Skip to comments.The certain oncoming American economic collapse, when and how?
Posted on 11/11/2012 5:19:18 AM PST by reaganator
Many of us know the continuation of Leftist economic policies are destined to cause the economic and fiscal collapse of the United States. The Republican controlled House of Representatives may be a temporary firewall. My question is what will be the order of events of the melt down? I expect with each piece of the failure the federal government to intervene even more causing more problems. It would be very helpful in making preparations to survive these times to have an idea of how and when the collapse will unfold. If you have also been speculating on this topic share your thoughts, or especially if you have any knowledge based insight please tell us what you know.
” The certain oncoming American economic collapse, when and how?”
When? When it wants to
If you wish to know the how this happens, read up on the Weimar Republic - we are following their exact footsteps
A Humble Prognostication
Economic catastrophe starting about 2015
We have only seen a whisper of this
Entrepreneurs cease to Build Businesses, Jobs disappear
Distribution Channels Collapse
Health Care drops to level of Frontier Medicine
Government responds by Killing Self Love
and replacing it with Fear
About 20,000,000 deaths in US alone
possible as much as 1/3 population
Widespread suffering, starvation, pestilence
Cities will be death traps
The only thing to prevent it was to
permit a lesser catastrophe
But the cards are dealt now
Be Kind One to Another
Tenderhearted, Forgiving One Another
Do Justly, Love Mercy, Walk Humbly
Live in Christ
Just waiting for Kristallnacht, expect this time we are the Jews.
What if 12.6 percent of the hospitals in America outright close?
What if Catholic bishops arent bluffing?
Earlier this week, Francis Cardinal George of the archdiocese of Chicago sent a message to parishioners in Barack Obamas home town that imposition of the HHS mandate to fund and facilitate contraception, abortifacients, and sterilization would force the Catholic Church to close its hospitals, clinics, schools, and all other organizations that would otherwise have to comply. Two Lents from now, Cardinal George warned, unless something changes, the page [listing Catholic organizations] will be blank.
The Catholic Church has perhaps the most extensive private health-care delivery system in the nation. It operates 12.6 percent of hospitals in the U.S., according to the Catholic Health Association of the U.S., accounting for 15.6 percent of all admissions and 14.5 percent of all hospital expenses, a total for Catholic hospitals in 2010 of $98.6 billion. Whom do these hospitals serve? Catholic hospitals handle more than their share of Medicare (16.6 percent) and Medicaid (13.65) discharges, meaning that more than one in six seniors and disabled patients get attention from these hospitals, and more than one in every eight low-income patients as well. Almost a third (32 percent) of these hospitals are located in rural areas, where patients usually have few other options for care.
Of course, its not just hospitals. The Catholic Church runs over 7500 primary and secondary education schools in the US (where over a third of students are non-Catholics), educating more than 2.5 million students. Thanks to a near-blanket moratorium on vouchers, taxpayer money doesnt get used in teaching these students in a system that has a 99% graduation rate and a 97% success rate at placing students in college. Based on an average student cost of $8000 in public schools, Catholic schools save taxpayers about $20 billion dollars a year.
Hitler blamed the Jews for his country’s problems
Obama blames the rich, which fulfills the same archetype in bigotry.
It is well-known that blacks & Jews do not get along (q.v. Farrakhan to point out the most extreme example). Notice there are lots of “Black Muslims”..
Or in a broader sense read “After America: Get Ready for Armageddon” by Mark Steyn.
Let's not assume that communism will fail in the United States. With the "Smartest Man in History" leading from our White House, I'm sure that socialism will be as successful in the United States as when it was tried in Afghanistan, Albania, Bulgaria, Czechoslovakia, East Germany, Ethiopia, Hungary, Mongolia, Poland, Romania, Russia, Somalia, and Yugoslavia - and as successful as it is today in China, Vietnam, Cuba, Venezuela, and North Korea. What could go wrong?
The moment the Fed Reserve decides its time. If they do not purchase our T-Bills at auction, interest rates will skyrocket and we are gonzo.
Funny how the only guy able to make money was the one producing paper for the banknotes.
Most federal revenues come from individual taxpayers. Personal income taxes are the largest portion of total tax revenues. Social Security and Medicare payroll taxes are the second-largest source.
PERCENTAGE OF TOTAL FEDERAL REVENUE (2011)
Source: Congressional Budget Office.
