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Thursday, February 14, 2013

SHTF and Chaos Just A Little Bit Closer

This week is no different that the last 52 finding the world in turmoil, perhaps just a bit more as the U.S. Economy continues to degrade and all of us are just a little closer to a Economic Collapse than ever before.

Greater chances of a multi-nation war in the Middle East closing off as much as 25% of our oil imports. Israel crossed in Syrian air space to attack Syrian troops. Syrian rebels, backed in part by Al Qaida, took the side of th Syrian government who has been massacring them. When, not if, but when the Syrian rebels succeed in driving Assad from power, Israel will have a much more hateful enemy on their northern border.

Prior to the attack Iran stated that any attack on Assad and Syria is an attack on Iran. It doesn't matter that Iran did nothing yet in retaliation for the Israeli strike, this makes Iran much more likely to plunge the Middle East and some of our oil imports into chaos with terrorist and/or nuclear strikes on Israel. Add in the Syrian chemical weapons threat and the situation is dire.

North Korea and Kim "Baby Face" Jong-un are planning another nuclear test. China is bashing about Japan and threatening conflict over a series of islands in the South China Sea. A shooting war here, even short lived, could be a global economic collapse trigger.

Then you have the situation in the United States,.......

2012 4th Quarter Gross Domestic Product data showed that the economy slowed or contracted to 0.1% growth. Furthermore, the previous 3rd Quarter growth was adjusted to 1.5%. It is very troublesome that multiple sessions of money printing, called Quantitative easing, has failed to stimulate any growth. Exports and consumer confidence are way down as well. Discretionary spending cuts of over $1 Trillion due to the "sequestration" and the large tax burden being placed on the people courtesy of obamacare with a 10%+ health insurance premium hikes all spend doom and gloom for the future. Not the far off future, "let's kick the can down the road aways" future, but the very near future.

This past years drought, adding to the recent agricultural woes combined with the predictions of continued drought and poor harvests add to the concerns over very high food prices and diminished availability. Many are expecting food riots, especially if Federal entitlement cuts reduce food stamp and welfare output.

And then the threat of internal turmoil, to what extent nobody really can even guess. But on the smaller scope, the factors of (probable) sociology-ethnic trouble over the Supreme Court soon reviewing Obama's birth certificate and social security card for authenticity makes upheaval in major cities,....Chicago, Detroit, Los Angeles, St Louis and others seem like a distinct possibility. The socialist bent threats or plans to enact some sort of weapons ban or even confiscation bring a dire future into focus.

Lastly, if Congress doesn't pass a budget, the Pentagon will have to absorb $46 Billion in spending restrictions for this fiscal year.  Overall, the military will furlough 800,000 civilian workers for up to 22 days each throughout the rest of the FY, and, lay off 46,000 temporary and contract employees.  Secretary of Defense Panetta said, "These steps would seriously damage the fragile American economy,......".  Imagine what the sequestration will do if the Military has to reduce forces putting tens of thousands of service members out on the street?  

2 comments:

  1. If Israel is attacked in any substantial way it is likely they will be forced to use nukes to defend themselves. Israel is so small you can stand in the center and see the borders on the East and West. They cannot afford to "absorb" an attack they must act quickly and decisively in the face of a major attack. The Middle East has been a podwer keg for decades and Iran and Syria have upped the ante.

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  2. Excellent analysis. You can add the inevitable stock market bubble getting ready to burst and the complete lack of leadership in our government. I don't worry about the collapse, I prepare for it.

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