Will You Be Able To Heat Your Home This Winter? Millions Of American Families Will Not

Will you have a warm house to come home to this winter?  If so, you should consider yourself to be very fortunate. With the United States experiencing the highest levels of long-term unemployment that it has seen since the Great Depression, millions of Americans families are simply out of money.  All across America this winter, families are going to be forced to make some heart breaking decisions.  For many, the choice will come down to either heating their home or putting food on the table.  According to the National Energy Assistance Directors’ Association, more than 10 million U.S. households will not be able to afford to heat their homes this winter without assistance, which would be a new all-time record.  So, if you are in a position to easily heat your home this winter, be very, very thankful.  The number of American families that cannot even afford the basics of life is growing by the day.

As I have written about previously, millions of formerly middle class families have been absolutely ripped apart by this economy.  There simply is not nearly enough jobs for everyone, and those who have been left on the outside looking in are becoming increasingly desperate.

Of course there is federal help available, but it doesn’t go nearly far enough for those who are truly in need.  For example, the Low Income Home Energy Assistance Program (LIHEAP) assists low income households in paying their home heating bills.  However, the truth is that usually only a small fraction of heating costs are covered.  Nationally, the average benefit represents only about 8% of the average winter heating bill.

Last winter, a record number of U.S. households applied for home heating assistance.  In fact, in 17 states application requests were up more than 20% from the year before.  Due to rapidly spreading poverty, the number of Americans filing for heating assistance is expected to increase even more this winter.

If you cannot heat your home, it is a really, really big deal.  In 2009, a 93-year-old man in Bay City, Michigan actually froze to death inside his own home.

These days, many American families are finding that their budgets are stretched beyond the breaking point.  Most Americans take it for granted that they will be able to heat their homes, but for the poor, being able to have enough heat is a great blessing.  Today, the poorest 20 percent of Americans spend more than 50 percent of their after-tax income on food and energy….

So can’t the U.S. federal government just pay for everyone to have heat?

No, they cannot.

The truth is that as millions upon millions of Americans jump on to the “safety net” it is rapidly approaching the breaking point.  For example, 42 million Americans are now enrolled in the food stamp program.  That is a whole lot of hungry mouths to try to feed every month.

Not that feeding hungry people should not be a priority.  It is just that the U.S. government continues to spend way, way more money than it is bringing in and is basically bankrupt at this point.

So what about the states?  Can’t they step in and help?

No, the truth is that most U.S. states are absolute basket cases financially.  A recent article that I wrote about the state of California illustrates this point very well.

Unfortunately, most Americans families are just going to have to scrape by the best that they can.

It is hard to even describe the horrible pain that many Americans are experiencing because of this economy.  The following story from the Unemployed-Friends website is from a woman named Leetah who is desperately hoping that her family will be able to get through this upcoming winter….

The place I live in right now has no jobs and no places to live. My fiance, Lloyd, and I have been looking for anything but he lost his job from McDonald’s and the factories (the only jobs to make a living off of) consider him an insurance liability. I can’t get hired to a factory because of I was fired from our major factory for attendance (I had to miss 3 days of work because I was sick). So we are moving to the Edmond/OKC region where we are hoping to find a job and a place with running water and heating. We’ve spent the last few years without heat and running water and so having a place with water and heat would be heaven.

Winter is coming up fast and I am so afraid. Last winter we almost died from the cold and now the thought of cold makes my throat close up and my heart pound. But it isn’t just ourselves we are looking out for, we have our dog too. Our wonderful APBT Maggie who is 2-years-old and has been with us since she was 5-months-old. She’s our baby girl and we can’t lose her. We almost lost her to the cold too and it scared me so much. We are going to be living in our car soon with our dog.

I am hoping to be able to keep our food stamps in the new city so we can still eat. I have already applied for ten+ jobs and nothing yet but I am keeping my hopes up. Hopefully it will get easier to find a job once we get there. Then we just have to save up and then we can afford an apartment. Now finding an apartment with my awesome dog is another story.

