The Beginning Of The End
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If The U.S. Government Keeps Spending Money Like This We Are Doomed And If The U.S. Government Stops Spending Money Like This We Are Doomed

If you increased your credit card spending by a couple thousand dollars per month would your lifestyle improve?  Of course it would.  By going into large amounts of debt, it is possible to live a lifestyle that you can’t really afford, at least for a while.  But if you keep racking up huge amounts of credit card debt every single month, eventually it gets to a point where it is extremely difficult to even keep up with the minimum monthly payments and the credit card companies will not lend you any more money.  Well, on a larger scale it is the same thing with government debt.  Right now, the U.S. government is spending more than a trillion dollars more than it takes in every year.  Even if the U.S. government spends all of that money on incredibly stupid stuff, it still gets into the pockets of ordinary Americans.  In turn, those ordinary Americans use that money to pay the mortgage, buy food, shop at the mall, etc.  All of this borrowing and spending by the U.S. government has created a “false prosperity” bubble that is not real.  It may feel real to you right now, but it is unsustainable by definition.  If the U.S. government suddenly started spending only the money that it actually brought in every year, our economy would be doomed and all of this “false prosperity” would rapidly disappear.  But if the U.S. government continues to rack up debt at this pace we are doomed as well.  In fact, every dollar that gets borrowed makes our eventual collapse ever worse.  We are heading down the exact same road that Greece has gone.  Eventually the rest of the world is not going to lend us gigantic mountains of super cheap money anymore.  When the flow of cheap money stops, it can be extremely painful.  Anyone that has ever seen the interest rates on their credit cards go above 20 percent knows how this feels.  If we had addressed these problems as a nation a decade or two ago, perhaps we could have found a solution.  But now there is no way out under our current financial system and a devastating economic collapse is on the horizon no matter what we do.

If there was a Hollywood movie where some crooks successfully stole 150 million dollars, what would you think of those crooks?

Would you have admiration for them?

Would you be disgusted with them?

Would you feel like your intelligence was insulted because nobody could ever steal 150 million dollars and get away with it?

Well, right now the federal government is stealing approximately 150 million dollars from our children and our grandchildren every single hour.

That’s right – the U.S. government is borrowing an astounding 150 million dollars an hour that our children and our grandchildren will be expected to deal with.

It is a theft so vast that it is almost unimaginable.

So what should be done?

A lot of people out there think that our problems would be solved if the government would just quit borrowing so much money.

Well, it is just not that simple.

Look at Greece.  They were forced by the EU and the IMF to dramatically reduce government spending.  But when Greece reduced government spending, that caused the economy to shrink rapidly and it caused tax receipts to go down more than expected.  So Greek budget deficits were even larger than anticipated and so Greece was forced to cut spending even more.  But that created even more economic problems.

A recent article by John Mauldin described the nightmarish effect that this cycle has had on Greece….

And as Greece began shake and bake its way to “austerity,” the very act of cutting deficits pushed the country into recession, which lowered tax revenues and increased expenses, putting the elusive goal of a balanced budget even further off. We should quickly note that this is not just a Greek problem. Spain’s “draconian” cuts have meant that its 6% deficit target for the year has this week been raised to a more likely 8%, making it harder to get back to even.

For country after country, this is the Endgame. It is the end of the Debt Supercycle. Debt has grown to the size that it cannot be sustained. The market will not lend any more money on terms that can be afforded, and any efforts to cut spending and raise taxes will result in an even worse economy, in various degrees of recession, with falling revenues and rising costs.

This is what happens when a country that has been spending far beyond its means is forced to dramatically cut back.

Those that are convinced that balancing the federal budget in the United States will be relatively painless should take a close look at what is happening in Greece.

As I have written about previously, the Greek economy has been plunged into a 21st century “Great Depression”.  In Greece, 20 percent of all retail stores have already shut down, the unemployment rate for those under the age of 24 is sitting at 39 percent, and one third of the entire nation is living in poverty.

And this is only just the beginning for Greece.

Things are going to get even worse.

Unfortunately, many believe that the United States is destined to experience far worse pain than Greece is currently experiencing.

For example, Peter Schiff insists that the United States is in worse financial shape than Europe at this point.  Just check out this video….

Anyone that attempts to downplay the U.S. debt problem is making a serious mistake.  Yes, we are still able to borrow trillions of dollars for next to nothing, but that is going to come to an end.

Remember all of those “suckers” that signed up for mortgages at “teaser rates” that later got jacked up dramatically?

Of course you do.

So what happened to them?

When the rates went up many of them ended up losing everything.

Well, we have gotten ourselves into the exact same kind of a position.  All of this cheap money has enabled us to live very nicely for now, but when the cheap money ends the nightmare will begin.

Right now, our debt is growing much, much faster than our economy is.  Between 2007 and 2010, U.S. GDP grew by only 4.26%, but the U.S. national debt soared by 61% during that same time period.

What would your household finances look like if your total debt grew by 61 percent next year but your income only grew by 4 percent?

When I was a little boy, the U.S. national debt was considered to be a huge national crisis.  Politicians from both major political parties were promising that they would fix things.

But what has happened since then?

Well, when Ronald Reagan took office the U.S. national debt was less than 1 trillion dollars.  Today, the U.S. national debt is over 15.2 trillion dollars.

During 2011, the federal government went into more debt than the U.S. government accumulated from the time that George Washington became president to the time that Ronald Reagan became president.

That may be hard to believe, but it is true.

During fiscal year 2011, the U.S. government spent 3.7 trillion dollars but it only brought in 2.4 trillion dollars.

That is utter insanity, and yet most Americans have become convinced that this is “normal” and that there is nothing to worry about.

It is hard to grasp how much money a trillion dollars is.

If right this moment you went out and started spending one dollar every single second, it would take you more than 31,000 years to spend one trillion dollars.

That is how much money a trillion dollars is.

And things look even worse when you look at the balance sheet of the U.S. government.

The U.S. government has total assets of 2.7 trillion dollars and has total liabilities of 17.5 trillion dollars.  Those liabilities do not even count 4.7 trillion dollars of intragovernmental debt that is currently outstanding.

But it is not just the federal government that has been living a fantasy.

The chart posted below shows the growth of total debt in America over the past several decades.  Consumers, businesses and government officials have been on a debt binge that is absolutely unprecedented….

The scary thing is that even with all of this borrowed money, our economy is still in the dumps.

So what in the world is it going to look like when the debt bubble totally bursts?

Even with all of this “borrowed prosperity”, anger at the government is rapidly growing.  A recent Gallup poll found that “satisfaction with government” in the United States is now at an all-time record low of 29 percent.

So how angry will the American people be when all of this “borrowed prosperity” disappears?

When this whole thing comes tumbling down, a lot of people are going to blame our problems on “capitalism”.

In fact, it is already happening.  Just check out what the founder of the World Economic Forum is saying….

“We have a general morality gap, we are over-leveraged, we have neglected to invest in the future, we have undermined social coherence, and we are in danger of completely losing the confidence of future generations,” said Klaus Schwab, host and founder of the annual World Economic Forum.

“Solving problems in the context of outdated and crumbling models will only dig us deeper into the hole.

“We are in an era of profound change that urgently requires new ways of thinking instead of more business-as-usual,” the 73-year-old said, adding that “capitalism in its current form, has no place in the world around us.”

But capitalism is not the problem.  Capitalism has produced the greatest eras of prosperity that the world has ever seen.

No, the real problem is our debt-based financial system that is managed and run by the central banks of the world.

You see, debt-based central banking is not capitalism.  But way too many people equate the two.

A lot of people cannot even imagine this, but theoretically you could have capitalism without any debt whatsoever.

But what we have today is a financial system that has debt as the very foundation.  And such a system is inevitably going to fail someday.

As I have written about so many times before, the Federal Reserve is at the very heart of our economic problems here in the United States.

