night.
@ Antique Collector
Please thank your Husband for me; I do appreciate his reading the Blog, and doing what he can to participate if he can. There is a LOT of wisdom around this particular Blog that’s a warehouse for those that just ask.
I have a feeling your DH IS!!! one of the sharpest tools in the shed.
Again, Thank you for the Comment Sir, via Antique Collector.
NRP
@NRP, Well, we all know that Obama wasn’t, isn’t, nor ever will be, blamed for anything… It’s all the mean old Republican’s fault, always, all the time… luv ya’ll, Beach’n
I know, right? Remember back when politicians would have balancing the budget be one of their big talking points? They would never actually do it, but at least they would pay it lip service.
Trump scares me but I do have to at least give him credit for bringing up the point that our national debt is so huge we can probably never pay it back.
The controllers on the Titanic knew there was a problem long before the ship tilted. The oblivious masses didn’t know and didn’t care because their masters kept telling them everything was great, the boat was unsinkable. Those who cried the warning were smothered with laughter. After all, the boat was unsinkable. Until the deck actually tilted.
Most of those “crying wolf” had sense enough not to get on the ship in the first place, or left the ship at earlier ports. Rather like those who got out of the global markets before 2008.
Many of us here are sitting in the lifeboats, waiting as we watch the iceberg approach–and pass. And another one on the horizon. Maybe I should be out there on the deck dancing to the music? Maybe we won’t hit the next. A ship’s officer comes along and demands we join in the gaiety. After all the ship is unsinkable.
Some leave the lifeboats. Others get in. People laugh at us, but just our presence in the lifeboats makes them nervous. One or two start watching the icebergs as well. As the iceberg approaches the ships officers try harder to make us leave the boats, knowing full well how close the destruction is and also knowing that the lifeboats will be needed to get the controllers to safety.
The deck is tilting.
Great comment and analogy…
Having been in the lifeboat so long, one begins to wonder if that ship’s going to sink.
“The oblivious masses didn’t know and didn’t care because their masters kept telling them everything was great, the boat was unsinkable. Those who cried the warning were smothered with laughter. After all, the boat was unsinkable. Until the deck actually tilted.”
“Until the deck actually tilted.” and it will…
It was your analogy. 🙂 I just extended it to its natural conclusion.
Personally I’d rather be in the boat and not have an iceberg hit than have it hit and not be in the boat. We pay for insurance for this very reason, but most people don’t say “I don’t want to pay this year. Nothing has ever happened and it never will.”
Lauren,
As much as I love the Titanic analogy, I think the insurance analogy really hit me on an even deeper level. Isn’t everything that we are trying to do, living a certain lifestyle of preparedness, really just that -insurance?
Exactly! Preparedness is a tangible form of life insurance, in a way. Taking steps and measures to secure one’s self against (fill in the blank).
Agreed, 100%
Insurance yes, some byproducts are increasing peace of mind, learning and doing new things, doing physical stuff, stretching the brain to new ideas, screwing up and trying again, meeting and talking to some very interesting/likable people and getting satisfaction seeing and using the results for your hard work. An added plus, learning the chemistry, engineering, storage and philosophy of TP.
@ Grey
“philosophy of TP”
Someone finally said it, Thank you Grey
If you don’t understand the concept/”philosophy” of TP, you really don’t understand the Ideas behind preparing and living the Lifestyle.
A little hint, it’s not about the TP, it’s about the core of the roll that supports the entire system. The same with preparing, if you don’t have a solid core value you’re never going to make it to the end and be able to flush it all down the drain
As my Father would say, the job’s not done till the paperwork is finished… HAHAHAHA
JMHO
NRP
So when you take the core out of the roll, vacuum pack it and store it without the core, you’re in essence flattening the whole system?
@ Lauren
Yeppers, pretty much so, BUT if ya keep the core and stuff it with vas-cotton balls for fire starters ya have your Cake and eat it too… HAHAHA
Your testing me aren’t you??? LOL….. Gata LOVE it.
NRP
Lauren
OH thank you for the rolwl this fine morning, how you treat your poor TP.
Insurance is a piece of worthless paper, like fiat money, that says we promise (fingers crossed) to pay you if an unlikely event happens and we can’t wiggle out of it. My preps are solid, tangible, practical, in my hand, and (pick one) loaded/ready to eat.
cheers
All true Confused. However preps are a form of insurance against bad times.
If it does not sink it will tilt to the point of no return. When it does, will they invoke EO 6102 along with 6111. Where the possession of PM’s will be enforced again along with having extra cash in your household and not under the banks control. Not a wonderful thought to behold or live under.
Should have stated “not under your control but that of the banks or government” gheez .
In India recently they made everyone turn in their cash for a new currency, and if you had too much in cash they taxed it at something like 50%.
In many areas of the world they are already attempting to go electronic only, and keeping any level of cash in the house is a crime. The banks want absolute control, and with cash in circulation they can’t enforce negative interest or make all those who want to live outside the system tow the line. If there is no cash, you can’t legally live outside the banking system. The governments want absolute control and think they can use the banks to get it.
Lauren; No you can live outside the system, it’s called bartering!
You can, but not legally. Not if they have their way.
We are what we are. Like hogs to the slaughter.
If you have ever watched the movie “Idiocracy” you can only imagine where the world is headed. I believe it is meant as a comedy with a basis in reality of the future if we don’t wake up and change our ways. I refer to it as the dumbing down of America.
“Idiocracy” explains so much of how the world works today. “It’s got what plants crave”. As long as they can market the stuff well, the public will buy anything, even their own destruction. I will just keep stockpiling canned goods and ammo. I’m already getting the itch to start this years garden.
I always thought ‘Idiocracy’ was a documentary. Are you suggesting it was fiction?
In order of the 3 biggie concern for this old fart that would (IMHO) be TSHTF.
1. EMP/Grid down/Cyber
2. Economy
3. Zombies and/or lack of TP
Since this article is about the Economy here we go.
I know a lot of people that truly do live week to week (some live day to day), and some of those earn a LOT of money, yet squander it every day, every week, ALL of it.
I should know, I was one of those “back in the day”, gaining more and more debt, buying everything/anything that brought fast/instant satisfaction, even had that 5000 Sq Ft house on a river. Life does have a way of slapping ya upside the head at times.