Please say a prayer for those who are hurting this winter.  This economy has pushed millions of Americans to the absolute edge of despair.  Another participant on the Unemployed-Friends forum named Sanskay sounds like the hard reality of her situation has sucked almost all of the life out of her….

I met the love of my life when I was 19, and we moved in together. He had an excellent job and savings (he was several years older than me), and we decided together that I would stay home. When I was 26, he started feeling sick to his stomach a lot. By the time he was diagnosed with colon cancer (at 33!), it had already spread to his liver. We lost everything to medical bills, treatments, and medications. We fought so hard to prolong his life, and we drained his (our) savings accounts to try to cure him. Well, it did not work. He died in agony.

So then I was 26 and a widow and penniless, and I had not worked since college. I moved back in with my parents and decided to go back to school. Everyone told me that the health care fields were all in demand, so I studied to become an ultrasound tech. I excelled in my classes. It took me two years to do all of my prerequisites before I entered the program. By then, the recession had hit, but everyone at the school told me that I would have no problem landing a job as long as I was willing to move. This ended up being all lies. By that point, they knew that they were having trouble placing grads from 2007 and 2008, but that was never mentioned to me. This was a community college with a good reputation, and not some for-profit school, and I believed them.

I graduated last year (2009) and have been looking for employment as an ultrasound tech for over a year now. I have applied to over 400 jobs. I have gained three in-person interviews and seven phone interviews. None of them have amounted to anything. I am still unemployed. There are many per-diem (they’ll call you when they need you, and you have no guaranteed hours) jobs listed, but I cannot move unless I have a full-time job.

It’s awful because they are still funneling people into the program and telling them that as long as they’re willing to move out of state, they will have no trouble finding full-time work. They’re just concerned with keeping the seats full and they don’t care if their new graduates are unable to find work. I feel betrayed.

So now I’m 30 years old and still living in my parents’ basement, as I have been for years now. I feel like such a loser. My parents paid for my community college degree and my registry exams, which are all worthless now. It’s been so long that I have scanned anyone that I don’t remember what to do for some of the exams any longer, not to mention what the pathologies look like.

I haven’t applied to a job in a month. The official unemployment rate in my county is 15.6%, but the “unofficial” unemployment rate (REAL unemployment rate!) is easily double that. There is no work here, and I have no money to move, and no salable skills even if I had the money to move.

I miss my husband terribly. Suicide has definitely crossed my mind many times, but it would literally kill my mother if I did anything rash (she has a heart condition and can’t allow herself to become over-excited or her heart starts beating out of rhythm, which could cause a heart attack). It seems most days that the best years of my life are far behind me and that I have nothing to look forward to anymore.

Hopefully as you read these kinds of stories you feel your heart move.  The truth is that it could be any of us that are next.

In this economy, no jobs is secure.  In this economy, no business is secure.  There is no guarantee that the income that you are enjoying today is going to be there tomorrow.

The U.S. economic system is slowly dying.  There are many that are cheering this downfall, but the cold, hard truth is that tens of millions of us are going to experience horrible economic pain as the economy unravels.

It is not going to be a fun time.  So count your blessings while you still have them.

10 Practical Steps That You Can Take To Insulate Yourself (At Least Somewhat) From The Coming Economic Collapse

Most Americans are still operating under the delusion that this “recession” will end and that the “good times” will return soon, but a growing minority of Americans are starting to realize that things are fundamentally changing and that they better start preparing for what is ahead. These “preppers” come from all over the political spectrum and from every age group.  More than at any other time in modern history, the American people lack faith in the U.S. economic system.  In dozens of previous columns, I have detailed the horrific economic problems that we are now facing in excruciating detail.  Many readers have started to complain that all I do is “scare” people and that I don’t provide any practical solutions.  Well, not everyone can move to Montana and start a llama farm, but hopefully this article will give people some practical steps that they can take to insulate themselves (at least to an extent) from the coming economic collapse.