The Federal Reserve was designed to be a perpetual debt machine.  And it has performed that task very well.  The U.S. national debt is now more than 5000 times larger than it was when the Federal Reserve was first created.

So yes, even though things seem somewhat “stable” for the moment, there are all kinds of reasons to be concerned about the viability of our economy and our financial system in the years ahead.

The other day, I was quoted in a Reuters article about our coming economic problems….

“Most people have a gut feeling that something has gone terribly wrong, but that doesn’t mean that they understand what is happening,” he said. “A lot of Americans sense that a massive economic storm is coming and they want to be prepared for it.”

Of course the Reuters reporter did not even bother to spell my name correctly, but at least he got the quote right.

A great economic storm is coming.

Don’t let this false prosperity and this “calm before the storm” fool you.

We are living in the greatest debt bubble the world has ever seen, and no matter how it plays out there is going to be a massive amount of pain.

You might want to get yourself and your family prepared for that.

  • http://www.boltonlegal.com Andrew Bolton

    Good job. The Soviet Union collapsed due to debt and they weren’t a captialistic system. As you said, the problem is NOT with capitalism, it’s the spending . . . and no system can long survive overspending.

  • davidmpark

    Debt backs everything. Even those currencies in Asia – they are all debt based. China and Russia are also facing collapse. Japan is nearly gone down the rabbit hole! No nation or state will be profiting.

    However, there is still good news. Just because the economy of debt-based fiat currency falls and burns, the natural laws still exist: We can still trade and build if we learn how and prepare well in advance.

    We are capable of restarting the original economy – the truly free economy. The one we had before. Except this time, we need not resort to slavery due to the inevitable labor shortage – we have machinery, electronics, and robotics.

    Through every great tragedy and evil, there must also come great renewal and goodness. That’s a factual law of the universe – can’t be denied or fought.

    • http://www.paulstaxi.com PaulTheCabDriver

      It reminds me of the great debates the old fighter pilots would have during World War One, before the parachute was in use: Do you want to jump out and fall to your death, or do you prefer to ride a burning biplane down to a fiery crash?

  • McKinley Morganfield

    “But capitalism is not the problem. Capitalism has produced the greatest eras of prosperity that the world has ever seen. No, the real problem is our debt-based financial system that is managed and run by the central banks of the world. You see, debt-based central banking is not capitalism. But way too many people equate the two.”

    Namely the OWS crowd and the Gary2s of the world who will turn into packs of rabid dogs when the collapse finally arrives.

  • Gary2

    This article shows the need to tax the rich hard and spread the wealth.

    • rainbowbright

      I am not rich by any means..I have supplemental aid and foodstamps..so when I say this I want you to know that I am not among the rich..But why should we tax the rich harder? I mean they have found a way to make an abundance of money…they have aquired the skill it needs to make that money, and they have invested the time it takes to earn the degrees that make the money…so again why should we punish them with a tax increase when they went above and beyond what it took to just get buy…I mean I am in college right now..I am getting ready to graduate this December with my associate is teaching and I would like to have the oppertunity to earn a good living without the fear of loosing it to taxes because others in this country are not willing to put furth the effort it takes to pull themselves out of the gutter..so you see…why should the rich be responsible for the poor and lazy? This is America…we all have the freedom to achieve our dreams…it’s just a few that auctally persue the dream.

      • United We Stand

        Gary2 is right. Tax the super fat cats through living wage ordinances in cities and towns. If those multinational huge income people want to set up one of their big box chain stores in your backyard make it so they can’t unless they pay a living wage…otherwise taxes continue to subsidize the non-working and working poor because they simply can’t earn enough to live on. The poor aren’t able to spend much to help fuel the economy other than the barest of necessity and they sure aren’t going to be able to pay much in local taxes to help fund P.D.’s Fire Dept’s, parks and services. Putting $ back in peoples pockets through living wages means they’ll likely feel safe to spend some discretionary income, buying something creating demand furthering a need for more workers to put out product.
        Is there any reason why people working at these multinational chainmarts shouldn’t be making a living wage in this delightful service economy?
        It’s all well and good to make a giant financial success of oneself and get listed in Forbes through hard won work, but when the pinnacle has been met and you’ve more than enough to know what to do with, it’s long past time to give back a bit to the people who work those poverty wage jobs 24/7 keeping those slavewagemarts going.
        However, all that seems to go against the plan to demoralize, indebt and bankrupt the people.

        • Gary2

          Good points all-the amount of corporate welfare that is used to pay food stamps and medicaid for the underpaid service workers is staggering. Of course the right never talks about that as it proves their world view of business being perfect is wrong.

          I thnik the walmart heirs have enough and need to be taxed hard to increase the pay of their workers who are the real generators of the wealth.

      • Gary2

        I think you need to change your name to rainbow dim, not rainbow bright!

        I think you need to take econ again.

    • Adam

      I missed your comments over the past couple of weeks. I thought your electricity may have been turned off since you don’t work and expect me to pay your bills! – Loser!!

      • Gary2

        Good thing you paid then as its cold outside!

  • Gary2

    Myth:Taxing the rich would not raise much money.

    Fact:

    Of course it would. If only the richest 400 families, whose average income in 2008 was an astounding $270 million, actually paid the statutory rate of 39 percent (to be revived as of next Jan. 1), an additional $500 billion would be raised over 10 years, putting a substantial dent in the projected deficit.

    In 2010, hedge fund manager John Paulson made $5 billion. That year, according to Pulitzer Prize winner David Cay Johnston, Paulson paid no income taxes.

    Am I envious, Mr. Romney? You bet I am.

    But I’m also angry at the stark injustice of it all. And terrified of the power such wealth can wield in a country that allows billionaires to spend unlimited sums influencing legislation and elections.

    A recent survey by the Pew Research Center found that two-thirds of Americans now believe the conflict between rich and poor is our greatest source of tension. It is a conflict that deserves to be aired fully — and in public.

    http://toomuchonline.org/tmweekly.html

    • quick

      $500 billion over 10yrs !!! WOW

      Lets see thats $50 billion a year – And BarryO wants another 1.2 trillion debt increase.

      Where does the other 1.15 trillion come from ??

      Dont be an idiot – do the math !

    • Kevin2

      Gary2

      When Uncle Sam is spending a trillion a year above revenues they could confiscate all the wealth from the “Rich” and we’re still screwed. We’re not creating sufficient wealth to meet our standard of living and there lay the problem and the solution.

      Sure the rich should pay more. The idea that they “create” US jobs went out the window when what they buy is manufactured outside of the US. Taxing them more will not hurt the economy at all not it’s not a solution.

    • Tim

      There is no question that there is inequity under the current system of taxation in the United States of America. But you obviously don’t understand the magnitude this nation’s indebtedness. For the past three fiscal years the federal government has had budget deficits in excess of $1 Trillion. And you think $50 billion a year will make a difference in annual deficits, let alone the accumulated debt or the tens of trillions in unfunded liabilities? C’mon. Besides, if the ultra-wealthy began to pay more in taxes, and those taxes were used solely for government expenses, there wouldn’t be any handouts for you.

    • Syrin

      So $50 billion a year colves the debt in our regressive mind, doesn’t it. meanwhile your boy is putting us $1.5 TRILLION more in debt annually, and you think $50 billion solves the problem.

      Any wonder why I say that to be a regressive you must prove you failed econ 101 at least twice.

      meanwhile, when those 400 families renounce their citizenship and move over seas, who’s going to make up the HUNDREDS of billions they were paying? YOU ?!?!?!? Hardly, you’re too busy coveting your neighbor’s property.

      By the way, do you UNDERTSAND why he paid no income taxes? DO YOU? Because it was made as capital gains. Your boy Warren Buffet has an official income of $159,000.

      The income tax is a tax on the most productive members of society BY DEFINITION. Seriously, your level of intellectual immaturity is incredible.

      • Gary2

        where are they going to move-Somolia? They would bot have to worry about government meddeling in their lives then. Any first world country taxes more than the USA.

