Even with the recent FED tapering, the fact is that ‘we’ are still borrowing many tens of $billions each month to maintain the illusion that our economic system is healthy. It may be fooling some of the people, but it’s certainly not fooling everyone.
There are only a few ways this game can go – and they all lead to severe pain…
CONTINUE TO BORROW
Borrowing more money (printing more money) is the easiest way to continue supporting this nation’s massive overspending. As long as there are enough of those willing to purchase our debt, this will continue to be the preferred way to kick the can down the road.
The problem is – when entities purchase the debt of others, they prefer to minimize their risk and maximize their return (interest).
The more that America continues to decay (the middle class is already stripped of all the good meat and the poor have been stripped to the bone long ago), and the weaker that the nation becomes on the global chessboard (we’re broke, war fatigued, and filled with a population of dependent sheeple), the more risk is associated with our national debt.
Interest rates have been held to essentially zero by ZIRP (zero interest rate policy), so there’s nary a return for the investor of our national debt.
Something’s got to give, but higher interest rates will topple the house of cards.
INFLATION
Nation-entities are buying less and less U.S. debt (Treasury securities). As this trend continues, we are forced to absorb the difference (more money printing – or, dare I say it, ‘austerity’).
More money printing is eventually inflationary. The FED is in a trap and must continue ZIRP, else the entire house of cards fall down as interest rates rise.
So that leaves the the following few remaining chess pieces on the board…
AUSTERITY
Cut spending (for real). Not illusionairy spending cuts for the mainstream media to lap up and proclaim that all is well – but REAL cuts that not only balance the budget, but include revenue to begin paying off our debt.
The problem with this is that we’re in it so deep, and so many people now rely on the government, that cuts of this magnitude would send our nation into social chaos.
Arguably this may be the bitter pill that is needed – but the resistance is so great and the results so painful for so many (even though it’s necessary), that it won’t happen (for real). There will be ‘window dressing’, but that’s about it…
BAIL-IN
When the government can no longer loan out enough of it’s debt to sustain itself, then it will turn to you for liquidity – the populous.
YOU will be the target (you already are). They will force you to buy Treasuries in your 401k’s and IRA’s. They will levy high taxes (confiscation) on your wealth by any means necessary (tax your savings, liquid assets, etc..). They will raise existing taxes and implement new taxes.
Of course these measures will continue to accelerate the spiral downward as fewer and fewer have less disposable income due to higher taxation and government confiscation.
DEFAULT
An end game could be default on our debt as the burden grows so great while other measures have been exhausted. This could entail a currency reset (massive devaluation), or even War.
CONCLUSION
While more of the chess pieces are removed from the table, and while more people become entirely disgruntled – and even enraged over the unfolding disaster (economic and constitutional), we could potentially see an attempt at revolution. Civil War.
My gut tells me that the pulse has been quickening for many – even all the while the sheeple remain distracted.
During a crisis, there often comes a tripping point at which the tables are turned. No one knows if and when this will be – but I believe it to be possible.
Whether or not the powers-that-be can stretch out the time-frame of collapse remains to be seen. It could be slow, long and drawn out – or it could come in the blink of an eye.
Been trying to spread this message for years, since 2007. Feel like Cassandra from Greek mythology. Quit trying about a year ago. Can only take care of my own to the best of my ability. Quickening is quite correct. Not looking forward to it. Old age prefers comfort.
Cossack, I know how you feel about giving up on educating the masses. All you can do is tell them and move on, don’t beat a dead sheep. Every once in a while the seed you plant might grow. It could be the instant you tell them and it might be years later but your efforts will produce results sooner or later, just don’t frustrate yourself by trying to convince those that can’t see the forest for the trees.
I have had people tell me in the last few years that they thought I was crazy when I told them what was coming but now they see it.(About time)So don’t stop spreading the truth, you never know when the seed will sprout.
“Every once in a while the seed you plant might grow.”
That is exactly right. Thanks for pointing that out. That is why we should never give up.
It is definitely sometimes frustrating having taken the red pill (The Matrix reference) and observing the sleeping sheep. But it is up to those of us who can see – to say something – to do something about it.
“All that is necessary for the triumph of evil is that good men do nothing.”
Well, I can’t seem to help myself. I continue to try to educate on sites like MSB. No more horses tho, way too old for that. Wasn’t Paul Revere 28?
and you have probably lost some friends ? Been there , done that , and have the t-Shirt to prove it !
This has been going on for several thousands of years and with the same
” Tribe ” behind the scenes . ( Rothschilds/Money Changers )
https://www.youtube.com/watch?v=HfpO-WBz_mw
I read an article off a post from survival.blog .com , that the countries in the whole world are two hundred trillion in debt , I can’t even begin to imagine that kind of stagering figure , that is money that will never be seen . One day it will all go into default , and the new world currency will come about , or possibly a chip in your head or hand to have credits to buy what you need , bad times ahead ! Be prepared and ready. Keep your powder dry.
