Predictive programming at its finest …
Predictive programming at its finest …
SHTFplan.com| It is no secret that the world is teetering dangerously close to disaster.
Saving the system may be impossible, even if the powers that be delay or diffuse the worst of it for some time to come.
Most people have no idea what to expect if it comes crashing down.
But others have been prepping for years to make sure they can survive if the power, the food supply, or the entire society ceases to be functional.
An increasing number of the rich – and especially the super rich – are prepping, too, and investing serious money for a survival bunker that includes comforts and upscale security with the basic amenities.
Pulse.com profiled one company that is marketing “end of the world” shelters to those who can afford it, and who see a breakdown coming that includes potential revolution and civil unrest:
Vicino warns that the rich need to be ready for a scenario that will “turn Suzy Homemaker into a gun-wielding predator.” As he asked me, without any apparent irony, “Do you really want to fight off all the zombies, the predators, the gangs, the militias, whatever else is roaming the streets to get what you got?”
At the last annual meeting of the World Economic Forum in Davos, Switzerland, observers noticed elites growing more alarmed about the possibility of social unrest.
This matches what Vicino hears. “They’re going to Patagonia, they’re going to remote locations of the world,” he says. “Their reasoning is more to be insulated from a revolution, rebellion, anarchy, or whatever, following an economic collapse.”
Vicino’s properties include the recently launched Vivos Europa One, an invitation-only nuclear blast–proof subterranean complex tucked into a former Cold War munitions storage facility in Germany. It was purchased by Vicino and his partner, a German developer, for $2.25 million [£1.47 million] and unveiled this past summer. The property, now valued at over abillion dollars and boasting 227,904 square feet of “secure, blast proof living areas” is big enough for 34 “high net-worth families” to inhabit for a full year, says Vicino.
They can enjoy swimming pools, a wine cellar, and living quarters they are encouraged to customize with fittings created by their favorite yacht designers. Worried about the collapse of the rule of law? After the end of society, each Vivos properties will be governed by its own bylaws and the various bunkers will have their own tribunals to handle conflicts between wealthy residents, who may well get twitchy during their confinement. An armed security force employed by the company will handle threats from above—presumably the have-nots who want in.
There’s no telling when exactly the SHTF may happen, but it is clear that those in power see a breakdown coming… and they are prepared.
(Michael Snyder) I have never done anything like this before. Ever since I started The Economic Collapse Blog in late 2009, I have never issued any kind of “red alert” for any specific period of time. As an attorney, I was trained to be level-headed and to only come to conclusions that were warranted by the evidence. So this is not something that I am doing lightly. Based on information that I have received, things that I have been told, and thousands of hours of research that have gone into the publication of more than 1,300 articles about our ongoing economic collapse, I have come to the conclusion that a major financial collapse is imminent. Therefore, I am issuing a RED ALERT for the last six months of 2015.
To clarify, when I say “imminent” I do not mean that it will happen within the next 48 hours. And I am not saying that our problems will be “over” once we get to the end of 2015. In fact, I believe that the truth is that our problems will only be just beginning as we enter 2016.
What I am attempting to communicate is that we are right at the door of a major turning point. About this time of the year back in 2008, my wife and I went to visit her parents. As we sat in their living room, I explained to them that we were on the verge of a major financial crisis, and of course the events that happened a few months later showed that I was right on the money.
This time around, I wish that I could visit the living rooms of all of my readers and explain to them why we are on the verge of another major financial crisis. Unfortunately, that is not possible, but hopefully this article will suffice. Please share it with your friends, your family and anyone else that you want to warn about what is coming.
Let’s start with a little discussion about the U.S. economy. Most of the time, when I use the term “economic collapse” what most people are actually thinking of is a “financial collapse”. And we will talk about the imminent “financial collapse” later on in this article. But just because stocks have recently been hitting all-time record highs does not mean that the overall economy has been doing well. This is a theme that I have hammered on over and over again. It is my contention that we are in the midst of a long-term economic collapse that has been happening for many years, that is happening as you read this article, and that will greatly accelerate over the coming months.
Let me give you just one quick example. When an economy is healthy, money tends to circulate fairly rapidly. I buy something from you, then you take that money and buy something from someone else, etc. In a stable and growing economy, people generally feel good about things and they are not afraid to spend. But during hard times, the exact opposite happens. That is why the velocity of money almost always slows down during a recession. As you can see from the chart below, the velocity of money has indeed gone down during every recession since 1960. Once a recession is over, the velocity of money is supposed to go back up. But a funny thing happened after the last recession ended. The velocity of money continued to go down, and it has now hit an all-time record low…
This is the kind of chart that you would expect from a very sick economy. And without a doubt, our economy is sick. Even the official government numbers paint a picture of an economy that is deeply troubled. Corporate profits have declined for two quarters in a row, U.S. exports plunged by 7.6 percent during the first quarter of 2015, U.S. GDP contracted by 0.7 percent during the first quarter, and factory orders have declined year over year for six months in a row.