But before I get into what people need to do, let’s take a minute to understand just how bad things are getting out there.  The economic numbers in the headlines go up and down and it can all be very confusing to most Americans.

However, there are two long-term trends that are very clear and that anyone can understand….

#1) The United States is getting poorer and is bleeding jobs every single month.

#2) The United States is getting into more debt every single month.

When you mention the trade deficit, most Americans roll their eyes and stop listening.  But that is a huge mistake, because the trade deficit is absolutely central to our problems.

Every single month, Americans buy far, far more from the rest of the world than they buy from us.  Every single month tens of billions of dollars more goes out of the country than comes into it.

That means that every single month the United States is getting poorer.

The excess goods and services that we buy from the rest of the world get “consumed” and the rest of the world ends up with more money than when they started.

Each year, hundreds of billions of dollars leave the United States and don’t return.  The transfer of wealth that this represents is astounding.

But not only are we bleeding wealth, we are also bleeding jobs every single month.

The millions of jobs that the U.S. economy is losing to China, India and dozens of third world nations are not going to come back.  Middle class Americans have been placed in direct competition for jobs with workers on the other side of the world who are more than happy to work for little more than slave labor wages.  Until this changes the U.S. economy is going to continue to hemorrhage jobs.

The U.S. government has helped to mask much of this economic bleeding by unprecedented amounts of government spending and debt, but now the U.S. national debt exceeds 13 trillion dollars and is getting worse every single month.  Not only that, but state and local governments all over America are getting into ridiculous amounts of debt.

So, what we have got is a country that gets poorer every single month and loses jobs to other countries every single month and that has accumulated the biggest mountain of debt in the history of the world which also gets worse every single month.

Needless to say, this cannot last indefinitely.  Eventually the whole thing is just going to collapse like a house of cards.

So what can we each individually do to somewhat insulate ourselves from the economic problems that are coming?….

1 – Get Out Of Debt: The old saying, “the borrower is the servant of the lender”, is so incredibly true.  The key to insulating yourself from an economic meltdown is to become as independent as possible, and as long as you are in debt, you simply are not independent.  You don’t want a horde of creditors chasing after you when things really start to get bad out there.

2 – Find New Sources Of Income: In 2010, there simply is not such a thing as job security.  If you are dependent on a job (“just over broke”) for 100% of your income, you are in a very bad position.  There are thousands of different ways to make extra money.  What you don’t want to do is to have all of your eggs in one basket.  One day when the economy melts down and you are out of a job are you going to be destitute or are you going to be okay?

3 – Reduce Your Expenses: Many Americans have left the rat race and have found ways to live on half or even on a quarter of what they were making previously.  It is possible – if you are willing to reduce your expenses.  In the future times are going to be tougher, so learn to start living with less today.

4 – Learn To Grow Your Own Food: Today the vast majority of Americans are completely dependent on being able to run down to the supermarket or to the local Wal-Mart to buy food.  But what happens when the U.S. dollar declines dramatically in value and it costs ten bucks to buy a loaf of bread?  If you learn to grow your own food (even if is just a small garden) you will be insulating yourself against rising food prices.  Storing up freeze dried food can also be a great way to prepare for what is coming.

5 – Make Sure You Have A Reliable Water Supply: Water shortages are popping up all over the globe.  Water is quickly becoming one of the “hottest” commodities out there.  Even in the United States, water shortages have been making headline news recently.  As we move into the future, it will be imperative for you and your family to have a reliable source of water.  Some Americans have learned to collect rainwater and many others are using advanced technology such as atmospheric water generators to provide water for their families.  But whatever you do, make sure that you are not caught without a decent source of water in the years ahead.

6 – Buy Land: This is a tough one, because prices are still quite high.  However, as we have written previously, home prices are going to be declining over the coming months, and eventually there are going to be some really great deals out there.  The truth is that you don’t want to wait too long either, because once Helicopter Ben Bernanke’s inflationary policies totally tank the value of the U.S. dollar, the price of everything (including land) is going to go sky high.  If you are able to buy land when prices are low, that is going to insulate you a great deal from the rising housing costs that will occur when the U.S dollar does totally go into the tank.