If you throw in the derivatives market (CDS,CDO,IRS) it was about $1.4 quadrillion 2 years ago. Someone realized that number might freak people out, so they “adjusted” it down to $721 trillion. I think JP Morgan/Chase exposure is $70 trillion alone. What can possibly go wrong.
you are explaining the problems and they are well known but.
Can you think of any solution(s). Or can you give any advice on what to do.
I’m sure you have made prep’s to safeguard your interest (s).
Any suggestions?
To begin, allow me to elucidate a saying that I enjoy “the fear of a thing is often more scary than the thing itself”. Now with that said, There is no off the cuff solution to this mess, it is a downward death spiral of epic proportions. Does this mean that we will suffer, yes. It also means that we will have the opportunity to create change out of chaos. I recommend at least becoming mentally prepared for an inevitable change, but lacing that with some semblance of optimism. Hope for the best but prepare for the worst is the correct way to go about this. If you have a family have some kind of stock available (I don’t mean the financial kind), have some tradeable assets, and educate yourself on how to manage in a severe time of crisis. I would recommend a firearm of some kind, learn how to prepare the basics of survival, and for God’s sake have a emergency preparedness pack. I could go on at length about what to have and what to read, but I employ you to do that legwork. Also, having a supply of silver, gold, or other asset (surprisingly, alcohol in most situations) will give you a tradeable and barterable base.
The first step would be to eliminate the extreme divisiveness from our political system that is so prevalent today. That one is mandatory, and without it, no one gets out of this mess without significant pain. It is difficult to change the nature of people, so it would be necessary to enact measures to herd the political collective in the desired direction. Caps on media air time, caps on campaign spending, elimination of all perks not directly required for function of their position, no lifetime benefits, strict accountability and policing of political corruption, no exemptions from laws and regulations enacted for the public at large, etc. In other words, trim it back to the job it was meant to be, and remove the air of aristocracy. I have heard a suggestion, and it is one I have thought necessary for quite some time…eliminate political parties. Take away today’s primary tool for dividing the populace…force candidates to actually put forth solutions, rather than simply convincing voters that the “other side” is the boogy man.
The second step, and arguably necessary for the first step, is to enact measures that decouple our government from the financial/industrial sectors and special interest groups. I’m not talking total deregulation…just taking the hands out of the cookie jars, and releasing some of the stranglehold on businesses…especially small to medium size businesses.
The third step is to slowly, but firmly, move our society away from the entitlement mindset, and this doesn’t apply only to the welfare system. There are many mechanisms in place meant to protect and serve people who are far from poor. We were arguably once the proudest and most productive nation on the planet, willing to do what it took to provide for ourselves, and taking great pride in that attitude and outlook. Expecting such an outlook today, is often publicly derided as uncaring and shameful. So many, from the poorest to the richest, are looking for the easy buck…an attitude I find utterly disgusting. The most basic, and inherent, requirement of existence, with all living creatures, is to take care of themselves. How many of our society would simply perish, and take so many others with them, if that rug was pulled from under them? Like I said, disgusting.
There would be many more steps required to right our ship, but a strong paradigm shift away from our self-serving public “servants”, and those who support them for their own short-sighted gain, is mandatory. Our spending and debt is certainly a problem, but it is merely the symptom, and can never be corrected without changing the sociopolitical path that drives it. Some days I am deeply discouraged, as I often believe what is needed is no longer possible, as it requires those most profoundly affected by the necessary measures, to actually support/enact them…that we have already passed the “tipping point” so many predict is coming. I hope I’m wrong, but everyday so many in our nation seem to prove otherwise.
LOL! End of rant…whew…I’ve been needing to get that off my chest for a while now. Everyone have a nice day. ;>)
+100 Great comment!
We will have to endure a long depression because the politicians and the pundits think that the cure for a depression is more borrowing, taxing and spending. What makes this all the more appealing to politicians and the elite in government is it makes them richer and more powerful. Because of this they cannot conceive of a different cure or the right cure.
The solution to ending a depression is so easy and for many so counter intuitive. It is simply this: Dramatically reduce taxes and the laws/regulations that adversely affect commerce both at the federal and state level. Then get out of the way and stay out of the way. It is just that simple.
Today you do not have to be rich or make much money to be in the tax bracket where 50% or so of your income is taken by the federal, state and local government. That means everything you buy is also about 50% more expensive and you are buying it with less then half of what you earn since the government takes the other half. But imagine if the total tax taken by the federal, state and local governments was about 10%. This means not only do you now keep 90% of what you make but the cost of goods is substantially less because the manufacturers and retail sales companies also only pay 10%. The country would boom over night.