If the stock market was connected to reality, it would be going down. But instead, it has just kept going up. As I discussed yesterday, this is a classic case of an irrational financial bubble. If I was writing an economic textbook and I wanted to include an example of what a run up to a major financial crash looks like, it would be hard to come up with anything more ideal than what we have watched unfold over the last six months. Just about every pattern that has popped up prior to previous stock markets crashes is happening again, and this is something that I have written about so much that many of my readers are sick of it.
And without a doubt, our financial markets are primed for a crash.
Only two times before has the S&P 500 been up by more than 200 percent over a six year time frame.
The first was in 1929, and the stock market subsequently crashed.
The second was in 2000, right before the dotcom bubble burst.
And by just about any measure that you can possibly imagine, stocks are massively overvalued right now.
For instance, just check out the chart posted below. It comes from Doug Short, and it shows that the ratio of corporate equity prices to GDP has only been higher one time since 1950. That was in 2000 just before the dotcom bubble burst…
Let’s take a look at another chart. This one comes from Phoenix Capital Research, and it shows that the CAPE ratio (cyclically adjusted price-to-earnings ratio) has rarely been higher. In fact, the only times that it has been higher we have seen stock market crashes immediately afterwards…
Yale economics professor Robert Shiller is also deeply concerned about the CAPE ratio…
I think that compared with history, US stocks are overvalued. One way to assess this is by looking at the CAPE (cyclically adjusted P/E) ratio that I created with John Campbell, now at Harvard, 25 years ago. The ratio is defined as the real stock price (using the S&P Composite Stock Price Index deflated by the CPI) divided by the ten-year average of real earnings per share. We have found this ratio to be a good predictor of subsequent stock market returns, especially over the long run. The CAPE ratio has recently been around 27, which is quite high by US historical standards. The only other times it has been that high or higher were in 1929, 2000, and 2007—all moments before market crashes.
But the CAPE ratio is not the only metric I watch. In my bookIrrational Exuberance (3rd Ed., Princeton 2015) I discuss several metrics that help judge what’s going on in the market. These include my stock market confidence indices. One of the indicators in that series is based on a single question that I have asked individual and institutional investors over the years along the lines of, “Do you think the stock market is overvalued, undervalued, or about right?” Lately, what I call “valuation confidence” captured by this question has been on a downward trend, and for individual investors recently reached its lowest point since the stock market peak in 2000.
Other valuation indicators produce similar results. This next chart is another one from Doug Short, and it shows the average of four of his favorite valuation indicators. As you can see, there is only one other time when stocks have been more overvalued than they are today according to the average of his four favorite indicators, and that was just before the stock market crashed when the dotcom bubble burst…
Another one of the things that indicates that a financial bubble is happening is the level of margin debt. Whenever margin debt has gone over 2.25% of GDP a stock market crash has always followed, and today it is far above that level. As you can see from the chart below, there have been three major peaks in margin debt in modern U.S. history. One was just before the dotcom bubble burst, one was just before the financial crisis of 2008, and the third is happening right now…
Something else that we would expect to see prior to a major financial crisis is a decoupling of high yield debt and stocks. This is something that happened just prior to the stock market crash of 2008, and it is happening again right now. The following chart comes from Zero Hedge, and it demonstrates this brilliantly…
Are you starting to get the picture?
And as I discussed yesterday, the smart money is beginning to pull their money out of stocks while they still can. According to USA Today, mutual fund investors have pulled more money out of stocks than they have put into stocks for 16 weeks in a row…
In a sign of stock market nervousness on Main Street, mutual fund investors have yanked more money out of U.S. stock funds than they put in for 16 straight weeks.
The last time domestic stock funds had positive net cash inflows was in the week ending Feb. 25, according to data from the Investment Company Institute, a mutual fund trade group.
In the week ended June 17, the most recent data available, mutual funds that invest in U.S. stocks suffered net outflows of $3.45 billion, according to the ICI.
Since late February, U.S. stock funds have suffered estimated outflows of nearly $55 billion. Those net withdrawals come despite the fact the benchmark Standard & Poor’s 500 hit a fresh record high of 2130.82 on May 21 and the Dow Jones industrial average notched a fresh record on May 19.
But it isn’t just stocks that are going to crash during the next financial crisis. Bondsare going to crash as well, but what I am concerned about most of all arederivatives.
Derivatives are going to play a starring role in the next major financial crisis. I cannot emphasize this enough. In fact, if you want to listen for just one word on the news that will let you know that things have started to really unravel, just listen for the word “derivatives”. This form of legalized gambling is going to crush “too big to fail” banks all over the planet during the next major financial downturn. The “too big to fail” banks in the U.S. alone have 278 trillion dollars of total exposure to derivatives, but they only have 9.8 trillion dollars in total assets. To say that they are being “reckless” is a massive understatement.
For much more on the coming derivatives crisis, please see my previous article entitled “Warren Buffett: Derivatives Are Still Weapons Of Mass Destruction And ‘Are Likely To Cause Big Trouble’“.
Of course I am not the only one that is sounding the alarm about what is coming. Just consider what some very prominent individuals have been saying recently…
Ron Paul has just released a new video in which he warned all of us to “prepare for a bear market in bonds“.
