by Robert Richardson
According to the mainstream media the economy is in recovery mode. But when you look at the reality of the situation, take into account the actual debt numbers, and then think about your own financial situation, recovery starts to look like nothing more than a media hyped fairytale. A fairytale that at some point is going to have very unhappy ending.
The United States is literally drowning in debt
The United States holds the largest mountain of debt the world has ever seen, yet the moronic do-nothing politicians in Washington D.C. seem to be more ignorant than ever. In fact, they’re not only ignorant, they’re out-of-control and doing everything they can to strap us with even more debt.
As I write this article, The United States government has accumulated around $18.2 trillion in reported debt. That puts every one of us on the hook for somewhere around $154,161 in Government debt.
According to the Congressional Budget Office, federal debt will climb to almost $27.3 trillion within the next 10 years.
The Debt number is a Big Lie; True Debt could be as high as $222 Trillion
While $18 trillion seems like an insurmountable amount of debt to recover from, the fact is, that number is only a drop in the bucket. When factoring in unfunded liabilities like Social Security, Medicare, government pension plans and Obamacare, the true debt is actually much higher. Estimates range anywhere from $205 trillion to $222 trillion.
How could that be?
Well, The Congressional Budget Office actually has two sets of books – something every good Ponzi scheme needs. The first set of books, known as the Extended Baseline Forecast, are the books released to the idiots in the media who then report the numbers to the gullible public.
The second set of books, the Alternative Fiscal Scenario, are the ones that really matter. If you look at those books, the unfunded liability number is actually $205 trillion. This is the figure that the CBO does not want the American public to be aware of.
It’s not just Government Debt; Business Debt is out of control.
Since 2006, Business debt in the United States has skyrocketed from 2.6 trillion dollars to a staggering 5.8 trillion of debt. In 2014 alone, total debt levels for non-financial companies inside the United Stated rose $650 billion — six times faster than the $100 billion these companies added in cash.
Keep in mind, most of this debt was piled on after the 2008 economic crisis, something that should have been a wake-up call to everyone in the country.
The Student Loan Debt Bubble
The class of 2015 will be leaving college with much more than a degree. They’ll be leaving with the most student debt in U.S. history. The average graduating student will owe somewhere around $35,000.
Student loan debt has grown completely out of control. Americans have acquired over $1.2 trillion in outstanding student loan debt, setting up a potential wave of defaults as more and more graduates find themselves without a job, unable to pay back these student loans.
But it’s not just college age students. In fact, some seniors are actually putting off retirement because of outstanding student loan bills. According to a new study by LIMRA Secure Retirement Institute, retirees are bringing unprecedented levels of student loan debt into their retirement years. In 1989 student loans made up only 1 percent of debt for retirees, today student loans now account for 15 percent of retiree debt.
The amount of U.S. debt owned by foreign nations has never been higher.
34 percent of total federal debt is owed to foreigner governments and international investors, including China (which owns about $1.3 trillion of the total debt, or about 8 percent), closely followed by Japan, which owns $1.1 trillion, or 7 percent.
5 More Troubling Signs that we are heading for an Economic Disaster
It seems like Texas has seen the writing on the wall and will soon be pulling $1 billion in Gold from the Federal Reserve. The move will allow Texas to safeguard their gold from the federal government, and highlights the very real trouble our economy is in.
HSBC chief economist Stephen King is warning his clients that the world’s economy is like the Titanic and lacks the lifeboats needed to save us all. King warns that the so-called recovery is nothing more than hype, and says “In the event we hit an iceberg, there aren’t enough lifeboats to go round.”
Both J.P. Morgan Chase and Citigroup are calling for a ban on paper currency. In fact, Chase took the unprecedented step of restricting cash in certain markets and recently started banning the storage of cash or coins in its safe-deposit boxes. They also put policies in place that will ban using cash as an acceptable payment for credit cards, mortgages and auto loans.
Some of the world’s top investors are taking steps to prepare for a huge market crash. Jeremy Grantham, co-founder and chief investment strategist of Grantham Mayo van Otterloo, is warning investors that stocks are 65 percent overvalued. He says the bubble will burst around or after the 2016 presidential election.
If you believe the federal government, then you probably think unemployment rate is somewhere around 5.5%. But, if you take a little closer look into the numbers, you will see that just like the federal debt, the books are cooked!
The real unemployment numbers are a complete fabrication; they don’t take into account those who have stopped looking because they can no longer find a job.
What can you do to prepare for the collapse?
I devoted an entire section to financial preparedness and the coming collapse in my book, The Ultimate Situational Survival Guide; I believe it’s one of the most serious threats facing this country. Some of the suggestions I outline in the book include:
Develop a Plan of Action
When it comes to economic preparedness, one of the most important things you can do is to put together a plan of action. If things go bad, having a plan of action can help increase your chances of surviving the chaos. Check out my list of Essential Preparedness Tips, Skills and Resources to Prepare for Disasters & Threats
Start being more Self-Reliant
Skills that were once part of our daily life, the kind of skills that helped our ancestors survive, have been largely forgotten. They have been replaced by a generation of dependent people that can barely balance a checkbook, cook a meal, or change a flat tire. Read my List of Preparedness Skills that Everyone Should Know.
Start Stockpiling Food and Long-term Consumables: During any type of crisis, food, water and long-term consumables are going to be worth their weight in gold! During an economic collapse, major shortages and supply chain problems are highly likely, making these types of supplies one of your most important pre-collapse considerations.
Start stocking up on the kinds of things that you know you’ll need and use in the future.
Start Cutting Expenses and get out of Debt: During the 2008 financial meltdown, millions of Americans lost their homes, cars and personal possessions because of debt. During an economic collapse, the possibility of losing your home to debt collectors is a real threat. If you can get out of debt, do it now.
Start cutting all nonessential expenses. The money you save can be used to pay down debt and stockpile extra emergency supplies.
Start an Emergency Fund: An Emergency Fund should be one of your top priorities. This fund will be essential in the lead up to the collapse, and can help you stockpile any last minute supplies that you might need.
Take a serious look at your Defense: One of the biggest threats you’re going to face is the hordes of people looking to take advantage of the situation. The riots that we witnessed in Ferguson and Baltimore are going to pale in comparison to what we’ll see during a full-scale economic collapse.
- Start looking into ways to secure and fortify your home.
- Learn the basics of self-defense, and consider learning how to use a firearm.
- Watch for signs of social unrest, and stay alert to what’s going on around you and in your neighborhood.
- Stock up on Firearms and learn how to use them.
Source: Off Grid Survival