        If they want to go let them. Their wealth stays here courtsey of the IRS.

    • knightowl77

      Baloney….$500 billion over 10 years is $50 billion a year…..That would still leave a deficit of over $1.25 trillion..some dent

      • BenjiK

        Give Gary a break on this one. These aren’t even his words, so I’m sure he didn’t even bother to do the math. This whole post was a copy/paste from an article written by Davis Morris for onthecommons.org which can be found right here:

        http://onthecommons.org/challenging-republicans-five-myths-inequality

        It’s still a nonsense article, but nonetheless, NOT Gary2’s own ideas, thoughts or words. It’s common plagiarism, nothing more.

        • Gary2

          I put a link to the web site at the bottom of the article clearly showing it was a copy paste. Did you read the post?

          • BenjiK

            Your link doesn’t display the David Morris story. Sorry, I didn’t realize that your posted link was a link to another link to a different page that reprinted his original article. After some serious searching and quite a few different pages later I did find it…..

    • nowwthen

      Most of us would like to see them pay up too but that alone won’t come close to solving our debt or deficit problems. The 39% tax you advocate taxing those 400 families would raise closer to $421 billion which sounds like a lot of money but it only amounts to about 2.6% of the projected increase to the national debt over those ten years. If we continue to add $1.6 trillion each year for ten years the debt will be over $31 trillion. We need revenue, spending cuts and reduced regulation if we’re ever going to get out of this mess.

      • Gary2

        Just because it will only put a “small dent” in the deficiat does not mean we should not tax the rich. a dollar here and a dollar there and pretty soon you are talking about real money.

        The it will barley put a dent arguement is the most intellectually lazy arguement I can think of.

    • Matt

      “an additional $500 billion would be raised over 10 years” Seriously?? Dude, that averages out to 50 billion a year. The deficit stands at like 1.2 trillion a year and that means the deficit would be 1.5 trillion, and you think that would put a “substantial dent” in the deficit? And that assumes that these higher taxes would have absolutely no impact on hiring or business activity they may have otherwise been created with that money.
      Look at the worst places in the country for jobs: http://finance.yahoo.com/news/10-worst-cities-finding-job-222659548.html Notice that they are almost all liberal states that implement the same dumb ideas you’re suggesting? Umm, ever hear of Europe? They’ve tried all of your dumb ideas too. Wise up man..

  • mondobeyondo

    I couldn’t help thinking of the recent Costa Concordia disaster in Italy as a perfect metaphor for the U.S.

    Everyone on board is partying away (spending their credit cards, buying new cars, big screen TV’s, iPads, etc). Fun, fun, fun! The captain’s hanging out with a beautiful woman (okay, not Barack Obama, but how about Newt Gengrich?!?) Good times, good times!

    Then the ship gets a little too close to the coast, and hits the Big Debt Rock. It begins to sink. The partygoers scramble for the exits. Some make it. Some don’t.

    The country is left leaning on its side, on the Big Debt Rock, floundering. Rescue crews arrive, but it’s too late.

    People take videos on their cell phone cameras (this is the video age, after all) of chairs and stuff floating in the cabin. “Hey, there goes my 401(k)! My life savings is floating away!!” one guy shouts.

    We, as a country, are headed in the exact same direction. Costa Concordia Americana. Neauveax Titanic sounds better though. Maybe Celine Dion will sing a hit song about our demise, I don’t know.

  • joe

    Well said (again)!

  • mondobeyondo

    “…right now the federal government is stealing approximately 150 million dollars from our children and our grandchildren every single hour.”

    Every single HOUR?!?!

    How many of you make $150 million an hour on your job? (that’s assuming you even HAVE a job!)

    This is not bad. This is BAD, BAD, BAD.
    And this is what our federal government spends every single HOUR. Multiply that by 24, and that’s how much our government spends each day!

    There are 365 days in a year (not this year though. 2012 is a leap year. Don’t forget February 29th).

    GASP!!!!!!! Oh my goshhhhh….

  • Gutter Economist

    If the U.S. government suddenly started spending only the money that it actually brought in every year, our economy would be doomed and all of this “false prosperity” would rapidly disappear.

    Do the math:

    In late 2011, it required 9.2 million employees to generate 1.0 trillion dollars of GDP.

    In 2013, it would require 1.1 trillion dollars of spending cuts to balance the budget.

    Spending cuts should be increased by 25 percent to compensate for severance pay, unemployment benefits, food stamps, loss of tax revenue, etc.

    Increase in unemployed = 9.2 x 1.1 x 1.25 = 12.6 million employees

    Unemployment rate per Balanced Budget = (13.9 +12.6) / 154.2 =17.2 percent

    Where 13.9 = current unemployed, 140.3 = current employed

    But if the U.S. government continues to rack up debt at this pace we are doomed as well.

    Eventually the rest of the world is not going to lend us gigantic mountains of super cheap money anymore.

    The Federal Reserve could “print” super cheap money but it would be worthless due to hyper-inflation.

    But now there is no way out under our current financial system and a devastating economic collapse is on the horizon no matter what we do.

    The US industrial base is too small to support the US government and the US population.

    The US government has been making up the difference with debt, deficit spending.

    So there is actually a third option:

    (1) Bring our wealth creating manufacturing jobs back to America.

    (2) Increase taxes (tariffs) on imports.

    (3) Eliminate offshore tax shelters by taxing all offshore income the same year it is earned.

    (4) Increase taxes on offshore operations. When businesses have both domestic and offshore operations, income from offshore operations should be taxed at a higher rate than domestic operations.

    (5) Tax rates of foreign businesses with domestic operations should be higher than tax rates of American businesses with domestic operations. Profits of foreign businesses usually benefit other nations more than the USA.

    (6) Increase taxes on higher income individuals. Many of these individuals do not create jobs.

    (7) Increase the capital gains tax rate on offshore investments to 90 percent.

    (8) End the Bush tax cuts. These have not created jobs in the USA but have increased the national debt.

    (9) Eliminate all tax loopholes (business and individual). A flat tax, sales tax or some combination should be considered.

    • knightowl77

      As a country we are broke, but I am not for ending the tax cuts…As it is, I pay a tremedous amount of money in taxes already…Besides Federal income tax, state income tax, property tax, sales tax, gasoline tax, social security tax, medicare tax, unemployment tax….Taxes on cell phone on the utility bills….You name it and we are taxed on it…The government MUST reduce its spending and reduce it DRASTICALLY….

      • Gutter Economist

        After we restore our industrial base and eliminate the deficit, all taxes could and should be cut.

        After we restore our industrial base and eliminate the deficit, spending could and should be cut.

        Spending cuts without replacement jobs would be a national disaster.

      • BenjiK

        You are 100% correct sir. As I’ve said before, the federal government does NOT have a revenue shortage, it has a MASSIVE spending problem. The same can be said about many local governments also.

        I just watched a show on National Geographic channel called Guerrilla Gold Rush. It starts with the host introducing a Colombian drug task force, a small army, that is funded 100% by the U.S. to curb cocaine distribution. However, in recent years, they have focused all their attention to breaking up illegal gold mines. Guess who keeps the gold and money recovered? The Colombian government, with NONE of the proceeds used to pay back the U.S.

        This is just one example, but how many more misdirected federal “programs” are we footing the bill for that yields absolutely zero results for the American taxpayer?

    • r.bitting

      Gutter economist, I read the George Washington prophesy you posted previously, very interesting I must admit…. thanks.

    • Lennie Pike

      The third option just might work – but it will have to be forced through the point of a gun.

      That gun will probably have to belong to the U.S. Military since Americans have become brain-dead. Plenty of guns, but they won’t be used – they will be sheepishly turned over when the time comes.

      Oops – that applies even more so to the U.S. Military.

      We will just have 1984 instead – but not for the elite of course.