7 – Get Off The Grid: An increasing number of Americans are going “off the grid”.  Essentially what that means is that they are attempting to operate independently of the utility companies.  In particular, going “off the grid” will enable you to insulate yourself from the rapidly rising energy prices that we are going to see in the future.  If you are able to produce energy for your own home, you won’t be freaking out like your neighbors are when electricity prices triple someday.

8 – Store Non-Perishable Supplies: Non-perishable supplies are one investment that is sure to go up in value.  Not that you would resell them.  You store up non-perishable supplies because you are going to need them someday.  So why not stock up on the things that you are going to need now before they double or triple in price in the future?  Your money is not ever going to stretch any farther than it does right now.

9 – Develop Stronger Relationships: Americans have become very insular creatures.  We act like we don’t need anyone or anything.  But the truth is that as the economy melts down we are going to need each other.  It is those that are developing strong relationships with family and friends right now that will be able to depend on them when times get hard.

10 – Get Educated And Stay Flexible: When times are stable, it is not that important to be informed because things pretty much stay the same.  However, when things are rapidly changing it is imperative to get educated and to stay informed so that you will know what to do.  The times ahead are going to require us all to be very flexible, and it is those who are willing to adapt that will do the best when things get tough.

Do you have any additional tips that you would like to share with us?  If so, please feel free to share them in the comments below….


20 Things You Will Need To Survive When The Economy Collapses And The Next Great Depression Begins

Today, millions of Americans say that they believe that the United States is on the verge of a major economic collapse and will soon be entering another Great Depression.  But only a small percentage of those same people are prepared for that to happen.  The sad truth is that the vast majority of Americans would last little more than a month on what they have stored up in their homes.  Most of us are so used to running out to the supermarket or to Wal-Mart for whatever we need that we never even stop to consider what would happen if suddenly we were not able to do that.  Already the U.S. economy is starting to stumble about like a drunken frat boy.  All it would take for the entire U.S. to resemble New Orleans after Hurricane Katrina would be for a major war, a terror attack, a deadly pandemic or a massive natural disaster to strike at just the right time and push the teetering U.S. economy over the edge.  So just how would you survive if you suddenly could not rely on the huge international corporate giants to feed, clothe and supply you and your family?  Do you have a plan?

Unless you already live in a cave or you are a complete and total mindless follower of the establishment media, you should be able to see very clearly that our society is more vulnerable now than it ever has been.  This year there have been an unprecedented number of large earthquakes around the world and volcanoes all over the globe are awakening.  You can just take a look at what has happened in Haiti and in Iceland to see how devastating a natural disaster can be.  Not only that, but we have a world that is full of lunatics in positions of power, and if one of them decides to set off a nuclear, chemical or biological weapon in a major city it could paralyze an entire region.  War could erupt in the Middle East at literally any moment, and if it does the price of oil will double or triple (at least) and there is the possibility that much of the entire world could be drawn into the conflict.  Scientists tell us that a massive high-altitude EMP (electromagnetic pulse) blast could send large portions of the United States back to the stone age in an instant.  In addition, there is the constant threat that the outbreak of a major viral pandemic (such as what happened with the 1918 Spanish Flu) could kill tens of millions of people around the globe and paralyze the economies of the world. 

But even without all of that, the truth is that the U.S. economy is going to collapse.  So just think of what will happen if one (or more) of those things does happen on top of all the economic problems that we are having.

Are you prepared?  

The following is a list of 20 things you and your family will need to survive when the economy totally collapses and the next Great Depression begins….