I for one have worked my arzzzzzzz off over the last 3-4 years to pay off ALL of my debt; it is NOT easy, it IS easy to get off track at times (especially when Ken comes up with some really cool stuff) BUT!!!!! It is very rewarding to have zero balances on the CC statements, NO car/truck payments, and one can pay all of the utilities with 1/3 a paycheck, than all the rest of the month goes into savings and/or preparing for exactly what Ken is talking about here.
I honestly feel a major Economic crash IS imminent or happening without question, it WILL happen. As a matter of fact IMHO it’s already happening, just like a cancer it’s a slow painful death so to say. Look at the prices of food for example. Can anyone out there honestly say that food prices are going down? How about the price of that new Duramax? Even better yet the interest rate on CC’s; 25% ARE YOU KIDDING ME????
An example, I eat lunch out once a week as a treat, last week I went to Wendy’s, got one of their new Spicy Sriracha Chicken Sandwich, medium size fries and a drink, take a guess…. $9.02 for a small POS sandwich… I felt like I was robbed at gun point…. So YES the crash is already happening, and there is NO stopping it, even those that think that Trump is the end all for the country (either way, win or lose) I don’t see the people of the US or the World waking up until we hit what I call “The Venezuela Factor”.
Ohhh yeah, take a look at the increases in Taxes and Health Care being interjected this year, and someone please tell me the .gov is NOT going to get their money no matter what…..
Rant Over.
NRP
Well NRP….we are “grid down” here in my part of CO. We have been without power since around 3 a.m. Monday and not likely to get it back any time soon (we are told winds too high, too dangerous).
SOOO….working with generators here. Doing OK. Found one that needs a tuneup…so won’t use it till that happens because we don’t want to ruin any motors…but otherwise, good practice for the future.
@ pioneer woman
This is exactly why we prepare, Well done my friend, very well done.
Makes me wonder how many around you are “without” right now?
NRP
NRP
So, the question brought up in Ken’s topic remains, who are the fools? Some of us have retreated from the economy as much as possible (gone Galt) and look at the indebted population that are spending on all their whims. Several of my neighbors go south each winter and bass fish from $100,000 boats, live in $1,000,000 motor homes, and party every night. That is not the lifestyle I seek but is an example of the abundance in this economy for some. I do not believe in wealth redistribution or restricting any from living life they wish to but it definitely indicates a waste of resources that will eventually ruin the country.
@ homebody
I believe you answered your own question.
“That is not the lifestyle I seek but is an example of the abundance in this economy for some”
Sure we all could live the “Life of the rich and famous” BUT I prefer living a “simpler” life, maybe it’s now the Buddhist in me, or maybe it’s the “been there done that”. For me anyways, I like the “lifestyle” of homesteading or whatever one would call what I do, I personally have zero interest in that $100,000 boat or that $1million MH.
For I am very content in my own self and the way I choose to live, if that makes sense.
So, to directly answer the question, probably I’m the fool for those that do not understand the “lifestyle”. For those of us that do, totally different answer, for I’m comfortable and have the knowledge that all the “stuff” in the world will NEVER bring happiness if one is just trying to buy that happiness or confront zone.
As a follow up, just buying a lot of “preps” will probably not make one content or happy. I truly believe ya have to take that step to living what one preaches before you will really understand the concept of what a LOT of us try to convey. I see a LOT of Blogs out there that say to buy this, ya have to have that, or you MUST know this/that. List upon List upon List of “stuff” you HAVE to have, for me, that is NOT what the answer is, so yes, I’m probably the fool in a lot of people’s eyes, but to be honest, I don’t really care of what others think about my lifestyle, I have only to be happy in myself and the way I live.
NRP
PS; the waste in this country, shameful for sure, but one day it WILL all come to an end, and then we will see who is the “fool”.
I quit eating out when I found the sticker shock came free with my unhappy meal.
I have to agree with Old Lady, being old has its bennies and pitfalls. I watch how hard the liberals and minorities are after Trump, and two things come to mind: are the libs worried about what will be further exposed – that shakes their groupies, and the minority group who feel the country owes them..and don’t have Obummer to save them. Obama said he will continue his diarrhea talk after his term – must be to cover his six! As was so eloquently stated by this current administration “we won and elections have consequences.”
Keep the masses happy with the age old solution “bread and circus”. This has led to complacency and allowed our leaders to feed us lines like “2% inflation is good and must be our target”. This, without looking at the compounding escalation of the cost of living, especially for fixed incomes. I question the prevalent opinion that we need economic growth – what is wrong with a balanced budget, production consistent with an increase in population, and the requirement that each should contribute based on their ability. I do see a world wide monetary reset in our future – possibly resulting in much more violence or war.
homebody
I’ve questioned that myself. Why do we need ‘growth’ other than enough to cover a growing population? When is it enough?
For generations deflation was the rule. A penny was worth MORE in 1850 than it was in 1776. More buying power. And people were making more (on the whole) as well. Salaries up, with increasing value to the hard money. It wasn’t until the central banks got into it that deflation became recognized as a bad thing.
With central banks in charge your money became their money, theirs to adjust or eliminate, theirs to deflate or inflate at their whim. The thing we need to define is not HOW MUCH economic growth is possible or necessary, but what is economic growth?
The central banks will say that inflation is good because they get a percentage. Inflation is an invisible tax on the country’s prosperity. Economic growth is not defined by inflation or deflation, but by prosperity levels inside the economy. For over 100 years the position of the citizens of this country continually increased. More money to spend on incidentals, more money to invest, more money for homes and education. All this while the evil deflation was taking place. The central banks wanted a piece of that, and they took it. Now they tell us inflation is good because it puts more money in their pockets. They prop up the market, then let it crash and rake in the panic selling.
Until we accurately define economic growth in terms of something that can’t be inflated or deflated on a banker’s whim, we’re working with a flawed equation.
@ Lauren
I agree with your analogy of the Banking Systems and their manipulation of “our” money, one of the major problems I see in the entire equation is Money, it’s absolutely worthless, it’s a “Federal Reserve Note” a “note” that’s backed by absolutely nothing of value except for the barter one can get for that worthless piece of paper, and the promise of the .gov to back that paper, y-all know how I feel about the .gov backing ANYTHING especially currency.
Remembering that at one time Silver Certificates were the paper of exchange, and were actually backed by Silver and Gold, no longer is the case. Of course an EO/law wiped the legal ownership of Gold/Silver back in the day, and it CAN happen again.