      How are the elite defined? It is a club of people who know they have no natural abilities, courage, or work ethic to do anything productive to survive in the world as individuals, so they form a gang to attach parasitically to individuals who have what it takes to survive either on their own or by forming co-operative hard working honest groups.

      You will never witness any of these elite
      attacking or disagreeing with each other like we the non-elite do sometimes – the cardinal rule amongst the elite is to gang up and work together – against us – the ones who provide them the living they are accustomed to and require.

      They have a code of speech and behavior – a way of comporting themselves to make themselves known as a member of the pack of wolves that they are – always very positive, supportive, and cheerful amongst themselves – it is of extreme importance to them that they make themselves known as one of the group.

      The love of money is the root of all evil, and no amount of money will ever satisfy these people. It seems they would have realized that by now.

      • Gutter Economist

        And worst of all, the Elite control who we are permitted to vote for

      • Gary2

        I agree about the arguing amongst ourselves. People need to shut up and accept that we will be taxing the rich hard and spreading the wealth. No one cares if they do not like it. Obama will win and the country will move to the left as ghe can not run again.

        Period. End of story. I am sure the right wingers know this is true. Who’s gonna beat Obama? Newt? Mittens? Please!

    • bongstar

      All not evan close to the answers!!!! they would be good answers if our entire monetary system wasnt flawed. how are you going to tax people when the dollar becomes worthless??????
      The real answers are end legal tender laws. and end fractional reserve banking. ending legal tender laws would allow other forms of currency to compete aginst the federal reserves notes. as more sound forms of money begain to be accepted over there money they would begin to self implode under the natural laws of a free market. And as banks stopped fractional reserve banking faith would be returned to banking, alowing people to save with out the possibillity of there savings being wiped out. these arent the full answers but they are a great and realistic start that would allow us to regain our nations wealth slowly.

  • Craig

    I wonder if when it hits the fan, if the politicians and the rich CEOs and businessmen will continue to send middle class jobs to China and Mexico and maybe even more so? I’ll tell you nothing is going to change under Romney, Gingrich or Obama. Jobs will continue to be exported. I wonder if there is any scenario where this trend could be stopped. When things tighten up even more, as you believe they will, will even more middle class jobs be exported to China and Mexico? Will even more Chinese and Mexicans come to take the jobs that still exist in America?

  • tappedops

    Until a loaf of bread costs more than a post iran war gallon of gas —dont sweat it… party on… in fact can we talk about my fant/foot/trades …

  • Martin

    From my past experience, having lived through a few economic implosions in various latin american countries, going off the grid living like a mad-max hermit is not what happens. The economy still exists, you just find the nearest set of black market dealers and plug into an alternate set of grids.

  • Old Man

    “If The U.S. Government Keeps Spending Money Like This We Are Doomed And If The U.S. Government Stops Spending Money Like This We Are Doomed.”

    This is called a hole. The US government actually has had a hidden department, but fully approved by Congress, whose job is to dig holes.

    It has done a fine job. The black hole it dug is so good, even a black swan can fly in and nest. Look, I can see a couple of eggs at the bottom …

  • highspeedloafer

    Great article Michael.
    I really appreciated the video as well. If there was any financial guy I would trust it would be Peter Schiff. The more I watch the major media outlets deal with this problem, I feel like I am on that ship that sank off the coast of Italy last week. The guy on the loudspeaker kept telling the passengers all was well, just like our politicians and media experts.

    I wish there was a way for us to abandon ship, but I don’t know where we could go or how we would be able to make it. Of course I am a prepper, but I fear we can’t really be ready for what this next storm is bringing. Without faith in Christ, I don’t think I could face it.

    • mondobeyondo

      Exactamente.

      The major media outlets will tell you to return to your cabins, everything is fine. Just an electrical failure, that’s all.

      Uh-huh. Then why is all this water coming up around my ankles? Seems to be a lot of water here. A trout just swam by my foot! There goes a catfish! And if the problem is electrical – why haven’t I been electrocuted yet?

      Even stupid people can figure that out. (I hope. I wouldn’t count on it though)

      • Lennie Pike

        Also, the ship hit a “submerged rock” – called the continent. The Captain couldn’t see it so it was not his fault.

  • http://www.atlogiq.org Roduit Pascal

    No point saying you are right or wrong but yourself how much debt do you have ?,

    It is a common ailment to talk about other’s debt but what about me do I buy durable good do I think twice before buying.
    We central bank and debt problème begins at home.
    The way we live, out votes, at the end we will have to foot the Bill.

    To be, not to pretend.
    Atlogiq

  • luis

    Damm federal reserve DAMM U

  • Michael

    I am French. The situation is bad in Europe, but not as bad as in US.
    If I was a US citizen, I would consider the major interest that represent COMPLEMENTARY CURRENCY in the current situation :
    http://en.wikipedia.org/wiki/Complementary_currency ; http://www.complementarycurrency.org/
    A CC can make the community stronger, give money it’s true job : HELP FOR EXCHANGE
    If I was a US citizen, I will probably change a part of my money in US dollars in foreign currencies, (but only a little part in Euro ). The Euro will probably survive and has an outstanding international value but with pain……

  • Nick

    If the planet had infinite resources, then the exponentially increasing debt level of the United States and other nations would actually be fine because the real economy could keep growing. Essentially, you could have the bubble economy and just keep building the bubble.

    The Federal Reserve will probably not allow interest rates to rise (they will monetize the debt) until their is a run on the dollar. At that point, interest rates will skyrocket, no matter what the Federal Reserve does. If the Federal Reserve wasn’t manipulating interest rates, they would be higher already. Bernanke has pledged to keep the Fed Funds rate near zero percent through mid-2013. He can’t do that without printing money or monetizing debt. It might not be direct monetization, but QE has never really stopped. Just look at the money supply.

    Chris Martenson does a good job explaining the collapse of the exponential function in the following video:

    http://www.youtube.com/watch?feature=player_embedded&v=8WBiTnBwSWc

    I recommend you also watch the 2009 documentary COLLAPSE with Michael Ruppert for an understanding of Peak Oil.

    If the price of WTI (West Texas Intermediate Crude) hadn’t skyrocketed, along with Brent Crude, in 2007-2008, the economy probably wouldn’t have been brought to its knees.

    • Lennie Pike

      Peak oil? New discoveries of huge reserves of oil in Brazil and Argentina, and the hits will just keep on coming.

      Before these discoveries had been made, “peak oil” people had already claimed that there would be no more big discoveries. You never heard them make the claim? By claiming “peak oil” before these new discoveries, the inaccurate claim of “peak oil” – which is actually an intentional lie to further the agenda of the one world government, was made by default.

      “Peak oil” is part of the NWO strategy – cap and trade, carbon credits, global warming, we’re all going to die if we don’t allow a totalitarian world government that knows best, etc.

      There’s no denying there’s global warming and that the weather is acting way out of normal – look up in the sky every day for a period of two weeks – what do you see? GLOBAL WARMING IS BEING CREATED!!!

      God provided infinite resources for us when he created everything that exists, too bad there are “people” working against that fact, and Him – don’t worry about it.

  • paul

    “and the credit card companies will not lend you any more money.”

    That’s hard to believe.
    In 2008 credit card holders who always paid their credits in time were faced with cancellations from the credit card companies.

    The credit card companies are interested only in borrowers who will borrow huge amounts of money,and can’t pay anything back. Because only then the card companies get the right to own the card holder and his family.
    If the banks are threatened with bancruptcy thay can always get money from the tax payer by claiming they are too big to fail.

    In order to get “too big” they need to amass outstanding loans as fast as possible.

    And well, these banks do not think or decide anything. It is their managers. And they always get huge salaries and bonuses.
    First for amassing huge debts and then when they are retired (getting “fired”).

  • chiller

    Blaming our current condition on capitalism is like blaming 911 on the aircraft which hit the buildings. It’s the financial terrorists flying those planes who are responsible. And crash after crash, there’s still no financial TSA security system in place.