But we won’t do that and we won’t do it for one very simple and very troubling reason; that is because your government and politicians want more of your money and would rather endure an endless depression then give up their 50%. They would rather we self destruct and people’s lives are ruined and die young then give up their grip on your income. The unions, politicians do-gooder’s and hangers-on will never give up their golden goose they would rather kill it then give up the the money and political power.
The elected politicians are just props to keep the sheeple thinking they have some impact on events. The Deep State issues orders to the pols and they click their heels and salute.
If you really want to fix the problems, borrow from the pharaohs. Declare Jubilee and eradicate ALL debt. Tear down the Federal Reserve and salt the ground so it can never come back. Andy Jackson did it, just not well enough.
Then eliminate the whole fractional reserve lending ponzi BS and you may stand a chance.
Andrew Jackson on a $20 FRN is a posthumus slap in the face.
Agreed. Sorta like…..
putting Jimmy Carter’s pic on War Bonds
putting Chris Christie’s pic on Food Stamps
putting Ben Bernanke’s likeness on gold coins
True for Franklin,Lincoln,& Kennedy as well.
By depression you are not talking about the same conditions as existed during the 1930’s event.
The world’s population is much, much bigger than those times.
The populations are now centred in urban concentrations and are completely dependent on a food line that has been allowed to stretch to a position where a simple breakdown in energy supply will mean the starvation of millions.
During the 1930’s event many families survived because they knew how to grow food at home or were able to go hunting with the aid of horses and carts.
A new economic collapse will see uncontrollable chaos. Politicians know this and this frightens the hell out them (not only for the reason they can see the sudden popularity of the use of the words “hoisting on petards”). It’s essential for them to kick the can down the road by any means possible.
China is the canary. It’s shadowy economy has got so huge and the financial tentacles in world markets have got so large that when it goes down the rest of the world will follow.
I’m afraid we are way past the tipping point, there is no fixing this now. We just have to wait for the inevitable crash and aftermath.
It may be the best thing for all those who are prepared for the crash to come and a single global currency to emerge. Perhaps one backed by precious metals. There would unfortunately be some loss of the ill prepared, who only live for the moment and credit card debt. Some people don’t even have a kitchen in there apartment, let alone food for a month. We talk about it a lot, but mabe it is the only solution. (Just being devils advocate!)
I can’t find the reference to it now but I read a theory that the FEMA camps are being built to house and protect government officials and their families when/if a Continuity of Government protocol is implemented.
…just saying.
I saw pictures of these unoccupied Fema camps. If you looked real close you would see they are constructed to keep people in, not keep people out. Look at the barbed wire on the top of the fence.
I do the food shopping in my household and here’s what I’ve noticed in the last 16 months-
Lorna doone shortbread cookies 16 months ago $2.98, two days ago $4.68
Ground turkey breast 16 months ago 2.5 pounds for $5.98, two days ago same size is $8.00 +
Ground beef Was between $1.98 and 2.69, two days ago $3.99 per Pound!!!
Not too mention Milk prices and the fact that gas is DOUBLE per gallon what it was when this criminal cartel walked into the White house!!! AND NO ONE IS RIOTING???????????? WTF??
No they will not riot because they believe the a$$hole driving this country down the drain when he says it’s Bush’s fault. As long as they have their food stamps, welfare checks, section-8 housing and free cell phone they are happy to sit at home watching the boob tube and believing what crap CNN, ABC and MSNBC feed them.
god help us all. some people will shoot theirself. I blame both parties.
Here are several tipping points to consider:
-The stock market is over inflated and is due for a significant correction.
-$18.2 Trillion National Debt. A debt impossible to repay.
-The Federal Budget and a congress unwilling to pass a budget resolution.
-A Federal Budget deficit every yearly cycle. Spending money we don’t have.
-Bailouts, bank failures and municipality/county bankruptcies on the rise.
-Over 46 Million people on the food stamp roles.
-The US Welfare Programs are failing and our Congress pays no attention.
-$95 Trillion in Unfunded Mandates and soon will exceed our total assets.
-Unemployment is at 5.5%. Experts say it is more like 23% or more.
-Low interest rates are fueling new housing and financial bubbles.
-Trillions in Currency Derivatives at risk when the Euro crashes.
-China is working very hard for a “One World Currency”.
-Almost all world commodities have fallen in the past year. WTI oil at $42.55/bl.
-Scandals and coverups have escalated in recent years in Washington.
-Middle East turmoil/terrorism and Russian aggression are winning.
-Major defense cutbacks and troop withdraws have weakened our defenses.
-Massive government expansion and an increase in Passive Martial Law.
-The slow transition to a “Police State” and Full Martial Law a strong potential.
-The Misery Index and the lie that it is.
-The constant assault on our Second Amendment Rights from the Left.