Carl Icahn says that financial markets are “extremely overheated—especially high-yield bonds“.
Max Keiser recently told Alex Jones that a great financial collapse is coming.
Martin Armstrong says that his Economic Confidence Model predicts that the “Big Bang” is coming in “2015.75“.
Jeff Berwick of the Dollar Vigilante says that “we’re getting very, very close to the next crisis collapse” and he has specifically pointed to the month of September.
James Howard Kunstler has predicted that stocks are going to “crater in Q3 as faith in paper and pixels erodes“.
Lindsey Williams recently sent out an email alert in which he warned that his elite friend has told him that “they have a World Wide Financial Collapse scheduled between September and the end of December 2015“.
Gerald Celente has warned about “the Great Panic of 2015“.
Bill Fleckenstein has said that 2015 could be the year of the “big accident“.
Ray Gano has stated that we will see a financial collapse “probably starting in the third quarter of 2015″.
Legendary investor Jim Rogers recently said that he believes that “we will see some kind of major, major problems in the world financial markets” within the next year or two.
Alex Jones recently released a video in which he explained that he recently received “two different calls” from “extremely prominent wealthy people” warning him about what is coming by the end of this year and asking him why he isn’t leaving the United States “before October”.
Bible prophecy expert Joel C. Rosenberg has posted an ominous message on his personal blog in which he warned that “something is coming” and that “we must be ready”…
I feel a tremendous sense of urgency about this column.
The United States is hurtling towards severe trouble, and the events of the past few months — and what may be coming over the next few months — grieves me a great deal.
Something is coming. I don’t know what. But we all must be ready in every possible way.
When I read what Rosenberg wrote, it struck me that it was precisely how I have been feeling too.
In my entire life, I have never had such an ominous feeling about any period of time as I have about the last six months of 2015. Like Rosenberg, I feel a “tremendous sense of urgency”, and I feel a great need to warn as many people as I can.
And it isn’t just a financial collapse that I am concerned about. In a previous article, I detailed seven key events that we are going to witness before the end of this September…
Late June/Early July – It is expected that this is when the U.S. Supreme Court will reveal their gay marriage decision. Most believe that the court will rule that gay marriage is a constitutional right in all 50 states. There are some that believe that this will be a major turning point for our nation.
July 15th to September 15th – A “realistic military training exercise” known as “Jade Helm” will be conducted by the U.S. Army. More than 1,000 members of the U.S. military will take part in this exercise. The list of states slated to be involved in these drills includes Texas, Colorado, New Mexico, Arizona, Nevada, Utah, California, Mississippi and Florida.
July 28th – On May 28th, Reuters reported that countries in the European Union were being given a two month deadline to enact “bail-in” legislation. Any nation that does not have “bail-in” legislation in place by that time will face legal action from the European Commission. So why is the European Union in such a rush to get this done? Are the top dogs in the EU anticipating that another great financial crisis is about to erupt?
September 13th – This is Elul 29 on the Biblical calendar – the last day of the Shemitah year. Many are concerned about this date because we have seen giant stock market crashes on the last day of the previous two Shemitah cycles.
On September 17th, 2001 (which was Elul 29 on the Biblical calendar), we witnessed the greatest one day stock market crash in U.S. history up until that time. The Dow plummeted 684 points, and it was a record that held for exactly seven years until the end of the next Shemitah cycle.
On September 29th, 2008 (which was also Elul 29 on the Biblical calendar), the Dow fell by an astounding 777 points, which still today remains the greatest one day stock market crash of all time.
Now we are approaching the end of another Shemitah year. So will the stock market crash on September 13th, 2015? Well, no, because that day is a Sunday. So I guarantee that the stock market will not crash on that particular day. But as Jonathan Cahn has pointed out in his book on the Shemitah, sometimes stock market crashes happen just before the end of the Shemitah year and sometimes they happen within just a few weeks after the end of the Shemitah. So we are not just looking at one particular date.
September 15th – The 70th session of the UN General Assembly begins on this date. It is being reported that France plans to introduce a resolution which would give formal UN Security Council recognition to a Palestinian state. Up until now, the United States has always been the one blocking such a resolution, but Barack Obama is indicating that things may be much different this time around.
September 25th to September 27th – The United Nations is going to launch a brand new sustainable development agenda for the entire planet. Some have called this “Agenda 21 on steroids”. But this new agenda is not just about the environment. It also includes provisions regarding economics, agriculture, education and gender equality. On September 25th, the Pope will travel to New York to give a major speech kicking off the UN conference where this new agenda will be unveiled.
September 28th – This is the date for the last of the four blood moons that fall on Biblical festival dates during 2014 and 2015. This blood moon falls on the very first day of the Feast of Tabernacles, it will be a “supermoon”, and it will actually be visible in the city of Jerusalem. There are many that dismiss the blood moon phenomenon, but we have seen similar patterns before. For example, a similar pattern of eclipses happened just before and just after the destruction of the Jewish temple by the Romans in 70 AD.
In addition to everything above, quite a number of economic cycle theories that were developed by secular economists all point to big trouble for America between the years of 2015 and 2020. For more on this, please see my previous article entitled “If Economic Cycle Theorists Are Correct, 2015 To 2020 Will Be Pure Hell For The United States“.