  • Mike

    Good article; keep up the good work.
    You hit the nail on the head with this one.
    I agree that we are overdue for a correction; its coming and it will be very painful. But our politicians know its on the way and will do everything within their power to preserve the status quo.

    But for the people, we now have the NDAA; hope I get a window bunk at my detention camp. No, I am ready with guns, gold and a get away plan.

  • William

    The first step in getting OUT of a problem is learning how one got INTO the problem. Do some research on the federal debt at the end of the second Clinton administration. Learn that Clinton had balanced budgets at the end of his second administration, albeit with the addition of excess paid-in Social Security contributions. No, I am not a Clinton fan. I rather loathe him. But, facts are facts. In waltzes the Smirking Chimp and war criminal with TWO tax cuts the nation could not afford, two unfunded wars based on lies, and a huge unfunded financial liability named Medicare Part D…..and, BINGO, disaster. While the failed Obummer has done little to fix the Shrubber’s mess left behind, Obummer really had no real options to undo the nightmare caused by the Shrub. Supporters of the Smirking Chimp to this day REFUSE to look at facts. Finall, WHERE were the TEA PARTY members when the Chimp was driving America into the ditch…..NO WHERE! The extension of the Chimp’s tax cuts was the final proof that America is doomed, thanks to the Smirking Chimp and war criminal Bush. While voting in America is suspect due to the massive voter fraud in Ohio which returned the Chimp to the White House in 2004, it is still the only option left. You get the government for which you vote. The only viable America FIRST candidate for the Presidency is Paul, who will not be allowed to be President. He is not owned and operated by the evil that has a chokehold on America’s throat. Look at serial adulterer Gingich winning the SC primary. The election of Gingrich will signal that the bad will become the horrible.

    • knightowl77

      I voted for Perot which allowed Clinton to win…But I was worried about deficits long ago…
      I agree Medicare Rx was/is not paid for. So lets cancels it right now. Billions saved. We can argue about Afghansitan until the cows come home, but it is time to end it and bring the troops home which will save money and lives…

      So if Bush is a war criminal (your words) what is Obama? He is killing people in more countries than Bush did. He is using drones to kill people in at least 6 countries that we know of, building bases in Africa to launch even more drones & hellfire missiles…Where are the anti-war protestors now???

      The repubs spent way TOOOOOOO much and were voted out of power in 2006, with the Dims taking control of the Congress (and therefore the spending) in 2007. My disgust for the repubs was replaced by my disgust for the Dims.

      Bush added approx $4.3 Trillion to the debt in 8 years, whereas lil Barry is on the path to add $6.2 trillion to the debt in his first 4 years….I agree Bush was bad, but Obummer is worse.

  • Big Dave

    Couldn’t agree more. Unfortunately, most American financial statements are patterned after the federal government’s. Borrow, borrow, borrow. Do you know how many times I’ve heard, “Well, I deserve it,” as someone purchases something on credit. There are too many of us who’s primary pastimes is “going shopping” and bragging about some bargain they got for some electronic device they not only don’t need but can’t afford. Everybody hates Congress, but they love their congressman. We keep voting the same. They are us, and we are them.

    • mondobeyondo

      And we are all together. Goo-goo-gajoob.

      You hate Congress? So do I.
      Let’s vote them out!

      Why isn’t it working? Because people are so, um, dumbed down (they are NOT stupid) that they’ll vote in a group of rats in exchange for the mice they voted out in the last election. As long as that happens, nothing will ever change.

  • Tom Damon

    Mauldin wrote: “Spain’s “draconian” cuts have meant that its 6% deficit target for the year has this week been raised to a more likely 8%, making it harder to get back to even.

    It’s not hard to get back to even – stop handing out welfare, corporate and personal, like candy. Stop buying “stuff” to support the state. Greece, for example, would have a smaller deficit if their last batch of aid wasn’t spent on new military toys.

    While there is no control once interest rates begin rising, the US has an unprecedented opportunity whilst we are in the midst of benefitting from the fear trade out of Europe of lengthening the duration of our debt so WHEN our interest rates rise, we have the time to possibly pay down instead of rolling. Of course, having said that, I don’t believe there’s any way we’ll ever pay down or off any of our debt; it would collapse the central banking/fractional reserve system in a flaming heap.

    Buckle up, folks, the last leap off the cliff will be spectacular. Thelma and Louise will have nothing on this ending.

  • http://www.YouTube.com/thepreparedpastor Prepared Pastor

    I did not even have to read this article to agree with it although it is very good. Get out of money and into hard assets/commodities that you hold yourself. Learn to live your life with as little use of cash as possible. Harvest your own water and food, get some shelter you can own free and clear even if it is only a mobile home on a acre lot. I ride the bus to work and drive an ’89 diesel otherwise. I do not advise one to quit their day job, but even get a second job if they can and after establishing a small cash cushion immediately spend that income on the things I mentioned earlier. Get a room mate if necessary to free up money. When your jobs vanish, so do you. Then the hard work starts working and defending your land.

  • TX4Life

    Michael,
    The title of this article sums up what I’ve been thinking for several years now. Thanks for another great article!

  • mark

    The powers that run this country will not allow the repairs on the economy to start with a depression. The powers will not give up and will continue to put all their wrong choices on the backs of the tax payers. When some of the powers of the world refuse to continue to pay interest to the other powers war will start inorder to rally support for their position. At some point the big fish will eat the little fish.

  • wilson

    Well done and thanks again for the reminder to keep preparing for the worst while hoping for the best. The Reuters article helps to bring prepping to the forefront. This morning it is referenced on the Drudge Report. Keep up the good writing.

  • Kevin2

    “Politics is the art of postponing a decision until such time that it no longer matters”.

  • REED RICHARDS

    Michael,

    You and the rest of the masses are no more concerned about the deficit any more than a crack addict has concern for the person(s) that he/she robs in order to get a fix. If this was really true, then the warfare/welfare state would have gone bye bye a long time ago. The truth is, that is all people vote for these days. the warfare and the welfare state. They don’t want freedom, they don’t want liberty, they don’t want capitalism, and they certainly don’t want a constitutional republic governed by the rule of law. Not at all. What you and the masses want is big government, more war, crackdown in civil liberties, and eternal life for the economic royalist class via banker bailouts from the Federal Reserve and corporate welfare via the treasury department.

    A vote for anyone but Ron Paul proves this conclusively……………..

    • Prepared Pastor

      I admire Ron Paul, but an independent review of his financial investments for an article in the Wall Street Journal shows that he believes:
      a) he will not be elected
      or
      b) he cannot change things if he is.

      Bernstein “had never seen such an extreme bet on economic catastrophe,” said the Journal.
      “This portfolio,” said Bernstein, “is a half step away from a cellar-full of canned goods and 9-millimeter rounds.”

      He is betting on collapse: http://www.ronpaul2012.com/2012/01/13/ron-paul-puts-his-money-where-his-mouth-is/

  • TucsonKK

    A lot less taxes due to outsourching by capitalism(CEO’s need bigger bonuses & bigger profits for investors & their fat pockets)
    A lot less property taxes for States & Cities to run schools,fire departments,etc.
    A huge amount of spending by the Military Complex-$650 Billion
    A lot of Tax Loopholes where greedy CEOs & Coporations hide money in tax havens and end up paying $0 taxes.
    Let’s not forget the BUSHY TAX CUTS.
    Fix the above and problem solved.

  • Kimberly

    Do you have any articles stating how to become prepared?
    Again, I love your website.

  • Lennie Pike

    Government spending and debt is a huge problem, but let’s don’t forget about Federal Reserve spending of many many trillions of Dollars used to bailout their fellow gangsters that have gambled with derivatives – that is a totally different issue.

    That is what caused the crisis of 2008, most of the current European crisis, and will be the main cause of the coming American bank holiday.

    A government debt crisis can be delayed for a very long time through by implementing a steady rate of inflation – try implementing a steady rate of inflation when all of a sudden the criminals need to come up with 1.5 quadrillion dollars to cover their gambling losses.