-The implementation of the Affordable Heath Care Act—an American Tragedy.
-America, a cesspool of liars, thieves, murderers, perverts and psychopaths.
-The rise of Islam in our own Government. Americans are gravely concerned.
-A systematic takeover of TV and the Internet. A potential to be used against us.
My suggested input on how (and what) to prep for prior to economic collapse:
(by priority)
Store Food and Water, short term, mid term and longer
Shelter improvement, both your home and bug out location if any
Store Medical Supplies
Accumulate cash, gold and silver within your budget
Alternate Power Sources—gas/propane generators and solar/battery generators
Operational Security (OpSec), Personal and Property Security
Neighborhood Support and Team Building
1.Affordable Care Act:Is truly an American Disaster that will NEVER be forgotten for generations into the future! It’s robbed every middle-class american by: having their work hours reduced,Doubling the cost of an office visit to see a Doctor,exacting Fines against all those (us) who have chosen not to comply. When did we give our Government the right to tell us that we were required “BY LAW” to buy health insurance? I don’t remember voting that amendment to the Constitution!
2.I live in a county that is FREQUENTLY stated to have the Nation’s highest percentage of people receiving Disability Benefits, not including the Welfare Cases, Food Stamp recipients etc. I personally know 50 or 60 men in My home county who are as capable of work as I am who receive more money from the Govt. than I do from working 2 honest jobs! Some of them are in their 20’s and 30’s and have never had a job.I also know many people who take their Food stamp credit cards into the grocery store(with another person’s shopping list). They buy everything, spend every dollar available, and leave the store, where they load it into their friend’s trunk. Then the friend pays them in cash, a fraction of what the food actually cost. Then the food stamp recipient usually takes their handful of free Gov’t cash, walks back into the Grocery store, buys their smokes, goes by the liquor store, and then hit McDonald’s, or Sonic to pickup their daily lunch or pay for their Pizza for dinner! I’ve watched this activity for 15 years now,and That’s only the people that I personally Know. Many people just trade the groceries directly to their Drug dealers, and skip the middle Man.
3.Getting these benefits in My county has become so easy, that FAR TOO MANY of these Govt. parasites have moved here in the past 30 to 40 years! this has TOTALLY RUINED My small home town. Theft has skyrocketed,Drug use is everywhere, and the local Police Force(In Name Only) have become so complacent,jaded, and Negligent, that No laws and-or city ordinances are ever enforced. People drive all over the town with NO license plates, No headlights even on their car,and My personal favorites, taped-up plastic windows, tail-lights, and driving for weeks on a temporary spare. If they aren’t required to repair windows, headlights,tail-light lenses, or tires, how many of them have insurance to cover when they run into your car, because they were too distracted, texting on their cellphones? You can stand out in Your yard on any Fri. or Sat night for 15 minutes and hear 2-3 LOUD THUMPER stereos,2-3 BURNOUTS, and GUNFIRE, all within a mile, in a city of 2000 population.
4.In My opinion, the ONLY Groups in My part of S.E. Mo. who deserve The Govt. benefits that they receive are the Veterans, And the Medicare-Medicaid and Social Security Beneficiaries!!! And they are woefully underpaid, and do not receive what they deserve! My Mother is 72, and still has to work in order for us to pay for everything.
5.I know I’ve branched off into many different subjects here,and I appreciate your patience and interest. My POINT is this: as long as our Govt. keeps giving handouts to every blood-sucking parasite on the waiting list,while punishing the honest working class, IT HAS TO FAIL! There needs to be some oversight,and periodic reviews for the people getting all these free checks for entire lifetimes! I’d love to be an investigator for the Disability Division in S.E. MO. Every time I could Photograph a “Disabled” Person mowing their own yard, riding a tractor.or changing the motor in their truck,there should be a reward!
6.Our Federal Currency is GOING TO FAIL! It’s only a question of WHEN and not IF? If You are not already FULLY PREPARED, it’s probably TOO LATE! But I would start by buying guns and ammo,storing food,and collecting junk silver, and anything you can for bartering. The internet is full of ideas for goods to barter with. AND buy alternative light sources, candles,oil lamps,solar if You can afford it. I’d also buy some reserve Gasoline, and use Sta-Bil in it. I have proven that a vented container,out of extreme heat or direct sunlight will remain usable for 2 years with the appropriate amount of Sta-bil added. If you’re New to Prepping,seek advice from a trusted person or an experienced prepper concerning a choice of firearms and which foods to store-up first. A local Pawn Shop or Gun Store is usually a good place to ask for advice on these subjects. Canned Meats and Dehydrated foods are a good place to start also. And right now(as of this writing) Silver is at a 10 year low price. PLEASE get started NOW!! Place these first Preps in YOUR order of importance, everyone’s situation is different!
GOOD LUCK!