Earlier today, I publicly announced that I was issuing a RED ALERT for the last six months of 2015 on the Alex Jones radio show. You can watch video of that interviewright here. In this article (which is about three times as long as one of my normal articles) I have only shared a small fraction of the information that has led me to issue this red alert. But if you want to know more, and you are not afraid to reallygo down the rabbit hole, I would encourage you to check out a full two hour presentation that I did down in Dallas, Texas on the nightmarish years that are coming.
The period of relative stability that we have been enjoying is ending. What comes next is going to lead us into the worst period of time in modern American history. I wish that I was wrong about this.
But the goal is not to scare you. My wife and I live our lives with absolutely no fear, and that is my desire for all of my readers. There is hope in understanding what is happening and there is hope in getting prepared. Personally, my wife and I believe that the greatest chapters of our lives are ahead of us, and I hope that you have a similar outlook.
We need a generation of people that are willing to rise up and do great things even in the midst of all the chaos and darkness that is coming. It is when times are the darkest that the greatest heroes are needed.
So what will you choose to do when the next crisis comes?
Will you cower in fear, or will you rise up to meet the challenge?
Editor’s note: While this article received some “negative coverage” in terms of some deeming it “fear porn”, we want you to view the information and then make up your own mind based upon all the material written below. One thing we did do was to go to one of the big “Think Tanks” called, Brookings Institution, and found some information that we’ll share here as quoted by their article:
“America in 2025 may also be significantly older. The number of seniors and boomers already exceeded 100 million this past decade. Should these trends continue, America in 2025 may have cities that can’t support their aging citizens; transportation infrastructure ill-equipped to meet the needs of young or old, and a gap between rich and poor that could grow with our population. We could be living in a less prosperous society. Indeed, our national prosperity in 2025 might depend on whether we master this demographic change and leverage its possibilities in two fundamental ways.”
With no reserve currency, who will take care of these elders? With no industries and jobs off-shored in addition to the TPP (a corporate coup d’etat), who will be able to work?
Article by Mac Slavo below:
With economic malaise on the horizon and any number of triggers ready to set things into motion, military site Deagel.com recently posted their The site, rumored to be a FRONT for various alphabet intelligence agencies, says that America will soon see a large reverse migration as those who came here seeking riches and safety will emigrate out of the country following a serious, multi-year crisis.
According to the report the economy of the United States will dwindle from a GDP of $17.4 trillion today to just over $800 billion in the next 10 years – a decline of about 95% with respect to the goods and services produced within our own borders. Such a decline would be staggering, but it’s not the most ominous aspect of the report.
According to Deagel, the real concern is the adverse effects on our population, which is currently just under 319 million. If the forecast, which does not include the possibility of war or widespread pandemic in its analysis, is accurate then America may experience an event so massive that some 78% of our population would be wiped out, leaving just 68 million people living on American soil by 2025.
The key element to understand the process that the USA will enter in the upcoming decade is migration. In the past, specially in the 20th century, the key factor that allowed the USA to rise to its colossus status was immigration with the benefits of a demographic expansion supporting the credit expansion and the brain drain from the rest of the world benefiting the States.
The collapse of the Western financial system will wipe out the standard of living of its population while ending ponzi schemes such as the stock exchange and the pension funds. The population will be hit so badly by a full array of bubbles and ponzi schemes that the migration engine will start to work in reverse accelerating itself due to ripple effects thus leading to the demise of the States. This unseen situation for the States will develop itself in a cascade pattern with unprecedented and devastating effects for the economy.
Jobs offshoring will surely end with many American Corporations relocating overseas thus becoming foreign Corporations! We see a significant part of the American population migrating to Latin America and Asia while migration to Europe – suffering a similar illness – won’t be relevant. Nevertheless the death toll will be horrible. Take into account that the Soviet Union’s population was poorer than the Americans nowadays or even then. The ex-Soviets suffered during the following struggle in the 1990s with a significant death toll and the loss of national pride. Might we say “Twice the pride, double the fall”? Nope. The American standard of living is one of the highest, far more than double of the Soviets while having added a services economy that will be gone along with the financial system. When pensioners see their retirement disappear in front of their eyes and there are no servicing jobs you can imagine what is going to happen next. At least younger people can migrate. Never in human history were so many elders among the population. In past centuries people were lucky to get to their 30s or 40s.
The American downfall is set to be far worse than the Soviet Union’s one. A confluence of crisis with a devastating result.
Video Commentary from Crush The Street:
With the predicted mass migration and drop in economic productivity will come other changes, according to Deagel. Military expenditures will drop significantly from $756 billion annually to $7.2 billion, and population density will drop from the current 33 inhabitants living per square kilometer to just 7 people taking up the same space ten years from now.
The report is certainly controversial, especially given that the source is unclear. The site claims to be a ‘Guide to Military Equipment and Civil Aviation’ that is maintained by private individuals who have no relationship whatsoever with the government. But some sources have reported that Deagel has done business in one form or fashion with various intelligence groups.