#1) Storable Food

Food is going to instantly become one of the most valuable commodities in existence in the event of an economic collapse.  If you do not have food you are not going to survive.  Most American families could not last much longer than a month on what they have in their house right now.  So what about you?  If disaster struck right now, how long could you survive on what you have?  The truth is that we all need to start storing up food.  If you and your family run out of food, you will suddenly find yourselves competing with the hordes of hungry people who are looting the stores and roaming the streets looking for something to eat.

Of course you can grow your own food, but that is going to take time.  So you need to have enough food stored up until the food that you plant has time to grow.  But if you have not stored up any seeds you might as well forget it.  When the economy totally collapses, the remaining seeds will disappear very quickly.  So if you think that you are going to need seeds, now is the time to get them.

#2) Clean Water

Most people can survive for a number of weeks without food, but without water you will die in just a few days.  So where would you get water if the water suddenly stopped flowing out of your taps?  Do you have a plan?  Is there an abundant supply of clean water near your home? Would you be able to boil water if you need to?

Besides storing water and figuring out how you are going to gather water if society breaks down, another thing to consider is water purification tablets.  The water you are able to gather during a time of crisis may not be suitable for drinking.  So you may find that water purification tablets come in very, very handy.

#3) Shelter

You can’t sleep on the streets, can you?  Well, some people will be able to get by living on the streets, but the vast majority of us will need some form of shelter to survive for long.  So what would you do if you and your family lost your home or suddenly were forced from your home?  Where would you go? 

The best thing to do is to come up with several plans.  Do you have relatives that you can bunk with in case of emergency?  Do you own a tent and sleeping bags if you had to rough it?  If one day everything hits the fan and you and your family have to “bug out” somewhere, where would that be?  You need to have a plan.

#4) Warm Clothing

If you plan to survive for long in a nightmare economic situation, you are probably going to need some warm, functional clothing.  If you live in a cold climate, this is going to mean storing up plenty of blankets and cold weather clothes.  If you live in an area where it rains a lot, you will need to be sure to store up some rain gear.  If you think you may have to survive outdoors in an emergency situation, make sure that you and your family have something warm to put on your heads.  Someday after the economy has collapsed and people are scrambling to survive, a lot of folks are going to end up freezing to death.  In fact, in the coldest areas it is actually possible to freeze to death in your own home.  Don’t let that happen to you.

#5) An Axe

Staying along the theme of staying warm, you may want to consider investing in a good axe.  In the event of a major emergency, gathering firewood will be a priority.  Without a good tool to cut the wood with that will be much more difficult.

#6) Lighters Or Matches

You will also want something to start a fire with.  If you can start a fire, you can cook food, you can boil water and you can stay warm.  So in a true emergency situation, how do you plan to start a fire?  By rubbing sticks together?  Now is the time to put away a supply of lighters or matches so that you will be prepared when you really need them.

In addition, you may want to consider storing up a good supply of candles.  Candles come in quite handy whenever the electricity goes out, and in the event of a long-term economic nightmare we will all see why our forefathers relied on candles so much.

#7) Hiking Boots Or Comfortable Shoes

When you ask most people to list things necessary for survival, this is not the first or the second thing that comes to mind.  But having hiking boots or very comfortable and functional shoes will be absolutely critical.  You may very well find yourself in a situation where you and your family must walk everywhere you want to go.  So how far do you think you will get in high heels?  You will want footwear that you would feel comfortable walking in for hours if necessary.  You will also want footwear that will last a long time, because when the economy truly collapses you may not be able to run out to the shoe store and get what you need at that point. 

#8) A Flashlight And/Or Lantern

When the power goes off in your home, what is the first thing that you grab?  Just think about it.  A flashlight or a lantern of course.  In a major emergency, a flashlight or a lantern is going to be a necessity – especially if you need to go anywhere at night. 

Solar powered or “crank style” flashlights or lanterns will probably be best during a long-term emergency.  If you have battery-powered units you will want to begin storing up lots and lots of batteries.   

#9) A Radio

If a major crisis does hit the United States, what will you and your family want?  Among other things, you will all want to know what in the world is going on.  A radio can be an invaluable tool for keeping up with the news. 