So, if the “currency” is worthless, what makes the “economy” true to the people? And not just some numbers out there that can come tumbling down at any minute?
Just the rambling of an Old Man
NRP
PS; remember when coinage actually had Silver in them????
NRP, but all “money” is digital now. Just a few strokes of the keyboard and we’ll be debt-free. That’s what the PTB want us to think anyway. I think this is why some countries are eliminating cash. Control by keyboard. Hm.
During the Great Depression, which began in 1929, certain economic situations occurred:
1. The unemployment rate dropped (25%)
2. The GDP dropped precipitously (due to deflation)
3. Money tightened
4. Economic deflation
5. Smoot-Hawley tariffs put in place to protect American businesses and jobs
Compare the factors of the Great Depression to our contemporary Great Recession (aka The Great Depression, V.2).
The Great “Recession” and its ensuing cover-up (ie what America is dealing with now):
1. The real unemployment rate between 9.2% (BLS U6 for Dec 2016) or 22.7% (Shadowstat’s unemployment rate, adjusted for SGS-estimated long-term discouraged workers, who were defined out of official existence in 1994
2. A depressing 1.5% GDP average during Obama’s 8 years (growth requires at least 3% GDP)
3. A doubling of the National Debt in 8 years. (Our National Debt at almost $20Trillion, to worsen under Trump’s administration with major infrastructure projects)
4. Trade ‘wars’ due to high taxation on American-made imports under Trump’s administration
What led America into the ‘recovery’ of the Great Depression? Monetary expansion, “The New Deal”, and WW2.
What occurred during Obama’s 8 years during The Great “Recession” (aka The Great Depression, V.2)? Monetary expansion (money printing like never before), Obamacare & increased unemployment, extreme business regulatory conditions, doubled National Debt, ZIRP.
What will fix The Great Depression V.2 under Trump or after Trump? Ending illegal immigration/migration, job creation, repeal/replace Obamacare, American manufacturing will increase, GDP will rise, nullification of business regulations that have prevented businesses from prospering, possibly Trump’s proposed infrastructure building (“The New Deal V.2”), and the possibility of further proxy-wars or WW3 because war is profitable.
Notice the similarities between the two Depressions??
In the end, though, America is still $20Trillion in debt, and it is due to worsen. If the Federal Reserve increases rates, we will pay more and more in interest than in principle. The Fed will do this to prevent Trump from succeeding. Plan for it. Will Trump retaliate and decide to audit The Fed? (The truth will only cause more issues due to the artificiality of this agency’s faux-data.) Does it really matter?
Trump can kick-the-can but he can’t, mathematically, FIX America. We are financially insolvent and broken. But this is where technology comes in…
[Insert sinister laugh here]
For years, I have believed that there will be series of cyber events that will “destroy” data around the globe — this data will include financial data around the world. Profits, losses, holdings….gone.
Ironically, the build-up scheme has been decades in the making. (Remember how the Internet began!) The narrative is increasing in both frequency and in volume. And with so many of the trained masses believing in the bad-boogey-man (right now it is Putin), the majority of people are conditioned to blame someone. So they will search for the bad-boogey-man and not pay close attention to the nefarious corruptocrats behind the curtain who initiated the biggest financial scam in the history of the world.
Poof!
And then it was gone.
@ Modern Throwback
Extremely well said.
Including; “Poof! And then it was gone.”
Somewhere someone has their finger posed over the “enter” key ready to drop the hammer. JMHO
NRP
Great comments MT. The question to ask is how long can each country keep the illusion up? Look at some failing economies and wonder at each temporary fix (like Venezuela just raising the min wage by 50%). The “poof” may not be in our life time.
Jubilee
Yippee!!!
Modern Throwback; Great comment, but, how many people remember the crash in 1920? When the Government didn’t do anything to “help” the economy. That crash lasted only a year!
People that I used to talk to thought I was a little nuts (ok, could be) things like collapse, Venezuela etc can’t happen here etc.
I listened to an interview with Bill Holter last week and he commented that he believes that Trump knows that he will be overseeing an economic collapse or words to that effect.
I’m hoping that things hold together until spring so that I can resume house hunting.
Trump is a graduate of U Penn’s Wharton School of Finance in Economics. Of course, Trump knows what is truly going on. IMO, Trump is the best person suited to try repairing the damages done to America.
I believe he is incredibly brave in taking on our broken America. Just think of the enormous losses he is going through to do this, knowing that any failures will mean probable fall-out for his own corporate world. However, Trump knows that America has been failing. He is ‘all in’, and so is his family. They will certainly gain financially in the future (how could they not?). But they have incredible business acumen and if any group can get America back on-track, I believe it’s Trump, the Trump family, and the Trump administration. He will hit the floor running, starting January 20th.
I’m still prepping, regardless.
Lots of great comments and good analogies, especially the Titanic ,which was designed by professionals by the way . We have been in a slow economic decline for quite some time , several years I believe. We are a nation that is populated by millions of easily controlled sheep .If you dare be a sheepdog and sound a warning you will probably be mocked and made fun of.
Comparing us to Rome or comparing the “depression events” to today’s current conditions is very appropriate and should be a huge eye opener to everyone . Unfortunately it isn’t .
Who are the fools ? Only time will tell . We are debt free,except for property taxes .We have no big wants and most folks would say we live a pretty frugal lifestyle .We are at peace with our self reliant style of living .
It would be nice to educate folks to what is really going on in this country ,but I think it is mostly a waste of time . The Bible speaks of ” not casting pearls before swine ” and ” not wasting your words on fools “.
No one knows the trigger event, but I would hazard a guess on an economic situation . That could be a bank/stock market holiday with withdrawal restrictions . That may evolve into a stampede of sheeple for groceries and gasoline . I see martial law looming on the horizon and the elimination of our Constitution.Crazy and dangerous times for sure. An EMP event would make an economic event look like a picnic .
We will keep on trying to increase our circle of like minded friends and stay in our little lifeboat and pray for direction.
Bluesman, like you we are also debt-free except for taxes and just live a simple life here on the homestead trying to be as self-sufficient as possible. Just waiting to see what comes. Can’t do much more than that. I don’t worry like I used to either. God is in control, and I leave it at that.
Amen brother He is in control. Being debt free is a terrific position to be in but it’s not a position that is easily attained.It came for us through a lot of planning and determining wants from needs.
Peace to you.
For those who have the control, the simplest way is not to go into debt in the first place.