Thus, we publish this report with some hesitation and a healthy bit of skepticism, yet find it compelling enough given the current global environment that it may be of interest to readers.
The idea that a major depopulation event in the United States can happen as a result of a widespread crisis is a topic we’ve covered previously. The Center For Security Policy published a report in 2010 outlining the dangers posed by a targeted electro-magnetic pulse (EMP) attack against the United States. According to that report, which has been shared with Congress, up to 90% of Americans could die within a year:
And experts forecast if such an attack were a success, it effectively could throw the U.S. back into an age of agriculture.
“Within a year of that attack, nine out of 10 Americans would be dead, because we can’t support a population of the present size in urban centers and the like without electricity,” said Frank Gaffney, president of the Center for Security Policy.” (source)
Above photo taken from The Georgia Guidestones
An EMP threat is certainly a completely different set of circumstances than an economic collapse, at least initially. But as survival author James Rawles notes in his fictional, yet quite believable, account of economic collapse in his widely popular book Patriots: A Novel Of Survival In The Coming Collapse, the notion that the economic system could break down to such an extent as to cause a major die-off in America is a distinct, albeit improbable, possibility.
In fact, the U.S. government has been training for just such a scenario in recent years, a concern highlighted by popular radio talk show host Mark Levin:
I’ll tell you what I think they’re simulating.
The collapse of our financial system, the collapse of our society and the potential for widespread violence, looting, killing in the streets, because that’s what happens when an economy collapses.
I’m not talking about a recession. I’m talking about a collapse, when people are desperate, when they can’t get food or clothing, when they have no way of going from place to place, when they can’t protect themselves.
There aren’t enough police officers on the face of the earth to adequately handle a situation like that. (source)
Though Deagel.com makes some seemingly outrageous claims in their 2025 Forecast, within this context the possibility of a major depopulation event begins to look more and more probable.
The Economic Collapse| Sometimes I think that I sound like a broken record. I am constantly using phrases such as “get prepared while you still can” and “time is running out”. In fact, I use them so often that people are starting to criticize me for it. But the truth is that only a small percentage of people out there are actively taking steps to get ready for what is coming. Most of the country is not prepared at all. In many ways, it is just like 2007 all over again. There were many people that could see what was about to happen and were doing all they could to warn people, but most did not listen. And then the great financial crisis of 2008 struck and millions of people lost their jobs and their homes. Unfortunately, the next great wave of the economic collapse is going to be even more painful than the last one. It is imperative that people get prepared for what is on the horizon, but for the most part it is just not happening.
A lot of it has to do with the fact that we have such short memories and such short attention spans in America today. Thanks to years of television and endless hours on the Internet, I find myself having a really hard time focusing on anything for more than just a few moments. And we are accustomed to living in an “instant society” where we don’t have to wait for anything. In such a society, we are used to “news cycles” that only last for 24 hours and very few people take a “long-term view” of anything.
And another one of the big problems that we are facing is something called “normalcy bias”. The following is how Wikipedia defines it…
The normalcy bias, or normality bias, refers to amental state people enter when facing a disaster. It causes people to underestimate both the possibility of a disaster occurring and its possible effects. This often results in situations where people fail to adequately prepare for a disaster, and on a larger scale, the failure of governments to include the populace in its disaster preparations. The assumption that is made in the case of the normalcy bias is that since a disaster never has occurred then it never will occur. It also results in the inability of people to cope with a disaster once it occurs. People with a normalcy bias have difficulties reacting to something they have not experienced before. People also tend to interpret warnings in the most optimistic way possible, seizing on any ambiguities to infer a less serious situation.
Over the past several years, the U.S. economy has been relatively stable. And that is a good thing. But it has also lulled millions upon millions of people into a false sense of security and complacency. At this point, most Americans consider 2008 to be a temporary bump in the road, and most assume that the U.S. economy will always be strong.
Unfortunately, that is not the truth. As I have written about previously, the long-term trends that are destroying our economy have continued to get worse since 2008, and none of the problems that caused the last financial crisis have been fixed.
We are steamrolling toward the edge of an economic cliff, and most people in our entertainment-addicted society are totally oblivious to what is going on. So they are not doing anything to get ready for the immense economic pain that is coming. The following are 16 signs that most Americans are completely unprepared for the coming economic collapse…
#1 Could you come up with $2000 right now? According to a shocking study that was just released, most Americans could not…
Forty percent of individuals in the U.S. said they could not or probably could not come up with $2,000 if an unexpected need arose, according to research by Atif Mian of Princeton University and Amir Sufi of the University of Chicago Booth School of Business.
#2 In that same study, Americans were asked the following question…
“Do you have 3 months emergency funds to cover expenses in case of sickness, job loss, economic downturn?”
An astounding 60 percent of people that responded said that they do not.
#3 Another study found that less than one out of every four Americans has enough money stored away to cover six months of expenses.
#4 Some people are actually trying really hard to get ahead, but admittedly that is really tough to do when we are all being taxed into oblivion. In fact, it was reported this week that Americans now spend more on taxes than they spend on food, clothing and housing combined.