Total Revenue: $2.3 Trillion (2011) $2.469 trillion (2012)
Social Security $819 Billion(2011) $841 billion (2012) (Running at a deficit)
Net = $1,481 Billion (2011) $1,628 Billion (2012)
$1,481 B Net Revenue / $16,200 B debt = 9.14%
$1,628 B Net Revenue / $16,600 B debt = 10%
It is not possible to cut spending and raise taxes combined to balance the budget. The head in the sand approach will not work. If they try to inflate away the debt, the interest alone will exceed our total revenue.
The government printing presses cant keep this ponzi scheme going much longer.
The risk free rate of interest has traditionally been inflation rate plus 3 percentage points. Under Bush Sr. the average outstanding maturity of our National Debt was around 10 yrs. Clinton lowered that to around 3 yrs. It is as though we have our country financed on a variable rate credit card right now as the bulk of the debt is short term maturity and thus, very interest rate sensitive.
If they try to inflate us out of this mess with short term debt the interest rates will go through the roof.
Clinton changing the cost of living index in 1992 is what set us up for this mess. His selling gold futures and currency manipulation allowed it to continue. Bush W is not much better as he continued the practices.
All of the above, combined with taking us off the gold standard, put us in lala land financially in this country.
I would expect that, if that happened, the Government would step in to take over (buy?, nationalize?) those institutions, particularly the hospitals.
I think it probably is a bluff though as the Bishops must realize that doing such would leave the Church on the short end of the political stick. The state of religion is such that most Catholics would blame them, not Obama — just as most Catholics voted for Obama despite their urging.
Look for some figleaf “compromise” that will keep this from happening.
I’d guess a couple of omens will portend the actual collapse:
1. Another credit downgrade of U.S. debt
2. Look for the bids on U.S. 10 year notes to fall below 2 times offered debt at auction
3. Expect the Fed to jack interest rates in desperation - which will lead, of course, to MORE DEBT
4. This will cause inflationary pressures to hit hard. So hard that even the liberal press will start talking about inflation
5. Sudden, we’ll start seeing a lot of “UNEXPECTEDLY” news stories. “Unemployment UNEXPECTEDLY Rises to 9.5%”
6. Obama announces sweeping defense cuts and massive tax increases on the wealthy to combat the growing crisis
7. There is general unrest in the inner cities. It isn’t full-on riots, but flash mob robberies and assaults become a daily news story
8. A flash mob assault turns into Bernie Goetz style event, with 5-6+ dead. Naturally, THIS leads to looting, arson, and LA-style riots
9. Internationally, the EU totters on the brink of collapse. German sentiment to leave the EU goes to an all-time high. The sovereign debt crisis starts to boil over
Now we are at the tipping point, any number of events could kick off #10, which is an international crisis that leads to war. It could be.
10. Israel attacks Iran, leading quickly to a larger scale Mideast war.
10. Putin does something REALLY stupid when it comes to either Eastern Europe of international Arctic waters.
10. North Korea finally invades South Korea.
10. The EU crisis turns into another land war in Europe.
10. China invades either Taiwan or Japan (over those islands)
10. The U.S. defaults on debts, leading to an attack on the U.S. (This could actually happen as a result of monetizing the debt and foreign countries insisting the U.S. *not* pay in fiat dollars, but hard assets like gold.)
Almost every country has a debt crisis - some more than others. The only way out is for all the countries to decide NOT to pay. That will obviously be both the result AND cause of war.
Have you seen Camden, New Jersey recently? Detroit? They've already collapsed.
Obama may have been reelected "King of the Blue Counties" -- by a hair -- but most of the US is still red.
The interest rates that Government pays has been heading to zero for some time—this is not an accident. The reason is that the Federal Reserve (not foreigners) buys most of our bonds these days. If they didn’t, we’d have a failed bond auction and interest rates would immediately skyrocket. Zero interest rates reduce the debt burden and mean the Government can borrow with near impunity. So, as long as the Fed can keep doing that without consequences, the charade will go on.
Ultimately, the consequence will be hyperinflation. While inflation for food is high, its not high for other things. In fact, oil prices pretty much flutuate between $75-$100 per barrel. We’ve had close to hyperinflation before (1979-80), but this time we will have it with zero interest rates, so the pain will be much greater.
Ridiculous! Nonsense, I say! Unemployment will drop to 5%. And it will do so by the old fashioned, time tested way: By changing the metric. Under obama 2 anybody receiving an EBT card and living in section 8 is now "employed". See how easy it is to make everything better in muslimerica? Especially with a lock stop, or should I say goosestep MSM carrying the water.