I have spent a good part of my life, in my mid 50’s now, worried about what could happen. At times, made myself sick over it. We have been prepping for over 20 years and we are comfortable with what we have accomplished. Even when we were poor raising our kids and foster kids, we did what we could. I have stopped thinking the worse and started hoping for the best in all things. Even though Trump creates a visceral violent reaction of distaste and fear in me, I will grudgingly give him the benefit of the doubt for several reasons. One, I can’t do anything about it. Two, he is not all powerful. Yet. It stresses me more that it is so hard to find organic livestock feed. We will still put our feet on the floor in the morning, the sun will still rise and set. We live well below our means. In a modest house with farm property, owing less than half the value, with little debt. Except for our health insurance premiums, that are more than my mortgage, utilities and car payment combined, we do ok. I don’t see the economy suffering where I live. People are spending a lot of money on restaurants, vacations, cannabis, toys and recreation. I don’t see a lot of repos, because I look for them. Maybe people are going into devastating debt, I don’t know. I don’t have a lot of friends, and the ones I have are fine. My family is fine. We pulled our money from the 401k’s, did a ROBS and started a land and livestock company. All tangible assets. Even if we have a slow or bad year, we are still ok. I am not living in a normalcy bias, I am occupying a space of peace within my world and still ready for whatever comes our way. We are helping our son who was injured start a new small business, so he can work. Paying cash of course. He will do fine. Being out of debt and working hard is the monetary goal. Every member of our family works hard because we raised them that way. My husband just worked his 60th day straight. I take off about two days a month during the summer and winter is easier for me because I run the farm. Being happy and at peace with the world is a personal goal. Even if it is about to go to crap any day. I don’t know how long we can stay financially solvent as a nation. I don’t know much about federal or global economics. I don’t understand numbers past a billion. It is not my problem to fix the world. Just be ready the best we can, for whatever comes our way. We have already survived devastating sickness, injuries, death and unemployment in our life time. Being prepared for anything is a survival goal. If SHTF tomorrow, my family and some select friends, can all leave their jobs,… Read more »
@ Farmstead Mom
After a great post I had to laugh, and you know I would…
“And I have 1500 rolls of mouse free TP.”
Now y-all think I’m NUTS!!!???? We’re talking 1500 rolls, I’m VERY impressed…. ROFLMAO
AND mouse free, that’s important ya know… HAHAHAHAHA
NRP-Da-Humbled-TP-dude
NRP ,,,you have been had.
I am completely addicted to buying TP. When it goes on sale and I have coupons, I have issues. I bought 10 more 12 pks today for 2.99 ea. Now a solid 1620 rolls of TP.
What is almost as bad…. I love my sweet tea. I have enough to last me 3 years. I have 2200 tea bags and 600 lbs of sugar, just for my tea. It took me 2 years to collect it all.
Back off Bostonians. Mama gots tea!
So when SHTF I will be sitting(hmmff)pretty with my Cottonelle and nice cool glass of sweet tea.
Farmstead Mom…
Love it! LOL 🙂
@ Farmstead Mom, I had to laugh. I just ordered another years supply of black tea for my Kombucha last night. I probably have about 5 years worth of Kombucha supplies. I will run out of food long before I run out of Kombucha.
@ Peanut Gallery
Really??? 5 years’ worth of Tea strictly for Kombucka,. You y-all give me a hard time about my TP…. HAHAHAHA
NRP
PS; I’m jealous
@ Farmstead Mom
Tea, did ya mention Tea??? I will admit you got me beat there also, but I’m a close second, over 20 pounds of Tea, all vacuumed sealed and sitting in a 50 degree room all nice and pretty….
1650 rolls, yes your hubby is correct, you’re an overachiever…. HAHAHAHA Yak n ow whatrs really crazy, TP is very cheap, so why would not everyone have a hundred rolls at least?
NRP
PS’ sitting pretty…. HAHAHAHA that’s GREAT!!!
Hahaha you are ready for anything!
Hi Farmstead Mom,
I like everything about your post, your state of mind and your preparedness. I agree – we can’t control it – we can only be prepared for it. And losing sleep over it does no good, it changes nothing and makes us cranky the next day. I think you have it just right! 🙂
Farmstead Mom,
We and some other local farming friends buy from New County Organics
they are based out of VA. They have a web site.
They ship as well. We have a small group of like minded small homesteaders/ farmers and we buy at once and share the ship costs.
All our animals love it.
Peace and Blessings…
Thank you so much for the info on New Country Organics. They are opening a store in the Southwest soon!
I sent them an email with my contact info.
I buy my feed by the ton. I am paying 16.00 per 100 lbs.
I have over 100 chickens I over winter and up to 250 in the summer.
Pigs and cattle also. I have been buying organic wheat from a local farmer, transporting it, having it cracked, adding non GMO cracked corn and rolled barley. I have it mixed at the feed mill, then it is dumped into my trailers and I feed out of those.
I feed my own silage in the fall. I grow feed crops, but not enough for all my needs right now. Working on it. Always working on it!
What is a ROBS? And I get what a livestock company does, but what is the land part? I noticed there is a “farm” that is a land and cattle company near us. I don’t understand the land part.
Warning!! Controversial response. Everything is relative. If you talked to me on the street you might think I’m probably one of those who you might include in the “Don’t care” group. I did care for a long time until I finally realized a number of years ago that what the bankers, government bureaucrats both elected and unelected, military, other governments, or anyone else does is totally out of my control. I can only do what I can do personally to protect my own family and self. Do I care if society completely collapses around me? Not really, not any more. I don’t want it to happen but since I have no control over it, I’ve devised ways to insulate myself from it. So… no, I don’t care anymore. Despite that, I have discovered that there are several things each of us can do individually to insulate ourselves from whatever economic destruction lies on the horizon, but there is absolutely nothing we can do to insulate or help the public at large. Get out of debt and stay out of debt. Grow and can as much of your own food as you are able. Stock up on grains for the long term. (Wheat, oats, corn, barley, rye, white/brown rice etc… and more wheat). Acquire whatever weapons you need to defend yourself and your family over the short and long term. It goes without saying, there are myriad other things you must have on hand to help you achieve a relative degree of security. Turn off the damn TV and start reading books instead and read a verse or two from the Bible occasionally. Stop dwelling on all the idiotic crap going around you and focus on what you can do for your own family and self. Finally, you must understand and re-acquire the resolve to defend your family and yourself against all comers at all costs, the same way bears and wolves defend their young. This is non negotiable and anyone thinking otherwise has already lost. There was a time, long ago, when humans had the same resolve as most animals when it came to self defense but apparently that has been bred out of humans or most of the one’s who had it have been killed off in all the wars throughout history. And yes… I do live high on the hog. Everything I had for breakfast this morning was home grown and home made. THAT… is living high on the hog!! Same for dinner last night. Being complacent can have dire consequences. For example, I covered my cabbages the other night to protect them from the 22 degree temperatures but didn’t cover the beets because it was raining and I got complacent. I think I lost a whole row of nice canning sized beets. Wife says we should wait and see but all I see is a row of dead tops. I can only wait and see. Ok.. Now I’m through ranting and can go start on the next… Read more »
I typed this big long ranting thing, looked at it and hit delete.