#5 Right now, more Americans are dependent on the government than ever before. In fact, according to the U.S. Census Bureau, 49 percent of all Americans live in a home that currently gets direct monetary benefits from the federal government.
#6 It is estimated that less than 10 percent of the entire U.S. population owns any gold or silver for investment purposes. That is a stunning number.
#7 It has been estimated that there are approximately 3 million“preppers” in the United States. But that means that almost everyone else is not prepping.
#8-16 The following are nine more statistics that come from a survey conducted by the Adelphi Center for Health Innovation. As you can see, a significant portion of the population is not even prepared for a basic emergency that would last for just a few days…
What do you think is going to happen to these people once the economy collapses and there is chaos in the streets?
How are they going to survive?
After all of these years of writing about the coming economic collapse, nothing has changed as far as the long-term outlook is concerned.
We are still heading toward a complete and total economic meltdown.
But most Americans continue to have faith in the system, and the mainstream media keeps assuring them that everything is going to be just fine.
And in this “dumbed-down” society of ours, most people are perfectly content to let others do their thinking for them. In America today, only one out of every six Americans can even find Ukraine on a map of the world. That is how far we have fallen.
In this day and age, it is imperative that we all learn how to think for ourselves. The foundations of our society are crumbling, our economic system is failing and the blind are leading the blind. If we do not learn to make our own decisions, we are just going to follow the rest of the herd into oblivion.
In addition, we all need to start taking a long-term view of things. Just because the economic collapse is not going to happen this month does not mean that it is not going to happen. When you step back and take a broader view of what is happening, it becomes exceedingly clear where we are heading.
Sadly, most Americans will never do that.
By Susan Duclos
The usually bustling roadways in the Atlanta metropolitan arearesembled a scene in a post-apocalyptic world during and after Tuesday’s snow and ice storm.
Cars abandoned at odd angles on side streets, thoroughfares and major interstates. People in this car-dependent city walked for miles, hunched over and huddled from the cold. Many had no coats, hats or gloves.
“It was a like a scene from The Walking Dead,” said Maura Neill, 38, referring to the television series about a post-apocalyptic world overtaken by zombies.
“I’m eight months’ pregnant and have my 3-year-old with me,” Atlanta-area resident Katie Norman Horne said onSnowedOutAtlanta, a Facebook page set up to help stranded motorists.
“We’ve been in the car for over 12 hours. We are fine on gas but is anyone near on the road and might happen to have any food or some water?”
In Atlanta, 940 accidents were confirmed, with more than 100 of them involving injuries, the Georgia public safety commissioner said.
In Alabama, at least five people died Tuesday in weather-related traffic accidents. The governor deployed 350 National Guard troops to help motorists.
Students camped out with teachers in school gyms or on buses and commuters abandoned cars along the highway to seek shelter in churches, fire stations — even grocery stores — after a rare snowstorm left thousands of unaccustomed Southerners frozen in their tracks.
The governor of Iowa, Terry Branstad, has called on President Barack Obama to act as bitter winter weather caused a shortage of propane heating fuel and a massive spike in prices in some of the coldest regions of the US.
Propane is used by more than 12m households across the country, according industry statistics, and its shortage has led to a state of emergency being declared in more than 30 states. Prices are up more than 17% from a year ago, according to the US Energy Information Administration.
Ahead of the president’s State of the Union speech, Branstad has written to Obama expressing his concern about a crisis now sweeping the midwest: “Prices in some midwest locations have now exceeded $5 per gallon. Such prices are unsustainable for families, farmers and businesses,” he wrote.
A Timeline Showing the Deterioration of Major Industries Following a Truck Stoppage
The first 24 hours
• Delivery of medical supplies to the affected area will cease.
• Hospitals will run out of basic supplies such as syringes and catheters within hours. Radiopharmaceuticals will deteriorate and become unusable.
• Service stations will begin to run out of fuel.
• Manufacturers using just-in-time manufacturing will develop component shortages.
• U.S. mail and other package delivery will cease.
Within one day
• Food shortages will begin to develop.
• Automobile fuel availability and delivery will dwindle, leading to skyrocketing prices and long lines at the gas pumps.
• Without manufacturing components and trucks for product delivery,
assembly lines will shut down, putting thousands out of work.
Within two to three days
• Food shortages will escalate, especially in the face of hoarding and consumer panic.
• Supplies of essentials—such as bottled water, powdered milk, and
canned meat—at major retailers will disappear.
• ATMs will run out of cash and banks will be unable to process
• Service stations will completely run out of fuel for autos and trucks.
• Garbage will start piling up in urban and suburban areas.
• Container ships will sit idle in ports and rail transport will be disrupted, eventually coming to a standstill.
Within a week
• Automobile travel will cease due to the lack of fuel. Without autos and busses, many people will not be able to get to work, shop for groceries, or access medical care.
• Hospitals will begin to exhaust oxygen supplies.
Within two weeks
• The nation’s clean water supply will begin to run dry.
Within four weeks
• The nation will exhaust its clean water supply and water will be safe for drinking only after boiling. As a result gastrointestinal illnesses will increase, further taxing an already weakened health care system.