    Compare the amount of money created to bailout the banksters since 2008 with the 15 trillion U.S. debt and ponder that for a while.

    Those bailouts were the tip of the iceberg.

  • Donald Wilson

    Great article Michael. I have been preparing dor the last 24 months, however, it is hard to say if one is truly ready for what is about to hit this nation.

  • rev. abijah de sade

    Lets face it. We’ve been pigging out on borrowed time and money, and soon there won’t be enough of either.

    Mudslinging is pointless. The president (any) is a Bolshevik clone. The terms “liberal” and “conservative are practically meaningless. Its a self perpetuating idiocracy that utilizes the timeworn good cop/bad cop technique to convince you that one side of the Con is your buddy. The big Con gives you your little Con enemy to hate… and a little con buddy to join. Then they have you where they want you: on one half of their sides believing one half of their conspiracy.

    Sorry for getting off topic. Yes, they’re trampling our livelihoods, wealth, and liberties… but this will in fact lead to their downfall when the world economy finally caves in on itself.

  • Pastor Donald Eskine

    20The LORD shall send upon thee cursing, vexation, and rebuke, in all that thou settest thine hand unto for to do, until thou be destroyed, and until thou perish quickly; because of the wickedness of thy doings, whereby thou hast FORSAKEN ME. Deut 28:20

  • gary2

    According to Simon Johnson the bank bailout of 2008 (Bush) was an additional tax of approx $12,000 for every man, woman, and child.

    This is but ONE small example of the cost of corporate welfare. There are many more.

    I find it disingenuous that Michael and many of the posters repeatedly go after the tiny amount of welfare for the poor, denigrating these safety net programs on a regular basis, while for the most part saying nothing about corporate welfare that is a WAY bigger problem. All you need to do is reread many of the posts/comments to see that this is true.

    I know conservatives like to bash the poor all the while ignoring the elephant in the room of corporate welfare.

    I think all the conservatives need to take a hard look at where the real welfare is going and focus their ire on the corporate welfare.

    • Syrin

      You yet again show your insanity. I know of NO conservatives who are for corporate bail outs.

      Yet it is YOUR party who constantly bemoans corporate welfare while bailing out banks and companies left and right. Ask Fannie and Freedie or the banks or GM or Solyndra. You all EPITOMIZE corporate welfare.

      See cobnservatives UNDERSTAND that in a free market system, there is no corporate welfare. You take big risks and lose, then you will suffer the consequences. It’s yours and Krugman, and the Bernanks of the world who keep bailing these charlatans out. See, you say it’s the conservatives, but the actual actions that we can trace prove otherwise. Guess who owns your administration. Goldman Sachs.

      I guess you think the the next three generations STILL haven’t paid their “fair share” yet, do you? Every child born into this country now gets a bill for $188,000. That’s not enough for the greedy people like yourself who just can’t take enough from others while contributing nothing but misinformation and hate.

      • Gary2

        The repubes did the bail out ! remember bush, pauson, deficiets do not matter cheney? That be your team.

    • knightowl77

      For some perspective ,
      Don’t forget that the 2008 bailout was voted on by Barry Hussein Obama and he Voted Yes (not present) trying to look more presidential during the campaign. Queen Nancy and Harry Reid also voted affirmatively…

      My ire is on ALL welfare….

    • bongstar

      you dont have a clue what the real issues are! your an idealogue that has been indoctrinated.and you have the intellience level of a child. If you ever think your going to see a penney of tax money your a fool. you dont evean understand our monetary system at all. not evan a little bit….. keep holding out for that govornment check.

      • Gary2

        let me keep it simple-you are wrong! on all points

  • mondobeyondo

    Is this our future? If it is… God help us all.

    http://www.youtube.com/watch?v=DRcjp7_Iaks&feature=player_embedded

    • r.bitting

      WOW Mondo,you provided the problem, and the cure, all in 11 words!

  • Mad-Max

    This lets you know our problems are much bigger than money. I have to disagree that capitalism is not the problem. This is precisely why we keep papering over capitalism and the problem continues to haunt us. We didn’t have debt-based financial system in the great depression. The real problem is technology. 99.9% of the people on this planet don’t have a clue how much trouble we’re. I wish it was something as simple as a “debt-based financial system”. We still have a chance and a choice to change things, but that will take education and backbone.

    FIGHT THE CAUSE – NOT THE SYMPTOM
    There is a better way to fight back.
    Read “Common Sense 3.1” at ( http://www.revolution2.osixs.org )

  • DownWithLibs

    To: Michael,

    G.Gordon Liddy was quoting you this morning on the radio in regards to why people prep…what we see coming. He mentioned the blog a lot!!!

    To: Gary2,

    Sit on it!:-)

    • mondobeyondo

      1 – Did he really?
      2 – I agree.

  • El Pollo de Oro

    In another one of his commentaries, Michael T. Snyder wrote that this country would probably never have a balanced federal budget again. I totally agree. The Banana Republic of America (formerly the USA) is so deep in the hole that we can kiss the possibility of a balanced budget goodbye. During the Bush/Cheney regime’s reign of terror, neocon Cheney infamously said that deficits don’t matter. But Cheney was wrong. Deficits DO matter. They matter a lot, and Ron Paul was (along with Gary Johnson) among the few people in his party who had the courage and the integrity to say that when Bush was in office. Paul, however, will never get the GOP nomination. Won’t happen. And the reality is that both sides of the War Party (as Justin Raimondo likes to say) will continue to spend, spend, spend.

    Members of the co-opted Tea Party will complain about deficits but vote for neocon clowns like Romney, Gingrich or Santorum, but the reality is that the things neocons like to do COST MONEY. You want imperialist wars and nation-building? Costs money. Murdering brown people for the New World Order? Costs money. Corporate welfare? Costs money. Fascist War on Drugs and an ever-abusive police state? Costs money. Prosecuting porn companies for selling naughty movies? Costs money. There’s no way one can honestly be both a neocon and a fiscal conservative—the two are diametrically opposed. And most members of the GOP side of the War Party are big-government neocons, not libertarians.

    Having a giant federal deficit is a sad fact of life in The Banana Republic of America, rotting basketcase of the Third World. In the words of Gerald Celente, our digital currency isn’t even worth the paper it’s not printed on.

    • mondobeyondo

      There will never, ever be another balanced budget again. The last balanced budget was under President Clinton, and even that is disputed by some people.

    • Lennie Pike

      GOP = war party big government neocons is absolutely true.

      Then we have Obama doing the same thing – we have a one party system – those who control the money control everything.

      To have a world where tyrant scum can not rule is soooooooooooooooo simple – money can not be fiat, and anyone who tries to introduce fiat money has to be immediately and severely dealt with by us the average idiots – fat chance.

  • Gary2

    Unions who fought for rights in 1930’s established the laws in our country for child labor, minimum wage, vacations, health care,work place safety regulations, etc. Companies like Walmart who have done everything to stop unions from organizing, while they pay an average $8.00 an hour with no benefits. So that taxpayer subsidize their workers with food stamps and health care because the corporation refuses to pay a living wage or benefits.

    Michael-how about focusing on corporate welfare the real welfare issue.

  • knightowl77

    I prefer the example if you spent a million dollars a day from the day Jesus was born until now, you still would not have spent even one Trillion dollars. Yet as only the US Fed Gov’t can do, they manage to spend almost 4 TRILLION dollars each and every year….Mind blowing in their arrogance and hubris…

  • Paul

    Very scary statistics Michael. The articles you write are quite informative. Unfortunately, I feel that most are more interested the Heidi Klum and Seal divorce than the state of our economy.

    I have been stocking up on food and am going to take a survival class. There are two reasons for me taking these actions.

    Save money on food so I do not have to buy it when food prices are higher.

    If crime rates skyrocket, then I would have a better chance to defend myself and my family.