I like the lifeboat ride and watching the big boat party. For those that want the boat party…go for it and have a good time. I have no confidence in the economic future, every week it keeps on keeping on is a good one. Still working at getting more secure and independent, it takes time, if it happens it happens and I’ll deal with it, everybody will probably be in the tank at the same time.
In the meanwhile, my tolerance for being looked down upon or harassed for my lifestyle choice has been eroded by the constant barrage of negative. To the point of I’m not interested in the BS being spouted publicly, constantly.
So I became sharply more aware, extremely faster at receiving data input, analyzing, deciding and acting. Much simpler, uncluttered thought process focused on needs and objectives.
Is the state of America now that one belief group is tolerated mentally torturing any different belief group, constantly?
This is a subject that really gets me going.
It makes me absolutely nuts that our country is in this financial position. Our spending and debt accumulation flies in the face of both sound accounting practices and plain-old common sense.
Let’s face it – you couldn’t run the finances of a private business or household the way our country’s finances have been run. At least not for long. I can’t believe how much debt we’ve incurred and how complacent the BO administration has been about it. They keep telling the gullible public that the deficits have been cut, completely ignoring how much total debt they’ve racked up. And, Trump is talking about adding another $1 trillion with his public works spending ideas. Sigh.
Modern Throwback is right. Now that BO is leaving office and the Fed can let loose with interest rate hikes, we risk being crushed under the cost of servicing our debt as it sits today… and we all know the debt is going to go up, not down.
So, once again I put my tin hat on. I have come to believe that HC’s e-mails were indeed leaked by insiders, on instructions from TPTB, who want Trump in office to take the fall for what seems to be an inevitable economic crash. We have no control over any of this, and can only do our best to recognize what’s happening and protect ourselves as best we can.
As for all this consumer and small business post-election confidence – well, I guess people are hoping Trump can pull off a miracle. He would have to cut spending, bring enough business back to the US to create more jobs (payroll) and corporate income that can be taxed at existing rates, and do all that while keeping interest rates as low as possible – oh, and keep us out of costly wars. Oh, yeah, and re-build our lost military strength. I guess we’ll need a hell of a lot of miracles.
I talked to my mom last week and caught up on family news. I commented that I see many similarities between Reagan and Trump in terms of political appointments. (Trump appoints Tillerson from Exxon/Reagan tapped Schultz from Bechtel Corp)
These upcoming years should be interesting. I got my first federal job during the Reagan administration and I saw our organization get smaller and leaner each season. (in retrospect, this is not a bad thing within Govt organizations.) My last season, I was a cop who was also emptying garbage cans and maintaining my own infrastructure. If the fires in So Cal got too large, I turned in my gunbelt and badge for Nomax clothing and a shovel. Your tax dollars at work = I kept my job because I was cost efficient.
Though I still work for a state organization, I still work “the floor” because I have noticed over 30+ years of working, organizations will always need: Cops to walk or drive the beat. Nurses to work on the floor. Medics that drive the rigs in the towns and cities and Fire Fighters to go into the burning buildings.
As we enter lean times for govt. workers, I am the old man at work reminding the young supervisors of the precarious nature of their job status. Managers are always the first to be cut or RIF’ed (Reduction In Force) when the block grants come down from the Feds each year.
As a govt. worker for these many years, I pay less attention to the actual President and pay more attention to my local congress-person, Who is on the various commitees within Congress and the Senate. Lastly, I observe who the political appointments are. These have historically had more of an impact on me than the President of the US. I cannot afford to retire yet and I am still taking out my own trash at the end of the day.
Glad I have been preparing for a long time ,have most of my preps , my wife is a RN still works , I am on disability , not a government giveaway I paid in for years , I wish I could work but my arthitis is too bad , plus I have had a stroke that was due to an injury , still pick up a few things for preps . The economy is headed for the crapper a lot sooner than some think , but this will push the military industrial complex to start a war that might be bad on us on the home front ,fought here on our soil .be prepared and ready . Ke p your powder dry .
I believe mathematically speaking, the red light of no return came on years ago. I believe the only way out is a complete reset. This COULD be why we are massing 1000’s of Abrahms tanks and tens of thousands of ground pounders in Eastern Europe right now.
There are some people who believe the entire system will default and be reset. Some advocate for running up ones credit cards and other lines to the maximum now, then let it all collapse together, or perhaps pay it off one day with new currency of a much higher value.
As I sit right now, I’ve got a ten grand car note (down from $38k) and another ten grand in an old debt consolidation loan (down from $28k). The plus a few thousand total in little BS stuff here and there (Preps mostly). I have been actively driving down my debt for the past 3 years. To stay on track, I will be “debt-free” except for mortgage, in less than two years.
Am I doing it right? I don’t know…. Taken in its entirety, I have one hell of a big line of available credit. I could easily run up six figures in debt if I wanted to. Then let it dump with the rest of the economy. That would be a real scumbag move; one that cuts against the grain of my soul.
But given the unusual circumstances we find ourselves in, there might come a day when I wished I had exercised option B.
Has anyone else felt conflicted in this way?
When in Rome…
McGyver
I applaud your moral code. Many comments here about personal solutions to debt but no real answers to the national problem – in my opinion there are only two choices. Without a world war or world currency collapse, there is hyper-inflation or default on the county’s debts. Probably much pain either way.