This timeline presents only the primary effects of a freeze on truck travel. Secondary effects must be considered as well, such as inability to maintain telecommunications service, reduced law enforcement, increased crime, increased illness and injury, higher death rates, and likely, civil unrest.
By Michael Snyder
A few days before the Christmas holidays, the Joint Welfare Association published a report on the regional development of poverty in Germany in 2013 titled “Between prosperity and poverty—a test to breaking point”. The report refutes the official propagandathat Germany has remained largely unaffected by the crisis and is a haven of prosperity in Europe.
According to the report, poverty in Germany has “reached a sad record high”. Entire cities and regions have been plunged into ever deeper economic and social crisis. “The social and regional centrifugal forces, as measured by the spread of incomes, have increased dramatically in Germany since 2006,” it says. Germany faces “a test to breaking point.”
For many families, personal finances have reached a catastrophic level – they are left to make terrible choices:
These are the kind of decisions that people across the nation are grappling with every day.
A personal economic collapse is a little different than the major crises you see all over Europe right now, where huge segments of the population can’t feed their children or stay employed. It is a crisis that just hits your family due to a given set of circumstances. (In actuality North Americans are on the brink of the kind of collapse that is occurring in Europe, but because of easy access to credit and a buy-now, pay-later society, many of us still have the appearance of prosperity.)
Times are tough but you can survive this.
Don’t say to yourself, “Well, I usually don’t spend $400 on clothing so that isn’t realistic.” If you spent it, then it’s realistic. You are averaging together two months, which should account for those less common expenses. Brutal honesty isn’t fun, but it’s vital for thisexercise.
If your finances are out of control, the best possible reality check is a stark look at what necessities really are. It is not necessary to life to have an iPhone, a vehicle in both stalls of your two-car garage, or for your children to all have separate bedrooms. People in Southern and Eastern Europe right now will tell you, as they scramble for food, basic over the counter medications like aspirin, and shelter, that necessities are those things essential to life:
Absolutely everything above those basic necessities is a luxury.
Reduce your monthly payments by cutting frivolous expenses. Look at every single monthly payment that comes out of your bank account and slash relentlessly. Consider cutting the following:
We live in a disposable society. Food comes in throw-away containers. People replace things instead of repairing them. If you throw out more than a couple of bags of garbage each week, that’s a very good sign that you may be wasting resources.
Before throwing anything away, pause and think about how it might be able to be reused.
The price of food is skyrocketing. Who hasn’t been to the grocery store recently and been shocked at the high price of that cart full of groceries or at the mysterious shrinking food packages that are the same price as yesterday’s larger ones?
Energy rates are skyrocketing. As the prices begin to rise, more and more people will be unable to pay their bills and eventually their power will be shut off. Check your bill each month and as prices increase, use less power. Try some of these ideas to reduce your reliance and drop your bills.
How do you intend to weather the storm?
There are bleak days ahead. Have you planned for this? What strategies do you intend to use to weather the financial crisis that is coming for all of us? What suggestions do you have for families who are undergoing their own economic collapses? Please post questions and ideas in the comments section below.
About the author: Daisy Luther is a freelance writer and editor. Her website, The Organic Prepper, offers information on healthy prepping, including premium nutritional choices, general wellness and non-tech solutions.
The following article was written by Brandon Smith and originally published at Alt-Market.com.
The summer season is often about renewed hope and revelry in comfort, and this goes for economic comfort as much as anything else. In parallel to the old tale of The Ant And The Grasshopper, we are all tempted to act like the grasshopper, forget about the trials and tribulations of the world and take a vacation from awareness.
I am seeing quite a lot of this in the past month as mounting global tensions appear to have subsided. But appearances can be deceiving…
I am reminded of the summer of 2008 when those of us in alternative economic analysis were warning of the overwhelming evidence of a debt based deflationary disaster. There seemed to be widespread complacency back then as well. September finally struck and reality began to sink in, and the rest is a history we are still dealing with to this day. Right now, economic optimism is desperately clinging to news headlines rather than data fundamentals, but this can just as easily sink markets as it can keep them artificially afloat.
Consider the numerous powder keg events coming our way over the next few months and what they will mean for economic sentiment if they go the wrong way.
Federal Reserve Meeting June 12-13
The next week will be packed with public statements from various Fed officials which may hint at how aggressive the central bank will be for the rest of the year in its tightening program. However, I think I can guess rather easily what they will do. The Fed has been sticking to its policy of interest rate hikes and balance sheet cuts as I predicted they would for the past couple years. Nothing has changed under new Fed chairman Jerome Powell.
I believe the June meeting will mark an important mid-year shift for the Fed into even more aggressive fiscal tightening. The mainstream media has been heavily pushing the idea that stagflation is now a true threat to the U.S. economy. This is a notion I actually agree with and have been warning about for quite some time.
As I mentioned in my article ‘Stagflationary crisis: Understanding The Cause Of America’s Ongoing Collapse’, when the mainstream finally admits to a specific fiscal threat which has been gestating for years, we should be concerned, because this likely means a crisis is already upon us.