Once again, solar powered or “crank style” radios will probably work best for the long term.  A battery-powered until would work as well – but only for as long as your batteries are able to last.

#10) Communication Equipment

When things really hit the fan you are going to want to communicate with your family and friends.  You will also want to be able to contact an ambulance or law enforcement if necessary.  Having an emergency cell phone is great, but it may or may not work during a time of crisis.  The Internet also may or may not be available.  Be sure to have a plan (whether it be high-tech or low-tech) for staying in communication with others during a major emergency.

#11) A Swiss Army Knife

If you have ever owned a Swiss Army knife you probably already know how incredibly handy they can be.  It can be a very valuable and versatile tool.  In a true survival situation, a Swiss Army knife can literally do dozens of different things for you.  Make sure that you have at least one stored up for emergencies.

#12) Personal Hygiene Items 

While these may not be absolute “essentials”, the truth is that life will get very unpleasant very quickly without them.  For example, what would you do without toilet paper?  Just think about it.  Imagine that you just finished your last roll of toilet paper and now you can’t get any more.  What would you do? 

The truth is that soap, toothbrushes, toothpaste, shampoo, toilet paper and other hygiene products are things that we completely take for granted in society today.  So what would happen if we could not go out and buy them any longer?

#13) A First Aid Kit And Other Medical Supplies

One  a more serious note, you may not be able to access a hospital or a doctor during a major crisis.  In your survival supplies, be absolutely certain that you have a good first aid kit and any other medical supplies that you think you may need.

#14) Extra Gasoline

There may come a day when gasoline is rationed or is simply not available at all.  If that happens, how will you get around?  Be certain to have some extra gasoline stored away just in case you find yourself really needing to get somewhere someday.

#15) A Sewing Kit

If you were not able to run out and buy new clothes for you and your family, what would you do?  Well, you would want to repair the clothes that you have and make them last as long as possible.  Without a good sewing kit that will be very difficult to do.

#16) Self-Defense Equipment

Whether it is pepper spray to fend off wild animals or something more “robust” to fend off wild humans, millions of Americans will one day be thankful that they have something to defend themselves with.

#17) A Compass

In the event of a major emergency, you and your family may find yourselves having to be on the move.  If you are in a wilderness area, it will be very hard to tell what direction you are heading without a compass.  It is always a good idea to have at least one compass stored up. 

#18) A Hiking Backpack

If you and your family suddenly have to “bug out”, what will you carry all of your survival supplies in?  Having a good hiking backpack or “survival bag” for everyone in your family is extremely important.  If something happened in the city where you live and you suddenly had to “go”, what would you put your most important stuff in?  How would you carry it all if you had to travel by foot?  These are very important things to think about. 

#19) A Community

During a long-term crisis, it is those who are willing to work together that will have the best chance of making it.  Whether it is your family, your friends, a church or a local group of people that you know, make sure that you have some people that you can rely on and work together with in the event that everything hits the fan.  Loners are going to have a really hard time of surviving for long.

#20) A Backup Plan

Lastly, it is always, always, always important to have a backup plan for everything.

If someone comes in and steals all the food that you have stored up, what are you going to do?

If travel is restricted and your can’t get to your “bug out” location immediately do you have a Plan B?

If you have built your house into an impregnable survival fortress but circumstances force you to leave do you have an alternate plan?

The truth is that crisis situations rarely unfold just as we envision.  It is important to be flexible and to be ready with backup plans when disaster strikes. 

You don’t want to end up like the folks in New Orleans after Hurricane Katrina.  You don’t want to have to rely on the government to take care of you if something really bad happens. 

Right now the U.S. strategic grain reserve contains only enough wheat to make half a loaf of bread for each of the approximately 300 million people in the United States.

How long do you think that is going to last?

Now is the time to get ready.

Now is the time to prepare.

The United States economy is going to collapse and incredibly hard times are coming.

Will you be able to survive when it happens?