@McGyver, as Homebody said I also admire your moral code, refreshing. For me, I won’t exercise option B running up the tab, if I can’t fund it with cash or a 30 day payoff then I shouldn’t be doing it. And I shouldn’t be doing it if I have not covered the basics of life (substance, shelter and reasonable security). But at 65 gaining on retirement I have that perspective now and lived more on the edge when younger. I had to pay for it over time, I have infrequent regrets on the past but I can’t change it, did learn about money, but it did set me back on what I need to be doing. I guess to sum up, I burned out my first and second stage boosters a long time ago, so I’m content keeping my low key orbit tracking smoothly. I have the third stage booster but am saving that for personal SHTF events.
As good person NRP my say “Grey, I think you went into space without your helmet!”
@ Grey
AHHHHH no, you got your helmet just fine, ya may be running low on O2 though… HAHAHAHA
But I agree 1000%, younger days were a hell of a ride for sure, BUT I never inhaled 🙂 Also, no more interest in traveling, did every continent except Antarctica and Africa……
I also agree Number 2 option is not a good idea. Because there is always the option that nada will crash. and the economy will work.
NRP
NRP, truly funny, accurate too!
Continue to pay down that debt as best you can you are on the right track. I think in a massive economic collapse having a mortgage may not be an issue. The mass of sheeple in the US all have mortgages and if the economy and housing market were to truly completely collapse the banks would not have anybody to sell the 10’s of millions of foreclosed homes to. The Banks may just suspend mortgage payments for everyone until things get reset and times are better.
Make sure you have enough money in savings or under the mattress to cover your property taxes for 3-5 years. The .gov will take your property and home for failure to pay property taxes.
EMP Occurs all bets are off and I going to just commandeer one of those beach front mansions I always wanted 😉
3-4 stories of solid concrete and re-bar, Hurricane rated glass with roll down hurricane steel shutters, massive thick solidwood doors reinforced steel roofs. They are built like bomb shelters. The rich people leave them vacant 7 months out of the year only use them in Jan-March.
White Cracker,
I bet the Chinese would snap up the foreclosures in a heartbeat.
dude
They already are. US debt (governmental and private) is a huge investment in China, Russia, and the middle east. When it all comes crashing down, guess who’s going to want to come collect?
I believe that once the Chinese own enough of an area, they will have the numbers to just outvote us at the polls. Then they will have their own people in control and will be able to do whatever they want. They wont have to fire a shot to take us over.
I dunno about the banks suspending mortgages. They really showed no mercy during the last real estate bubble; they kicked people out of their homes and the houses sat idle and decaying, at least here in Georgia.
It’s a matter of definitions–during the 1st great depression (not the hickup in 2008) they passed laws about what needs to happen if another depression is DECLARED by congress. One of those items was a hold on all mortgage foreclosures.
Because of those laws (which have never been repealed) Congress will NEVER declare a depression. We’ll have one “Severe economic contraction” (Bernanke) after another, even on top of each other, but never again a depression.
If they were to declare a depression, the banks wouldn’t have much choice, but too many of our elected representatives have their fingers in the banking pie for that to happen.
Hang in there, McGyver…
I’m holding my breath until the end of the month, where I will finally be debt free from paying a stinking lawyer way more than he was worth. It’s taken me 2 years to knock out $26k, but the light at the end of the tunnel is here, and God willing, I intend to exit the tunnel! haha
With the impending unrest ahead, I have visions of debtor’s prison being revived for those who have outstanding debt. That, and a moral compass keeps me from racking up huge amounts on the credit card (though I am a REALLY good shopper!). Maybe I’ll just meet a filthy rich man. Any takers?
haha
dude(-ette)
McGyver, I am currently walking the line between paying down debt and spending money on preps. Between my hubby and me, we have about 7k in CC debt and owe about 100k on the house (valued at 160, and bought 8 years ago). I guess it comes down to long term v short term thinking. So right now I am making my payments plus a little, and spending extra cash on preps. When I feel a little more comfortable with preps, I will go back to making larger payments against debt. Part of me does want to rack up the debt to GET STOCKED NOW, but then I remind myself that it’s a process and I will be as prepared as I can be when everything collapses.
I also have a 30-yr mortgage(21 remaining) 100K on a house appraised in the 160s.
I choose to save all I can (not in the bank) because at my age, 66, I can not make a big impression paying extra each month/year on the existing mortgage.
I choose to save for a down payment on a smaller house and then sell the larger house.
Wish me luck.
Skibum
We were raised with this analogy.
If you have CC debt you owe your soul, for the money lent to you.
Yes, I use a card to purchase items on line, then transfer the money from the checking account to the card paying that expense off. When you pay for items this way it stops you from spending more than you have.
It’s also a free loan from the credit card company.
I do it that way all the time. Pay it all off as I make the purchase. Sometimes there is a day to a week between bought and paid for. So long as it’s paid off by the end of the month, it was a free loan.
I’ve often wondered how long they will let me continue to do this to them. For several years now the credit card co. has received NO interest and NO fees from me.
@ grandee
You need to remember the CC companies charge the vendor from 3-5% of all purchases made on those CCs, so they still make a LOT of money on your buying…. Do NOT feel for the CC companies at all.
NRP
PS; I do the same thing and collect the “bonus points” for doing so.
A few months ago I purchased a Marlin 1895 45-70 ‘Guide Gun’ from a ‘ma and pa’ gun shop. When I paid in cash, they specifically thanked me due to the fees that they have to pay the credit card companies. It saved them a few percent and helped them out a bit. I am always conscious of that, and am sure to pay cash especially to ‘the locals’ instead of that money going to some International mega-corp…
something to think about 😉
@ Ken
1895 Sharp Shiloh 45-70, Black Powder, 560 G lead cast with 60G of Swiss F-1.5, If ya ever get to the Four Corners, we’ll go knock down a Buffalo for some freezer meat….
Back on subject, I do a LOT of “cash” buying when I can to certain shops that seem to know when to report and when not to report a sale, if ya know what I mean. Obviously not Wally World.
So now ya talking 10% or more in the hands of someone in your own community that has worked their entire life for what? Have the .gov to TAKE their hard earned cash so Obama can take $93 MILLION worth of “vacations” on the backs of us all???? Maybe someone can answer this question for me, How much waste is involved within the .gov? $Millions? $Billions? $Trillions? Obviously the national debt went UP $10Trillion, in the last 8 years, are we better off? Or would we be better off giving Mom-Pop that cash??????
AND before anyone says that illegal, so is driving 56 in a 55 MPH zone
Rant over, sorry
NRP
Sounds like fun regarding the 45-70 shootout… maybe with some watermelons (fun explosions 😉 )
Oh, and to answer your question regarding .gov waste? It’s Trillions.