  • http://militantjeffersonian.com Republicae

    Every single American taxpayer should use a TW-4 form to terminate their W-4 agreements with theur employers….the let the IRS try to collect taxes directly…let’s see tge luck they have!

  • Wondering…

    So who stands to win when the entire US financial system comes tumbling down?

    • mondobeyondo

      China…?

      • mondobeyondo

        Happy Chinese New Year!! (slight giggle)

  • http://www.truedemocracy.net Arlene Johnson

    Brilliant article. I agree 100%. Loved that you mentioned about capitalism in it too. You are correct that many people think that our problems are caused by capitalism. I have known that they aren’t as you know, but could not explain it to people. I’ll post this link on my newer blog, owg.livejournal.com now.

  • Paul

    So Michael, if the debt-based financial system we have right now is not capitalism, then what is capitalism?

    Please note that there are a lot of people who say that what we had in the Soviet Union and the Eastern Bloc was not communism, therefore Communism isn’t the problem …

  • Piglet

    [Well, when Ronald Reagan took office the U.S. national debt was less than 1 trillion dollars.]

    – And at the end of fiscal year 1988 (30 Sep 88), shortly before Saint Ronald left office, it had gone up to $2,602,337,712,041.16. Not that I’m excusing Barry, but Saint Ronald showed he was no piker when it came to running up debt. On 6 Dec 83 he was quoted as saying, “Until now has there ever been a time in which so many of the prophecies are coming together? There have been times in the past when people thought the end of the world was coming, and so forth, but never anything like this.” He may have believed Armageddon was coming, so the debt wouldn’t have to be paid. The evil troll, Dick Cheney, lauded him by saying, “Reagan proved deficits don’t matter.” Oh, really? And fires don’t burn down forests? Neither Republican nor Democratic politicians can be trusted with money management.

  • Imaplaneiac

    So, Michael, what IS the proper spelling of your name? ( I just read that Reuters article ).

    Related to your previous numerous references in your articles to inflation, I’m now having significant increases in my homeowner’s insurance; auto insurance; city and state taxes! In the range of 10-15% to EACH bill or premium.

    Furthermore, at the commissary at the nearby Air Force Base I’m seeing significant price increases on food and cleaning articles. For example, Planter’s Peanuts has downsized it’s large jar LITERALLY by half; but keeps the price the SAME as with their previous jar! So, I’ve stopped buying their product! Canned tuna producers have reduced the size of their cans from 6 oz. to 5 oz. but charge approximately the same for their product. And this past Friday, I saw a large box of Tide ( powder ) laundry detergent priced at $30! However,I already previously stockpiled ALL non-perishables which I commonly use – yes, even DD Form 1s! Your readers in the military or retirees will immediately know that I mean toilet paper! However, within the past few days, I bought( more )canned soup that was BOTH on sale and for which I had ” coupons “. So I saved between 30% to 50% per can! I consider such purchases as a form of financial investing! Nowadays, there aren’t many investments from which you’ll have this large a ” return “!

    Finally, more related to this article, fully expecting at least some degree of turmoil when the Federal Government defaults, I’ve prepared myself as best as I can! An being a committed, practicing Christian, I know my ” Boss ” has my back!

    • JR

      One thing I have done is purchase parboiled rice at a local Phillipino store. 25 lbs for $15 dollars. Now… you may not live near where I do, in the People’s Socialist Republik of Illinois, but there might be options like that near you. The nice thing about parboiled rice is that it doesn’t strip out all the vitamins, etc. that white rice does, but at the same time, minus the oils, it stores much longer than brown rice. I’ll bet you have some etnnic store near you where you could do this. And, I, too, am trying to keep the faith as a Christian.

  • OH NO

    The sad part is are goverment dicks will go hiding in there bunkers and say that this is an unfortunate problem nobody expected and that they’re trying to get the situation under control, half the people will still believe are goverment will save them until they run out of food and everthing else that’s when they’ll wakeup.

    • Lennie Pike

      They will wake up.

  • Craig

    Outstanding 34 minute video on crony capitalism. The speaker talks in layman’s terms. We are going to find out soon enough that we do indeed reap what we sow. Crony capitalism says we don’t have to reap what we sow. That would have to include the 54 million children that we offered as child sacrifices for the past 40 years.

    http://billmoyers.com/segment/david-stockman-on-crony-capitalism/

  • http://worldendsat5newsat11.blogspot.com Tony Lamb

    At this point we are damned if we do and damned if we don’t.
    I think it’s time to FIRE all the “professional politicans” who got us into this mess. Maybe some should be brought up on Treason charges, maybe then that would STOP all this shit coming out of Washington like CAP-AND-TRADE, FREE TRADE, NAFTA etc.
    While Washington seems more concerned about a 9 year old school buy taking his bible to school than our real and pressing problems.
    See how to survive an Economic Collapse at:
    http://surviving12-21-2012.blogspot.com

  • Imaplaneiac

    Hey William, in your above comments, you call Newt Gingrich a ” serial adulterer “. You apparently don’t know what ” detraction ” is!? Apparently, neither are you aware of Newt’s conversion to the Catholic Faith? Apparently, neither are you aware of the doctrines concerning the Sacrament of Confession / Reconcilliation in the Catholic Faith!? In short, Almighty God has forgiven Newt of his previous transgressions! CAN YOU DO LESS!? So, before you cast stones at Newt, remove the plank from YOUR eye! You apparently believe yourself to be free of Sin in the eyes of Almighty God!?

  • Rancher

    I often compare a well established prepper survival group to a life boat rowing for landthousands of miles away from the sinking ship…to survive. In this case though it is not women and children first…or for that matter at all. A prepper group is comprised of only folks who were willing to set up an alternate life ahead of time. Preppers are not sexist so you sex has no leverage.

    What it takes to get in that life boat is joining up now through great sacrifice now. There are few groups out there but when the SHTF you will then be willing to trade anything to get on board. Sorry to late then. Davey Jones awaits you….

    Talking here and posting endlessly will do nothing, nothing to save you. Being able to say I knew it and I was right it fell apart will do you little good.

  • Antonio Gonzalez

    WE need that before bombing Iran.

  • Milou

    Good evening.
    Your conclusions are similar than these of Frank Biancheri and his team
    http://www.leap2020.eu/English_r25.html
    He anticipates this collapse since 2006.
    I think that it will happens too in Europe.
    For the moment in France (i’m french) we hav’nt no big problems, because the people have big savings but the inflation is raising up.
    I hope that we do not see latter what happen in Greece. I hope so !

    http://www.bbc.co.uk/news/magazine-16472310

  • UKPrepper
  • Milou

    sorry “later”. Should you excuse me !

  • Michael

    Interest rates are low because the Fed is creating money to buy up banks’ toxic assets, then the banks use that money to buy gov’t debt. In the last 3 years China, Japan, and Saudi Arabia have only bought a few hundred bil. of our debt, while our deficit has increased by almost 5 trillion.

    If we didn’t have a central bank that could do this, our interst rates would be through the roof, just like in Europe.

    US debt should be rated as junk. Why any investor would want to purchase this junk at 2% interest is beyond me. Maybe they see it as the “lesser of all evils” option.

    When the debt bubble pops it will be terrible for a lot of people….

  • davidmpark

    So, what is to be after the dollar is cooked? Probably the underground economy will become “the” economy. Not the black market – that’s something else altogether.

    I’m more than willing to barter, exchange, and be neighborly! Wish more folks around here and in the family were.

