Fresh meat for a demagogue...
Posted on 05/14/2011 9:23:12 AM PDT by OwenKellogg
The situation in the United States has deteriorated and will continue to do so unless drastic action on our federal, state and local government deficits is taken. We need to trace what happens during an economic collapse. In preparation for a collapse here is what you can do personally to avoid being swept away by the tidal wave of fear, anxiety and trepidation.
During the early stages of a nation collapsing economically, the debt of the nation swells almost uncontrollably. We, in the United States are already there.
From the burgeoning debt loads come the setting for collapse.
While the disaster can unfold in many ways, the course for the United States is already set in motion.
Inflation will increase. When inflation hits, citizens with limited financial resources become economic casualties first. These citizens are part of the beginnings of the downward spiral which ultimately leads to a depression.
In a misguided attempt to kick start the economy, our government will attempt another stimulus program which will fail. The parameters under which Fiscal Policy might work if you are so inclined to believe that it does have long been broken. Consequences of government actions are becoming unpredictable and are having unintended consequences.
The United States began the first phase of the stimulus program with the American Recovery and Reinvestment Act as well as the significant expansion of the unemployment compensation to pull us out of the recession. Both actions were the wrong actions at the wrong time.
When stimulus programs fail, our government will try to increase taxes or fees, often in deceptive ways such as fuel taxes, oil drilling taxes, user fees or increased regulatory burdens. This demand to increase taxes is to help support the citizens who were the first economic casualties of the recession as well as to pay for the deficit.
Next the bond rating agencies will downgrade our debt. At that point, our interest rates will increase and further prolong the recession. It is this downgrading of the debt and potential inability to sell our debt on the open markets that will be our undoing.
Our deficits will skyrocket because of the increased interest costs and creditor-forced reductions in spending will be enforced against us. The U. S. Congress will no longer establish our budget priorities. Our creditors will, as is done is Greece today.
The depression follows.
What then should the individual do?
Personally we have many options and they are extremely straightforward. The actions to be taken are exactly the same action that government needs to take but will not.
First, know where you are financially. Know your income and expenses and balance your own budget.
Second, you must start to build your funds if you are able. By establishing some cash reserves, you are reducing the risk of you becoming one of the first casualties of the collapse.
Third, you should consider paying off all short term credit card debt and minimize the use of credit cards unless you have the financial resources to pay for your spending.
Fourth, I would recommend refinancing your home with a 30 year long term mortgage considering how low rates look now. If your home is "underwater" with debt already that may not be possible.
Fifth, build up credit availability if you have the discipline not to use it. If you do not have that discipline, adding credit availability is one of the worst things you can do.
Sixth, make certain you are valuable to your employer. Stay current and productive. Many countries in Europe have 15% unemployment or more. Try not to become part of the "expendable" because you have let yourself stagnate.
Finally, help your family.
Surviving an economic collapse is possible. It will take 2 or more years for the U. S. to be in a full collapse. In interim get active politically, vote, and make government accountable, responsible and efficient to help prevent the disaster. I doubt Washington has gotten the message though! I hope you do. Your family is depending on it.
Frank Ryan, CPA specializes in corporate restructuring and lectures on ethics for the state CPA societies. Frank is a retired Colonel in the Marine Corps Reserve and served in Iraq and briefly in Afghanistan. He is on numerous boards of publicly traded and non-profit organizations.
That’s what I’m saying-—don’t think just in terms of what will tide you over but lay in “trading stock “——even things you might not really need personally but stuff you know others will be crying for. For example if you wear a beard stock up on razor blades anyway.
If I'm not mistaken, walnut tree wood is worth a lot of money.
In my own neighborhood of mid-sized acreages most folk’s have been armed to the teeth forever so an invasion of starving city folk would result in a reduction in the city folk population. We had a “neighborhood watch” formed in an earlier dicey time so I expect you’re about right——we’ll probably need to do that again. Remind me later to keep a trench dug so’s I can dispose of the detritus. I already do that to dispose of varmits that get themselves trapped, car-hit, dead, etc. but it looks like I might need a bigger one.
I would also recommend that, for anyone who can, start growing the skills that will be most in demand in a depression scenario (largely associated with “fixing broken things”; whether it is autos, air conditioners, small engines, footwear, etc).
What you’re describing just happened a few years ago——to the USSR. They broke themselves building weapons they couldn’t afford-—then broke themselves up into dumbass pieces.-—We are in extreme danger of going broke trying to pass out freebies to non-producers.-——different verse-—same song. Somebody want to get Ray Stevens to record it?
What you’re describing just happened a few years ago——to the USSR. They broke themselves building weapons they couldn’t afford-—then broke themselves up into dumbass pieces.-—We are in extreme danger of going broke trying to pass out freebies to non-producers.-——different verse-—same song.
Agreed.
Funny how no one says to stock up on trucks, gasoline, and guns so that you can go into anywhere and take anything that you want.
I know in the movies those guys don’t fare well.
But in real life they do.
Who’s with me!!!
(I am, of course kidding. Kind of....)
Sounds like you have a nice quiver-full with the AR’s-—make sure you have spare firing pins and probably even a trigger group for each gun. And proper lube: LSA or Breakfree for cold weather. I sold a rifle to a fellow near you awhile back. He said best shipment was US mail so I did but couldn’t send ammo with it. So I know shipping ammo to your digs is awkward at best so do what you can to stock up and keep it high, dry, and at moderate temperature.
Once you have the spuds dried storing is easy-—just keep them high, dry, cool but not frozen, and they will keep way longer (years) than sprout-growing whole spuds. We buy ours commercially prepped but you can do your own by simply coarse grinding (skins on is OK) and dehydrating to a coarse powder consistency. Then just stir them into hot water to eat.
Some things are just incompatible: marxists and people who love freedom and personal responsibility....”
Well stated. It’s always been my belief that two groups of people, one favoring liberty and freedom, and the other trying to establish slavery, cannot and will not live together.
It’s my contention that history proves this. We either separate or we go to war.
-—trucks, guns, fuel, ammo,-—goes without saying and I’m not kidding—
~ping~
Bump.
BUMP!
Only way to fly.
Fresh meat for a demagogue...
Those who think for themselves have seen this coming for some time now!
You weren't paying attention or were reading the wrong sources..
“You know, 5 years ago I’d have laughed at the theory that all is gloom...I thought the collapse of the housing market was as unlikely.”
“You weren’t paying attention or were reading the wrong sources..”
There were plenty of Freepers here who mocked those who tried to warn people of the coming housing collapse. Would post “oh, NO, we’re doomed!” Those FED rent boys lied to a lot of people.
Thanks. Saved it.
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