Hmmm, I never considered that, Ken. I will definitely remember to pay cash when shopping at a local business. Sort of a quiet way to, as they say, “rage against the machine.”
Yes, it is mind-numbing to imagine the amount of money that the major bank credit cards bring in. Imagine several percent skim from nearly every purchase in America (and the world!) every single day!!! CHA-CHING! (Because so many people use credit cards to pay for stuff) It’s just feeding the monster…
Good afternoon, Everyone,
So thankful for you all here and your valuable contributions to each conversation….
Agree with you Lauren, titanic a timeless example…
We are so there…
Did you see that recent report that suggested that their were fires on-board in the coal storage areas before the Titanic even launched?
Theory is that it weakened the steel so much so that it caused weakness under the ship, had no fires occurred it would not have split so easily.
All it is going to take is one well placed blow and there it goes..
And I have no doubt this is planned and not random at all…
There are warning signs everywhere, most and I really mean most of the folks we know and love do want to believe it, or think we’re nuts….
I had a friend a close friend, just shrug off the suggestion the other day..
“that could never happen”….at least I told her even gently so…
so sad so many people do not listen to what could protect or perhaps even save them…
And McGyver, yes “red light of no return” agree with you as well
Clear as a bell, Bro, we know it…
There are very few people that we know who care as much as you all here…
Keep on keepin’ on, friends, shut out fear, and stay focused and strong
Good Shepherd bless you…
“don’t” want to believe (sorry for typo)
Isn’t this part of the ‘what the heck happened’ crowd? I mean the idea that IT just happened overnight, that one little thing brought it down. Reality is that IT has been happening for years and we will finally hit the ‘one little thing’ that does seem to break the camel’s back. The whole world is in a state of falling apart.
Trump’s new administration might be able to slow the coming train wreck but will not be able to stop it. I say again…NOT be able to stop it in two terms or more. Our leaders and/or legislators will not do a thing until the PAIN becomes so great that they (and us) will be forced to deal with the mess we are in. My advice, prepare our butts off, prey and live our lives in no fear.
I agree. The vast majority wants to eat cake, so, their legislatures will let them eat cake. Until the end.
I have always wondered where is the financial limit for things? I have heard of Washington “just printing money”, the stock market numbers keep going up (near 20,000?), corporate profits at New highs… Where does it end? Where is all this money coming from, where is the ceiling?
I remember hearing the advertisement budget to “sell” Obamacare the the people was 428 million dollars..?? For that price the government could have given all Americans (and some illigals) a million bucks each!? Or what about the money we give countries that hate us?
I am not naive, or an economist, but I am pragmatic. As you have guessed by now I also don’t have an answer, or solution.
It seems to me the best “solution” for those in charge would be to have less people on the planet, so that “they” can have more (riches, resources, space) in this game of endless gluttony.
My head hurts now. I just don’t have the brain power to compute it (all the variables) anymore.
So the sun rises in the East, and sets in the west… Tomorrow I shall put one foot in front of the other, and meet the day head on (no matter the challenge) with a determined grin.
Endeavor to preserver.
The only problem with them having less people on the planet is that, let’s face it, the elite need us serfs to provide for them. It would be like the parasite killing the host and therefore, eventually, itself. I kinda don’t think they’ve thought it through that far, though.
Tex N,
Our Federal Gov’t has been printing money (Dollars) as fast as they can–for years. It’s called Quantitative Easing (QE). Our Federal Gov’t will continue to print 100 Dollar bills until we run out of ink and/or paper. History repeats itself (1930’s Germany) and could very well happen here in the U.S. ….Hyper Inflation. But, as long as world currencies remain weaker against the U.S. Dollar, our currency will continue just a little bit longer.
Well put Ken. I couldn’t add much to what you stated except I can remember hearing people push the cause of investing in the stock market and the idiocy of purchasing gold back in the 90’s. Then 2008 occurred and boy did those people disappear in a hurry. A few years later we have band aides applied to an incurable disease, clueless opinions dominating again with a bigger financial bubble growing to critical levels. Yea, one does not have to be a financial expert to see how this is going to end.
I think we are in for a real financial issue.
The Globalists want Trump to fail, and will do their best to make that happen.
We, the populace, cannot put all the blame on the govt.
Many, many people have a huge debt burden, that they did all by themselves.
The student loans, the credit card, and housing and auto bubbles are gonna pop, again!
The govt may not be able to save itself financially, can you??
No sovereign can go broke in its own currency. It is not the size of the debts nor the size of the unfunded liabilities. The government can print all the currency needed to ‘pay’ these obligations. The question is only what will the value of those dollars be after the dust settles?
Tb
Try Germany 1930’s, which brought the rise of the brown shirts & Adolf Hitler to power. I am not saying that is what will happen but history does repeat itself when the citizens become lax over their representative. We are in for roller coaster ride, which I see very few surviving.
My weekend post was about this ,,,yellow houses and the value of food ,,advice from a 99 year young man who was looking to buy a tractor from me ,, he didn’t think much of PM ,, food and a safe place that was paid for was what matters and a shot gun to protect what they Had ,,
He saw it for real. Food for thought,,
Tea and chocolate for me ,,,,, And TP for NRP.
Oldhomesteader
My step dad & his bil made moon shine and brought in $2,000 each month during the depression. Sad thing he never taught my sister & I how to whip a batch or two for using for the vehicles. Of course he had to give it taste test. lol
ANTIQUE COLLECTOR ,,, a lot of folks did shine ,granddad had me tending fire early on ,I had to leave home at a early age (18),got caught selling while in high school ,some folks just have no sense of humor,the most noble use of good corn is in fine mash ,well sort of ,spent mash is really good live stock feed or so I’m told ,,,hard times are not so bad if you can find some humor in things ,,,remember to throw a stick on the fire if you come across a still in the woods ,ya don’t want to get shot. Oh the days past !!!
Herb tea time
Oldhomesteader
Is that herbal tea with or with a teaspoon of ?? lol
Love your insight about the shine, and you are right they had no sense of humor. My dad(stepdad)said there were a few times he was almost was caught making a run. What they had going for them & their business Uncle M’s dad was the sheriff, when was ready to retire he told his son time to close up the shop, he could no longer protect them. We all laugh over what they did back then, and got away with it.