The Fed will use talk of stagflation as a springboard for accelerated rate hikes, and more importantly, expanded balance sheet reductions. I have no doubt the Fed will raise interest rates again in June, which will disappoint the contingent of stock market traders who were hoping recent poor economic data would influence the central bank to back off. This is not going to happen.
When new balance sheet data comes in at the end of June I expect reductions will be noticeably higher, triggering renewed instability in equities. The Fed, of course, will not make such a move in a vacuum, though. They will need some form of geopolitical distraction.
International Trade War Will Not Be Denied
Despite rhetoric coming from Treasury Secretary and Goldman Sachs alumni Steve Munchin, the ongoing trade war will not be “taking a break”. Supposed impending deals between China and the US are already falling apart, and Donald Trump is distancing himself from the Mnuchin peace train and indicating discontent with China yet again.
On the surface, trade war escalation seems to have been averted, based on the promise that China will “purchase more U.S. goods” in order to reduce existing trade deficits. Of course, with the climbing dollar (and simultaneous rising prices), purchasing more U.S. goods may be a problem for many countries, including China.
The stagflationary crisis building in America does more than just give the Federal Reserve an excuse to pull the plug on its fiat support of stock markets. It will also be the perfect excuse for foreign buyers to further reduce purchases of U.S. goods based on the argument that they are becoming too expensive.
The Chinese offer to buy more from America is an empty offer. There will be little to no follow through and when deficit numbers increase, markets will react negatively.
The focus on the China/U.S. deficit also distracts from further strife in NAFTA trade dealings (of which Mnuchin has said there are “significant issues”), as well as trade with Europe.
Ultimately, this is headed towards bilateral agreements between China and European nations further cutting out the dollar as world reserve. In fact, the Chinese state run media is suggesting just this strategy as a means to counter what they call ‘U.S. trade unilateralism.’
I do not expect the peace and love theater to last through the summer. The trade war will resume well before Fall.
North Korean Peace Summit Farce
As I warned in my article ‘Syria And Iran Prove There’s No Chance For North Korean Peace’, globalists only ever use peace agreements as a staging period for further war. In that article I also suggested that disruptions to the peace summit with North Korea would arise and that the U.S. would make demands North Korea cannot or will not fulfill. Already we are seeing cracks in the facade as North Korea complains about U.S. involvement in South Korean war games as well as potential de-nuclearization.
NK has now let fly statements on Vice President Michael Pence’s “stupidity” while threatening a nuclear showdown. Trump has openly stated that the summit could be delayed or may not happen at all. Those who argued with me that a successful summit was a “done deal” and Trump was on his way to a Nobel Peace Prize should now reconsider their positions and not quit their day jobs. Again, North Korean denuclearization will NEVER happen; not without a war.
The optimism building around the North Korean summit was rather bewildering to me. The idea that even in the liberty movement people were actually buying into this as viable is disconcerting, because it shows a lack of awareness of the bigger picture.
What we have here, folks, is a carrot and stick approach for the American collective psyche. Tensions are ratcheted up around the world, economically and politically, and then we are given a short reprieve, a moment to take a breath. But, this generally does not last very long as these moments are usually based on false information and assumptions, and the tension is increased yet again. Eventually, something breaks.
Even if the North Korea summit actually takes place and concludes without incident (that’s a BIG “if”), and even if the Trump administration declares “mission accomplished,” there will be no follow through on the part of North Korea as far as disarmament. Count on it.
Beyond that, consider the timing. The original time for the summit to take place was on the same day as the Federal Reserve’s June meeting. Would it not be rather convenient for a failed summit outcome to occur while the Fed hits stock markets with another interest rate hike and a large balance sheet cut? Once again, the Fed will dodge blame for stocks plunging another 1200 points or more as international politics takes center stage.
Iranian Peace Agreement Merely A Pause For War Prep
The Iranian peace agreement is now in tatters with Israel on the war path in the region and the U.S. supporting assertions of Iran nuclear development that are still backed by no evidence whatsoever. Many of us remember the outright lies of WMD’s in Iraq which led to the second Gulf War, and the Iranian situation smells of the same exact deception. In fact, some of the same neo-con players from those days are lurking in the White House now, including John Bolton.
With the destabilization of Syria well on the way after western intelligence agencies funded, armed and trained insurgents who would later form ISIS and wreak havoc in the country, Iran’s primary strategic partner is now on the verge of collapse. The direct targeting of the Assad regime is next as the war on ISIS con game has subsided. Russia is also conveniently pulling many of its troops out of Syria opening the door to invasion by other interests.
Any invasion of Syria with the intent to unseat Assad will likely cause an Iranian response, and perhaps this is the goal; to lure Iran into an aggressive posture, thus justifying war.
The timing of growing conflict with Iran should not be overlooked. We have oil prices now rising despite a strong dollar index and continuing oversupply, which adds to the stress over stagflation concerns. And, we also have a potential geopolitical disaster which could provide perfect cover for central banks to continue their decoupling from stock markets without receiving any blame for the consequences.
The Summer of 2018 continues to look like a staging period for considerable economic volatility to come, much like the summer of 2008 was 10 years ago.