  • http://EconomicCollapse Already Gone

    I Have Spoken about this before and people need to think about this the government has spent billions and years building underground shelters
    for themselves and there loved ones,underground
    military bases,ec.The question is where does this leave you? Why was offshore banking allowed in the first place? Some may believe that this is a bizzare way of looking at this
    scenario,the rich and powerful obviously are not stupid at what they do they themselves it
    has been rumored have been stockpiling supplies
    if so,Where? Obviously in there own personal/
    group underground shelters and who is to say that they do not have them? So the two groups
    are well protected and when the smoke and dust clears not only will they be alive but there wealth will also be intact so when they start to rebuild the world they way they want it let
    the fact be known that people in this country
    are not included in there plans.Why? There is no civil defense program in this country,There is no where to go when shtf.What makes them so important/better than the person standing next to them? They created this problem and the american people are expected to make the ultimate sacrifice for them. They say they have to have these shelters so they can continue to run the government safely,this philosphy is insane based on the fact that if some people
    do survive they are still going to have these
    nutjobs in charge because who is going to stop them? Who is to say they would learn a lesson
    from all this. Y2k was the biggest scam aver but
    the government told people not to prepare,maybe it was meant to not create mass panic but at the same time the entire government was on alert
    and it was again rumoured that they were stockpiling supplies before hand so for those who do not understand if and when shtf you are on your own the wait and see approach is now in effect.

  • mondobeyondo

    Yet another Republican debate on TV this evening, NBC to be specific. TV Guide says there’s supposed to be a game show on this channel at this time slot. I’m already getting tired of this, and it’s not even November.

    A brief summary so far:

    Gingrich: “Move this chair to starboard!”
    Romney: “No, move it to port! That’s the best view!”
    Gingrich: “Look at that iceberg! Wow!!”
    Romney: “Yeah! Tell the captain to steer a little closer! I want some good pictures!
    Paul: “Man the lifeboats, you idiots!”
    That Other Guy: He hasn’t said anything yet.

    All hat and no cattle, as they say in Texas.
    Yes, we are doomed.

  • mondobeyondo

    Happy Chinese New Year!

    Year of the Dragon? Nope. This year is the Year of the Debt-Ridden Sitting American Duck.

  • JR

    OBAMA WHITE HOUSE: A FULLY OWNED DIV. OF GOLDMAN SACHS

  • JR

    This is consistent with what socialism has always done – destroy, steal and murder. In fact, Dr. RJ Rummel of Univ. of Hawaii estimated various flavours of leftism (including the National SOCIALIST Workers’ Party of Hitler), murdered somewhere around 160 MILLION people last century.
    How compassionate.

    • Dan

      JR writes:

      “This is consistent with what socialism has always done – destroy, steal and murder””

      Uh… May I suggest that you do some homework before making statements like this? The most successful socialist governments of all time, those of Northern Europe, have created a level of general prosperity which is at this time second to none and have existed comfortably alongside their own capitalist economies. They have murdered no one and destroyed nothing in the process. Their elections are as clean as they come. And they have given at least as much to the general welfare than they have taken in taxes. These countries are also acknowledged to be the most politically free; their educational systems run rings around ours…How much more would you like to know?

      Evidently you are confusing socialism with failed Soviet Communism, which indeed deserved to fail. This suggests that you have drunk the libertarian kool-aid, and swallowed their simplistic philosophy, which disavows “tyranny” but prescribes no remedy for the absolute tyranny of an unleashed private sector.

      “”Dr. RJ Rummel of Univ. of Hawaii estimated various flavours of leftism (including the National SOCIALIST Workers’ Party of Hitler)…”

      Dr. Rummel should also do some homework. Anyone who’s studied the history of the period knows that the Nazis were “socialist” in name only. This was a sop thrown to the people; in reality Nazism was corporatism pure and simple. Nothing to do with Socialism in any recognizable form.

      • bongstar

        Actualy Dan you should read some history. Socialism was made to be faling system in wich through its insustainble numbers creates govornment reliance on loans from the Banking Cartels. Gorge Bernard Shaw the Father of The Fabian socialists was A member Of CFR. But since i you have read your silly indoctrinated versions of history instead of formulating your own opinions i Doubt you realy know about the true orgins of socialism, its true purpouse, and or the CFR for that matter. I might be wrong, though due to your comment I doubt you have any clue about the operational mechenisims of central banking, fiat currencys, and the modern worlds monetary devices. I also have my doubts about your understanding of monetary history!

      • Sean

        Dan, currently living in a socialist government controlled country in Europe, I see first-hand what this type of economy does. The unemployment in this country is right around 21% and roughly 25%+ for those under 25. What we have here causes great divide in such countries and only continues to guarantee that those in power will be the ones with the money. The US will face a similar, if not worse, situation than this. The difference that I see here is that food is cheap and healthcare is free; opposite of the US. When food and healthcare prices continue to climb and wages begin to fall, people will begin to riot. Bad times loom ahead for the US and its people. The socialist regimes in Europe are clearly not any better than the US, just look at the equally devastating financial crisis that is occurring. Another good example is the Japanese; they have a high standard of living but their unemployment is relatively low (4% est.) but their debt continues to hinder growth and burden their society. Their debt is almost 170% of the Japanese GDP; continuing this trend will only slow growth even more. The growing US debt will effect all those for many generations and who knows what will happen when the world stops giving us money for almost free.

    • bongstar

      right on JR you are exactly right. his and all administrations since Woodrow Wilson are owned by the Feder Reserve. Though our good freind Goldman and sachs along with J.P morgan,Citi bank, Bank of America,Wells Fargo and others are stock holders In the Federal Reserve.

  • Richard Weil

    Debt works if its managed properly. This is how companies can get the capital to grow, people to buy cars and houses, etc. But it depends on a stable money system, reasonable economic growth, and effective government regulation to stop the worst excesses of corporate greed. An informed citizenry (ie knowledge of compounding effects, the ability to save and budget, etc.) helps too. Once people (and governments) forget the basics things can start unraveling quickly.

    In the US we could get some fiscal balance by greatly cutting our obscene military spending, stopping the moronic “war on drugs” (subsidizing the prison industry) and making some other obvious changes. All these would certainly shake the economy, but not as badly as unlimited spending. I expect things will start to change when commodities (oil, especially) starts being priced in a basket of currencies rather than just dollars.

    • Kevin2

      If workers made a sufficient income to purchase goods and banks were stable and did not fractionally reserve the system would work just fine with very little debt. No highs, no lows just steady steaming.

  • bongstar

    You forgot to mention that russia, India, and soon China are ending there oil deals in dollars. Also china and japan trade there currencys amongst each other with out exchanging to dollars. for those who dont know what this mean it means that the dollar is being dethorned as the worlds reserve currency wich will be the begining of hyper inflation.
    This also makes our sanctions on iran worthless besides for there true purpose, to set the domino off in Greece. I say this because of Greeces oil deal with Iran. Greece gets all its crude from Iran and they get it on front in other words They dont have to pay for it till 60 days after they receive it. This will be the ultimate crippler for Greece who is already broken. why do you think they didnt put sanctions on iran a year ago. It just wasnt time yet, the euro wasnt in enough trouble yet.

    those that know, know!

  • kamal

    Hey,can you shorten your article a bit?it is bloated and hard for me to keep up LOL…seriously

  • Scott

    Michael,

    I found you through Rush.

    It’s easy to find everyone talking about the mess and it’s eventual doom – So, how do we get out of this mess?

    I want to save my country – what do we need to do?

  • Eric

    Michael,

    I have been discussing the national deficit problem with anybody that will listen. So many people refuse to see the truth for what it is. Both the dems and the reps are responsible for the debt but will they deal with the fiscal insantiy in Congress before it’s too late? Time will tell.

    • Dave

      The mistake is assuming the federal govt. should operate like a business or household. They’re opposites. All us dollars have no choice but to originate within the federal govt. because legally, they are the only entity that can create us dollars.

  • Tim Gard

    If cash is headed for devaluation due to massive printing of the dollar, (like Germany in the 1900s) why are people trying so hard to sell their gold for this paper money? Are they fools?

    • Dave

      The only fools are those pushing the gold standard. Switzerland was the last country on earth to abandon the gold standard in 2001. The gold standard has nothing but a deflationary effect on trade deficit nations. It also allows for very little control over monetary policy. Absolutely nobody on the planet abides by gold anymore, for good reason.

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