@ Antique Collector
Wouldn’t know a darn thing about Shine, except my Granddad ran Shine across the OH-KY bridges in a 300 gallon tank using the family truck…. Grandma would often comment about the bullet holes in the back of the truck from the Revenuers.
For those that do want to indulge in the refinement of a good corn or other mash, please remember it is still illegal to do so without a special permit that allows ATF to “inspect” your home at “any” time. Meaning they can literally tear apart your home for absolutely no reasons other than “looking for contraband”. So please be careful, and remember to discard the first 50 ML of product from a 5 gallon batch, it will be the Menthol Alcohol aka “bad stuff”.
NRP
NRP
Does that mean you could run that bad stuff in your vehicles engine for extra get up and go power? 🙂 If nothing else it would clean out the cob webs lol.
@ Antique Collector
At 100 proof, or 50% pure alcohol I’m thinking that poor little old Duramax might just blow the head right off the block… HAHAHA
But yeah, it sure would clean the Injectors right out… 🙂 🙂
No wonder Grandpa could out run the revenuers. The original Full Injected Funny-Car… HAHAHA
NRP
NRP
Dad & Uncle M ran OK, Arkansas area in glass canning jars. Nice to know another moonshiners family, yours, Oldhomesteader & ours. No wonder we are such unique group, grandkids of those made a living any way they could.
@ Antique Collector
“unique group”, that’s a very polite way to say Ya bunch of crazy old farts…. HAHAHA
NRP
Memo to self : 1. Acquire lifeboat. 2. Enjoy cruise until it’s needed.
This is not new, it has been happening every year for the past 30 to 40 years. It has steadily become more noticeable as the purchasing power of the dollar no longer buys what it once did. Hence the rise of the stores like Dollar Tree/99 cent store for those of limited purchasing power.
It is, what it is, if they do not understand it now they never will.
just keep swimming!
Consequences.
Here’s my understanding of the consequences of our economy reaching the breaking point as Ken’s article suggest. And please correct me if I’m wrong.
The value of the US dollar is based on the trade value with other countries. (Primarily). We owe about 17 trillion in debt but only 5 trillion is to other countries including Japan and China. (According to Business Insider). As long as we continue to pay on that debt to other countries, our dollar will hold its value so a loaf of bread will cost about the same. But if we don’t make good on our payments to other countries (same as not making our house or car payments), then our credit (value of our dollar) become less and less. Which results in a loaf of bread costing $20.00. Interest rates go through the roof and cost of living skyrockets. A great depression? Perhaps.
Here’s what I have gathered;
• We owe most of the money to ourselves.
• We owe a big chunk of the money — about $5 trillion — to the Federal government. So if there ever were a default (hopefully there won’t be) the government would also be stiffing itself.
• We owe about $5 trillion to other countries, including China.
• The total debt to China is only $1.3 trillion. So we’re not in hock to China as much as some people think we are.
• Yes, it’s a boatload of debt. But the experience of Japan, the U.S. after World War 2, and other countries, suggests that it’s a manageable amount, as long as we eventually get our long-term entitlement spending under control.
We need to be concerned about our debt. We as people need to be debt free. Greatest feeling I have ever had was freedom from debt. Had it for a couple of years before getting sucked in again. If it ever collapses, what you own outright is yours and is tangible trade-able goods. What you owe, can and may be repossessed due to you not able to make payments.
If the country was to be debt free, the US dollar would become so strong, they would have to rename the Dollar Store to the 10 Cent Store. Perhaps Japan and China will be asking us for loans.
“Debt” is not only the visible, official debt–it’s also the unfunded liabilities such as Social Security and Medicare. The official numbers are 84 trillion on that, but everyone here knows how I feel about official (cooked) numbers.
But a huge chunk of that is also owed to other countries, through the Federal Reserve, which prints money to cover those liabilities and then sells that debt. That means that the full US Debt (17 Trillion) matches our GDP at 17 trillion, and the unfunded liabilities are more than 4 times that even if you use the “official” numbers. We owe, in essence, 100 trillion, or 5 times more than we are making.
Even if a big chunk of that is “owed to us,” we still owe other countries more than a quarter of our annual GDP. By other measures it’s closer to 100%, but we won’t talk about that because it’s not the “official” numbers and official numbers can be trusted absolutely.
http://www.usdebtclock.org/
US National Debt (as of today)
19.956 Trillion
US Unfunded Liabilities (as of today)
104.778 Trillion
…but who’s counting?
Apparently you are but thank you for it. This has been very enlightening.
AND!!!!!
The Dow is at 19,945.36, Meaning the dollar is worth even less and less all the time, I believe that’s called Inflation???
NRP
We have struggled with a few big decisions to make about our lifestyle. Yes the last few winters we have been snow birds. Mr. loves it, me, not so much. We have a huge home in the country with several acres of land that my Mr inherited from his parents. Needs work but is mortgage free. Lots of work to maintain. We also have a little house in town that we rent out. Have a small mortgage on it but easier to maintain. We aren’t young, but also aren’t old (yet). At first the smaller house seemed like a better retirement solution, but…. you know the rest. It’s in town, no well, no septic, no place for big garden, city water full of chorine. I know the answer to this question is the country house. Now, I’m just gearing up for all the work involved. Not sure whether to sell the smaller house to use the money for fixing the old one, or let it keep paying for itself. And just fix the old one as we can. Don’t think I’m not grateful to have to make this decision because I am. I’m just so afraid of making a huge mistake. Like what would I do if something happened to my Mr? I’m driving myself ( and him) crazy trying to figure out what we should do. We’ve put it off as long as we could, now it’s time to $&@! Or get off the pot. Thank you for letting me whine.
@ Miss I Made It Myself
Not sure if there was a question in there or not……
SO, first let me offer a roll of TP in case you decide to $&@!, and NOT get off the pot… HAHAHA
Seriously, if it was my decision, keep the house in the country, sell the town house, fix (somewhat) up the country house and stay away from people as much as ya can… Remembering this mess the country/world is in is farrrrrr from over, and just as dangerous as ever.
“Like what would I do if something happened to my Mr?” I’m sorry Miss, but one can play the “what if” game forever, IF, god forbid, something does happen to the Mr. you will do what a LOT of us here have done, figure it out at that time, not now.
Just my 2¢ worth
NRP
Thank you NRP! I’m not sure if it was a question either, I think just a rambling. And yes I would just move forward as everyone else does if anything happened to him. I will try to keep him off the ladder for starters!